Let’s 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 the occurred for 2020.
Clothing & Apparel is one of the business types that has a relatively easy time with shipping. Orders are usually light, non-fragile, and can be stuffed in poly mailers (as opposed to boxes) to save money on packaging. It’s not perfect, however, as clothing typically has a high return rate.
E-commerce Case Study: Clothing & Apparel Shipping
This case is derived from some small online apparel retailers that ship high volumes of primarily smaller packages (clothing articles). USPS was generally their most cost-effective option in 2019 and, despite price increases, will remain so in 2020.
The areas where these retailers were already smart is using USPS First-Class and Priority Mail. That’s where they will have to simply eat the increases. But you can see, the savings due to switching from FedEx Home Delivery to USPS Priority Mail can be substantial and taking advantage of opportunities like that can help offset the increases.
This case study comes from The E-commerce Seller’s Guide to 2020 Rate Changes from ShippingEasy.