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Manage logistic categories for efficient delivery cost optimization

In the context of an e-commerce platform, a "logistic category" refers to how products are classified, managed, and shipped based on their physical characteristics or delivery requirements. Similar to product categories, logistic categories group products within the same basket that share common characteristics.

For instance, a single seller may offer products of varying sizes. In such cases, calculating shipping costs might yield inconsistent results when using the delivery rates of product A or product B. Logistic categories address this by grouping orders not only by seller but also by logistic category. This allows for a choice of delivery methods and, consequently, optimized pricing for each order.

Properly Organizing Your Product Catalog for Delivery Cost Optimization

Organizing your product catalog based on logistic categories is crucial for optimizing delivery costs. Here are some steps and tips to do it effectively:

Product Analysis:
Examine the dimensions, weight, fragility, and any special requirements (e.g., refrigeration) of each product.

Defining Logistic Categories:
Create categories based on common criteria: size (small, medium, large), weight (light, medium, heavy), fragility (fragile, robust), specificities (refrigerated, hazardous, etc.).

Regular Review:
Markets, products, and customer needs evolve. Therefore, it's essential to regularly review logistic categories to ensure they remain relevant.

Customer Feedback:
Listen to customer feedback regarding delivery, timelines, and the condition of products upon arrival. This information can help refine your logistic categories.

By following these steps and paying particular attention to defining and managing logistic categories, you'll be better equipped to optimize your delivery costs and enhance the shopping experience on your platform.

How to Manage Your Logistic Categories on Kreezalid

To manage your logistic categories on Kreezalid, follow these steps:

Go to the "Settings" page on your admin dashboard, then click on "Shippings".

You arrive at an interface that allows you to manage the delivery methods you offer. Note that these methods can be carriers (e.g., Colissimo, Mondial Relay, UPS) or marketing methods (e.g., Standard Delivery, Express Delivery). You must offer at least one active delivery method to enable delivery.

Click on the "More actions" menu to access the management of Logistic Categories directly.

You can now add and manage your logistic categories by providing a title and an optional description. A new field will appear on the product creation and editing form to specify the product's logistic category. To make the use of relevant logistic categories, we recommend you create at least two logistic categories.

Now that you offer at least one delivery method and at least two logistic categories, you can return to the "Deliveries" tab under "Settings," click "More Actions" again, and this time select "Manage Shipping Costs."

Manage Shipping Methods x Logistic Categories Shipping Rates

In the example above, we have two delivery methods: Hand Delivery and Mondial Relay, along with three logistic categories (Category A, B, and C). The choice of categories was made to group lightweight products (under 1kg), heavier products up to 2kg, and those exceeding 2kg.

Thus, we were able to define that for lightweight products, hand-delivery and Mondial Relay were both available, with a free threshold at EUR 50 for Mondial Relay. Category B products, on the other hand, only offer Mondial Relay at a higher rate, with no free delivery possible, while category C only offers hand delivery, with a rate adapted to the storage and handling of the product.

By effectively organizing your logistic categories and configuring your delivery methods, you can offer customers a tailored and cost-efficient delivery experience while simplifying the management of shipping costs on your platform.

Updated on: 22/09/2023

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