How to optimize Meikeduo’s delivery costs and logistics expenses?

As the leading e-commerce platform in Latin America, Mercado Libre provides sellers with a variety of delivery methods, and delivery costs and logistics fees are one of the factors that sellers need to focus on during their operations.

Meikeduo delivery cost calculation

The delivery cost of Meikeduo platform depends on the shipping location and delivery destination, store level and delivery method (self-delivery or Meikeduo overseas warehouse (FBM)).

Self-delivery

In the self-delivery mode, sellers can use the official freight calculator provided by Meikeduo platform to accurately calculate delivery costs. In addition, the seller’s store Reputation level is also an important factor affecting delivery costs. Stores with higher Reputation levels enjoy more discounts and exemptions.

Overseas Warehouse (FBM)

Both Meikeduo’s Mexico station and Chile station support the overseas warehouse model. The basic distribution cost of merchants using the overseas warehouse model consists of first-leg freight, regular warehousing fees and last-mile delivery costs. The last-mile delivery cost for each product depends on the weight and dimensions of the item, as well as the level of its store. In order to encourage merchants to better develop overseas warehousing business, the platform will reduce last-mile delivery costs by 50% based on store level and product quotation, with discounts of up to 50% available.

Logistics cost calculation method

Meikeduo’s logistics fees consist of two parts: one is the management service fee charged by the platform, and the other is the specific fee of the express company. For each order, Meikeduo will often calculate the delivery fee based on factors such as product packaging size, net weight, and delivery address.

How to calculate shipping costs

Meikeduo’s freight calculation generally uses the larger of actual weight or volumetric weight. Among them, the actual weight refers to the weight of the package itself; the volumetric weight refers to the “net weight” obtained by multiplying the cubic space occupied by the package and a certain proportion specified by the express company.

Value-added service fees

In addition to basic delivery services, Meikeduo also provides some value-added services, such as price insurance, door-to-door pickup, etc. All these services are subject to an additional service fee.

Internal delivery charges

Meikeduo will also provide internal logistics services, that is, Meikeduo will send products from warehouses or merchant stores to consumers. Compared with express delivery companies, this service is more flexible and convenient, but it requires an additional delivery fee.

Methods to optimize logistics costs

In order to optimize logistics costs, merchants can start from the following aspects:

• Reasonable packaging design: Reasonable packaging design can minimize the volume and weight of the packaging, thereby reducing logistics costs.
• Reasonable choice of logistics method: For urgent orders with arrival time, you can choose a more expensive but faster logistics method; while for some non-urgent orders, you can choose a more affordable ordinary express method.
• Reasonable selection of logistics companies: Different logistics companies have great differences in distribution costs and service levels. Therefore, merchants can choose the logistics company with the highest price-performance ratio and guaranteed service quality based on actual demand and order quantity.
• Strengthen warehouse management: Excellent warehouse management can allow Meikeduo to run more smoothly during the logistics and transportation process. Scientifically arranging inventory, improving warehousing processes, strengthening warehouse inventory, etc. can effectively improve warehousing and logistics.
• Strengthening internal logistics management: Reasonable scheduling of internal distribution can also effectively reduce logistics costs and improve consumer experience.

Conclusion

By in-depth understanding of the delivery fee calculation method of Meikeduo platform, sellers can better formulate logistics strategies, improve service levels, reduce costs, and stand out in the fiercely competitive e-commerce market.