Ways to Save on Logistics

With recent threats of recession, it’s time to start thinking about ways you can cut down costs for your business. And what better place to start budgeting than looking for ways your e-commerce business can save on logistics?

The thought of enacting changes that can reduce expenditures can be intimidating. What if it also reduces the quality of your brand and product?

The truth is cost reductions do not have to comprise product and brand integrity.

Overflo is here to share with you the top three ways your e-commerce business can reduce logistics costs.

Reverse Logistics Management

As many business owners may know, reverse logistics is where a significant portion of a company’s profits can plummet. It usually puts the number in the negative and requires them to cover the cost of the return.

This has become such as rising issue that companies are looking for new ways to combat the problem. That is why switching the way a company manages reverse logistics is critical.

That is why the popular clothing retailer, H&M, is test-running a return model that requires customers to pay for their returns. But brands like Boohoo mitigate the possible customer dissatisfaction with this policy by making free returns an incentive of their premier program.

Utilizing Dropshipping

Dropshipping is another revolutionary way to mitigate the start-up costs of increasing inventory numbers and overall logistics. In the end, you will not have to worry about transferring shipping costs to the final consumer because the logistics involved to get the product to the consumer greatly reduces. If you utilize a high-volume supplier, you can often count on the fact that they will have an arrangement with the major shipping companies for better rates.

Offering Free Shipping

With the rise of Amazon prime in the last decade, customers have come to expect the same fast-paced delivery and free shipping from every retailer. Now, offering fast and free shipping may seem counterintuitive if you are trying to save on logistics. But if you take after the Amazon and now Boohoo model of memberships, you could see a tremendous return on investment.

One thing that should be clear is that the fee both Amazon and Boohoo propose does not cover shipping costs by themselves. But the membership works in a different way that incentivizes members to become frequent customers. Statistics show that 76% of shoppers look for free shipping options while shopping online. They like the feeling of knowing the face value of the cost as opposed to having to calculate mystery fees before checkout. With a membership that offers fast and free shipping customers often shop more at the retailer which in turn eventually covers all shipping costs the customer utilizes.

Don’t Manage Your Logistics Alone – Contact Overflo!

Overflo is a 3PL warehouse that services The Mid-Atlantic Area with premier logistics and warehousing services! Let us help you navigate the best and most cost-effective ways to manage your logistics matters.

Contact Overflo today to receive a free rate quote and find out more about our services!