If Amazon reduced shipping costs by just 1 percent, it would save $162 million. Amazon spent $16.2 billion on shipping in 2016. We can be certain that it is spending millions to improve and optimize its shipping processes. Ecommerce merchants can take advantage of Amazon’s efforts to increase profits.
Amazon’s 2016 shipping expense was 17.7 percent of direct ecommerce revenue. That’s $8.85 for every $50 order, which is achievable by most merchants.
This post, describes three strategies to fulfill like Amazon, even if you have a fraction of its scale and infrastructure
- Manage Carriers
- Manage Yourself
- More Choices, Urgency