Zone Skipping Strategies to Reduce E-Commerce Shipping Costs
For e-commerce operations, low shipping costs and delivery speed are key to profitability and customer retention. According to the 2016 UPS Pulse of Online Shopper study, of more than 90 percent of buyers who reported abandoning shopping carts, at least half cited unexpectedly high shipping costs as the reason for doing so. Reducing shipping costs to boost customer retention is key but more difficult today than ever, in lieu of dimensional weight challenges and other pricing pressures from parcel carriers.
Implementing a sortation strategy known as zone skipping allows fulfillment centers to assume some of the handling steps typically required of carriers, thereby reducing shipping costs and increasing delivery speeds. Orders are pre-sorted at the fulfillment center before being turned over to the carrier. This means orders can bypass sortation at local or regional hubs and instead be delivered closer to their final destinations.
Successful zone skipping starts with automated sortation systems separating the orders based on carriers and destinations. Selecting the right sortation system for your operation requires consideration of throughput rate, future demand and more.
Download the white paper to learn how the zone skipping strategy is applied and determine the best-fit sortation technology for your operation, based on criteria such as packaging type, footprint, labor availability and throughput requirements.