#29: How To Reduce Shipping Costs With Rob Martinez, Shipware LLC

Rob Martinez, President of Shipware joins us to talk about how to benchmark and reduce your shipping costs, while also providing insights into the future of the shipping and logistics industry. If you’re not happy about the shipping rates you’re getting, get ready to take some notes in this information-packed episode. Shipware primarily helps clients with invoice auditing and contract negotiations, ultimately reducing shipping expenses to keep more money within the business.

Topics Discussed:

  • 03:00 – How Shipware works – invoice audits and contract negotiations
  • 04:00 – The biggest thing that shippers miss in negotiations
  • 05:00 – Retail rates, list rates, and contract rates for shipping
  • 05:30 – Landscape of the shipping industry since 2000
  • 06:00 – Information asymmetry with shippers and carriers
  • 07:00 – How small E-commerce businesses lose in negotiations
  • 09:00 – Duopoly of FEDex and UPS and their focus on margins
  • 11:00 – What is the General Rate Increase (GRI) every year
  • 12:00 – Challenge of getting more discounts with only two players in the market
  • 13:00 – How discount and contract rates work compared to list rates
  • 14:00 – Three things to do before negotiations with your carrier
  • 17:00 – The most important component to your cost profile for a carrier
  • 18:30 – Dimensional weight vs actual weight
  • 19:00 – Stamps.com and how online parties work
  • 19:30 – The 3PL industry and outsourced warehousing and distribution
  • 20:30 – Should you choose a 3PL for your business
  • 21:20 – Future of same-day shipping and consumer trends
  • 22:00 – Shipping and cart abandonment
  • 23:00 – How to find your optimal shipping policy
  • 23:30 – How parcel “select” shipping works
  • 26:00 – Same-day shipping and its viability in the future


Mentions in the Episode:


Episode Length: 34:03


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