Inflation, USPS Increase cause Online Retailers to re-examine Delivery options

[mandy]

At the moment, the biggest challenge for online retailing delivery is inflation and oil prices they affect every transport-intensive business... However, this gives a huge leg-up to any retailer that is able to create significant in-store pickup business...

Web retailers need to understand the impact R2006-1 [planned 2007 USPS rate increase] will have on their business and be prepared to make changes in their packaging and transportation options... Web retailers who understand the importance of the delivery promise they make to their customers should begin to examine all available alternatives now. The Post Office rate case is complex; understanding the likely impact needs expert interpretation...

In the end, given the ever-increasing competition in Internet retailing, e-retailers will be looking for any kind of ways to differentiate themselves from their competitors and keep their customers coming back.

In surveys customers often rank shipping concerns as one of their top worries about their online purchases, Marinkovich says. So once a purchase decision has been made, keeping the delivery promise is a crucial component of maintaining and increasing customer satisfaction...

full article: http://www.internetretailer.com/article.asp?id=19110

[bargainbloodhound]

Web retailers need to understand the impact R2006-1 [planned 2007 USPS rate increase] will have on their business and be prepared to make changes in their packaging

The higher rates for non-flat 1st class packages means for CD shipments we'll either:

a) make the package flat and send them 1st class without delivery confirmation
b) continue sending 1st class with same packaging and raise prices (and/or shipping rates) to compensate for the higher USPS rates
c) switch to media mail and listen to customers grumble about delivery times

a. is out as an option because sending a package without delivery confirm. is an open invitation to some buyers to file a false nondelivery claim, so it'll be either b. or c. next May but b. is the most likely.

[xppman]

I think for Priority they have ALREADY padded the costs UP
and incorporated the new figures on the back end calculations
program on the Click and Ship website.

I've noticed a "jump" in Priority shipping cost to me
over the last month or so.

Especially to further destinations I send my products,
like to the west coast zones AK and HI.