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Case Study: Automotive Parts Shipping

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Our final shipping rate case study involves automotive parts. Much like food and beverage, automotive parts come in all sizes and weights, however they don’t share the same perishable qualities as food does. Also, a large section of automotive parts customer base isn’t consumers, but businesses and mechanics needing parts for the cars they are working on.

eCommerce Rate Case Study 4: Automotive Parts

Our fourth case is derived from a pair of online automotive retailers that ship high volumes of relatively large, sometimes dense, often bulky packages. This case illustrates that when we get into heavier packages FedEx can sometimes beat USPS, even assuming USPS CPP and FedEx Standard rates. Retailers dealing in larger/heavier packages with decent volumes and no delivery timing commitment requirements should definitely explore potential negotiated rates with UPS and FedEx. Also, as noted, they may have some significant opportunities to reduce costs by optimizing their packaging to allow use of Flat Rate or Regional Rate containers.

Automotive Parts eCommerce Shipping Mix

automotive_parts_shipping_overview

Automotive parts come in all shapes, sizes, prices, and work with mechanics and other business, hence the need for dynamic and guaranteed shipping options. To handle less urgent customer demands, they offer standard shipping free to customers as an option.

Automotive Parts shipping changes going into 2016

automotive_parts_2015_vs_2016

As you can see Priority Mail rates are leading to an increase in shipping, but some savings can be had moving over from FedEx Home over to Priority Mail as well when you add in the surcharges applied by FedEx. One piece of information unknown is what rates our seller has negotiated with their FedEx rep, as rates are likely lower on FedEx Home shipments if negotiations have been made.

 

Conclusion

As you can see, if our sellers were previously using Priority Mail to ship orders, they will be having a slight increase to average order shipping cost. A lot, however, can see savings by moving off of private carriers and moving to Flat Rate or Priority Mail when new private carrier surcharge and rate increases are a factor. It’s likely if a seller is high volume, they will have the ability to negotiate better rates from their account rep, but that can be seen as a negative aspect to private carriers are the lowest rates possible from USPS do not require negotiations if you ship with a software solution like ShippingEasy.

Read the previous case studies if you want to see how shipping rate changes affect different business types in eCommerce:

This is from the eCommerce Seller’s Guide to 2016 Shipping Rate Changes by ShippingEasy:

Shipping_Rate_Guide_2016_Download

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