What is Parcel Consolidation and how does it save money for eCommerce Businesses ?
Parcel consolidation is a simple process, but a very powerful one. Parcel Consolidation with Smooth Parcel can save your online retail business real money.
Parcel Consolidation allows you to get express courier delivery service for postal delivery costs.
The reason that it works is simple – express couriers like UPS, DHL, FedEx and SF Express charge for shipments in weight bands which are quite wide.
Most international express couriers have a minimum charge which is the same for all parcels up to 500g, they then charge in 500g increments up to 4 or 5kg and for parcels bigger than that they charge in 1kg increments.
As you can see in the table below that can mean that you pay for an awful lot of weight that you didn’t even ship!
By packing all of these parcels into one package for shipment from your warehouse to the destination country you pay for only 10Kg of total shipping instead of 13.
And most express couriers charge less per Kg for a 10Kg shipment than for a 500g shipment.
In fact, at Q4 2021 UPS business rates for shipping from Hong Kong to the UK – consolidated shipping in this way would save you of over $(US)100 on just 12 shipments.
Of course, you need to pay for the local delivery as well as the international shipping, but with UK delivery rates at just $4.75 for a delivery up to 5Kg with Royal Mail or as low as $3 for Hermes there is still plenty of saving left over for you to keep as profit.
Smooth Parcel is the subsidiary of eTail Support that provides consolidated shipping software and services to clients
