Lore: Dimensional shipping makes basket-building incremental margin highly profitable
Marc Lore · Diapers.com & Jet.com: Marc Lore · May 17, 2021 · at 37:02
Marc Lore explains the unit economics and fulfillment logic behind Diapers.com's strategy of cross-selling smaller baby goods.
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“The way shipping works is if you're shipping a box of diapers to someone and you have empty space in that box, the marginal cost to ship the next thing you put in the box is very, very small, very low. Like it might be, you put something that weighs a pound into that same box, it might cost you 10 cents of incremental shipping. So the margin on the margins was great.”
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