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How do you navigate increasing shipping costs while maintaining a sustainable business model?
Shipping rates have increased significantly in recent years, becoming one of the biggest logistical challenges for many companies. According to the 2024 Logistics Analysis from Dansk Erhverv, 53% of businesses now identify shipping prices as their most pressing challenge in 2024, compared to just 39% in 2023.
Why are shipping prices increasing?
Several factors contribute to this trend.
In recent years, conflicts in strategically important trade routes - such as the Suez Canal and the Red Sea - have forced rerouting of shipping traffic, increasing both transit times and associated costs.
At the same time, global trade activity has surged, especially from markets in Asia and the United States, driving up demand for shipping capacity.
Shipping companies are also affected by fuel prices. Rising energy costs mean transporters are passing additional expenses on to businesses.
While there are signs of stabilization, businesses should expect elevated shipping rates to remain a reality in the near future.
What does it mean for you?
High shipping costs present a dilemma. Should your business absorb the added costs, or pass them on to customers by increasing shipping fees at checkout?
Absorbing the extra costs can reduce your profit margins and limit your ability to invest in growth and innovation.
However, raising prices for the end customer can also have serious consequences - especially if your products are price-sensitive. A price increase could reduce demand, although businesses with low price elasticity may find it easier to pass on the added costs.
More companies are also starting to diversify their shipping agreements. That means partnering with a broader range of carriers to offer more flexible delivery options. For you, this can result in more completed purchases - rather than losing customers to a competitor.
According to the logistics report, 54% of businesses today use at least three different carriers, up from only 36% in 2015. This adds flexibility and helps mitigate risks from sudden price fluctuations. On the flip side, it may reduce your bargaining power with each individual carrier, since your shipping volume is spread across multiple providers.
How can Shipmondo help?
At Shipmondo, we are shipping experts. We offer the smartest solution for fast and efficient shipping management. While you may not be able to control shipping prices, you can still save time and money by optimizing other parts of your logistics setup.
Our platform gives you access to a wide network of carriers, so you can ship with multiple providers at once - either using our shipping agreements or your own.
Here are three ways Shipmondo can help your business mitigate the risks of rising shipping costs: through our Delivery Checkout, automation, and digitization.
Optimize checkout with Shipmondo’s Delivery Checkout
If you want a checkout that offers multiple delivery options from various carriers, giving customers the freedom to choose the delivery method that suits them best, then our Delivery Checkout is ideal.
With a flexible solution and a wide range of shipping methods, you can significantly reduce abandoned carts. Customers get the choice they need, and if they select delivery to a service point, you can even let them choose their preferred pickup location.
Connect to Shopify, WooCommerce, or PrestaShop
If your store runs on Shopify, WooCommerce (WordPress), or PrestaShop, you can integrate our custom-developed Delivery Checkout. It’s built to support multiple carriers and delivery options at the same time - giving your customers more choice.
To help cover costs and increase your average order value, you can also adjust shipping prices at checkout based on order weight, total amount, or specific products.
Connect with Kustom Checkout
You can also connect Kustom Checkout (formerly Klarna Checkout) as your Delivery Checkout. It’s widely used in Sweden and an excellent choice if you run a Swedish version of your webshop.
Save time and money with Shipmondo automation
One of the fastest ways to cut both time and costs is to automate workflows and eliminate manual tasks where possible - so your team can use their time more efficiently. With a Shipmondo account, you get access to several automation tools.
Automatically print shipping labels
Do you currently print labels manually? With the Shipmondo Print Client, shipping labels are printed automatically as soon as you book a shipment. It all happens seamlessly - labels are ready right when the order is picked and packed.
Personal Messages
How much time does your support team spend updating customers about order status, returns, and tracking?
Keep your customers informed automatically with personalized messages throughout the order flow - for example, when the order is received, packed, or shipped. You can also send reminders to pick up parcels from the parcel locker, reducing the risk of return shipments. And you can keep customers updated throughout the return process.
You stay ahead, save time on support, and keep your customers happy and well-informed.
Grow with Shipmondo’s innovative digital solutions
You know the excitement of landing a big order. But if the delivery goes wrong - if the wrong items are shipped or if the order is incomplete - it can be costly in return expenses and internal handling time.
Reduce picking errors with our Digital Pick Path
With Shipmondo’s digital pick path and order check, brands like KiMs have reduced picking errors from 4% to almost 0%. That saves them substantial costs on returns, replacements, and admin time every month.
Pick up to 16 orders at once using a picking cart, guided by a screen with product images and a scanner to verify both product and quantity - ensuring complete accuracy.
Easy returns with our Return Portal
With a return portal from Shipmondo, your customers can register and send back their returns themselves - saving you valuable time to fulfill more orders.
Let customers manage returns online through a user-friendly interface. Offer refund alternatives like gift cards or exchanges, so the revenue stays with your business.
You decide whether and how much customers should pay for return shipping - right inside the return portal.
Gain full overview of incoming returns, and once a package arrives, you can handle the return and issue a refund with just a few clicks.
Powerful insights with Shipmondo Analytics
Get full insight into your shipping data and identify where you can cut costs with Shipmondo Analytics. For example, analyzing return data can reveal why customers are sending products back - so you can reduce returns and associated expenses.
Shipping costs are a critical success factor in e-commerce and logistics. A flexible and optimized shipping setup can make all the difference.
Want to reduce your costs with a smart, digital shipping engine? Use Shipmondo. View our full list of features and sign up for a free account to get started.
