HOW E-COMMERCE RETAILERS CAN BEAT THE USPS RATE INCREASE

Tuesday, January 22nd, 2019

USPS POSTAGE, Rates Increase, Fulfillment, 3PL

You can have the best product on the planet that’s getting lots of attention which converts into tons of sales, but if shipping costs eat up your profit, your business can get crushed. And the latest news from the USPS is about to rock your world!

On January 27, USPS will implement zone-based pricing for first class packages, with the average difference between Zone 1 and Zone 9 at a $0.50 increase. While that may not sound like much initially, imagine shipping 10,000 units of your great product to 10,000 different addresses. With the USPS increase that’s $5,000! See how this can quickly multiply into tens of thousands of dollars?

Click here for a chart provided by the USPS that outlines all of their increases. On this site, the USPS specifically states that the “Priority Mail Padded Flat Rate Envelope, a popular option for e-commerce sellers, is increasing by $0.45 to $7.55 in 2019 from $7.10 currently.” I’ve added the emphasis, because I don’t want you to miss this!

Additionally, a blog on mytotalretail.com calls this “the biggest rate increase in USPS history” and goes on to say: “For e-commerce and subscription trade organizations, steeper shipping prices have a direct impact on operating income and profitability. Beyond the obvious impact to the bottom line, shipping costs are a key factor for driving shopping cart abandonment.”

And that’s another great point that I can’t emphasize enough – you can have the greatest product out there, but if your customers don’t want to pay the shipping costs, you’ll lose their business at check-out. Read the full article here.

YOU (AND YOUR CUSTOMERS) DON’T HAVE TO OVER-PAY

But here’s the good news. You don’t have to pay these high rates! Fulfillment.com provides industry leading fulfillment rates and we offer variable fulfillment and storage fees so that as your order count increases, our fees decrease. This is great news because it’s likely that you’re currently spending nearly three times more on postage than you spend on fulfillment and storage fees. I know, because I used to be an e-commerce retailer myself. The reason I went into the fulfillment business was my frustration with the lack of shipping options at reasonable prices and I was determined to offer e-commerce retailers a better solution.

MULTIPLE LOCATIONS MEAN LOWER PRICES

Since the distance between shipper and consignee now affects your postage costs, bear in mind that Fulfillment.com currently ships from Savannah, GA and Las Vegas, NV. Soon, we’ll have five fulfillment centers on-line, and we’ll be able to deliver to 99.997% of the continental US population in 1-2 days by ground. This is an exciting development that will save you even more money!

UNPARALLELED SHIPPING PERFORMANCE

In 2018 with over 14 million orders shipped, our performance was unsurpassed:

  • Right Product – 99.9927% of all orders shipped with the correct product.
  • Right Time – 99.8237% of all orders shipped the day we receive them
  • Right Address – 99.9997% of all orders shipped to our client-provided addresses.

Don’t overpay on your shipping costs! Let us help you ship the right product, to the right address, at the right time – saving you money every single time!

 

Justin Singletary is a former Army Ranger and e-commerce retailer. He is the CEO of Fulfillment.com, a worldwide fulfillment company with a global logistics infrastructure that ships millions of B2B and B2C orders to more than 150 countries.