GETTING THE MOST OUT OF YOUR ECOMMERCE SHIPPING
We live in a digital world where almost everything is done online, especially business. It is now so easy for customers to communicate with retailers, make orders for a product and have it delivered to them in a short time, all with the help of their mobile devices.
The digital age has really made business practices a lot quicker and easier and it has given rise to a practice known as E-commerce shipping. Ecommerce shipping is the part of business that has to do with all the services required to transport products bought online from the seller to the chosen destination of the customer.
Since the beginning of the pandemic, more products are being bought online than ever before. Because people are not going out as much as they used to, they have turned to online stores to get food, clothes, household equipment, etc. As an entrepreneur, you go to great lengths to make sure that your consumers are happy and satisfied.
You approve the photos, make changes to your store, you make sure your website is easy to use and understand and compose emails with the objective of making your consumers happy. But after the customers make an order, getting it to them can be very tricky.
However, with some effective planning and logistics, it won’t have to be that way. Shipping is an important aspect of your business because it is the moment at which a client sees your goods for the first time, and depending on your shipping plan, it may also be a significant expenditure for your business.
So, without further ado, let us take a look at everything you need to know to get the most out of E-commerce shipping.
IDEAL E-COMMERCE SHIPPING OBJECIVES
- Expanding your business to unknown current markets: Adequate shipping techniques are required when expanding your business to new markets. You can use tactics like same-day local delivery to help you get a footing and dominate your local market, while quick and affordable international shipping will undoubtedly help you expand your business, regardless of how broad or limited your target market is.
- Increase your conversion rate: Conversion rate can be defined as the number of customers who make a purchase in relation to the amount of people who visited your site. The style of your site, your website text, the quality of the items you sell, your marketing tactics, and so on all have a role in increasing conversions. Offering free shipping, for example, is one of the tactics some online shops use to increase their conversion rates.
- Lowering shipping expenses: Taking a clear and strategic approach to order fulfillment may have a significant influence on your company’s development. You may either raise your profit margins or provide items at cheaper rates to attract and keep more consumers by improving operational efficiency and lowering transportation expenses.
- Increasing Average Order Value (AOV): For every E-commerce firm, the AOV is one of the most important KPIs (Key Performance Indicators). Divide your income by the number of orders to get your average order value. Offering free delivery on all orders over a particular dollar level is a tried and true method for increasing your AOV. You may simultaneously boost your AOV and decrease your shipping expenses by giving bulk purchase specials and employing up-selling funnels. Shipping carriers will be glad to provide you volume discounts.
Your shipping policy should be designed around your shipping goals and they should answer the questions of pricing and method of delivery. Let us take a look at some of the policies you can adopt.
- Offer free shipping: Offering free shipping is one of the most popular policies used by online stores. There are two ways to go about this: either conditionally or absolutely free. Free shipping offers may be structured in a variety of ways depending on whether you go for the first option: you can charge a minimum purchase amount , limit free delivery to certain items, or provide free shipping as a promotion. If you go with the second option, you’ll have to find a means to cover the cost of shipping to the buyer in a non-intrusive manner.
- Set a fixed fee – You can decide to charge a fixed rate for shipping all your products. The downside to this technique is that it only works well when your product line consists primarily of items with comparable dimensions and weights. If you sell a wide range of items, charging a flat fee isn’t really an option for you because it’s very simple to undercharge or, overcharge your consumers for shipping which could turn them away from your products.
- Offer same-day/two-day shipping or overnight shipping: Offering same-day and two-day delivery has become the industry standard in recent years. A study shows that about 61% of people indicate they are willing to pay more for faster shipment. Nowadays, people even expect their orders to be delivered in two days or less even when it might not be possible. Offering speedy delivery is an excellent way to increase customer loyalty, and better fulfill consumer needs.
- Charge Real-Time Carrier Rates: The use of real-time carrier prices for shipment is an additional successful shipping technique. Even though most consumers would prefer free shipping, showing real-time carrier prices at the checkpoint has some genuine advantages. In order to create shipping alternatives and live pricing from multiple carriers, ecommerce systems interface in real time with various carriers including USPS. This gives your clients the freedom to select and pay for only the services they require.
- Offer In-store pick up: Offering in-store pick-ups is an underrated service that many e-commerce companies don’t take advantage of. There’s a huge disparity between the amount of clients who desire in-store pick-up and the number of e-commerce companies who provide it. You should capitalize on this service by giving your customers the choice to pick up their deliveries themselves.
E-commerce shipping, in this day and age, is very important to the success of many businesses. Even the biggest online stores make use of this service. If you are thinking of starting an online business, you are advised to look into this, understand how it works and create a fool-proof strategy in order to make the most out of it.