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For a retailer of any scale these might as well be the same thing. Dropping off at a depot is not really how this bit of the industry works – the courier colle
by danpalmer 6y ago
For a retailer of any scale these might as well be the same thing.
Dropping off at a depot is not really how this bit of the industry works – the courier collects from the distribution centre in almost every case.
The issues with doing your own drop offs include: finding a new courier, booking, figuring out a collection time which then impacts your shipping estimate cut-off time, and paying for this whole service.
In terms of price, you're going from a high volume commodity service at typically a crazy low price for courier shipping (for what it is), to adding a new additional short-term, lower volume or unproven volume, from one of the smaller providers who aren't operating at Fedex/UPS scale. I could imagine this doubling shipping costs, which might be untenable for many ecommerce businesses.
In terms of the actual logistics, it's a challenge, plus typically this would be automated – your software will do this all for you. Now your software needs to book and pre-advise a new provider? And track through them? But also track through the original one?
For most businesses it's probably impractical to implement this, and for most that could they probably have contracts with the couriers that mean they won't be hit by this or they do their own deliveries. I think the space in the middle is a pretty small subset of companies.
- nrmitchi 6y ago> Dropping off at a depot is not really how this bit of the industry works – the courier collects from the distribution centre in almost every case. I am aware of this. The posted article is referencing merchants with 3000 shipments to send out, which is not insane scale. If FedEx wouldn't pick those up at your door, it is possible to get those shipped out still. Obviously, yes, you may need some new logistics coordination, and it will be more expensive, and yes, it could make a lot of business margin's no longer work. I am definitely not saying that I agree with any action that FedEx/UPS is alleged to be taking here (especially without reasonable notice). But that is not the same thing as "FedEx is refusing to let us ship more than X boxes per day". And it's a distinction that the article should get right.
- _jal 6y agoI would like to propose someone create a new emoji symbol for "I'm mad at the journalist". It would save so much time.
- EsotericAlgo 6y agoThere has been a big shift to ship-from-store to make up for limited warehouse capacity to meet increased demand. The options for delays for store picks up are much the same: employees drop off at depot, third party courier, or wait.