If you are the manager responsible for the logistics of an e-commerce to send goods to foreign countries (ส่ง สินค้า ไป ต่าง ประเทศ, which is the term in Thai), surely you have already faced the challenges of calculating and pricing freight. For a virtual store manager, the cost of freight can lead to problems such as abandonment: often the price of delivery to foreign countries is responsible for such abandonment.
If you do not want to lose business, continue reading. Here, you’ll check out four tips for controlling freight costs in e-commerce. Good reading!
- Understand how freight calculation works in e-commerce
The calculation of the freight price involves a number of variations. For the Post Office, for example, it includes the weight and dimensions of the object, in addition to the Postal Codes. This calculation is done in an automated manner, according to a predefined table.
- Have more than one carrier option
Many small companies only contact with one carrier. But large online retailers, which sell throughout the world, for example, enter into contracts or partnerships with carriers that operate locally and worldwide to achieve differentiated pricing and thereby reduce freight costs for e-commerce.
- Monitor all freight contracting
It is important to control all freight hiring of the online store – this makes it easier to know which routes the company may be losing on freight and also make comparisons and deductions that will help in decision making.
- Identify how to reduce freight costs
Know your average monthly freight cost by dividing the amount spent each month with this expense for the same period billing. With this number in hand, you can compare it with delivery costs for specific regions or for specific products. Items or regions that are above average spending need a cost-reduction strategy.