East Granby, CT, May 06, 2015 --(PR.com
)-- Tom Barone, Supply and Demand Chain Executive contributor reported that there is an increasing pressure on retailers to offer fast and/or free shipping as seen through promotions from Target, L.L. Bean, and Nordstrom this past holiday season. However, last year, Amazon spent approximately $6.64 billion on shipping while only receiving about $3.1 billion in payments for shipping, which raised concerns over how offering free or cheap shipping can become a significant cost.
Sponsored by Pcdata USA, Picking Perfection newsletter, shares methods, modes, and tools used in a variety of industries. The weekly newsletter examines best picking practices. Leaders are looking for a competitive advantage, have dynamic and experienced sales forces, and have a corporate culture which is customer-focused and intent on building long-term relationships with satisfied customers. This is spoiled when a single product is not correctly picked.
In a recent issue Barone’s comments included the fact that retailers must examine the costs vs. the gains of offering free shipping. Nothing is free, and at some point, profit margins need to be evaluated. The good news is that studies reveal that consumers will take action for free shipping. For example, shoppers will add more items to the cart to qualify for free shipping. In this case, the cost of free shipping becomes offset by higher average order values. Cost isn’t the only challenge, though. Speed plays a critical role, too.
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About Pcdata USA
Pcdata USA’s Pick-to-light systems are part of a lean process, offering shorter throughput, fewer errors, and significant cost savings; the results: increase customer satisfaction, increase ability to supply products, and process transparency. Traditional picking methods are one of highest expenses when operating a warehouse. Pcdata USA lowers that cost through leading edge Pick-to-light systems. Unlike implementation products, the easy installation solution is resulting in huge product growth throughout North America.
Pcdata USA is a global logistics systems leader for supply chain automation. Pcdata USA was recently named a Finalist for the 2015 MHI Innovation Award for Best New Product: Smart Glass AR (Augmented Reality). Pcdata USA was also recently recognized with the 2014 Best of East Granby Award in the Professional Services category by the East Granby Award Program. Pcdata USA offers affordable out-of-the-box warehouse optimization solutions. Contact Pcdata USA at (855) 844-1086. Follow Pcdata USA on Twitter @pcdatausa.