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4 Tips to Minimize the Impact of Shipping Surge Pricing | TotalRetail

Shipping costs continue to be the No. 1 reason for cart abandonment, and this new “surge charge” won’t help. There are steps you can take to minimize the impact of this new surge pricing and help you sleep at night:

1. Realize the everything in your agreement is negotiable.

Standard carrier response will tell you otherwise, but case study after case study tells us differently. Technically, you can renegotiate your carrier program at any time, and it’s best to address new surcharges immediately as they’re announced. This new peak season surge pricing is negotiable, just like all components of a carrier agreement. Don’t wait for a quarterly review or contract renewal date, or let your carrier relationship get in the way of driving fair value for your organization.

2. Don’t accept or sign any addendum or pricing change until you’ve fully applied surcharges to your company’s specific distribution footprint.

Is this a surcharge that greatly affects your company’s operating costs, or is it an issue that’s not applicable to your actual shipping characteristics? Business intelligence is critical. Spend time and effort negotiating the items that are meaningful to your package demographic. Modeling new surcharges with custom shipping data is the surest way to detail potential cost increases and empower you to negotiate what matters. If you don’t have an effective audit and financial workflow platform to manage this major expense category, let us help.

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4 Tips to Minimize the Impact of Shipping Surge Pricing.