July 2024 USPS Shipping Changes: What You Need to Know

Starting July 1st, 2024, USPS is implementing new shipping rates for various services and packages. Here’s a detailed look at what’s changing:

USPS Shipping Changes: What You Need to Know

Ground Advantage

• Price Increases for Packages Over 1 Pound: Rates will rise by up to $2.11, particularly affecting packages in the 1-5 pound range.
• Price Increases for Packages Under 1 Pound: Rates will increase by up to 33 cents for zones 6-8.
• Cubic Pricing: Ground Advantage Cubic rates are increasing by up to $1.67.

Priority Mail

• Weight-Based Rates: Prices will increase by up to $3.10.
• Cubic Rates: Expect an increase of up to $2.97.
• Flat Rate Prices: These will go up by as much as $1.18.

Discount Adjustments

• The maximum discounts available for USPS compared to Retail Pricing will drop from 89% to 88%.

Additional Changes Effective July 14th

• Media Mail Rates: These will increase by up to 56 cents.
• Signature Confirmation: The cost is going up by 20 cents, bringing the total to $3.70.

These changes are universal across all platforms where you can buy postage online.

Best-In-Class Rates with VESYL

‍Despite these increases, VESYL continues to offer the best-in-class shipping rates through its partnership with USPS and other carriers. Our goal is to streamline your shipping operations, providing discounted rates for a silky smooth fulfillment process.

Navigating the Changes

By staying ahead, you can make the best informed decisions for your shipping needs. Utilize VESYL’s simple rate shopping feature to compare rates and make informed decisions on the best options for your shipping needs, whether you're shipping 1 or 1000's of packages a day.

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Want to learn more about VESYL's smooth shipping software? Book a demo with us or read more.

Within the world of e-commerce, customer expectations are far from slowing down. In fact, customers expect their orders faster than ever, putting increasing pressure on businesses to optimize their fulfillment processes. 

One strategy to help streamline operations and meet customer demands more effectively is order splitting. In this article, we will explore what order splitting is, why it is used, the challenges, and how businesses can implement it successfully.

What is Order Splitting?

Ever had an order arrive in 2 separate boxes? Or only had half of your order arrive to have the other half delivered the following day? 

That’s order splitting.

Order splitting (split shipping) is the process of dividing a customer's order into multiple shipments. Instead of sending all items in one package, items are shipped from different locations or at different times, depending on their availability and the logistics involved. This can mean splitting an order between multiple warehouses or even sending part of the order immediately while waiting for other items to become available.

Why is Order Splitting Used?

Faster Delivery Times

One of the primary reasons for order splitting is to reduce delivery times. If a customer orders multiple items, and one of them is out of stock at the nearest warehouse, the entire order might be delayed if shipped together. By splitting the order, available items can be shipped immediately, ensuring faster delivery for part of the order. However, to avoid customer frustration, be sure to communicate this so customers are not left wondering if the other part of their order has been lost or forgotten.

Inventory Optimization

Order splitting allows businesses to optimize their inventory management. By shipping items from multiple locations, companies can balance stock levels across warehouses, reducing the risk of overstocking or stockouts in any single location. This leads to more efficient use of inventory and storage space.

Cost Efficiency

Shipping costs can be a significant expense for e-commerce businesses. Order splitting can help reduce these costs by allowing items to be shipped from the closest warehouse, minimizing shipping distances and costs. Additionally, it can help avoid expedited shipping fees that might be necessary if waiting for all items to be available at a single location.

Use the VESYL USPS Zone Map for a clear breakdown of shipping zones and costs. 

Improved Customer Satisfaction

By splitting orders and shipping available items immediately, businesses can improve customer satisfaction. This demonstrates a commitment from the brand to deliver orders to their customers as quickly as possible and when communicated well, can foster further trust and brand loyalty. This partial fulfillment can be especially beneficial during peak shopping seasons when delays are more common.

Challenges of Order Splitting in E-commerce

Increased Complexity

Order splitting can add a layer of complexity to the fulfillment process. Businesses must have systems in place to manage multiple shipments, track inventory across various locations, and ensure accurate order processing. This can require robust order management software and efficient coordination between warehouses.

In VESYL, you can view these split orders in the Orders tab. They will show the same order number but will show different tracking numbers and shipping information.

Higher Shipping Costs

While order splitting can reduce shipping costs in some cases, it can also lead to higher costs if not managed properly. Multiple shipments mean multiple shipping fees, which can add up if not carefully monitored. Businesses need to analyze zones and shipping costs and determine the most cost-effective way to split orders.

Customer Communication

Effective communication with customers is crucial when splitting orders. Customers need to be informed about the multiple shipments, expected delivery times, and any additional tracking information. Failure to communicate clearly can lead to confusion, dissatisfaction and reduced brand loyalty.

Inventory Management

Order splitting requires precise inventory management to ensure that items are shipped from the correct locations. Inaccurate inventory data can result in delays, stockouts, or shipping errors which can make or break a customer relationship. By leveraging inventory management software and ensuring it is up to date, brands can mitigate these risks. 

Simplified Order Splitting with VESYL

With VESYL, it’s simple to split orders and view shipping information in one place. Simply navigate to orders, select edit and split. From here, shippers are able to move items between the order split and can ship the split orders using different rates and carriers. This is particularly useful for stores who have one item of the order out of stock, or if one item is particularly large or heavy and it is cost effective to use a different carrier to the rest of the order. 

For a step-by-step guide to order splitting on VESYL, head on over to our Help Desk. For a complete demo of order splitting with VESYL, schedule a call and we’ll show you the ropes. For any questions, feel free to email us at hello@vesyl.com.

Conclusion

By enabling faster delivery times, optimizing inventory management, and potentially reducing shipping costs, order splitting offers significant advantages. However, businesses must also carefully navigate the challenges.

With the right systems and strategies in place, order splitting can become an effective tool in e-commerce operations, helping businesses stay competitive in an incredibly fast-paced environment. 

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A complete guide to order splitting on VESYL.

With the average return rates for e-commerce stores between 20-30%, according to Shopify,  return logistics can no longer be overlooked. Not only does smooth returns enhance the customer experience, but also removes costly and timely bottlenecks for brands. In this guide, we'll dive into the world of return logistics, exploring best practices and strategies.

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The Importance of Return Logistics

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Return logistics are the processes involved in handling product returns, exchanges, and refunds in the e-commerce ecosystem. The inability to touch, try and see items in person first, make returns an inevitable part of e-commerce. Whether it’s due to sizing or fit issues, a defective or faulty item, or a number of other potential reasons, providing a smooth returns process can enhance your brand reputation, customer loyalty and give you the competitive edge. Think of it as the brand's opportunity to shift a negative experience into a positive and memorable one. 

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Best Practices in Return Logistics

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Clear and Transparent Return Policies

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A clear and transparent return policy removes the guesswork and lets your customers know exactly what to expect if they need to return or exchange an item. This increased transparency builds trust with customers and leads to loyal customers. 

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The return policy should be easily accessible on your website. Some brands choose to include it in a drop down menu on the product listing itself along with sizing and product information. This enables customers to make informed decisions without needing to search the website or contact the CX team. 

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A clear and transparent returns policy needs to include:

• The time frame for returns and exchanges period. Most customers expect a 30 day return policy.
• The conditions required for all returned products.
• If you have different policies and requirements for different products, make sure these are clearly outlined and communicated. 
• Clearly outline any return costs. Free returns are a big draw for online shoppers. Brands can also outline different costs for different return reasons, such as the customer is required to pay the return fees if the reason for return is that they changed their mind. However, for a faulty or damaged product, the brand covers the return fees. 
• Give clear step-by-step instructions on how customers can initiate a return. Include key information about whether they need to return the item in the original packaging, where they can locate the return label and once again the condition the item needs to be returned in. (For more straightforward returns, leverage VESYL’s QR codes, allowing customers to download the QR code and take it to their local drop off point, without needing to print any labels.)

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Simplified Return Processes

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Streamline the returns process by providing multiple return options like online returns, in-store returns, or drop-off locations. This accommodates varying customer preferences and situations, ensuring convenience and flexibility. For example, Amazon's "Online Returns Center" simplifies returns with a user-friendly interface, allowing customers to initiate returns swiftly and effortlessly. By diversifying return channels and leveraging user-friendly platforms, businesses can optimize the returns experience, reduce friction, and ultimately foster stronger customer relationships. Brands can also leverage returns software to centralize return tickets in one place, provide a simple user interface for customers to use and provide detailed information on the progress of the return. 

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Within shipments on VESYL, under actions, you can create a return label on a shipment, allowing you to quickly and easily get return labels over to your customer to return an item.

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Efficient Return Handling

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To optimize efficiency in return handling, it's essential to invest in streamlined procedures that minimize processing time and costs. Automation tools and dedicated teams play a crucial role in managing returns promptly and accurately. By leveraging automated return processing systems, like ASOS does, businesses can efficiently handle high volumes of returns, mitigating manual workload and reducing processing time. This not only enhances operational efficiency but also ensures timely resolution for customers, leading to improved satisfaction and retention. Embracing technology and implementing efficient workflows are key strategies to increase efficiency in return management, ultimately driving better outcomes for both businesses and customers.

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Encouraging Exchanges Over Returns

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By offering incentives such as free return shipping labels for exchanges or store credits, businesses can incentivize customers to opt for exchanges, retaining revenue and fostering positive relationships. For example, brands can offer a gift card for a slightly higher value than the original purchase to encourage customers to continue their journey with the brand. Finally, by leveraging easy-to-use exchanges software allows customers to quickly pick the product size, color or type they wanted to exchange for. This streamlines the process by reducing the need to speak to a CX representative and providing the customer with the options at their fingertips.

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In Conclusion

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With the increase in online shopping, the demand for excellent customer service and quicker resolutions, mastering return logistics can set your brand ahead in an increasingly competitive landscape. By implementing best practices such as clear return policies, simplified processes, and encouraging exchanges, businesses can streamline their return logistics while providing exceptional customer experiences. Remember, prioritizing exchanges over returns not only reduces the strain on your team but also strengthens customer relationships, ultimately driving long-term success.