E-commerce exploded in 2020 as the COVID-19 pandemic fundamentally altered the way consumers shopped for everything from home essentials to holiday gifts. As merchants sought to keep pace with the increased demands and parcel shipping volume, many explored new ways to reduce shipping costs. Some found out the hard way that hybrid mail services relying on order consolidation is problematic.
In his latest article at Forbes, Logistyx President Ken Fleming dives into the shortcomings of this approach:
“Hybrid mail services from alternative carriers using order consolidation, on the other hand, promise cost reductions (according to Logistyx clients, as much as 50%) on traditional USPS services, but often lead to massive delays and lost customers. They cut costs by combining very-low-cost bulk freight services with USPS last-mile delivery, consolidating tens, hundreds or more USPS orders into one or more less-than-truckload (LTL) shipment(s). Later, they directly inject those parcels into the USPS-serviced last mile.
These services work fine for companies sending promotional and marketing materials to customers and prospects. In these cases, recipients have no stake in how long the parcels take to reach them. While e-commerce merchants love the idea of cutting USPS spend by 50%, those who widely roll out these services for e-commerce fulfillment usually abort or scale back these efforts quickly after becoming aware of very serious problems resulting from these slower and sometimes difficult-to-track deliveries.”
Read Ken’s full article, “Hybrid Mail Shipping Services Disappoint E-commerce Customers,” for the nitty-gritty on why these services fail to meet expectations and jeopardize customer relationships.
Ken’s other articles at Forbes are also worthwhile reads.