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Keep the Shipping Spend Under Control and Manage Your Shipping Online Like a Pro: 5 Metrics to Use

If you want to keep the shipping spend in order and manage your shipping like a real pro, here are 5 essential metrics we highly recommend you to use!

Data is really important to understand and determine how much shipping costs. Knowing exactly what your business ships, how much the products weight, where the package goes, and how long it takes is the ultimate step to creating a shipping profile and finally understanding how you can extend your shipping dollars.

However, with so much data out there, it can be a real challenge to determine which numbers really matter. Determining and understanding the most commonly used key performance indicators or also known as KPIs is without a doubt a great way to begin. Everyone who is responsible for a budget knows that you can’t really manage what you can’t really measure.

In this article, we will discuss how to manage your shipping online like a pro and how to keep the shipping costs under control. Tracking the following KPIs will give you helpful information and insight into your shipping costs that will encourage you to take an action:

  • Deliveries without errors and damages – Every customer expects its package to arrive at the front door on time. When they open the package, they want to find the products they have ordered online in the exact condition they have seen them online or untouched and new. If this does not happen, the customers will soon lose faith in your business. When items are returned, you must analyze and see whether a mistake was made by you or in-house. If the mistake was not made in-house, the shipping carriers may refund the shipment cost. You must always examine and check if the shipping company owes you in case if a package damaged or late.
  • On-time deliveries – Did you know that between 3 and 7% of the packages arrive late every single day? If shipping carriers miss the delivery time, they usually agree to refund the shipping cost. A lot of companies don’t have the time to review invoices for every single delivery so as long as the packages arrive on time or close enough they are satisfied.
  • On-time deliveries – Did you know that between 3 and 7% of the packages arrive late every single day? If shipping carriers miss the delivery time, they usually agree to refund the shipping cost. A lot of companies don’t have the time to review invoices for every single delivery so as long as the packages arrive on time or close enough they are satisfied.
  • Zone distributions – This is a measure of how far each package is traveling and how many of them are traveling one distance. Usually, the shipping carriers adjust rate structures with their zones which means that parcels that travel further cost a lot more. Also, these packages take longer. However, every popular online retailer today markets two-day shipping, usually at no extra cost. If most of your packages are traveling long distances, the shipping carriers may be passing the expenses on to you. By carefully tracking how much packages your business ships, you will get a sense of whether or not your needs are well served by the shipping carrier.
  • Fees – The fees are scattered throughout the shipping contracts which means that business owners who plan their budget on the contract rates will discover their projections short of actual costs. If you decide to review the invoices carefully can tell how much of your business’s shipping spend goes to value-added services and accessorials rather than the fees or rates both sides agreed to, for more information go to Shopify.com/shipping and learn everything you need to know about shipping fees .
  • Service Provider Responsibilities – More than 7% of the sellers said that their problem was poor customer service. If you are experiencing poor customer service and your carrier is delivering packages late that is a pretty serious problem for you and your buyers.

Keeping the shipping spend under control is really important. Using these tips is the first step for businesses seeking to reduce the shipping costs.