Videos » Fulfillment

How ShipHero Reduces Delivery Times + Costs with Zone Skipping

Parcel zone skipping keeps the cost of shipping low while cutting down on delivery time. This dual advantage has made it one of the more popular fulfillment strategies as brands continue to grapple with supply chain challenges. If your online store has a cross-country customer base with a high order volume, parcel zone skipping might be the shipping solution you’re looking for.

If you’re looking for a fulfillment partner to help optimize your delivery process, contact the Fulfillment Experts at ShipHero today.

Video Transcript

Do you want to reduce delivery costs while still meeting or beating your current transit times? How about giving your customers a better deal on shipping so that hitting place order is a no brainer? It’s all possible with ShipHero’s Zone shipping capabilities. Zone skipping is the act of co-mingling packages heading to the same final geographic destination together to reduce shipping costs.

These services are available domestically in Canada or the United States. It reduces the middle mile delivery costs, making it cheaper for you and your customers. Zone skipping lowers your shipping cost while matching transit times and sometimes even beating them. Here’s how it works. Without zone skipping, you send each individual package from your warehouse to their final destinations. For example, you have 300 packages shipping from Vancouver to their final destinations, all near a large metro area like Toronto.

The shipping fee for each package is $18, totaling $5400 in shipping costs for that day. Compare this with moving 300 packages from Vancouver to the final mile carrier sorting facility in Toronto at a cost of $900. This is zone skipping. Then add the cost of your local rate from the carrier’s facility in Toronto to the customer at $11 each.

The total for the zone skipped material comes to $4,200 for a total savings of $1,200 or 22%. Multiply that by 252 business days and the cost savings are substantial. Now you’re thinking, really? Is it that simple? Yes, it can be when you work with ShipHero, contact us today to find out more about zone shipping and how it can save you and your customers money.

Let’s get shipping.

Video Transcript
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