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Case Study: Beauty & Cosmetics Shipping – 2017 Update

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Now we’ll look at some real-world shipping scenarios derived from ShippingEasy customer data (with all identifying characteristics removed) to examine the kinds of shipping methods used for actual shipments, versus what method would make sense given the rate changes coming in 2017.

  • Due to sometimes incomplete customer data (e.g., no weight provided when a seller used USPS Flat Rate or Regional Rate services), we have indicated assumptions and potential options where appropriate

All previously stated assumptions apply, e.g.:

  • These are primarily small-and medium-size eCommerce businesses, shipping between 1,000 and 20,000 shipments per month
  • We used available 2016 pricing data from each carrier:
    • USPS Commercial Plus® Pricing
    • FedEx Standard List Rates, including fuel and residential surcharges
    • UPS Daily Rates, including fuel and residential surcharges
  • Negotiated FedEx or UPS rates may make their services significantly more attractive in some of these scenarios

eCommerce Rate Case Study 1: Beauty & Cosmetics

Our first case is derived from a pair of online cosmetics retailers that ship high volumes of primarily small packages. As you can see, USPS was their most cost-effective option in 2016 and, despite price increases, will remain so in 2017. It’s interesting to note that in two of the shipments shown here, the shipper could reap considerable savings by simply taking advantage of USPS Regional or Flat Rate boxes.

Beauty & Cosmetics Shipping Mix

Shipping service mix for beauty and cosmetics company

When it comes to beauty and cosmetics, you can see that item delivery time isn’t as pressing for them as it would be in other industries. They also provide customers with a flat shipping rate, incentivize free shipping if an order becomes large enough.

Beauty & Cosmetics shipping changes going into 2017

Cosmetics Shipping Table

For 2017, our cosmetics company will be utilizing Flat Rate Shipping on their heavier orders, as well as Regional Rate boxes which both have the ability to ship heavier items at a lower rate, creating scenarios where they can save a lot of money on shipping.

This is from The eCommerce Seller’s Guide to 2017 Rate Changes from ShippingEasy:

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