It is almost impossible to discuss ecommerce without mentioning shipping. With at least 60% of customers or online shoppers opting for ecommerce businesses that offer more convenient delivery options and 45% abandoning carts because of bad or unsatisfactory delivery, it's obvious why every business should take Ecommerce shipping seriously.
This brings us to the word that is causing so much buzz in the online business business space — ecommerce shipping strategy. Unless you are new to ecommerce or are new around the block, the chances are that you have heard about shipping strategies. If you have crossed paths with these words and are yet to make sense of it or wrap your mind around them, not to worry because we have got you covered.
First things first, what is ecommerce shipping strategy?
If you have bought or sold goods and services via the internet, you have taken part in ecommerce. Recent statistics forecast that e-retail sales will hit 4.8 trillion dollars by 2021 and serve a jaw-dropping 2.14 billion people worldwide. By the end of the year 2022, global ecommerce sales are projected to hit a stunning 5.42 trillion dollars in sales — and this is an indication that the future of ecommerce is very bright.
What is ecommerce shipping?
You can think of ecommerce shipping as the process of transporting products that are purchased online from the ecommerce store to their destination — the customers' doorstep. With our online purchases projected to hit 95% come 2040 and the ecommerce industry growing at a rate of 23%, year-over-year, one can begin to imagine the role of role of ecommerce shipping in customer satisfaction.
While free shipping and fast delivery are among the major drivers or factors to consider while choosing an ecommerce shipping strategy for your business, there is more to it than meets the eyes. You have to make out time to understand how the process works and make ample plans on how to implement a fast, affordable, and of course, manageable ecommerce shipping system. Thankfully, you can access useful information and professional guides on ecommerce shipping at Sellvia service.
What does ecommerce shipping entail?
Contrary to popular misconceptions about shipping in ecommerce, the process starts from the point where you take customers' orders up to the point of preparing them for delivery. The process is broadly classified into three groups — order receiving, order processing, and order fulfillment.
What are Ecommerce shipping strategies?
Because no two businesses are the same, it is only logical for every ecommerce business to have unique shipping strategies. The shipping strategies are dependent on the audience, your budget, product, and profit margin, among other factors. What makes the perfect ecommerce shipping strategy is a blend of factors that can deliver high conversions fast, and affordable shipping while also reducing shopping cart abandonment. Popular ecommerce shipping methods/strategies you can consider include:
1. Overnight shipping
2. Same-day delivery
3. Two-day shipping
4. Expedited shipping
Others include but are not limited to international shipping, the use of biodegradable materials for packaging products, and freight forwarding.
What's the Cost of Ecommerce shipping?
While it is true that coming up with an affordable yet profitable ecommerce shipping cost plan for businesses can be daunting, it can also be made easy if one has the right information and resources at their disposal. Here are factors to consider while choosing an effective and affordable ecommerce shipping solution for your business.
1. How are you calculating your shipping cost?
As we mentioned earlier, shipping strategies vary from one ecommerce business to the other. Likewise, every business has a distinctive method of calculating its shipping costs.
However, there are common denominators one must consider, and these include the weight, shipping destination, the choice of the shipping carrier, the dimensions, and the value of the items. All of these will help you determine the right shipping cost and not put a burden on your customers.
2. Dimensional weight
Almost every shipping company uses the "DIM-weight" or Dimensional Weight technique to calculate shipping costs. The pricing technique takes into account the size of the package and uses it as the determinant of shipping cost. Major shipping companies compare the weight of the goods to the DIM weight and use whichever is higher as the billable weight for shipping cost.
3. Using 3PL
Another way to go is using third-party logistics companies for ecommerce shipping. Third-party logistics or 3PL companies are ideal options for lowering shipping costs. You can think of using 3PL providers as outsourcing your shipping services — thereby giving you time to focus on other important aspects of your business like scaling your operations. Other benefits of using 3PL include reduction in transit time, saving on shipping cost, and getting shipping discounts.
Other factors to consider include shipping zone and shipping and handling. You also have to be familiar with different ecommerce shipping rates. The popular shipping rates include flat rate shipping, real-time carrier rates, and offering free shipping. While free shipping can be used to significantly reduce cart abandonment, strengthen customer loyalty, and enhance conversations, you must remember to stay profitable. While you are at it, remember to take your shipping labels and insurance and shipment tracking and returns seriously.