What Is eCommerce Shipping - A Make or A Break For Your Business

What Is eCommerce Shipping?- Effective Shipping Methods To Look Out For

Ecommerce Shipping, Shippping Logistics, Shipping, Delivery, Online business
Ecommerce Shipping: A Make or Break for Your Business

An eCommerce Business is incomplete without the right shipping policy. As a business owner, one needs to understand that customer satisfaction is the ultimate ball game. The first impression is definitely the last, and if the delivered product is in a disastrous state or delayed, well, the business has lost its trust in the eyes of the prospects. Hence, to avoid this, choosing the shipping strategy plays an important role. But before that, the first question to consider is, ‘What is eCommerce Shipping’? Next, ‘What are the components of eCommerce Shipping?’ Lastly, ‘Why is it important to have a shipping strategy?’

The answers to these questions are explained in detail as you continue to read. In short, your solution to enhancing customer satisfaction.

What is eCommerce Shipping?

Ecommerce shipping is a service undertaken to transport products sold via an eCommerce business. These products are shipped from the point of origin to the customer’s doorstep. eCommerce shipping covers the overall business aspect of providing the best in class customer experience while delivering a product.

New entrants in this business can choose services by courier companies to ship a few packages. Sooner or later, as the company takes a jump into delivering multiple packages a day, it needs an efficient shipping strategy. And for this, eCommerce shipping service plays the lead role. Let’s take a look at the various aspects needed to choose and implement the right strategy at the right place with the right partner at the right time.

Shipping Strategy

If your business has just broken the egg, it is the right time for you to either use the dropshipping method or contact 3PL companies. Being independent of the above two methods will require your business to store, manage, and ship the products to the customer. Here, order fulfillment is complex, and understanding loads of variables is not a cakewalk.

Why is It Important to Have a Shipping Strategy?

The online market is loaded with competition and customers have a wide range of alternatives to choose from. Shipping price and speed are two important factors that customer purchases depend upon. As per a study, unsatisfactory delivery options have called for 45% of customers abandoning their cart. Almost 38% break deals with a brand if a negative delivery experience and 66% of shoppers stated that they have canceled purchases due to higher shipping costs.

Setting an effective shipping strategy is the most essential factor to consider when you expand your eCommerce business.

Many brands follow an easy approach to shipping. Some offer free shipping as a strategy to attract businesses while other discounts are applied by a strategic shipping solution. An effective eCommerce business ensures the combined effort of various departments of an organization. Right from the sales and marketing team to the order fulfillment team, each one plays a role to deliver right. And to ensure that the involvement of each intermediary is up to speed, a shipping strategy solution needs to be set in place.

Considerations While Outlining Your Shipping Method:

The Assembly of Departments

Each member of the organization whether the same team or a different department takes the lead to ensure products are shipped right. Identifying the right kind of people will help a business in decision making. One needs to ensure that the stakeholders will increase conversion rate. Assembling the right task to these players along with a structured flow will prove efficiency and an accurate process.

The major key players in this sector are:

  • A Marketing Team
  • The Creative and Web-Design Team
  • The Order Fulfilment Team
  • A Customer Service Team

Strategy Goals

Once the team has been identified, the next consideration is to align the goals right. Some of which are:

High Conversion rate

This completely depends on your eCommerce store online and your product delivery. Your store is visually represented it is ideal for a customer to feel that he/she has walked into reality. The engagement on a website via content, the right product images, the price of the product, the shipping cost and mode of shipment, various marketing strategies, etc. will either better the conversion rate or decrease it.

Conversion rate = no. of visitors/no. of shoppers

Emerging market expansion

Untapped markets call for a well-structured shipping strategy. Whether a local market or a global one, shipping techniques rolls the dice. For international shipping, one should rely on a quick and cost-effective shipping system, while local markets can use self-pickup or one-day delivery.

Average Order Value

The average order value helps any business to understand whether it is capable to provide low shipping costs to the customers or no. Increasing AOV calls for increased sales, which directs bulk orders. This, in turn, helps shipping companies to offer great discounts, thus reducing your shipping cost, increasing margins over products, and retaining old customers.   

 Average Order Value= Revenue/ No. of orders

Consider Shipping Variable

A shipping strategy for a business doesn’t need to follow a uniform approach.  It constantly changes depending on the various requirements. Every aspect of order fulfillment, i.e. packaging, budget, delivery period, shipping cost, product margins will vary. Hence, as an owner, you need to ensure that a structured shipping strategy and a goal-setting method has been applied for your business.

A shipping strategy will continually develop and change according to your requirements. As the business develops, the opportunities too will increase. The widespread expansion of providing free shipping or one or two-day delivery will grow, packaging will see a change, budget and margins will fluctuate, i.e. the overall development of the process will see a change.

Some of the shipping variables you might want to consider are:

Law and order

Some of the products shipped come under the umbrella of judicial boundaries. Items such as pharmaceuticals, alcohol, machinery, etc. have certain guidelines and barriers to follow. While as an owner you intend to ship correctly, you are accountable for the journey of the product from the warehouse till the customer’s doorstep. It is necessary to have a complete understanding of the various legal formalities based on the nature of the product.  

Money losing variables based on the product

While a product weighs less, the packaging and the distance to reach the customer may increase the shipping cost. One should consider the above factors before dispatch.

Various components of logistics cost such as monitoring, duties and taxes, warehousing, packaging materials, labeling, etc. need to run through a prior check to ship in a cost-effective manner.

Right Shipping Rates

A well-controlled online business offers the right shipping rates to customers yet being able to cover the production costs. However, choosing the right shipping options for the customers maybe a little crucial. Here are some points to consider before one chooses the right shipping option:

  • How do product size and weight impact a business? 
  • It is important to understand the nature of the product in the first stage.
  • Is the product uniform? Does it vary in size? Does it differ in volume?
  • What is the limit to your shipping destination? 

If as a retailer, the size and weight of the product is uniform, then preferring a zone-based approach is ideal. Here, the shipping costs are charged based on the customer’s location.  

On the other hand, varying product sizes and weight calls for different rates listed by the shipping partner one selects.

Shipping across different locations can inversely impact the shipping costs. As an online business, one needs to know the limit of the shipping policy. For Example Domestic Shipping, International Shipping, Free Shipping, Flat-Rate Shipping, Hyperlocal Shipping, etc.

Choose the Right Shipping Carrier

Customer satisfaction is the ultimate key while one keeps the costs in check. While finding a shipping carrier, dive deep into smaller names and varying options available rather than just the big names. Finding carriers that offer same-day delivery, one-day delivery, or cost-effective delivery irrespective of the weight and size of the products will satisfy the shipping needs. Moreover, local carriers will help tap the remote locations, thus ensuring a remote market reach.  

Smart logistics help in eCommerce Business Growth

In order to upscale a business, consider the power of eCommerce smart logistics.

In a highly competitive business world, staying ahead of competition leads the way.  A vision for the future of business through dynamic ways of task completion is the way forward.  

Even though one may manufacture high-quality goods/services. However, delivering it to the customers within a given timeframe plays an important role. A failed shipping process calls for unsatisfied clientele.

Hence, one needs to look at innovative ways to support the growth of a company. One may have to plan, fund, and find a trustworthy eCommerce shipping process that helps in the timely delivery of the products. With globalization, businesses are not only dealing with the local market; rather, are now catering to international customers as well.

At times paying the entire shipping cost is a burden for a business, especially if it is a small-scale business that has limited cash in hand. Outsourcing eCommerce shipping services to professionals can help organizations stay focused on their core business and enjoy a cost-effective operation.

Here are a few benefits of outsourcing a shipping service to upscale business growth:

Enhances Visibility

Transparency holds the torch. If there is systematic process of tracking the shipment and distribution, structured strategy, and timely delivery of products, it clears way for transparency between the customer and the business.

Lowers Overhead Costs

Systematic eCommerce shipping strategies can help businesses to lower the operational cost to an extent. With the help of systematic inventory management and demand forecasting, a business can customize the inbound and outbound shipping schedules, ways of shipping the end products, the medium of shipping, and much more, in a more professional way. All of which will help in saving time and money. Also, quality logistics improve:

  • Cash in hand 
  • Order fulfillment rates
  • Timely delivery 
  • Net revenues 
Improves Customer Satisfaction 

No businesses can sustain for long if they have unsatisfied customers. Customers prefer buying from those companies that assure timely delivery to their doorsteps. Safe payment methods, good product reviews, a better quality of goods, etc. are some of the other factors that customers consider.  Apart from the above a clear communication with realistic commitments builds customer loyalty.

Timely Delivery of Orders Gives a Competitive Edge

Choosing the best logistics services along with a professional supply chain management plan, helps an organization to stay ahead of their competitors. From manufacturing to storing, and tracking to the final delivery, each and every step needs to have a bird eye view. Through visibility and customized logistics adjustments, the fulfillment rates of orders placed will improve. 

Using third party physical resources from storage warehousing and equipment, to other fixed-assets like delivery vehicles help businesses in using the available resources to the best of their abilities.

best shipping partner
Market expansion Helps Increase Revenue

In an eCommerce business, systematic logistics and supply chain management is important to ensure smooth and healthy growth. Smart and accurate logistics plan not only include transportation of goods but also focuses on customer satisfaction. With the advancement in technology and access to internet-based software, logistics is now automated. This reduces the time spent on recording shipment details. Hence, a business can focus on better customer-driven strategies to increase sales, thus increasing revenue.

Offering enriched customer experience through the timely delivery of the products is the best way to ensure that a business is different from competitors on the market. So trust professionals like Dash101, when it’s about building a brand!

How to Improve your Company’s eCommerce Shipment Process

Shipping Strategies

Efficient delivery holds volume in repeated sales. Furthermore, a shipment process plays a major role.

With social media, selling on platforms like Facebook or Instagram marketplace has become advantageous. Not only are one is able to reach a larger audience all at once, but it also allows consumers to check out a product without leaving the platform. However, there are several steps through a customer’s journey that influence whether they reach the checkout page.

A product may be just what they’re looking for, the reviews may be excellent, and the website or app may be seamless and visually appealing. But it does not end here. The final step – the eCommerce shipment process – can make a world of difference to a customer’s experience. Ensuring that their order is delivered on time and just as they imagined is crucial, because good delivery can hold a lot ofvolume in repeat sales. 

best shipping partner

Dash101 acts as a one-stop solution for all your shipping needs – turning shipping logistics into smart logistics!

The need for shipping is apparent to most business owners. However, the exact way to go about meeting their peculiar needs creates unforeseen hurdles. Dash101 is a tech-enabled logistics aggregator that aims at understanding these unique shipping requirements. Hence, offering solutions based on your specified needs.

At Dash101, you not only find an eCommerce shipping partner but also a business partner.

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