A Shopify Podcast To Grow Revenue And Loyalty
You’re not alone. Many e-commerce brands are feeling the “margin crunch” as shipping costs skyrocket. Carrier rate hikes, hidden surcharges, and complex contracts can feel like unavoidable profit killers, making it harder to stay competitive and profitable.
Today, we’re talking with Michael Moriarty, a strategic partner at Schooley Mitchell, an independent cost reduction consulting firm that has saved businesses over $1 billion. They specialize in uncovering savings in complex expense categories, with a strong focus on helping e-commerce brands slash their shipping costs.
Michael and the Schooley Mitchell team deeply understand the intricacies of carrier contracts (FedEx, UPS, etc.) and work solely on behalf of their clients – not the carriers – to find savings and optimize shipping spend.
Episode Sponsor: GLADLY
This episode is sponsored by Gladly, the AI-powered Customer Service Platform that’s changing the game for how brands connect with their customers. Tired of fragmented conversations and duplicate tickets eating up your team’s time? Gladly brings all customer touchpoints—chat, email, phone, and social media—into one seamless conversation. Your agents get a complete view of each customer’s history, so they can deliver personalized service every time.
Trusted by over 300 top brands like Nordstrom, Warby Parker, and Crate & Barrel, Gladly’s innovative approach puts people first—not tickets.
Leverage Gladly’s AI-powered platform today!
Episode Summary:
Rising shipping costs and sneaky fees are eroding profits for countless Shopify merchants. In this episode, we dive deep into the often-overlooked area of shipping expense optimization. Michael Moriarty reveals how brands, regardless of size (from 50 to 50,000+ packages/month), can identify and eliminate unnecessary costs, negotiate better carrier contracts, and reclaim lost revenue hiding in their shipping invoices.
Key Insights:
-
Guaranteed Service Refunds (GSRs): Learn how to identify and claim refunds you’re owed when carriers miss guaranteed delivery times for priority services – money often left unclaimed.
-
Beyond the Base Rate: Understand the impact of negotiable factors like DIM (Dimensional Weight) divisors and common surcharges (Residential, Delivery Area, Additional Handling, Peak) that significantly inflate costs.
-
Shipping Setup Strategy: Explore the pros and cons of using Shopify Shipping, your own carrier accounts, or 3PL accounts, and understand the typical progression as brands scale.
-
Leveraging Data in Negotiation: Discover how Schooley Mitchell uses benchmark data from thousands of clients to negotiate better rates and terms than individual businesses typically can achieve alone.
-
The Power of Ongoing Monitoring: Recognize that shipping optimization isn’t a one-time fix; continuous monitoring catches cost creep, billing errors, and ensures contracts remain competitive.
-
Risk-Free Optimization: Understand Schooley Mitchell’s contingency-based model – they only get paid from a share of the actual savings they find for you, making the analysis entirely risk-free.
This is Michael’s story:
Michael Moriarty, representing Schooley Mitchell’s extensive expertise, focuses on demystifying the complex world of shipping expenses for e-commerce brands. Their approach is rooted in meticulous analysis of past invoices, leveraging unparalleled market data, and acting as a dedicated, independent advocate for the client. They believe founders should focus on growth, product, and customers, while Schooley Mitchell ensures operational costs like shipping are fully optimized, providing peace of mind and tangible savings back to the bottom line.
Key Takeaways:
1️⃣ Audit Your Shipping Invoices: Don’t assume your bills are correct. Look for potential Guaranteed Service Refunds (GSRs) and billing errors.
2️⃣ Understand Negotiable Costs: Realize that surcharges, fees, and DIM weight factors are often negotiable, unlike base carrier rates.
3️⃣ Choose the Right Shipping Structure: Evaluate whether Shopify Shipping, a 3PL’s account, or your own dedicated carrier account is most cost-effective for your current scale and shipping profile.
4️⃣ Leverage Specialized Expertise: Consider partnering with experts like Schooley Mitchell who have the data and experience to effectively negotiate with carriers on your behalf.
5️⃣ Implement Ongoing Oversight: Shipping costs and carrier contracts change constantly; regular reviews are crucial to prevent cost creep and maintain optimization.
6️⃣ Explore Risk-Free Analysis: Take advantage of Schooley Mitchell’s contingency-based offer (schooleymitchell.com/fastlane) to see if savings exist without any upfront cost.
7️⃣ Reclaim Founder Focus: Outsource the complexity of shipping cost management to experts so you can concentrate on core business growth activities.
Links Mentioned
Support the Show & Grab Your FREE Guide!
Hey founders and marketers! I’m Steve Hutt, your host here at eCommerce Fastlane. Over the past 8 years, it’s been my goal is to bring actionable strategies and expert interviews to help you scale your Shopify business and build a thriving brand.
If you’re finding value in the show, here’s how you can support me and get a free guide in the process:
- Leave an Honest Rating/Review: Share your thoughts on Apple Podcasts or Spotify.
- Follow & Subscribe on YouTube: Get notified about new episodes on YouTube.
- Email for Your Guide: Send an email to steve@ecommercefastlane.com with the subject line “Podcast Feedback” so I know where to send your guide!
Learn more about eCommerce Fastlane and access more resources at eCommerceFastlane.com.