What if I don't have all SKUs at the estimation stage?

At Hula Global, we know that brands, especially new brands, seasonal collections, or brands that are still settling their product offerings, may get to the stage of estimating shipping costs before fully finalising their product assortment.

We appreciate that this is a reality that a lot of our customers face; however, without having a fully completed SKU list, as well as the shipping quantities, the shipping cost estimates we provide will be highly inaccurate, if we can provide shipping cost estimates at all.

There are so many unknowns that will lead to the most basic cost estimates ending as guesswork, which will make the estimates you receive largely inaccurate. Packaging, dimensions, unit counts, shipping consolidation, and so many other things will alter any estimates we provide. This is the most important reason we ask for as much information as you have at the estimation stage, including SKU lists, even if they’re incomplete.

Identifying a product internally with a SKU (Stock Keeping Unit) serves multiple purposes, including aiding the company with logistics. A unique SKU is assigned to each product and is generated for each product variant based on a combination of that item's style, size, color, or design.

The way that products are packed for shipment is affected by how many SKUs there are and how many items are in each SKU. A larger number of SKUs can increase the complexity of packing, as well as the need for separating items and handling. All of which increases the overall cost of shipping.

For instance, if you need to ship 100 pieces divided into 3 styles and 2 sizes, that is a total of 600 units. It is also very easy to organize, pack, and consolidate, which means that the shipping costs will be low. Shipping 100 pieces with 30 styles and 5 sizes, on the other hand, gives you a total of 15,000 units.

The overall shipment size is larger, and with that, the complexity of the packaging and overall handlings are required to increase. This example serves to show why a breakdown of SKUs is fundamental to accurate estimating.

If you do not have a final SKU list, you can still share some rough, preliminary information to help us get a rough, high-level estimate. This information may include total estimated quantities, number of styles, size ranges, and air or sea as a preferred shipping method. It won’t result in an exact quote, but it can provide you with a general idea of shipping expenses.

We would also like you to understand that any quote that may be derived from your information is wholly subject to change. After your final quantities and SKUs are confirmed, the freight cost may deviate significantly from the preliminary estimate. It is not that we are inconsistent; it is just that estimating freight costs is anything but consistent.

Volumetric weight is also a component of logistics that needs to be evaluated. Regardless of how many pieces are involved in the shipment, air and sea freight prices are largely based on the chargeable weight, which varies due to the shipment’s dimensions and packaging. Without these details about the SKUs and an accurate measure of volumetric weight, any estimate is really just speculation.

In addition, various items may need varying types of packing, which may be polybags, boxes, hangers, or cushioning for fragile products. These packaging types will influence volumes and weights of shipments, which will influence freight costs. A shipment containing a broad range of SKUs will likely need more elaborate packing solutions compared to a more uniform shipment, which will affect the costs of logistics.

Unquestionably, the earlier we finalize the merchandise plan, the more accurate the shipping estimates will be. A successful plan contains SKU specifics, quantities for each SKU, estimated sizes, selected shipping method, and destination specifics. Estimates are more helpful with more complete details, especially for business forecasting.

With your focus set on product development and ordering, we’re in the iterative process as well. If you are still in the planning phase, we are happy to discuss potential shipping scenarios based on the best information you have. Plus, we’re more than happy to assist you with estimating freight costs based on the differing structures of your order and your desired product assortment and quantities.

We strive for transparency, precision, and most importantly, the support of your business. We might not be able to provide an accurate shipping cost without a full set of SKUs, but we will do our best to keep you informed based on available details. When you are ready to finalize your SKUs, we will provide a shipment estimate based on the best available info.

We understand that not having all the SKUs is part of the estimation stage, but it makes freight costs a guess at best. We need the total quantity, all the SKUs, how they will be packaged, and the lengths and widths of the boxes. We can assist you best with partial SKUs, and we can provide a realistic estimate with final SKUs.

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