Shipping Automation ROI: Calculate Your Savings Shipping automation delivers measurable returns. Here's how to calculate and maximize your ROI.
Automation Opportunities
Areas to Automate
Area Manual Time Automated Time Order import 5 min/order 0 min Rate shopping 3 min/order 0 min Label creation 2 min/order 10 sec Tracking upload 1 min/order 0 min Customer emails 2 min/order 0 min
Time Savings
Volume Manual (hrs/day) Automated (hrs/day) 50 orders 10+ hours 1 hour 100 orders 20+ hours 2 hours 500 orders Not possible 4 hours
ROI Calculation
Annual ROI = (Annual savings - Annual cost) / Annual cost × 100%Where savings = Time savings + Rate savings + Error reduction
Example Calculation
Monthly shipping: 1,000 ordersTime savings:
10 min/order saved × 1,000 orders = 167 hours
At $20/hour labor = $3,340/month
Rate savings:
$2/order average savings × 1,000 = $2,000/month
Error reduction:
2% error rate reduced to 0.5%
15 errors/month × $25 cost = $375/month
Total monthly savings: $5,715
Software cost: $200/month
Monthly ROI: ($5,715 - $200) / $200 = 2,758%
Annual savings: $66,180
Time Savings Analysis
By Task
Task Manual Automated Savings Order download 5 min 0 5 min Rate comparison 3 min 0 3 min Label creation 2 min 0.17 min 1.83 min Tracking update 1 min 0 1 min Total 11 min 0.17 min 10.83 min
Labor Cost
Hourly Rate Savings/Order 1,000 Orders $15 $2.71 $2,710 $20 $3.61 $3,610 $25 $4.51 $4,510
Rate Savings
Carrier Discounts
Carrier Retail Rate atoship Rate Savings USPS $5.00 $4.25 $0.75 UPS $9.00 $6.48 $2.52 FedEx $9.50 $6.84 $2.66
Scenario Single Carrier Rate Shopping Avg cost $7.00 $5.50 Savings - $1.50/order Annual (10K) $70,000 $55,000 Savings $15,000
Error Reduction
Error Costs
Error Type Cost Wrong address $15-25 Wrong item $20-30 Duplicate label $5-10 Missed order $25-50
Automation Impact
Metric Before After Error rate 2-3% 0.3-0.5% Errors/1000 25 4 Error cost $625 $100 Savings $525/1000 orders
Implementation Cost
Investment Types
Component Cost Range Software subscription $50-500/month Hardware (printers) $200-1,000 one-time Integration setup $0-1,000 Training 2-8 hours
Payback Period
Monthly savings: $5,000
Monthly cost: $200
Payback: Immediate (less than 1 month)
atoship ROI
Included Value
Feature Value Carrier discounts Up to 89% off Rate shopping Automatic best rate Batch processing Time savings Tracking automation Zero manual work Platform integrations Order sync
Measuring Results
Track These Metrics
Metric Measure Time per order Before/after Cost per label Before/after Error rate Before/after Customer satisfaction NPS/reviews
Conclusion Shipping automation delivers substantial ROI through time savings, rate discounts, and error reduction. Calculate your potential savings, implement with atoship, and measure results to maximize return.
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