Dive Brief:
- Gilt Groupe Inc. announced that it has switched most of its approximately 20,000 shipments per day from UPS to consolidator Newgistics Inc.
- The flash-sale site says that while shipments will take somewhat longer, the cost savings will allow it to offer more free shipping and additional discounts.
- Newgistics transports packages via a proprietary ground network before giving them to the U.S. Postal Service (USPS) for last-mile delivery.
Dive Insight:
Free shipping continues to sway the e-commerce marketplace, with pioneering flash-sale site Gilt Groupe announcing it will hand the majority of its ground shipments to consolidator Newgistics Inc. Newgistics transports packages through its ground network and gives them to the U.S. Postal Service (USPS) for final delivery.
Gilt plans to pass the new arrangement’s savings along to customers in order to boost their loyalty and value. The retailer has been diversifying distribution since the end of 2013, when UPS claimed responsibility for a spate of late shipments. Prices for FedEx and UPS shipments are also going up due to dimensional pricing, and USPS has since stepped up its e-commerce game, the companies said.
