Online stores need to put effective e-commerce shipping strategies in place before embarking on this highly competitive industry. Success is going to be defined by your knowledge and creativity in this field.
Shipping involves teamwork, and close coordination between all the players means the smooth flow of business. Everyone involved in the process must understand their role and put in an effort for the benefit off all.
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Your online business has to assemble a team of knowledgeable persons to oversee all aspects of the company. The process has to run smoothly, and all players must be able to communicate effectively.
Also Read: IMPORTANCE OF WEB DESIGN AND DEVELOPMENT
Set clear goals from the word go. What do you intend to ship in the first 3, 6, or 12 months? When do you wish to go international? Give yourself timelines and even set revenue goals.
There are many ways of developing a shipping strategy, and what works for someone else will not necessarily work for you. The shipping strategy for a multinational shipping company will not work for you for many apparent reasons.
Pricing is an essential factor in e-commerce business from the onset and may either make or break you. If you charge too high, you may lose a customer, and if you charge too low, you may burn your fingers badly. You may need to consider factors such as:
Product size and weight is relatively straightforward but will have the most significant impact on your profitability.
Shipping to the destination can be taxing for the e-commerce business, and the preferred carrier will largely determine costs. Carriers can offer special rates, and these benefits can be passed on to the customer.
The right choice is vital for the survival of your business. The growth of the industry has seen the rise of many small but efficient a reasonably priced carriers.
You may decide to offer free shipping, and this is one of the best ways to eliminate shopping cart abandonment. However, this will not be free for you, so you may need to minimally increase the cost of your product to cover the shipping cost or pay the shipping cost from your profit margin.
All carriers base their shipping rates on package size and weight, country of origin and destination country (international shipping.) Here is an example of how you can set your prices:
Cost of product $20.00
Packaging $1.00
Shipping cost $ 6.00
Credit card fee $1.00
Insurance & tracking $1.50
Profit margin 50%
Total Price $44.25
The sale is where it all starts. The whole process has to be hassle-free for the customer to proceed with the purchase. A large number of cart abandonment issues arise at the tail end of the process when customers encounter delays and confusing instructions. According to Incify.co 35% of Google product searches turn into transactions within 5 days.
The packaging is essential. You have to ensure the safety of the product from the source to the destination. Improper packaging may lead to damage while in transit, and this can cause you considerable loss. The shipping label comes in during packaging. An attractive shipping label goes a long way in promoting your brand in places you would otherwise not reach with your traditional marketing campaigns. enKo Products offers shipping labels and other packaging materials at affordable prices.
Confirming the shipping destination is crucial for you to send the package to the right address. Confirmation should be done in a computerized system that allows you to communicate with customers about the package’s arrival date through a call, email, or an SMS.
There are numerous carriers available. You will most definitely be considering the carrier who gives you the best rates and who is efficient, time conscious, and offers the best service at the end of the sale chain.
When you send out a package, you delegate the process to a third party and lose control of its movement in a physical sense. Some apps track the progress of the package. If you’re shipping internationally, there will be documentation to handle, such as custom declaration forms and others. The carrier can handle this aspect for you as they are more knowledgeable about the import-export regimes of different countries. For local deliveries, the process is often a breeze. Make sure to send a thank you message to every customer after delivery!
Shipping is a challenging but vital aspect in every e-commerce business, and each company will experience its’ unique challenges. You will need to overcome your problems by being creative in building an efficient shipping strategy. It may take some time and tweaking, but success lies in innovation. It also pays to learn more from others.
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