Understanding e-commerce shipping
July 12 2023
Every online buyer wants free shipping. Ross Brenner from Profit Trust, a shipping auditing platform, shares insights on how companies can optimize their shipping costs to increase profit margins.
Every online buyer wants free shipping. In fact according to the latest state of digital report, free shipping was the most important purchasing trigger for e-commerce buyers, and a major cause of cart abandonments is shipping costs. So is Shipping a cost centre or an opportunity to improve profit margins ?
We spoke to Ross Brenner, Senior VP at Profit Trust, a Shipping auditing platform that helps companies optimise their shipping costs to increase profit margins.
Some ideas discussed :
- Insights on shipping with DHL, FedEx, and UPS
- Role of 3PL providers and opportunities to increase profit margins on shipping.
- Brand building myths
- The Future of E-Commerce: Offline as a loss leader for your digital storefront
Listen to the episode
Key insights
- Any brand that ships with logistics providers like DHL, FedEx and UPS loses out on refunds due to 30+ reasons. This can help the brand recover up to 15-25% of shipping costs.
- If you're using a 3PL logistics provider to manage fulfilment, you can try and negotiate lower rates as the 3PL with higher shipping volumes can help pass on the benefits to you and help improve your profit margins.
- Post purchase engagement with buyers is an often under rated strategy to increase customer LTV and improve profit margins.
- Lines between Offline and online commerce are blurring and offline storefronts are evolving to become loss leader marketing strategies for brands. They exist for potential customers to know about the brand and market its presence, but increasingly purchases are happening online.
- Embracing automation and technology is key to scaling a brand profitably.
About Ross Brener
Ross Brenner also serves as the managing partner of the NYC and Long Island offices, overseeing ProfiTrust's entire logistics division.
About Profit Trust
With a mission to ensure businesses pay the lowest possible rates for shipping, ProfiTrust has developed cutting-edge technology that revolutionizes the shipping process, enabling businesses to save significant costs without the need for carrier changes, vendor changes, or system changes.