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 that took place for 2020.
Our jewelry shipping case study is derived from some online jewelry stores that ship high volumes of relatively small, typically lightweight packages. For these types of packages, USPS First-Class Package Service® is generally the best shipping option for packages under 15.999 ounces and USPS Priority Mail® the best option for packages of 16 ounces or more.
E-commerce Case Study: Jewelry Shipping
It appears as though one of the vendors in this group had great negotiated rates with UPS in 2019, but even in this case there’s an opportunity to save by using USPS PM in 2020.
Let’s look at the shipping services they will be using in 2020 and see how the 2020 shipping rate increases impact how they ship:
We can see that while the shipping costs when continuing to use the same service will increase in 2020, there are many opportunities to save significantly. When replacing UPS and FedEx shipping with USPS Priority Mail, these retailers can still hit the target delivery date while reducing costs. The amounts they save this way will completely offset the increases they will pay due to rate increases.
This case study comes from The E-commerce Seller’s Guide to 2020 Rate Changes from ShippingEasy.