Shippers Shift Shipping and Handling Costs Away from Customers

Merchandise shippers are going with the flow and have stopped charging their customers for shipping and handling, according to survey results from MCM Outlook 2012-13.

According to the MCM Outlook 2011 Operations & Fulfillment survey results, no shipper said they didn’t charge customers shipping and handling fees. But in our most recent survey, conducted in April and May of this year, 11.1% of survey respondents said their customers are not charged for shipping and handling.

Broken down by category, 11.9% of respondents that identified themselves as primarily business-to-consumer sellers said they do not charge for shipping and handling. Just 9.1% of respondents that said they are primarily business-to-business shippers said they don’t charge for shipping and handling.

Last year, 34.8% of respondents said they charged shipping and handling fees based on the total value of the order. That number dropped to 28.6% this year.

MCM Outlook 2012-13 also shows that 34.9% of respondents base shipping and handling fees on order weight and delivery distance. That’s up from 25.8% in 2011.

Exactly 50% of b-to-b respondents said they base shipping and handling fees on weight and delivery distance.

The full MCM Outlook 2012-13 Operations & Fulfillment research report will be available for download later this year. You can click here and register to receive the research report as soon as we publish it.

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