November is the big month for e-commerce, since last Friday happens Black Friday, the main commercial date of online retail. Among the biggest concerns of those who usually enjoy the period is the value of freight. As with product prices, freight is also carefully studied weeks before by consumers. But, after all, what interferes in the value of freight?
To clarify all doubts, Stefan Rehm, CEO of Intelipost, a smart technology company for logistics, explains what can influence the value of freight in the country. Check out:
1 – Carriers
We know that today, in Brazil, the main and most comprehensive delivery service is performed by the Post Office. Despite the high number of carriers that we have in the country, it currently exceeds one hundred, according to Stefan, the state-owned company is still the absolute leader and responsible for more than 70% of deliveries.
Most companies, however, try to work with more than one delivery option. Thus generating more options for the consumer and making the differences in the amount charged appear at the time of the freight quote.
2 – Location
Brazil is one of the countries with the most complicated logistics in the world, according to Stefan. This is due first to the size of the territory and second because we have several areas with difficult access. The entire order path is previously studied: the vehicles to be used, the time and the human effort required for the product to reach its destination. Taking into account all the aspects mentioned is that companies manage to reach the value of the freight to be charged.
3 – Zip code of destination
The distance between the collection and delivery location also impacts the freight cost for the customer. The higher the mileage, the higher the fee charged. In addition, it is important to stress that areas that have difficulties in accessing or “risk areas” may suffer increases in freight costs.
4 – Weight and dimensions of the load
The cubed weight, space that the cargo occupies inside the vehicle directly impacts the freight value, so it must be thought of in a way that makes the most of the carriers’ vehicles capacity.
5 – Product category
When the item purchased requires specific treatments, as in the case of transporting fragile, perishable cargo or even valuable cargo, normally the freight value of these products tends to be higher.
6 – Freight offers
Another relevant point is the type of freight campaign strategy used. Usually offers of economical freight tend to have slightly longer terms than standard freight, which would be the average offered by the market. Express shipping modalities, such as same-day deliveries, have an above average cost.
7 – High demand
Yes, of course, high demand is also important for freight calculation. As in any market situation, high demand can make the service more expensive. The ideal in these cases is to bet on prior research and be attentive to other aspects such as location and current situation of the carriers.
Intelligent logistics has allowed both the retailer to better understand the market and manage freight efficiently, as well as the consumer to better take advantage of opportunities such as the offer of free shipping.