3 Ways ECommerce Brands Can Lower Last-Mile Shipping Costs

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Oct 10, 2023

3 Ways ECommerce Brands Can Lower Last-Mile Shipping Costs

The cost of shipping can put a significant dent in retail margins, especially during the holiday season when peak demand surcharges are in place. A recent survey by Shippo found that nearly half of online sellers spend 10% or more of their total order value on shipping, while another third of sellers spend 6-10%. With the cost of shipping rising faster than inflation over the past few years and retail sales growth slowing, retailers are feeling the pinch.

AxleHire CEO Raj Ramanan recently spoke with Amy Wunderlin at Supply Chain 24/7 about three ways brands can reduce their last-mile shipping costs. Among other things, Raj suggests, “Make sure you fully understand what your actual cost per box would be in a peak season like the one we’re entering,” as carriers are likely to add fuel, residential delivery, and peak season surcharges that can increase the price per package by several dollars. Those charges are often buried in the fine print of contracts with the major carriers.

AxleHire has analyzed the pricing practices of major carriers going back several years, and that analysis is available here. With the way major carrier surcharges are structured, shippers often don’t know the actual cost of shipping a package until they see their monthly invoice. By contrast, AxleHire provides straightforward pricing without hidden markups. 

For more information on how AxleHire can help you get control of shipping costs while at the same time boosting service levels, contact one of our logistics professionals.