Fuel, Fuel, Fuel
- As reported in the last few editions, the rising cost of fuel has a direct impact on inbound and outbound shipping costs. Spread across thousands of units may have a lesser impact on cost per individual unit. But on eCommerce parcels, the impact can be more noticeable. For example, that $10 air pkg you shipped just before Christmas, with a 10.75% fuel surcharge, tacked on an additional $1.08. Now, with a 18.5% fuel surcharge, it adds $1.85, or $0.77 more per package.
- It’s not just AIR parcels that are impacted. Ground parcels are also experiencing sharp increases.
- Where practical, avoid split shipments to fulfill orders. If you are in an out-of-stock position for one or more items that are soon due in, it may make sense to hold the order until all items are in stock.
- Review your carton selection and ensure your orders are being shipped in the smallest carton possible. Not only does this promote sustainability, but it may also reduce your shipment weight below the next applicable chargeable weight interval.
- Similarly, excess miscellaneous packaging materials can also increase weight and increase costs.
- Review shipping offerings, particularly free shipping programs, and how they tie to purchase thresholds.
- Review air shipment utilization and make changes where appropriate.