In recent years, parcel carriers have also experienced supply chain issues.
Increasing costs due to labor shortages, inclement weather, and numerous other disruptions have caused major parcel carriers to increase their rates. The ever-increasing rates make order fulfillment more expensive for e-commerce businesses. Shipping costs may feel like the only option for many online sellers.
The following tips may assist internet retailers in delaying price increases.
1) re-examine express shipments
You don’t have to ship everything express just because your customers want two-day delivery. You can maximize your parcel shipping budget by using express services only when necessary.
2) use lighter dunnage
Consider using lightweight dunnage, such as air pillows, if possible.
3) change free shipping options
Shipping costs can be passed on to your customers without reducing free shipping. Consider offering free standard ground shipping and adding a surcharge for two-day, one-day, and same-day shipping.
4) diversify your delivery model
Shop around to find the best deal.
5) add more warehouses
Expanding your warehouse footprint is the best way to combat rising parcel rates in 2022.