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Why Freight Management and Logistics Are Important to Small Publishers (#305)
Posted: 7/17/2002; 11:32 PM by Terry Frazier
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I continue to believe effective freight management -- rate shopping, aggregation, multi-carrier options just like the "Big Boys" -- is an important competitve advantage to small- and medium-sized publishers.

From M.J. Rose' column in Wired News?

Summer means discounts: Free shipping and discounted books are heating up at online bookstores.
Amazon.com is offering free shipping on all orders of $49 or more (down from the usual $99), and discounting almost all titles usually listed over $15 by 35 percent.
Some Buy.com bestsellers are 50 percent off. Free shipping is also available on some of these books. And orders of $99 or more that weigh less than 20 pounds are shipped for free.
Barnes&Noble.com is offering free shipping when two or more items are purchased.

[Wired News]

How can a small publisher break through when shipping a $15 book costs the buyer $4-$7?

Today, the vast majority of POD books are shipped from print facilities that have little to no experience in handling advanced logistics. They may have enough volume to get a UPS discount, but it's unlikely they can even come close to the rates that an Amazon or B&N.com achieves by using a mail consolidator such as http://www.dropshipexpress.com">DropShipExpress. Besides low rates, DSE can provide tracking numbers and certified delivery via USPS -- just like UPS or FedEx.

Granted, major shippers get significant discounts from UPS and FedEx, but they get significant advantage by aggregating thier shipments with consolidators and optimizing shipping with low-cost carriers. A POD provider who can do the same can offer e-Publishers a direct-ship model with similar benefits, while bypassing the inventory and discounts required by the major distributors and wholesalers.

Such sales will not supplant the in-store sales of the major retailers or the big on-line merchants, but it does give the independent a better shot at competing.

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