As a DRTV marketer, the decisions you make about fulfillment and shipping significantly affect your customer service cost.
When you opt to save money by paying the lowest shipping costs, this result in slower delivery and worried customers who contact your customer service department to find out what’s going on. This then creates an influx of calls for your customer service team, bogging down their productivity. Worse, when customers are upset about slow delivery, returns and costly chargebacks are frequent.
Unfortunately, as your DRTV marketing company likely knows, better delivery speed comes with additional shipping costs.
Carrier Surcharges Inflate Your Shipping Costs
Did you know there are up to 30 different types of additional surcharges that some major carriers add to a package?
These surcharges are the prime reason why your DRTV marketing shipping costs end up being higher than what you were originally quoted. Here are some of the most common surcharges you need to avoid to keep your shipping costs down:
- Additional handling – $8.50
- Address correction – $12.00
- Delivery area surcharge – $0.50-$3.40
- Extended residential delivery area surcharge – $3.65
- Fuel surcharge – variable running in the range of 6.5% to 7.5%
- Oversize – $55.00
- Residential delivery charge – $3.20
- Dimensional weight – Based on size and weight combinations where package is too light for the box size
As a DRTV marketer, it’s your responsibility to know what triggers carrier surcharges like the ones above.
Focus On Finding The Right Speed To Ship A Product
It’s true that the faster your DRTV marketing customers receive their orders, the happier they are with your services. But be wary of carriers advertising, “Speed, speed, speed.” This is a blanket statement about how they ship the fastest, and it always comes at a cost to your DRTV marketing company.
Focus on finding an order fulfillment company that understands how to ship packages smartly. The right balance of speed and delivery should be based on two things: the product and the customer demographic.
For example, if your customer orders something expensive or an item that solves an immediate problem, they probably want it fast. This type of customer demographic typically doesn’t have the patience for you to ship the product using a slower method to protect your profit margins.
An order fulfillment company focused on smart shipping helps your DRTV marketing company monitor how delivery speed relates to customer needs and expectations.
How Does Your DRTV Marketing Company Know The Right Amount To Charge For Shipping?
When you don’t know the total amount of shipping charges until you get your invoice, it’s difficult to charge the right amount for your DRTV marketing products and shipping fees.
That’s why you need to partner with an order fulfillment company capable of custom building a TMS(transportation management system) that:
- Compiles the shipping rules contained with each carrier’s service guide and contracts
- Modifies anything custom that you have negotiated with each carrier
Once this information is captured, your order fulfillment company needs to program the TMS to report a surcharge in advance of you giving the package to the carrier.
This way, your TMS helps to ensure your DRTV marketing company is avoiding surcharges while also charging your customers the correct amount of shipping and handling upfront.
Ready to keep your DRTV marketing shipping costs low and give your customers the very best speed of delivery? Call 800-808-3304 or click here to speak with a DRTV marketing expert at Moulton Fulfillment.