eCommerce Mode Selection is Complicated

Freight pricing gets complicated when a business sells products online that weigh over 150 lbs. It gets even more complicated when a combination of lower weight products on one order gets above 150 lbs. eCommerce systems simply aren’t ready for complex freight calculations like this. That is where FreightWise comes in. FreightWise is the engine that powers automatic mode selection and optimized cost in Magento eCommerce platforms.Checkout-01

The business model of eCommerce freight pricing is one of basic math. If freight is “free,” it’s really baked into the product price, thus inflating the price that buyers see when they search online. If freight is priced on a matrix and not truly rated (by dimensions or zip codes), then margins aren’t standardized, thus creating cart abandonment on high margin orders and inflating transactions on low margin orders.

Moreover, the absence of mode selection in eCommerce (parcel to LTL to TL) leads to wide-ranging and inaccurate freight pricing. Consequently, this absence leads to companies limiting the products they offer online or simply drives customers away.

“The only true way to ensure that companies can offer any product they want and at any weight or dimension in the eCommerce environment is to rate, to the penny, each mode and offer the best selection to the customer. To solve this problem, we at FreightWise build APIs that support multi-carrier and mode rating for several eCommerce platforms with a recent launch for Magento,” explains Richard Hoehn, CIO of FreightWise. The result of this true cost rating environment is an online experience that allows SMB customers to offer Amazon-like functionality and ease of ordering. Not to mention, it protects and improves online margin with a very easy to prove business case.

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At FreightWise, we are thought leaders at online freight optimization. Please call us for a free consulting evaluation of your online quote-to-cash process.

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