eFulfillment Advantages for Online Retailers

By March 25, 2013 e-Commerce Fulfillment

Use Least Cost Routing to Increase ecommerce Sales!

Online consumers are becoming increasingly savvy regarding shipping rates.  eCommerce retailers simply can’t just offer one method of shipping at a set price point.  Consumers now demand options based on price and speed of delivery.  Most noticeably, high shipping rates can often be directly correlated with high abandonment rates at the checkout point of your shopping cart.  Fortunately, there are also an increasing amount of shipping options for our ecommerce fulfillment clients, and the technology to determine what best fits.

We are in the process of rolling out ‘least cost routing’ to our efulfillment retailers.  This fulfillment technology allows ecommerce retailers to choose designated shipping methods and then automatically shop for the best rates between those methods.  For example, we have an ecommerce fulfillment client who ships either FedEx Ground Residential or FedEx SmartPost.  SmartPost is a hybrid shipping method that uses the USPS to deliver the final mile to the consumer.   Least cost routing with take into account weight, destination and transit time and automatically choose the best method according to these variables.  Having this technology allows the ecommerce site to show a decreased shipping cost often without sacrificing transit times…meaning increased ecommerce sales.  If your ecommerce fulfillment process cannot include least cost routing, better give TAGG a call!