Ecommerce shipping is the backbone of the modern digital economy, but it can also be a major pain point for customers. Long delivery times, high shipping costs, and complex return policies can all lead to customer dissatisfaction and lost sales.
In today’s competitive ecommerce landscape, businesses that want to thrive need to adopt a forward-thinking, customer-centric approach to shipping. This means going beyond the basics of packing and shipping orders and instead focusing on the overall customer experience.
This comprehensive guide will cover everything brands need to know about ecommerce shipping, from selecting the right shipping carriers and methods to packing and shipping products efficiently. It will also provide best practices for ensuring a positive customer shipping experience.
What is Ecommerce Shipping?
Ecommerce shipping is the process of delivering products to customers who have purchased them online. It involves a number of steps, including picking and packing the order, selecting a shipping carrier, and tracking the shipment.
Ecommerce shipping is a crucial component of success for businesses in the digital retail landscape. By understanding and effectively managing the key components of ecommerce shipping, businesses can deliver a seamless and satisfying experience for their customers, fostering loyalty and driving success.
The main components of ecommerce shipping are:
- Picking and packing: This involves carefully selecting the correct products from inventory, securely packaging them, and attaching a shipping label. This step is essential to ensure that products arrive safely at their destination.
- Shipping carrier: Once an order is packed, a shipping carrier must be chosen to deliver it to the customer. There are a variety of shipping carriers to choose from, each with its own advantages and disadvantages. Businesses should carefully consider their options and select the carrier that best meets their specific needs.
- Tracking: Once an order is shipped, tracking information should be provided to the customer so that they can track its progress and know when to expect delivery. This is essential for providing a positive customer experience.
The ecommerce shipping journey begins when a customer places an order on an online store. The store then receives the order and processes it, which may involve checking stock levels, verifying payment, and generating a shipping label. Next, the store picks and packs the order, which involves ensuring inventory accuracy and selecting the correct products from inventory, packaging them securely, and attaching the shipping label, all while monitoring essential inventory management KPIs. The store then ships the order, either by itself or through a shipping carrier. Finally, the shipping carrier delivers the order to the customer.
Key Components of a Successful Shipping Strategy
A successful shipping strategy is essential for any business that sells products online. By understanding your audience, setting clear goals, and assembling the right team, you can develop a shipping strategy that will help you achieve your business objectives.
Understanding Your Audience
The first step to developing a successful shipping strategy is to understand your audience. This includes understanding your customer preferences, such as their preferred shipping methods, delivery times, and return policies. It is also important to consider geographic considerations, such as the locations of your customers and the shipping carriers that serve those areas.
Customers have different preferences when it comes to shipping. Some customers want the fastest possible delivery, while others are more concerned about the shipping cost. Some customers prefer to receive their orders at home, while others prefer to pick them up from a store. Businesses should offer a variety of shipping options to meet the needs of all of their customers.
Geographic considerations can also play a role in a company’s shipping strategy. For example, if a business has many customers in rural areas, it may need to choose a shipping carrier that offers reliable shipping to those areas. The business may also need to adjust its shipping rates depending on the distance that its products need to travel.
Setting Clear Goals
Once a business understands its audience, it needs to set clear goals for its shipping strategy. What does the business want to achieve with its shipping strategy? Does it want to increase conversions, average order value, or market reach? Does it want to improve operational efficiency? Once the business knows its goals, it can develop a shipping strategy that will help it achieve them.
A well-designed shipping strategy can help an ecommerce business increase conversions, average order value, and market reach. For example, offering free shipping on orders over a certain amount can encourage customers to spend more money in the business’s store. Offering a variety of shipping options can also make it more likely that customers will find a shipping option that meets their needs.
An efficient shipping strategy can help a business save money and improve its bottom line. For example, choosing the right shipping carrier and shipping methods can help the business reduce shipping costs. Automating the business’s shipping process can also help the business save time and reduce errors.
Assembling the Right Team
Assembling the right team is essential for executing a shipping strategy effectively. This team should include people with expertise in shipping, logistics KPIs, and customer service. By working together, the team can ensure that the business’s customers have a positive shipping experience.
This includes departments like marketing, web design, fulfillment, and customer service teams, which play a vital role in shipping by ensuring that customers are aware of the different shipping options available to them, that the shipping process is easy and efficient, and that any shipping issues are resolved quickly and effectively.
Ecommerce Shipping Methods and Their Benefits
Shipping is a critical component of the ecommerce experience. Customers expect fast, affordable, and reliable shipping, so it’s important for businesses to choose the right shipping methods for their needs. There are a variety of ecommerce shipping methods available, each with its own benefits and drawbacks.
Free Shipping
One of the most popular ecommerce shipping options is free shipping. Free shipping can be a great way to attract customers and increase sales. However, it’s important to consider the costs of offering free shipping before implementing it. Businesses need to make sure that they can afford to cover the cost of shipping, or they need to factor the cost of shipping into their product prices.
Flat Rate and Table Rate Shipping
Flat rate and table rate shipping are other popular ecommerce shipping methods. Flat rate shipping means that customers pay a fixed shipping rate, regardless of the weight or distance of their order. Table rate shipping means that customers pay a shipping rate based on the weight and distance of their order.
Flat rate and table rate shipping can be a good option for businesses that sell products of similar weight and size. They can also be a good option for businesses that want to simplify their shipping process. However, it’s important to note that flat rate and table rate shipping can be more expensive for customers who are ordering heavy or bulky items.
Live Rates
Live rates allow customers to see the real-time shipping rates from different carriers. This can be a good option for businesses that sell a variety of products of different weights and sizes. It can also be a good option for businesses that want to offer customers the best possible shipping rates.
However, it’s important to note that live rates can be more complex to implement and manage than other shipping methods. Businesses also need to make sure that they have a reliable way to calculate live rates.
Same-Day Delivery
Same-day delivery is a premium shipping service that allows customers to receive their orders on the same day that they are placed. Same-day delivery can be a great way to attract customers and increase sales, but it’s important to note that it can be a more expensive shipping method.
Businesses also need to have a system in place to fulfill same-day orders quickly and accurately. This can be challenging for businesses that have a high volume of orders or that sell products that are difficult to package and ship.
Mixed and Alternative Strategies
Some businesses choose to use a mix of shipping methods. For example, a business might offer free shipping on orders over a certain amount, and flat rate shipping on orders under a certain amount. Other businesses might choose to use alternative shipping methods, such as in-store pickup or local delivery.
The best ecommerce shipping method for a business will depend on a variety of factors, such as the type of products that the business sells, the size and location of the business’s customer base, and the business’s budget. Businesses should carefully consider their options and choose the shipping methods that will best meet the needs of their customers and their business.
Common Ecommerce Fulfillment Options
There are a number of different fulfillment options available to ecommerce businesses, each with its own advantages and disadvantages.
Self-Fulfillment
Self-fulfillment involves managing inventory, picking, packing, and shipping in-house. This can be a good option for small businesses with a low volume of orders. However, as businesses grow, in-house order fulfillment can become time-consuming and expensive.
Pros of self-fulfillment include more control over the fulfillment process, lower upfront costs, and easier to customize the customer experience.
Cons of self-fulfillment include the potential to be time-consuming and expensive for businesses with a high volume of orders, to require significant investment in inventory space and shipping equipment, and to be more difficult to scale.
Third-Party Logistics (3PL)
Third-party logistics (3PL) providers specialize in fulfillment services. Outsourcing fulfillment to a 3PL can be a good option for businesses of all sizes. 3PLs can provide businesses with access to a variety of resources and expertise, including large warehouse space, automated picking and packing systems, discounted shipping rates, and international shipping capabilities.
The benefits of using 3PLs include an ability to easily scale their operations to meet the needs of businesses of all sizes, the expertise and resources to handle complex fulfillment needs, and cost savings from discounted shipping rates with carriers.
Dropshipping
Dropshipping is a fulfillment model where products are shipped directly from suppliers to customers. This can be a good option for businesses that want to avoid the hassle of managing inventory and shipping. However, it’s important to note that dropshipping businesses have less control over the fulfillment process and shipping times.
Some considerations brands should think about include less control over the fulfillment process and shipping times, lower profit margins, and more difficult to build brand loyalty.
Hybrid Fulfillment
Hybrid fulfillment involves combining multiple fulfillment methods to optimize operations. For example, a business might use self-fulfillment for orders in its local area and a 3PL for orders outside of its local area. Hybrid fulfillment can be a good option for businesses that want to balance the benefits of different fulfillment methods.
A hybrid approach can be beneficial for businesses with a high volume of orders in a specific geographic area, that sell products that are difficult or expensive to ship, and that want to offer multiple shipping options to customers.
On-Demand Fulfillment
On-demand fulfillment is a just-in-time model where products are produced and shipped based on real-time orders. This can be a good option for businesses that want to reduce inventory holding costs and risks. However, it’s important to note that on-demand fulfillment can be more expensive than traditional fulfillment methods.
Benefits of on-demand fulfillment include reduced inventory holding costs and risks, increased flexibility to meet changing customer demands, and reduced environmental impact.
Packaging and Presentation
Packaging and presentation are important aspects of the ecommerce experience. Customers expect to receive their orders in packaging that is both protective and visually appealing. Carefully choosing the right packaging materials and design can help you enhance your brand image and deliver a positive customer experience.
Choosing the Right Packaging
When choosing packaging for your ecommerce products, it’s important to consider the following factors:
- Product type and fragility: The type and fragility of your products will determine the type of packaging you need. For example, fragile items will need more protective packaging than non-fragile items.
- Weight and size: The weight and size of your products will also affect your packaging choices. Heavier and larger items will need more robust packaging than lighter and smaller items.
- Shipping method: If you’re shipping your products using a third-party carrier, it’s important to choose packaging that meets the carrier’s requirements.
- Cost: Packaging can be a significant expense, so it’s important to choose packaging that is cost-effective.
Custom and Eco-Friendly Packaging
Custom packaging can help you enhance your brand image and make your products stand out from the competition. Custom packaging can also be used to provide customers with a more personalized experience.
Eco-friendly packaging is becoming increasingly important to consumers. Choosing eco-friendly packaging materials can help you reduce your environmental impact and appeal to eco-conscious consumers.
Tracking, Returns, and Customer Satisfaction
By providing customers with clear visibility into their orders, a fair and hassle-free return policy, and a commitment to exceeding expectations, brands can build trust and loyalty, and drive repeat purchases.
Importance of Order Management
Order management can keep customers informed, reduce errors and delays, and improve visibility and decision-making. Order management systems can automate and streamline the entire order fulfillment process, from order capture to shipping and delivery.
Package Tracking
Package tracking is an essential part of the customer experience. Customers want to be able to see where their order is and when it will arrive. This helps them to plan their day and reduce anxiety. In addition to keeping customers informed, package tracking also provides businesses with valuable insights. For example, businesses can use tracking data to identify areas where the fulfillment process can be improved.
Crafting a Fair Return Policy
A fair and hassle-free return policy is essential for ecommerce businesses. Customer expectations include being able to return items that they are not satisfied with, and they want the process to be as easy and convenient as possible.
International Shipping
International shipping can be a great way for ecommerce businesses to expand their reach and reach new customers around the world. However, it is important to be prepared before starting to ship internationally, as there are a number of factors to consider, including product suitability, demand, regional restrictions, tariffs, duties, and taxes.
Preparing for Cross-Border Commerce
Not all products are suitable for international shipping. For example, perishable items, such as food and flowers, can be difficult and expensive to ship internationally. Additionally, some countries have restrictions on the import of certain products, such as alcohol and firearms. Businesses should research the demand for their products in their target markets and check for regional restrictions before starting international shipping.
When shipping internationally, customers may be responsible for paying tariffs, duties, and taxes on their orders. These charges are imposed by the government of the importing country. Tariffs are taxes imposed on imported goods. Duties are taxes imposed on imported goods considered to be a threat to domestic industries. Taxes, such as value-added tax (VAT), may also be imposed on imported goods. Businesses should be clear with their customers about who is responsible for paying tariffs, duties, and taxes, and provide information on how to calculate these charges.
Implementing and Analyzing Your Shipping Strategy
Once a business has defined its ecommerce shipping strategy, it is time to implement it and track the results. To do this, the brand should:
- Choose shipping carriers and services. There are many different shipping carriers and services to choose from, so it is important to compare rates and services to find the best option for the business. Factors to consider include ecommerce shipping costs, delivery times, and tracking capabilities.
- Set up shipping options in the ecommerce platform or shipping solution. This involves configuring shipping rates, delivery options, and packaging requirements.
- Communicate shipping options to customers. The business should be clear about its shipping policies, including shipping times, costs, and returns. It should also provide customers with the ability to track their orders.
- Monitor shipping results. The business should track its shipping costs, delivery times, and customer satisfaction to identify areas for improvement. It should also collect feedback from customers about their shipping experience.
- Make adjustments to the shipping strategy as needed. Based on its findings, the business may need to adjust its shipping rates, delivery options, or packaging requirements. It may also want to consider offering new shipping services, such as express shipping or free shipping on orders over a certain amount.
A shipping strategy should be a living document that a business continuously monitors, collects feedback on, and updates. This will help to ensure that the business is providing the best possible shipping experience for its customers and optimizing its shipping costs.
Leveraging Ecommerce Shipping Solutions
Ecommerce shipping solutions can help businesses to streamline their shipping operations, save money on shipping costs, and provide a better shipping experience for their customers. There are a number of different ecommerce shipping solutions available, including both standalone solutions and platform-specific integrations.
Some of the most popular ecommerce shipping solutions include:
- ShipStation: ShipStation is a standalone shipping solution that integrates with a variety of ecommerce platforms and shipping carriers. It offers a variety of features, including real-time shipping rates, automated shipping labels, and order tracking.
- ShippingEasy: ShippingEasy is another standalone shipping solution that offers similar features to ShipStation. It is also known for its affordability and ease of use.
- BigCommerce Shipping: BigCommerce Shipping is a built-in shipping solution for BigCommerce merchants. It offers a variety of shipping features, including real-time shipping rates, automated shipping labels, and order tracking.
- Shopify Shipping: Shopify Shipping is a built-in shipping solution for Shopify merchants. It offers a variety of shipping features, including real-time shipping rates, automated shipping labels, and order tracking.
Many ecommerce shipping solutions integrate with popular ecommerce platforms, such as BigCommerce and Shopify. This integration provides a number of benefits, including seamless workflows, automatic data synchronization, and real-time shipping rates.
Integration allows businesses to manage their shipping operations from within their ecommerce platform as well as automatically synchronize data between the ecommerce platform and the shipping solution. Integration also allows brands to display real-time shipping rates to their customers during checkout.
Flowspace – Your Partner in Ecommerce Shipping
Flowspace is a leading ecommerce fulfillment solution that provides businesses with everything they need to streamline their shipping operations and deliver an exceptional customer experience.
Flowspace’s comprehensive fulfillment software offers a wide range of features, including:
- Automated rate-shopping: Instant rate-shopping across carriers automatically selects the best, most cost-effective shipping options for a merchant’s products, with access to a range of national, regional, and international carriers.
- Discounted shipping rates: Flowspace negotiates discounted shipping rates with carriers on behalf of its customers. This can help businesses to save money on shipping costs and pass on those savings to their customers.
- Multiple shipping options: Flowspace offers businesses a variety of shipping options, including standard shipping, expedited shipping, and international shipping. This gives customers more flexibility and control over their shipping experience.
- Real-time tracking information: Flowspace provides businesses and their customers with real-time inventory visibility and tracking information. This helps to keep everyone informed about the status of shipments and reduce anxiety.
- Seamless integration with ecommerce platforms: Flowspace integrates with popular ecommerce platforms, such as BigCommerce and Shopify. This allows businesses to manage their shipping operations from within their ecommerce platform and eliminates the need to switch between different systems.
Get in touch to learn how Flowspace can help you to improve your ecommerce shipping!
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