Hidden Costs Impact Businesses
Friday, November 21, 2008
Endicia(R) Survey Shows Many Companies Are Unaware Of Full Costs Of Shipping
PALO ALTO, Calif., Nov. 21 /PRNewswire/ -- In the midst of a receding
economy with increasing commodity prices and high fuel costs -- and the
holiday shipping season right around the corner -- many businesses are seeing
rising shipping costs. A recent Endicia(R) survey of more than 500 small
businesses that sell goods online reports that 84 percent have seen their
annual shipping costs increase this year.
The survey also reveals that more than 40 percent of these companies have
incurred a fuel surcharge from their shipping carrier. At the same time, more
than one third (34 percent) of the surveyed businesses did not know if their
shipping provider had instituted a fuel surcharge.
Fuel surcharges of private carriers range from 8.25 percent of shipping
costs (for ground service) up to 28.5 percent of shipping costs (for air
service). Unlike private carriers, the USPS attaches no fuel surcharge to any
of its shipments. Additionally, through approved online postage vendors like
Endicia, the Postal Service offers competitive shipping services to private
carriers.
"The shipping service a business uses can have a profound impact on the
bottom line and should be a high priority on the expense review," said Harry
Whitehouse, Endicia's chief development officer. "Now, with DHL announcing
its retreat from the domestic U.S. market, shippers have fewer choices, making
the cost savings offered by the USPS and Endicia even more critical to a
company's shipping mix."
For example, according to the U.S. Postal Service online postage price
calculator, a 2-pound package shipped overnight 600 miles to a residential
address on a Saturday will cost the shipper $24.65. With a typical private
carrier, the higher base rate and surcharges would bring the cost to over
$72.00 -- residential delivery ($2.35), Saturday delivery ($14.50) and fuel
surcharge ($16.52). The Postal Service does not charge extra for residential
or Saturday delivery. Nor does the USPS charge an address correction fee --
another common private carrier surcharge that can tack on as much as $6.00 per
address.
"As you can see, the surcharge costs alone may be more then the actual
price of shipping the package," explained Whitehouse. "By shipping with the
U.S. Postal Service through online providers like Endicia, businesses have a
great way to cut their costs."
The lower base cost is only one of the ways the U.S. Postal Service helps
companies save money on shipping. The Postal Service offers exclusive
discounts to customers purchasing their postage through an approved online
vendor like Endicia, saving shippers up to an additional 3-8 percent on
certain classes of postage over retail prices. These special online
discounts, coupled with Endicia's easy-to-use software, create a winning
business proposition that allows shippers to further reduce their shipping
costs with the USPS compared to retail.
Endicia boosts the USPS online shipping and pricing options by adding
significant enhancements, such as database integration, batch processing, and
reporting tools -- all comparable to services offered by private carriers.
Endicia is ideal for e-commerce, including online sellers, fulfillment
providers and retailers with lightweight shipping needs -- for instance, eBay
sellers, jewelry dealers and resellers, clothing retailers, toy retailers and
more.
According to Endicia's survey, companies that spend more on shipping tend
to pass that fuel surcharge on to their customers. Nearly 60 percent of
surveyed companies that spend under $500 each year on shipping absorb the fuel
surcharge themselves. For companies spending more than $10,000 annually on
shipping, it's the opposite -- approximately 60 percent pass the fuel
surcharge on to customers.
"We all want to reduce costs so we can keep our prices low in this
economy," said Whitehouse. "We're happy to offer businesses a means to ship at
significantly lower costs -- especially during the holiday season."
For more information on Endicia and cost savings for businesses, go to
http://www.endicia.com.
Fuel surcharge percentages based on November 3-November 30 published rates
on http://www.fedex.com and http://www.ups.com. Private carrier rate figures
based on cost calculator rates on http://www.ups.com.
About Newell Rubbermaid Technology
In a world that demands greater productivity and measures it at every
opportunity, Newell Rubbermaid's global technology solutions provide
businesses, educational institutions, and consumers with innovative and easy
ways to share, manage and organize information with improved efficiency and
satisfaction. Our global technology brands are organized into four platforms:
-- The Specialty Printing and Labeling Platform is comprised of DYMO(R)
labeling, postage printing and CD/DVD printing solutions
(http://www.dymo.com).
-- The Analog to Digital Platform is comprised of CardScan(R) business
card scanners and contact management software featuring CardScan At Your
Service(TM) (http://www.cardscan.com), and DYMO File(TM) software that turns
paper documents into digital files (http://www.dymofile.com).
-- The Internet Postage Platform is comprised of Endicia(R) online
shipping and mailing solutions, (http://www.endicia.com) as well as its
customized postage solutions (http://www.pictureitpostage.com).
-- The Classroom Technology Platform is comprised of mimio(R) interactive
whiteboards and digital ink recorders (http://www.mimio.com).
These global technology brands complement the growing family of leading
Newell Rubbermaid brands including Calphalon(R), EXPO(R), Goody(R), Graco(R),
Irwin(R), Lenox(R), Paper Mate(R), Parker(R), Rolodex(R), Rubbermaid(R),
Sharpie(R) and Waterman(R).
SOURCE Endicia
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