Looking to reduce shipping costs? Then you are in good company!
The latest study on logistics by the Händlerbund, the German union of resellers, shows that 85 per cent of the polled eCommerce resellers seek to reduce shipping costs and optimise shipping. The Händlerbund study in question included 965 eCommerce resellers who were interviewed on the current developmens and trends in the area of packaging und shipping. The study conclusively points to the what matters most when it comes to selecting a shipping service provider in the eCommerce business: the top of the list is occupied by reliability (87 per cent), good value for money (73 per cent) and careful handling of goods (47 per cent).
Shipping costs are vital for success in eCommerce!
Quite a number of eCommerce resellers (85 per cent) are interested in reducing shipping costs. Our experience shows that especially international shipping costs show much room for optimisation and cost reduction. Many small and medium-size enterprises are not very successful when they try to reduce shipping costs. Shipment tracking is the second most valued serivce (40 per cent) when it comes to selecting a shipping service provider and a logistics solution. Judging by the numbers, a majority of eCommerce resellers still resort to letters as their logistics solution for international shipping. The main reason behind it is the lower shipping costs of a logistics solution with letters compared to shipping a parcel or using express shipping. That proves true even when registered mail has loopholes in its tracking and is not very useful to the recipient. Full steam ahead with “Tight is right”!
It is quite interesting that approximately every third eCommerce reseller (34 per cent) relies on just one shipping service provider. Almost half use two different shipping service providers (46 per cent) and only 16 per cent of the eCommerce resellers utilise shipping services of three separate providers. Our experience shows that most eCommerce resellers are swamped when it comes to integrating shipping service providers or shipping solutions into their workflow. Add to that the fact that splitting shipping volumes among various shipping service providers does not help to gain favourable conditions. In fact, several shipping service providers punish resellers with higher shipping costs in return. With c.b.c. logistics, a sender hat access to more than 25 logistics networks and various logistics solutions and all of this via one single platform, one single contact person and at very cost-effective shipping rates: for example to to Austra from 5.25€, to the UK from 6.25€ and to the USA from 8.55€ including insurance and tracking.
The favourites among the shipping service providers
Most eCommerce resellers use nutzen DHL (60 per cent) as their shipping service provider and their shipping solution, closely followed by Hermes (29 per cent) and DPD (25 per cent). Shipping by letter through Deutsche Post (10 per cent) is, as we see it, used to ship internationally or for shipping low-cost items. We are looking forward to seeing further impacts of the eCommerce market on the logistics solutions offered for parcel shipping. At any rate, the last-mile delivery by Amazon and other ideas of innovative startups are already causin enough headache to the establishe shipping service providers.
How to select the right shipping service provider
It is only logical that the two most influential factors in shipping when it comes to selecting a shipping service provider are reliability (87 per cent) and good value for money (73 per cent). Somewhat surprising, though, is the small numer of eCommerce resellers who expect good service (29 per cent). At the same time, almost every second eCommerce reseller (47 per cent) cites careful parcel handling as important when selecting a logistics solution.
We at c.b.c. logistics advise our customers on how to optimise shipping costs and select a logistics solution. The factors that are considered are:
- What kinds of goods are to be shipped?
- Who are the recipients?
- What service options are vital in the destination country?