Last mile shipping costs can be a significant expense. According to Statista, last-mile delivery costs account for 41% of total shipping costs. Managing this part of cost of your operation for fulfilling your customer’s orders is crucial for all eCommerce operators.
There are a couple key drivers for the final shipping cost:
- Weight and size of your product: Larger and heavier items naturally cost more to ship. This is because they require more space on the courier and often incur additional handling fees.
- Proper packaging: Proper packaging is key to protect your goods, avoid spoilage and minimize return costs. Packaging materials also add to the cost for the overall shipment.
- Distance: Other than courier fuel, the further your delivery distance is, the more likely it will incur more operational expenses such as labour, handling or other administrative expenses. Your last mile shipment costs likely increase with the delivery distance.
- Shipping speed: If you need your products to arrive quickly, you’ll likely pay a premium for expedited or overnight shipping services. These options often involve priority handling and faster transportation methods.
- Fuel prices: The cost of fuel directly impacts shipping rates as it is usually a direct pass-through cost component from courier to shipper.
We understand these factors have significant impact on the bottom line of all eCommerce operations, and our target is to offer a solution that gives transparency and data to operators on their key factors. Based on real time and historical data, our embedded predictive model should give operators options to best optimize their fulfilment operations.
Please stay tuned for more updates.
