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Transactional Top Three
Top 3 Benefits of Transactional Shipping
Transactional Top Three
Top 3 Benefits of Transactional Shipping
December 21, 2021
Transactional pricing is not a new concept, you've likely paid in this manner for many things throughout the years, cellphone plans and grocery delivery services being two common examples. Though transactional pricing structures go by many names: pay-as-you-go, on demand, value based pricing, etc - the concept is generally the same at its core. Each transaction has an agreed upon value, and that value is multiplied by the number of transactions, then summed up for the time in question. Simple enough - right? But what are the benefits of this type of pricing in the logistics industry, and what type of business would see the biggest benefit from this type of pricing structure? Let’s start by looking at the top 3 benefits of transactional pricing in the logistics arena.

Transactional pricing offers many benefits to its users:

  • Low to no upfront or start-up costs. This is a huge benefit to new businesses more focused on cash flow.

  • Reduced cash flow constraints. Paying for services as they are actually used can free up resources in times of diminished demand.

  • Flexibility for seasonal changes and/or constraints. The flexibility of transactional pricing can be extremely helpful during fluctuations of supply and demand. Shipping volume often varies throughout the year and this type of structure allows a business to reallocate resources more easily. This means that costs will increase or decrease along with volume levels and revenue.

Is transactional pricing right for you?
The answer greatly depends on your business, industry, cash flow, and objectives. Demand-driven businesses can find solace in transactional pricing as a way to manage costs based on volume. Transactional pricing is not the best option for everyone, but when used properly it can be extremely beneficial to a business's ability to keep costs down. The transactional pricing structure is yet another example of flexible options available from companies like ConnectShip, a multi-carrier shipping solution provider who prides itself on the many options available to customers, and the power inherent in the ability to choose what options make the most sense for your business.

These ConnectShip products are available with transactional pricing:
Toolkit Cloud
ABF Freight carrier

Krista Barnes
Marketing Supervisor ~ ConnectShip
Krista Barnes joined ConnectShip as a web development specialist in the Marketing department in 2007 . During her time marketing ConnectShip solutions, Krista has been instrumental in the current and future direction of the company website, product marketing, communications, and event production. A graphic designer by trade, she has helped to evolve and then rebrand the company’s identity into what it is today. Krista earned her Bachelor of Arts in Graphic Design and Art History from Oklahoma State University.