Case Study #1: How Proboxx helps customer save on their bottom line when it comes to logistics
In this case study #1, we'll share a story of how our customer-centric approach has made a real difference for e-commerce entrepreneurs just like you.
Our friendly team is always ready to assist you with our innovative solutions.
Discover why Proboxx is the partner you can rely on for success….
Challenge Faced:
A new client of Proboxx inserted a request for an urgent air freight from China to Germany.
The goods needed to be delivered as fast as possible to FBA center in Germany but also to be competitive cost wise so the seller will remain with some profit on each unit he sells.
The main issue Proboxx faced with this client request was the limitation for inland delivery that is forced by carriers such as UPS / FEDEX / DHL for ground delivery in EU which is 12 KG per box (gross or volume weight).
In addition, Proboxx always has to consider Amazon TOS for box size and weight and the amount of units a seller can put on a box with a total unit of 100 per box max.
To give you some context:
The client sells Alarm clocks without batteries or any other DG material.
In the specific shipment, the client wanted to send total of 12 cartons by air.
The box specification was 40*30*34 cm , 8KG per box (gross weight) and in each box the client put 24 units in total.
Considering the amount of the boxes, the gross weight of the total cargo was 12 boxes * 8 KG per box = 96 KG.
Considering the box dimensions, even the volume weight is lower than 12 KG per box.
We had to take into consideration the domestic regulations and limitations by the carriers at the destination country, instead of charging the client with the actual gross weight of the cargo which is 96 KG, we had to charge the client with a 12KG per box with a total of 144 KG.
Meaning, the client would have to pay extra 48 KG simply as a “dead freight”.
A dead freight refers to the compensation paid by a charterer of a ship/ aircraft for a portion of the ship / aircraft’'s capacity that they have contracted for but failed to occupy with cargo).
In simple words the client had to pay extra fees of 48KG due to carrier limitation for min weight per box.
Solution:
The first thing Proboxx suggested to the client was to configure new specs for the boxes while maintaining the boxes weight, dimensions and amount of units in each box based on Amazon TOS.
After reviewing the boxes, the seller managed to optimize the cartons size and add 12 more units per box while keeping the box dimensions and weight per Amazon regulations.
So instead of export 12 cartons with 24 units per box with a total of 288 cartons, the client and his supplier manage to repack the boxes with new box dimensions of 50*38*40 cm, 12.5KG per box with 36 units per carton.
Hence, instead of exporting 12 cartons, now the total amount is 8 cartons with a total weight of 100KG only.
That's a huge saving of 44 KG with around $352 is savings. Wow 🙂
Our Client Feedback on this Case Study:
A miracle called Proboxx! They go beyond limits to assist you in the most difficult time. The best company with which we worked so far. Amazing, amazing, amazing!
Conclusion:
Logistics is a field all Amazon sellers are trying to avoid and simply give the freight to their supplier to handle or to a freight forwarding company.
But, knowing logistics and understanding the barriers, regulations that are forced by carriers, by Amazon are critical; to avoid major delays, decreasing overall logistics cost and have a better efficiency all in order to stay in stock for constant sales flow.
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Reach out to Proboxx today to see how we can help you save on your logistics costs HERE.