Logistics costs are related to the merchant’s pricing and whether consumers decide to buy the product. Of course, free shipping products can attract consumers to place orders. So, let’s take a look at how to calculate the logistics costs of Meikeduo orders and how to optimize logistics costs?
1. Meikeduo’s delivery cost requirements
Meikeduo’s delivery costs are composed of two parts: one is the management service fee charged by the platform, and the other is the specific fees of the courier company.
Specific to each order, Meikeduo often calculates the delivery costs based on factors such as product packaging size, net weight, and delivery address. Among them, the formation time of the logistics order is based on the delivery time of the Meikeduo platform.
In addition, for cross-border orders, Meikeduo will deduct the corresponding tariffs and value-added tax according to the tariff requirements of different countries. This fee will be listed in full when the order is paid.
2. Logistics cost calculation method
1. Method for calculating freight
Meikeduo signs a long-term cooperation agreement with the courier company and obtains a certain freight discount based on the order quantity and cooperation period. Therefore, the freight prices of the same courier on various e-commerce platforms may be different.
Meikeduo’s freight calculation is generally calculated by the larger value of actual weight or volume weight. Among them, actual weight refers to the weight of the package itself; volume weight refers to the “net weight” obtained by multiplying the cubic space occupied by the package by a certain ratio specified by the courier company.
For example, the actual weight of a product is 1kg, but the volume is large, and the courier company requires 1000 grams per cubic meter. Then the logistics freight of this product needs to be calculated as 2kg when calculated by volume weight.
2. Value-added service fees
In addition to basic delivery services, Meikeduo also provides some value-added services, such as insurance, door-to-door pickup, etc. All these services require additional service fees. For example, insurance premiums are generally charged at a certain percentage of the actual price of the product.
3. Internal delivery fees
Meikeduo will also provide internal logistics services, that is, Meikeduo will send products from warehouses or merchants’ stores to consumers. Compared with express delivery companies, this service is more flexible and convenient, but it requires additional delivery fees.
How to optimize logistics costs?
1. Reasonable packaging design
Reasonable packaging design can minimize the volume and weight of the packaging, thereby reducing logistics costs. In addition, the packaging must meet the requirements of the express delivery company, otherwise it will be rejected or a certain “illegal processing fee” will be charged.
2. Reasonable choice of logistics methods
For orders with urgent arrival time, more expensive but faster logistics methods can be selected, such as EMSS, SF Express, etc. And for some non-urgent orders, ordinary express delivery methods with more affordable prices can be selected.
3. Reasonable choice of logistics companies
Different logistics companies have great differences in delivery costs and service levels. Therefore, merchants can choose the logistics company with the highest cost-effectiveness and guaranteed service quality according to actual needs and order quantity.
4. Strengthen warehouse management
Excellent warehouse management can allow Meikeduo to run more smoothly during logistics transportation. Scientifically arrange inventory, improve warehousing processes, strengthen warehouse inventory, etc. It can effectively improve warehousing and logistics.
5. Strengthen internal logistics management
Reasonable scheduling of internal distribution can also effectively reduce logistics costs. By establishing a systematic distribution process and improving the service efficiency of distribution personnel, it can reduce distribution costs and enhance consumer experience.
Generally speaking, the logistics costs of Meikeduo are calculated based on factors such as product packaging size, net weight, and delivery address. In order to optimize logistics costs, merchants can start from reasonable packaging design, reasonable selection of logistics methods, selection of logistics companies, strengthening of warehousing management, and strengthening of internal logistics management.