Retail & eCommerce

Optimizing the Shipping Equation

So when did shipping become free? It certainly is not free to you, the eCommerce merchant. In fact, because of the competitive dynamics of the industry, what was once a small profit center has now become one of the largest cost items on your P&L. So how long will it be before shipping is free all the time, every time … BOTH ways? DMG can help you manage these costs in a rapidly changing environment, putting you back in control of the shipping equation.

Case Study - Eddie Bauer

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Situation: Eddie Bauer’s eCommerce business had grown rapidly and the Company was finding its shipping costs out of control. They needed help understanding what was driving their costs across multiple channels, both in-bound and out-bound.

DMG Solution: DMG built a comprehensive shipping model, with actual data at the package level, to determine Eddie Bauer’s Carrier Cost to Serve (CCS). We then utilized this data as the basis for negotiating a new carrier agreement providing the Company with millions in annual savings while maintaining service levels.

Case Study - MyPublisher.com

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Situation: MyPublisher.com is a rapidly growing e-Commerce company that had relationships with three carriers (UPS, FedEx, DHL). The Company realized they were overspending on shipping, but did not have the expertise or resources to pursue a world-class shipping strategy.

DMG Solution: DMG worked closely with the Company to develop an RFP process which resulted in aggressive offers from all three carriers. The Company consolidated its business with one carrier, resulting in significant savings and improved service levels. A member of DMG’s senior management team was on-site throughout the transition to ensure a seamless process. MyPublisher.com also took advantage of DMG’s auditing services for additional savings.

Case Study - Perry Ellis

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Situation: Perry Ellis utilizes DMG’s small parcel auditing service. By mining the package level shipping data we realized that the Company’s rapidly growing eCommerce business was shifting the cost mix towards small parcel.

DMG Solution: DMG worked with the Company’s existing carriers to construct agreements that incorporated the eCommerce growth, both domestically and internationally, resulting in millions in annual savings.

Case Study - Wakeside.com

dmg cs wakeside

Situation: Wakeside is a radily growing eCommerce company. Because of the nature of its products (board sports and related gear), the shipping costs per shipment are significant. To stay competitive with local board sport shops, Wakeside had to find a way to reduce the cost of shipping product to customers.

DMG Solution: DMG was able to work with the Company’s existing carrier to restructure its agreement to save the Company more than 20% on its shipping costs, while simultaneously improving service levels to customers.