Parcel Margin Analysis

Parcel Margin Analysis is a business analytics tool that provides critical sales and profitability analysis inclusive of actual parcel shipping costs. PMA answers a critical and difficult question for companies that use it: How much am I really making on my products inclusive of parcel shipping costs?

Companies are faced with difficult pricing decisions trying to recover costs for shipping. Do you include shipping for “Free” and absorb the cost? Do you charge a flat rate for shipping? Do you estimate and then charge your cost or with a slight mark up? There is no single right answer, but there can be many wrong ways. No matter how you decide to deal with shipping costs, they can erode margin, especially when underestimated. PMA provides the necessary insight to quickly assess the impact your shipping decisions are having on margin.

We work with your team to routinely access your sales and cost of goods and bring them into a data model to reveal your sales margin. Using your actual parcel shipping costs from our Parcel Spend Intelligence solution in combination with your sales data, PMA clearly exposes the impact parcel shipping costs are having on your margin. The analysis is delivered how you measure it, whether that’s by customer, individual product, sale, or SKU.

Can you get the same results by doing a spot check analysis or using your “gut feel”? Why chance it when PMA provides the insight on a weekly basis so that you can see exactly what is going on and make data-informed decisions.

Through various integration options, PMA can automatically gather sales order data, cost of goods, fees, and parcel transportation costs to provide profitability insights on your customer, the order, and the products fulfilled. Our team works with your IT team to optimize the connection to internal data, and we leverage our Parcel Spend Management platform to automatically gather actual parcel shipping costs directly from the parcel carrier’s billing center.

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