DTC POD - Izzy · Castmagic

Weekly Newsletter

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🎞️ Clipfinder: Quotes, Hooks, & Timestamps

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"Navigate an Exit with Confidence: As a D to C brand, you need real time financial visibility to save money and make better decisions."

"Choosing the Right 3PL Partner": "Are they the right partner for my product, and are they going to be able to scale with me as I grow? What are the things that you should be looking out for as a brand when you're looking to work with the Three PL?"

"Top Brands in the eCommerce Space: Who's Working with Three PLs, Who's Going Direct, and What Carriers Are They Working With?": "If you give us the inside, you can walk us through how a lot of top brands in the space operate, like who's working with three PLs, who's going direct, and what carriers they're working with. What experiences do certain types of products have with other carriers?"

"Shipping Costs: What Should We Expect to Pay for Different Types of Products?": "We know that shipping costs are a major input cost, but let's go through different types of products and what should we expect to be paying to ship various types of products at the different scales of your business."

"Optimizing Shipping for Online Brands": "But at the end of the day, if you don't have your shipping optimized, every product you're getting online, you're shipping, right. That's an input cost to it. Just like you pay for all your other costs to source it, to market it, everything. And when you're able to really know what you're doing, you're like at scale. These are numbers that really become exponential.”

🔑 7 Key Themes

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💬 Keywords

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shipping, consulting, small businesses, Shippo, Easy Ship, Pirate Ship, online accounts, carriers, Third-Party Logistics (3PL), ecommerce sales, warehousing, volume, customized agreements, resellers, SMB accounts, negotiations, carriers, transit time, rates, competitive advantage, cost per acquisition, competitors, payment terms, cash flow buffer, general rate increases (GRI), termination language, 3PL and carrier partners, FedEx EB, increasing costs, redelivering, residential surcharges, contracts, misleading volume projections, fuel costs, carrier partners, Amazon, discount, different carriers, lightweight services, home delivery LTL, regional carriers, major carriers, 3PL providers, cost breakdowns, industry peers, outgrow contracts, California-based ecommerce companies, minimum charge, dimensional divisor, surcharges, top search orders, product mix, FedEx, UPS, negotiation, revenue, shipping costs, logistics costs, leverage, optionality.

Interview Breakdown

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📚 Timestamped overview

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04:28 Shipping costs as a percentage of revenue is 10%; ecommerce businesses should focus on negotiating the contract with the shipping carrier, giving themselves flexibility and optionality to ensure lower costs.

09:31 Create online account and use resellers to get best rates when shipping. Leverage reseller or SMB account when business size is between 0-100,000. Over 100,000, leverage for better rates.

14:08 Ecommerce companies need to consult peers and ask for transparency about shipping costs and markup from Three PLs.

18:01 Ecommerce shipping depends on the product, but commonly utilizes lightweight services (such as Usps, FedEx, etc.) and regional carriers, offering discounts off published rates.

24:41 Answer: It's complicated for shippers under $10 million to leverage regionals, but it can give them optionality and reduced rates.

28:03 Shipping cost depends on service, volume, and contract negotiation.

31:34 Know yourself, know your carrier, understand your data, be prepared, expect no, know how they make money, contracts are complicated, understand the contract, everything is negotiable, and ask.

37:41 Negotiate discounts for lightweight and bulky items; be proactive about rate increases; check for extended delivery area surcharges.

42:21 FedEx EB has increasing costs and offers discounts for high order values, residential surcharges, and fuel percentage. Be honest about business volume to get better contract rates.

46:16 Increase shipping costs by negotiating with carriers and understanding general rate increases, termination language, and peak period costs.

❇️ Key topics and bullets

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Topics Covered: 1. Introduction to Speaker's Job 2. Options for Companies to Ship their Products 3. Importance of Online Accounts and Negotiation Rates 4. Using Third-Party Logistics (3PL) 5. Customized Agreements for Different Sized Companies 6. The Importance of Choosing the Right Carrier 7. Negotiating Payment Terms and General Rate Increases (GRI) 8. Anticipating Termination Language and Updating Carrier Agreements 9. Shipping Company Costs and Residential Surcharges 10. Carrier Partnerships for E-commerce Brands 11. Staying Competitive with Amazon and Industry Peers 12. Types of Carriers for Different Shipments Key Takeaways: 1. Choosing a 3PL 2. Cost Breakdowns and Transparency 3. Revisiting and Renegotiating Agreements 4. Diversifying Carrier Base and Using Regionals 5. Negotiating Shipping Rates 6. Understanding and Analyzing your Data 7. Reducing Shipping Costs 8. Avoiding Being Tied to a Single Carrier

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