The words “free shipping” usually catch the gaze of the deal-hungry shopper, but for retailers and direct-to-consumer brands, it means pressure to the bottom line. Recently, two other words — price increase — are being seen in announcements by the United States Postal Service, FedEx, UPS and other carriers. These are variable costs that, while pleasing consumers, deeply erode gross margins.
But retailers are strategizing how to recoup costs without having anyone take the hit. In an interview with WWD, Guy Yehiav, chief executive officer of Profitect, a “prescriptive analytics” solution for retailers such as Ann Taylor, Ulta Beauty, Abercrombie & Fitch and DSW, details the impact of increased shipping rates and how to curtail costs…[Read More]