- Selecting the right shipping partner is a critical decision for e-commerce businesses.
- There are several options for shipping partners, including the U.S. Postal Service, FedEx, UPS and drop shippers.
- Consider cost, shipping schedules and packaging when choosing a shipping service for your business.
- This article is for e-commerce businesses that are trying to select the right shipping partner.
- The 10 Step Guide To A Successful Ecommerce Shipping Strategy Examples
- The 10 Step Guide To A Successful Ecommerce Shipping Strategy For A
- The 10 Step Guide To A Successful Ecommerce Shipping Strategy Template
Many consumers have become accustomed to free shipping for online purchases, often with one- or two-day turnarounds. While this goal may be easily attainable for large companies, it may seem insurmountable for some small business owners. Yet, by fulfilling these expectations, smaller businesses can create a phenomenal customer experience that converts shoppers into loyal, lifelong customers.
The growth of eCommerce has changed the way all of us shop and do business, both here in the US and across the globe. Doing business in multiple countries requires acknowledge and flexibility and what works with one country can vary greatly in anotherthere is no one size fits all to the shipping process. Shipping is a fundamental part of your ecommerce business. Shipping is definitely a challenging aspect for any ecommerce business. Every business will have their own unique challenges they need to work through and overcome to develop the best and most efficient shipping strategy.
If you want your e-commerce store to be successful, it’ll be worth your while to invest some time in determining and executing a purposeful ecommerce shipping strategy. Final words Shipping in e-commerce is a lot more than just delivering your product to the customers’ destinations. The importance of an ecommerce strategy is clear. What is not clear is how to develop a good one. Some strategy statements do not provide a lot of direction, such as “we want to be number one in our market” or “we work harder than the competition.” An effective strategy focuses on the areas where you get the most returns. A successful business strategy requires more than on-the-spot, knee-jerk reactions. Strategies need to encompass a company’s goals and future objectives. This applies to every aspect of e-commerce, especially the supply chain. An effective supply chain model can accelerate your business processes and delight your customers.
Achieving these results requires a lot of behind-the-scenes work by retailers, which must constantly refine their shipping strategy and streamline their fulfillment and delivery processes. To make it even more challenging, this must all be accomplished without increasing prices to unacceptable levels. Once you identify the right shipping partners, however, the process becomes far more manageable.
'When it comes to customer loyalty, shipping speeds and costs are more important than ever,' said Tom Caporaso, CEO of Clarus Commerce, a provider of e-commerce and subscription commerce solutions. 'Most shoppers still choose 'free' over 'fast,' but with a growing number of retail outlets – Amazon, eBay and others – now combining those options, retailers of all sizes have to find ways to cater to every customer's interests.'
Whether you have just started your business and aren't sure where to begin with the shipping process or you're an established company interested in creating a more efficient methodology, here are some tips for tackling the biggest challenges small e-commerce retailers face.
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How to choose the right shipping vendor
Most businesses begin by using the best-known shipping vendors. Big names like UPS and FedEx feel safe and established, and your volume may be small enough to justify the expense. However, as your business grows, you may need to choose a multistep and multivendor shipping arrangement to ensure faster deliveries at a reasonable price.
'While using just one carrier may seem like a simple solution, it may not be the most cost-effective one,' said Amine Khechfe, co-founder of shipping solutions company Endicia. 'Small businesses should take the time to identify the right shipping mix for their business needs.'
Khechfe recommended that e-commerce businesses consider the U.S. Postal Service (USPS) as an alternative to private carriers, especially if they regularly ship bulky products. Business owners should also consider surcharges for services such as weekend or rural delivery and use this information to determine the most economical options for meeting customer delivery expectations, he said.
Dvd drive cleaner for macbook pro. Here are some of the factors to consider when choosing a shipping partner for your e-commerce business:
1. Dropshipping
Using dropshippers and other third-party logistics providers (3PLs) can also reduce shipping costs. Dropshipping – a process in which a retailer sends customer orders to a manufacturer or wholesaler that then ships the products from its warehouse – is a particularly attractive option for businesses that want to boost their shipping volume without increasing the space needed to store their inventory. Similarly, 3PLs can leverage the combined inventory volume of a group of smaller merchants to offer better shipping alternatives, said Jose Li, founder and CEO of shipping insights and analytics firm 71lbs.
2. Networking
Building smart, strategic relationships and using technology can help small businesses find the right balance of price and convenience, said Frank Poore, founder and CEO of online merchandising and fulfillment platform CommerceHub.
'The little guys have to act like the big guys,' he said. 'They have to do things systematically to minimize costs and transit times.'
Poore suggested looking for suppliers and drop-shippers in the areas closest to your customer base to minimize the distance between the origin and the destination.
3. Packaging
FedEx and UPS follow a dimensional pricing model, meaning shipping costs are determined by package weight and size for ground shipments. Kevin Lathrop, CEO of shipping company Unishippers Global Logistics, said many businesses made a lot of adaptations to optimize their packaging for this reason.
'You want to use the minimum amount of space you can,' Lathrop said. 'Package for safety and density, and put [your items] in an appropriate box for the load.'
If you're shipping multiple items on a shrink-wrapped pallet, label each box in case the load is broken up before it reaches its destination, Lathrop said.
Depending on the package weight, your fastest, least-expensive delivery method might be to have a private carrier take it part of the way, with the USPS making the final delivery, Poore said.
4. Shipping technologies and analytics
Technology has made it much easier to manage the shipping process. Businesses of all sizes can monitor shipments at every stage of the journey, allowing customers to receive accurate and timely updates. But that ability isn't only valuable for the customer; it also ensures that the business isn't held liable for delays, errors or damage that occurs once a product has shipped.
In the past, if a customer reported an incorrect or damaged product, you had to take their word for it. Now, however, businesses can use video surveillance, real-time scanning and tracking, and other analytics tools across their entire supply chains.
It's essential to provide tracking details for customers, because they want to know exactly where their purchases are, said Jarrett Streebin, CEO of shipping solutions provider EasyPost. He advised focusing on packing and shipping orders within 24 hours whenever possible and sending tracking numbers immediately.
Caporaso said retailers should evaluate their shipping strategy every six months to ensure that it's operating at peak efficiency and delivering the best possible value to customers at the lowest possible cost to your business. An ongoing program of data collection and analysis is an invaluable part of that effort, he said.
Ultimately, customers' expectations should be at the center of every shipping decision you make, Caporaso said. A carrier that saves you money in the short term but alienates your customer with poor service will eventually cost you customers, and money, in the long term.
5. Cost
To run a profitable e-commerce business, it is critical to watch your bottom line, and shipping is a major expense. Even though free shipping will be more appealing to your customers, many shoppers are willing to pay a reasonable price for shipping if it is fast.
Make sure to choose a shipping schedule that will not increase your overhead but will still satisfy your customers' needs. Compile a list of the shipping options and their prices. Then, compare this information to your profit margins, and choose an option that will help you hit your financial goals.
6. Shipping schedule
Consistency is one of the keys to customer retention. People support your business because of the quality and reliability of your products and services, and ensuring their satisfaction requires a lot of preparation behind the scenes. The frequently with which you ship items is a part of that preparation, as it keeps your operations flowing smoothly.
Determine how much inventory you need to ship and how frequently you need to do so. If you are working with a third-party shipper, ask about the shipping schedules to ensure they will meet your needs.
Your business might be seasonal, which may change the preparation and frequency of your shipments. Regardless, be on top of all of the factors that will affect your shipping schedules.
7. Shipping volume
As a small business, you do not want to take on more inventory than you can handle. To avoid issues that will disrupt your business operations and incur unnecessary costs, keep your shipping volume in mind.
There are two ways to think about shipping volume: the size of your product and the number of products you receive or send out in a shipment. Make sure you have enough space for your inventory.
Consider using a third-party option, like drop shipping. Perhaps your business can hold a limited number of smaller items, so you could use a drop-shipping service for your larger products to help you save space.
8. Guarantee
Few things provide more peace of mind to your customers than a guaranteed receive-by date. Hitting these marks shows consistency and care for your customers' business.
Mistakes and challenges are bound to happen, which is why having a guarantee on your shipping can assure your customers that they will be taken care of if problems do occur. Ensure good customer service – for example, by reaching out to the customer directly and providing some form of compensation.
In addition to guaranteeing the time of arrival, make sure your product is labeled properly and packaged securely so no damage occurs during shipping.
If you are looking to work with a third-party vendor, find out the vendor's rate of incidents, and make sure you understand the insurance policies. Customers usually remember how you handle a shipping mistake more than the mistake itself.
9. Support
Offering informational and technical support for shipping is helpful for handling any issues that occur during the shipping process.
Clients sometimes have questions about their orders, so it's helpful to connect them with a representative who is knowledgeable about your shipping process. Providing customers with answers and solutions – whether through phone, email or social media - will encourage them to come back even if problems occur.
Key takeaway:Some factors to consider when choosing a shipping partner for your e-commerce business are cost, shipping schedules, packaging and guarantees.
Business shipping solutions
Small businesses can choose from a variety of shipping services. Here are some popular options:
United States Postal Service
The USPS offers a few choices that make it worth utilizing as a shipping solution. Some of the benefits the USPS offers small businesses include multitiered click-and-pay services for both domestic and international shipping, volume discounts, postage calculation tools and lightweight business services.
FedEx
FedEx, which has one of the largest government contracts, provides an e-commerce center to help you develop your online business, as well as grants, administrative task support, and an informational blog and podcast.
UPS
UPS offers several services designed specifically for small businesses. There are a variety of flexible shipping solutions that can help you track and manage your shipping expenses. UPS offers overnight, international and ground shipping, as well as returns and billing options.
Additionally, the company's eFulfillment service can help you store and ship products that are sold on more than 20 platforms.
Drop-shipping
Another option is drop-shipping. Although drop-shipping does not cover much of the logistics a business or warehouse would require, it is a viable option for streamlining your shipping process.
Before choosing drop-shipping, make sure to research the industry, determine how much drop-shipping would cut into your profit margins and avoid overbuying.
Third-party logistics
If your business is heavily reliant on warehouse space, consider using 3PLs rather than operating a fulfillment center. 3PLs offer complex services that are not associated with drop-shipping, such as product assembly and packaging, order fulfillment and warehousing. Talk to the companies directly, and negotiate where possible.
Key takeaway: Shipping options available to small businesses include the USPS, FedEx, UPS, drop-shipping and third-party logistics providers.
Tips for reducing shipping costs
Here are a few ways to minimize your shipping expenses:
- Use fewer boxes. See if you can consolidate orders with the same vendor in one package rather than using multiple boxes. In addition, keep costs low by choosing appropriately sized boxes.
- Reuse boxes and packing material. If you receive boxes and packaging materials, see if you can reuse them.
- Be a savvy shopper. Search for discounts, sales or bulk offers when shopping for materials such as packing peanuts, bubble wrap, packing paper and foam.
- Assess your inventory. What are the sizes of your products? If they are about the same size, you can buy boxes in bulk. If you prefer using a shipping company instead, use standard-rate boxes to ensure you are spending the same amount on each shipment.
- Negotiate prices. Negotiating a good deal requires you to understand what discounts are available from several companies, presenting that data to your potential vendor, and building a relationship with the management team and salespeople. When you review contracts, pay attention to any hidden charges.
Key takeaway:To save money on shipping, consider buying in bulk, reusing shipping materials and making the most of the space in each box.
Additional reporting by Marisa Sanfilippo.
It can be a big challenge to build your successful dropshipping store if you haven’t done it before. There are many steps that you will need to take, and having a structural order before you begin will save you a lot of time and unnecessary hassle.
In this article, you will find a step by step guide to build your first successful dropshipping store and to set your mind in the right direction.
1. Explore Different Markets and Pick Your Niche
If you haven’t started exploring the different markets out there, choose a niche that you already have passion for. For example, if you love pets, try the pet niche. If you love fashion, go for the clothes/dressing niche. If you love the outdoors/camping/hiking, go for the outdoors niche.
There is an endless range to choose from. Check if there is a market as well as products that sell around your niche.
Use tools like Google Trendsto explore the growing interest in your niche. For example, here’s the growing trend chart for “Air sanitizer”:
Once you find your passion niche, product testing is the only way to find out if you’ve found your winner. But you shouldn’t try to test products that you think will sell based on a hunch. For this, product research is needed to test the products with the highest probability of success.
2. Product Research
The key to building your successful dropshipping store is finding winning products through product research. The more work you put on the research phase, the better the results and winning product you will get. Do not try to rush the product research stage. Hard work on this part is essential to your store’s success. Growing any online business is an investment and should be treated as such.
There are multiple ways to research products that will sell. Though the market is huge and the competition is fierce. But there is no need for product research tools that cost monthly subscriptions. You can get the same results having proper knowledge and using the right tools.
You can go with finding trending products using AliExpress Dropshipping Center. Using this method, you will be able to research which products to sell within your niche.
AliExpress Dropshipping Center is giving you everything from sales history, competitor analysis, graphs, and charts to help you conduct your product research the right way while using the right tools.
3. Identify Your Competitors
Once you find a growing interest in your niche, you need to know who your competitors are and what they have to offer. This way you can learn what sells best within that market and dodge oversaturated products.
Ubersuggest is a great tool for analyzing your niche. It will show you relevant keywords, links with content/articles, and also shows you other websites that sell it.
4. Build Your Successful Dropshipping Store
Now that you’ve nailed down your niche and researched winning products within, you can start to build your successful dropshipping store.
The first step is signing up for your selling platform of choice. In this tutorial, we are going to use Shopify. Just head over to Shopify to create your account.
Name Your Store
If you haven’t chosen a name for your store yet, do not worry about it. Your store’s URL will be http://storename.myshopify.com/ (whereas “storename” will be the name that you chose). But this can, later on, be directed to your own domain name (for example: www.youstorename.com).
Store Logo
Branding your store is essential. Customers do not want to associate themselves with unbranded stores. If you’re a graphic designer, you can create your own store logo. Otherwise, we recommend using freelancer services like Fiverr to get a unique logo for your store. Prices for this service start as low as $5-$10 per logo:
Store Theme
A store theme is a template installed inside your store which creates your store design and shows the “look and feels” of your store.
There are many different layouts that can be used. We recommend checking outShopify’s Themes for a vast selection of free and paid themes to use for your store. There are more than enough good free themes to choose from, and start building your first dropshipping shop in 2020, so don’t rush to buy paid themes.
5. Create An AliExpress Account
AliExpress is a massive online dropshipping friendly marketplace. They have an enormous selection of different products and categories. Their prices are low since they are manufactured and sent from China. It’s one of the best marketplaces to find and contact suppliers and create a mutual business relationship.
If you don’t have an AliExpress account, now is the time to create one. Go to AliExpressand create your free account.
6. Get Your Dropshipping Software
When running a dropshipping business, the key to big number success is business automation. Even if your product research is on point and you’ve already started selling, you will come to a point where you can’t allow yourself to expand any further. Time is limited. There are 24 hours in a day and only so much you can do manually.
Time is the reason dropshipping software exists. AutoDS helps you automate most of the day to day tasks, from product pricing, stock monitoring, uploading your products, easy fee calculation, full business overview, and more. All of this will leave you with the time you need to continue growing and expanding your business.
AutoDS’ Full Integration with Shopify
AutoDS offers everything that you need to run a successful automated dropshipping business. And now, it is fully integrated with Shopify.
You can try the AutoDS Shopify solution for $1 Only. Also, in AutoDS, we have full guides about how to register to AutoDS For Shopify to start and begin your dropshipping journey!
7. Connect Your Ecommerce Store With AutoDS
After you got your dropshipping software, you need to connect it with your eCommerce store.
In AutoDS, it is straightforward to add your Shopify store. You just need to follow a few steps, and you will be ready to go and start uploading your products to your store.
8. Upload Products to Your Store
Uploading products to your Shopify store using AutoDS is hassle-free. Instead of manually uploading your products one by one, writing or copying product titles, descriptions, technical specifications, saving images and uploading them, and more, allow AutoDS to take care of this time-consuming task.
9. Marketing Your Store
Even if you’ve done everything right until this point, the most crucial step is bringing traffic to your store in the most practical and cost-effective way.
If the marketing part isn’t done right, it won’t matter how many hours you spent on product research and building your store. Marketing requires knowledge, practice, and patience.
There are different methods of marketing your store or its products. The most popular techniques being used today include:
1) Email Marketing
One of the oldest methods still effective and being used today. If you have a mail list with your potential customers, use it to promote your shop or featured products.
Also, you can easily create a newsletter signup on Shopify and start building your email list.
2) Influencers Marketing
One of the best methods used today to generate traffic is by the help of influencer marketing. It is a type of social media marketing that uses product mentions from influencers. In other words, individuals who are viewed as experts within their niche.
This type of marketing works because viewers trust that influencers’ recommendations serve as a form of social proof to your brand’s potential customers. Social media platforms such as Instagram hold some of the internet’s biggest influencers.
3) Social Media Campaigns
Use social media platforms such as Facebook, Instagram, and Pinterest to bring potential customers to your store. Both platforms offer business building solutions for running campaigns to raise product awareness and convert interested readers into customers.
While they require a learning curve in the beginning, once you get the hang of how to run and optimize your campaigns, the opportunities and options are endless.
Check out Facebook for Business, Instagram Business,and Pinterest Business for more information on the advantages and how to run sponsored ads on their platforms for your products.
4) Google Ads
Google is another great option to bring traffic to your store. They are one of the oldest ad companies in the business so you can trust that they know the work.
You have a wide range of options to choose from. Choose your ad type, audience targeting, and location, set your budget, and let Google do the magic.
5) Organic Traffic (SEO)
SEO stands for “Search Engine Optimization” It is the process of getting traffic to your site for free, or organically, in a natural way. There are several ways to optimize your SEO for bringing free traffic. It’s a method that takes time and patience to start seeing the results and is a must for the long term.
The 10 Step Guide To A Successful Ecommerce Shipping Strategy Examples
Implementing SEO on your website is free if you have the knowledge to do it yourself. Otherwise, use freelancer services to get the job done for you. As mentioned before, Fiverr is a good example of finding them at low prices:
Wrapping It Up
The 10 Step Guide To A Successful Ecommerce Shipping Strategy For A
It requires a lot of work to build your successful dropshipping store. It is easy to get lost or stuck in the process. Follow the steps mentioned in our guide to correctly form it the right way.
The 10 Step Guide To A Successful Ecommerce Shipping Strategy Template
Use AutoDS Shopify integration to automate the time-consuming tasks. Research products the right way to find the winners and most importantly – learn how to market your store using the best methods used today for bringing traffic to your store. Aside from having a successful store, you will also turn yourself into a marketing expert.