shipping costs

Mark Lavelle has over 20 years of experience growing businesses at the intersection of commerce, payments, and internet technology. He’s Co-Founder, Chairman and CEO of Deep Lake Capital. Previously, Mark was SVP of Commerce at Adobe as a result of the $1.7B acquisition of Magento where he was CEO. Other senior leadership roles include eBay, PayPal and Bill Me Later.

SHOW SUMMARY

In this episode of eCom Logistics Podcast, Mark Lavelle discusses the changing landscape of e-commerce logistics and the opportunities for disruption in the market. He emphasizes the importance of meeting customer expectations for fast and transparent delivery, and how companies can optimize their shipping processes to achieve this. Mark also highlights the potential impact of Amazon entering the small parcel delivery space and the need for consolidation in the final mile segment. He shares insights on Maergo's approach to solving the shipping problem and the benefits of their end-to-end solution. Mark concludes by discussing the future of e-commerce logistics and the need for sustainable business models in the industry.

HIGHLIGHTS

[00:01:28] Mark's background and his involvement with PayPal Mafia
[00:05:32] The changing landscape of small parcel delivery
[00:06:11] Opportunities for disruption in the market
[00:08:00] Tackling the end-to-end problem in shipping
[00:09:00] Defining the problem of growing consumer expectations for delivery
[00:10:23] Solving the logistics challenge for small to medium-sized sellers
[00:15:16] New entrants like DoorDash and Instacart change the delivery equation.
[00:16:26] The control over the pre-click experience is valuable.
[00:17:15] Shipping transparency and costs are crucial to consumers.
[00:18:49] The gap in consumer expectations needs to be addressed.
[00:27:14] Need for A/B testing to show the impact of faster delivery
[00:28:29] Challenges of splitting inventory and the need for cost containment
[00:30:07] Advantages of operating out of a single node for efficiency
[00:38:02] Frustration with slow-moving warehouse systems
[00:38:35] The need for multi-carrier systems to easily add new carriers[00:39:12] Amazon's announcement of charging a 2% cut for self-fulfilled orders
[00:41:01] Amazon's focus on customer expectations and delivery promise
[00:44:39] Lack of dominance in the logistics industry and opportunity for strategic VCs

QUOTES

[00:21:44] "You have to orient your supply chain and your parcel chain, and your consumer brand strategy really to meet their needs of up leveling expected delivery date, transparency around cost, and transparency around every stage of delivery." - Mark Lavelle
[00:22:55] "If you want it expedited, there's going to be a way, it's going to be this. It builds more trust than waiting until the end of the process and having the customer abandoned."

Find out more about Mark Lavelle in the link below:

LinkedIn: https://www.linkedin.com/in/mklave/

In this episode, Tudor discusses the impact of freight shipping on people's lives and the recent bankruptcy filing of Yellow, a major freight company. Tudor explores the role of unions in this situation and criticizes their actions, highlighting the potential consequences for consumers and the loss of jobs. She also touches on other topics such as the shutdown of the Keystone pipeline, rising gas prices, and the Biden administration's energy policy. The Tudor Dixon Podcast is part of the Clay Travis & Buck Sexton Podcast Network - new episodes debut every Monday, Wednesday, & Friday. For more information visit TudorDixonPodcast.com

See omnystudio.com/listener for privacy information.

In this episode, Tudor discusses the impact of freight shipping on people's lives and the recent bankruptcy filing of Yellow, a major freight company. Tudor explores the role of unions in this situation and criticizes their actions, highlighting the potential consequences for consumers and the loss of jobs. She also touches on other topics such as the shutdown of the Keystone pipeline, rising gas prices, and the Biden administration's energy policy. The Tudor Dixon Podcast is part of the Clay Travis & Buck Sexton Podcast Network - new episodes debut every Monday, Wednesday, & Friday. For more information visit TudorDixonPodcast.com

See omnystudio.com/listener for privacy information.

There are countless opportunities for success when it comes to cross-selling and collaborating with other businesses. For instance, a store that specializes in makeup can easily cross-sell brushes, mirrors, and pouches to their customers. Similarly, a bike shop can sell helmets and other protective gear without having to manufacture them themselves. The possibilities are endless, and by expanding your product offerings, you can increase your revenue and customer base.

In this episode, Jordan West sits down with David Perry of Carro to discuss the benefits of cross-store selling. They delve into how to identify the right products to cross-sell, and why selling someone else's product can be a lucrative source of profit. Additionally, they share invaluable tips on how to establish and cultivate strong relationships with potential business partners.

Listen and learn in this episode!

KEY TAKEAWAYS FROM THIS EPISODE:

• Every brand wants to figure out how to get more attention and how to get more sales.
• The most successful people always know the questions to ask and they also constantly ask questions.
• It is possible to build a beautiful store with beautiful products and get zero traffic. A challenge for entrepreneurs is to get attention and to keep the attention coming.
• Carro’s concept is to collaborate to sell more together.
• Building a lot of great partnerships keeps your business alive.
• There could be a lot of products you can cross-sell in conjunction with the products you are already selling.
• Find a way to try as many hobbies as you want. Hobbies can be a great conversation starter to build rapport and connection with your potential business partners.
• Opening yourself up and being interested in people opens opportunities for learning and success.
• Think of something related to what you are doing and ask a question in a way you know you’ll get 100% yes.

Recommended Tools:
Chat GPT https://openai.com/blog/chatgpt
Steam https://store.steampowered.com/

Recommended Audiobook:
The Road Less Stupid by Keith Cunningham
https://www.amazon.com/Road-Less-Stupid-Keith-Cunningham/dp/0984659269

Today’s Guest:

David Perry is a veteran of the video game industry. He is a co-founder and currently the CEO of Carro. They connect Shopify stores together to cross-sell products without the hassle and collaborate to reach greater success together.

Connect and learn more about David and Carro here:
LinkedIn: https://www.linkedin.com/in/dperry/
Website: https://www.getcarro.com/

This episode’s sponsor is Finale Inventory- the ultimate solution for accurate and efficient inventory management. Trusted by thousands of brands, Finale offers seamless integrations with over 80 sales channels and platforms.

With customizable workflows and reporting features, Finale empowers you to streamline operations and scale your business with ease, preventing overselling and maximizing profitability.

Whether you're juggling multiple platforms, expanding your product range or just looking for a way to reduce operational chaos, Finale has the tools you need to succeed. Step into the future of e-commerce with Finale Inventory.

Learn more here: Finale Inventory

a moderation vibe is settling over the global economy, heralding a lackluster period ahead.

US jobless claims rose last week by +224,000 which was higher than expected and perhaps the start of the long-awaited labour market slowdown. There are now 1.9 mln people on these programs which is still low however, an insured unemployment rate of 1.3%. (NZ Jobseeker-to-labour force rate is 3.4%.)

In its final estimate for Q4-2022 GDP, the US reported that their economy expanded an annualised +2.6%, slightly less than initial estimates of a +2.7% rise. Consumer spending rose +1% and below the +1.4% in the second estimate, as spending on services advanced much less than initially assumed.

The Boston Fed President says she expects only one more +25 bps rate hike from the Fed in this cycle. In her view, inflation will continue to moderate, and there won't be a hard landing.

In Germany, their inflation rate is pulling back now too and as expected. It eased further to 7.4% from a year ago in March, down from 8.7% in the previous two months. Analysts were expecting a March rate of 7.3%. The actual rate was its lowest since August 2022. It peaked at 8.8% in October 2022. There is a downside however, the February to March increase ran at an annualisted rate just below +10%.

EU sentiment eased marginally in March to remain well below its long run average. It is consumers more than businesses that keep this measure low.

In Australia, job vacancies are slipping although are still at a relatively high level. However, this is the first quarterly decline since August 2021, so perhaps this data is telling us something.

The cost of containerised shipping freight fell another -2% last week to now be -36% lower than its ten year average, but still +21% above its pre-pandemic level. China-US rates fell the most, but there was a small uptick in China-EU rates which we haven't seen in a while. Freight rates for bulk cargoes were little-changed last week.

The UST 10yr yield starts today at 3.56%, unchanged from yesterday. The UST 2-10 rate curve is marginally more inverted at -55 bps. Their 1-5 curve inversion is greater at -95 bps. And their 30 day-10yr curve is very much more inverted at -92 bps. The Australian ten year bond is up +3 bps at 3.36%. The China Govt ten year bond is unchanged at 2.88%. And the New Zealand Govt ten year is starting today up at 4.25%. That is another +6 bps rise.

Wall Street is still on the up, with the S&P500 tracking a +0.3% rise in late Thursday trade. Overnight, European markets were all positive and up +1.2% except London which gained +0.7%. Yesterday Tokyo ended its Thursday session down -0.4%. But Hong Kong was up +0.6%, and Shanghai ended up +0.7%. The ASX200 ended up a +1.0%, and the NZX50 rose +1.7% in its Thursday trade with a final burst higher across most sectors.

The price of gold will open today at US$1983/oz and up +US$18 from this time yesterday.

And oil prices start today up +50 USc from yesterday at just on US$74/bbl in the US. The international Brent price is now just under US$78.50/bbl.

The Kiwi dollar is up nearly +½c against the USD and now at 62.6 USc. Against the Aussie we are firmish at 93.3 AUc. Against the euro we are little-changed at 57.4 euro cents. That means the TWI-5 is now at 70.4 with a +20 bps daily rise.

The bitcoin price is very little-changed today, now at US$28,257 and up less than +0.1% from this time yesterday. Volatility over the past 24 hours has been moderate however at +/-2.0%.

✍🏻 View the transcript for this episode

From the TV show binge to the burger binge, we chat about some of our favourite (questionably appropriate) childhood cartoons we both watched and were banned from watching.

• Dragon Ball Z
• The Big Bang Theory
• Friends
• Scrubs
• How I Met Your Mother
• The Simpsons
• Futurama
• South Park
• South Park WoW meme (link to image)
• Lucky Charms
• IGA, supermarket in Australia
• Bar Luca, eatery in Sydney
• Suburgia, burger joint in Redfern

Social media

Toast & Roast:

• Twitter
• Instagram (let’s admit we have kind of been way too frustrated by this one to want to post on it)

Georgie:

• Twitter
• Instagram

Geoff:

• Twitter
• Instagram

Kia ora,

Welcome to Thursday’s Economy Watch where we follow the economic events and trends that affect Aotearoa/New Zealand.

I'm David Chaston and this is the International edition from Interest.co.nz.

Today we lead with news supply chain cost pressures seem to be easing now.

But first, US mortgage applications fell again last week and are now -23% lower than year-ago levels. Benchmark mortgage interest rates rose to 5.8% which puts them back to their highest since 2008. The American housing markets is in the doldrums, undermined by those rising rates.

On Saturday NZT we get the next American jobs report and today we got the ADP pre-cursor employment report. It has been tracking the non-farm payroll quite well in its revised format. But they say the era of supercharged jobs gains may be over. They report a shift toward a more conservative pace of hiring in August, possibly as companies try to decipher their economy's conflicting signals. They say American jobs grew just +132,000 in August from July. The latest consensus for the non-farm payroll gains is +300,000 however, suggesting the strong jobs expansion remains on track.

The ISM Chicago PMI for August in this heartland manufacturing region has the moderate expansion rolling on even if not as hot as it has been. But new order levels were up and order backlogs are growing in their region they say. They also say jobs are now easier to hire for.

The official measure of Chinese factory activity contracted for a second straight month and the fifth decline in the past six months. These signs of weakness are building up now. Meanwhile the official Chinese service sector PMI is still expanding but at a slower pace. They can take some heart from that expansion even if it is their slowest in three months. The extended weakness has some analysts reducing their 2022 growth estimates down to just 3% and for such a large economy, that is a long way from Beijing's target of "about 5½%".

China needs its stimulus projects to work, to pay off not only now with employment and spreading demand, but long-term by avoiding these 'investments' becoming white elephants. Sadly there is no assurance that will be the case. We may have underestimated how much is being committed to these projects. Some say US$1 tln, some say up to three times that once debt and company investments are added to the official largess. But will China get anything like US$3 tln in benefit from these projects, however laudable they may sound? It is pretty clear that all the prior stimulus they invested hasn't worked long term as planned - or they wouldn't have needed the new stuff. If this is rinse-and-repeat, we are witnessing waste on an epic scale. 

It is not only the Chinese property market that is causing company pain, their airlines are reporting deep losses as well.

India said its economy expanded +13.5% in Q2-2022 from the same quarter a year ago, the most in a year, but less than the expected +15.2% gain. It is actually a remarkable spurt for the world's sixth largest economy. And it stands in stark contrast to China at the moment. But the Indian spurt, which came after a series of much lower gains, isn't expected to be repeated any time soon.

Germany reported its unemployment rate as 3.2% in July, tighter than for June, and given their inflation stress, a somewhat surprising result. They have unusual pressures but they are yet to show up in their labour market. Employment is still expanding.

The EU said its CPI inflation rate was 9.1% across the zone in August, a small rise from an already high level. They also said their core inflation rate was 4.3% however. But food prices were up more than +10% in August from a year ago.

Russia reported a series of economic statistics overnight and none of them were positive, except perhaps their jobless rate which officially held at a low 3.9% level in June - which seems odd given all the other very negative data.

Russia said it will shut down its NordStream 1 pipeline to Europe "for three days, for maintenance". The Europeans were expecting this new pressure. It not the first such shutdown and has only been operating at 20% anyway.

In Australia, total construction work done unexpectedly fell by -3.8% on a quarter-on-quarter basis for the three months to June, sharply missing expectations of a +0.9% rise and following a -0.9% fall in the first quarter. It was the second straight of quarter decline in construction work done, due to a fall in building work done (-4.6%), residential (-6.8%), non-residential (-1.1%), and engineering work (-2.7%). Don't move to Australia for a construction job.

Australian house prices took their biggest fall in 40 years in August, down -4.7% from year-ago levels. Prices in Sydney led the way down. Sydney is currently stuck in the chaos of public transport strikes, making life very difficult at present if you commute.

Internationally, container shipping costs are falling faster now, down -4% last week, down almost -40% in a year although they are still well above five-year averages. Freight rates for bulk cargoes are falling fast now too and are now lower than pre-pandemic levels. The extreme cost pressure surrounding international supply chains are easing quickly now.

The UST 10yr yield starts today at 3.14% and up +2 bps from this time yesterday. 

The price of gold will open today at US$1714/oz and down -US$10 from this time yesterday.

And oil prices start today down -US$1.50/bbl at just under US$90/bbl in the US while the international Brent price is now just under US$96/bbl.

The Kiwi dollar will open today at 61.2 USc and little-changed from this time yesterday. Against the Australian dollar we still down at 89.4 AUc. Against the euro we are down to 61 euro cents. That all means our TWI-5 starts today at 70.5 and another small retreat.

The bitcoin price is now at US$19,982 and up +1.4% from this time yesterday. Volatility over the past 24 hours has been moderate at just on +/- 2.0%.

You can find links to the articles mentioned today in our show notes.

And get more news affecting the economy in New Zealand from interest.co.nz.

Kia ora. I'm David Chaston and we’ll do this again tomorrow.

Kia ora,

Welcome to Friday’s Economy Watch where we follow the economic events and trends that affect Aotearoa/New Zealand.

I'm David Chaston and this is the International edition from Interest.co.nz.

Today we lead with news both China and the US seem to be facing economic questions at the same time.

There are mounting concerns about the giant American economy’s resilience. Inflation is at 40-year highs, home sales are weakening but their red hot labour market has yet to show any sign of weakness.

New American jobless claims fell marginally last week, and there are now 1.44 mln people on these benefits which is still close to an all-time low.

But the initial 'flash' reading for real economic activity fell in the June-2022 quarter by -0.9%, on top of the -1.6% recorded fall for Q1-2022. If that is confirmed over the subsequent revisions, it will show the US economy has been in a shallow recession. In nominal terms it grew at an annual rate of +1.9% in Q2 but that was less than inflation. Over the past year it grew to US$24.85 tln and up +9.3% in nominal terms, up 7.8% at an annual rate in the second quarter alone. But that was less than price increases which for the household sector was a 9.1% inflation rate. The second estimate of this data will come in about four weeks.

The puzzle in all of this is their labour market - growing fast with widespread labour shortages. If a recession is in fact declared for this 2022 period it will be the strangest one in memory, one with a record low jobless rate. Today, the bond markets 'believes' the recession story, but equity investors don't. History shows though it is unwise to ignore bond market signals.

To confuse matters, the official arbiter of whether the US is in recession, the NBER, has always rejected the "two quarters down" rule. So the 'recession' designation is still up for grabs.

Meanwhile, the Kansas City Fed's factory survey came in more positive for July than for June, back expanding at a strong pace and a much better level than was expected.

And Mastercard reported stunning revenue growth, up more than +20% and far more than can be account for by inflation. This is not the sort of data that suggests recession.

But the latest US Treasury bond tender reflects the risk-off mood sweeping bond markets. Their 7-year tender was well supported but the median yield fell to 2.65% from 3.20% at the prior event a month ago.

In China, their top leadership has been meeting to address, the "complex and severe international environment and the arduous domestic reform" situation, a clear indication that their economy is not performing as it would like. The problems run deep, as they seem to acknowledge. But their "persistence is victory" mantra seems to indicate they will keep doing the same things that got them into this current trouble.

In Europe, German inflation is staying very high, up 7.5% year-on-year with the month-on-month rises running at an even faster pace. This July data was higher than analysts were expecting.

In Australia, retail sales activity disappointed in June. They rose a mere +0.2% from May after the May change was revised lower. This latest data was the softest rise in retail trade since a retreat in December 2021, and signals that retail volumes are shrinking as inflation bites harder. June's retail trade may be up +12% from year-ago levels, but the tepid May-to-June rise is the one catching the eye of analysts (up at an annualised rate of only +2.5%).

The decline in global container shipping rates continued last week. Bulk cargo rates fell too.

The UST 10yr yield starts today at 2.68% and down -5 bps from this time yesterday. 

The price of gold will open today at US$1753/oz in New York which is up +US$32 from this time yesterday.

And oil prices are little-changed today at just on US$96/bbl in the US, while the international Brent price is still at US$101.50/bbl.

The Kiwi dollar opened today up from this time yesterday to 62.8 USc. Against the Australian dollar we are up +½c to 90.1 AUc. Against the euro we are also +½c higher at 61.8 euro cents. That all means our TWI-5 starts today at 71.2.

The bitcoin price has risen sharply from this time yesterday, up almost +11% to US$24,010 and most of the gain coming after the US GDP announcement. Volatility over the past 24 hours has been extreme at just over +/-5.7%.

You can find links to the articles mentioned today in our show notes.

And get more news affecting the economy in New Zealand from interest.co.nz.

Kia ora. I'm David Chaston and we’ll do this again on Monday.

Val Sanders is here to share with us the dos and don'ts of launching an eyewear brand. She tells us where she finds her inspiration (6:30), how to make frames that have the perfect fit (13:00), and breaks down the process and concept of SKUs (16:00). Val also provides an in-depth look into the investment required to build an eyewear brand (18:00), the struggles of online ads and ways to find organic traffic (24:25), and finally the dos and don'ts of the eyewear industry.

Make sure to stick around for the end to hear some really juicy stuff in the lightning round!  Tell us your favorite answers in the YouTube comments!

Follow us on YouTube @ReVAMPPED TV! Be sure to tell your friends to subscribe leave us a review with 5 stars! You can follow us on Instagram @revamppedpodcast!

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