5 Main Tips to Effectively Help You Manage Your Shipping Online
According to experts, the future of e-commerce shipping is excellent because of rapid advancements in technology. Technology has made almost everything easier. When it comes to e-commerce shipping, online business owners and customers alike have a reason to smile because innovative technologies have come up and more continue to be developed to make shipping less costly, efficient and fast. And with the current development of the drone, parachute and self-drive car technologies to deliver products, the shipping industry is projected to be a lot more streamlined and cheap. As shipping technology grows, here are tips you can implement immediately to streamline your shipping:
A. You can manage your shipping online correctly by choosing the right pricing model.
There are three pricing models you can adapt for your e-commerce website: Free shipping, exact shipping rates, and flat rate shipping. E-commerce business owners implement free shipping to get rid of abandon shopping carts. However, keep in mind that free shipping can erode your profit margins. So, it’s recommended that you offer free shipping on high-profit margin products and items that can cost less when their shipping costs are calculated. You can also introduce a minimum purchase to qualify for free shipping. This can help neutralize the cost of free shipping.
Exact shipping rates mean offering the exact shipping rates that you get from your carriers. This is a good incentive for customers who buy in bulk.
Flat rate shipping is where you set a flat shipping rate for all products. This model is ideal for products of the same shape and size.
B. Leverage cloud-based e-commerce shipping software
E-commerce shipping software comes with the advantage of letting you manage your shipping from a central location. You can compare shipping costs, print out shipping labels, send out confirmations to clients, and track shipment from a single point. Cloud-based e-commerce shipping software comes with an added advantage because you can manage all those anywhere, anytime. Another great benefit of cloud-based e-commerce shipping solutions is that information is handled by a third party automatically. And if you haven’t negotiated your carrier discounts, they can do it on your behalf. If you want to learn how to build a shipping strategy for your business, take a look at www.shopify.com/shipping
C. Understand that most customers still value cost over speed when managing your shipping online
Statistically, 25percent of customers value speed over price, which means the rest value cost over speed. Therefore, you must take that into account when setting your shipping rates. It’s thus recommended that you research your target customers before you set your shipping rates. If most of your target customer’s value cost over speed, then offer low-cost shipping and vice versa.
D. Make your shipping flawless with multicarrier shipping solutions
Multicarrier shipping solutions are the new e-commerce shipping software making waves in the marketplace. Besides making shipping processes fast and deliveries timely, multicarrier shipping solutions allow you to access multiple carriers around the world and evaluate them based on price and efficiency. With that evaluation, you can be sure that you’re choosing the most affordable shipping carrier, and you can, in turn, transfer the cheap costs to your customers.
E. Hybrid last mile delivery can be an excellent way to manage your shipping online
If your customers value cost over speed, you can leverage hybrid services, such as SmartPost by FedEx and SurePost by UPS. They are much cheaper compared to the standard FedEx and UPS delivery options. But that’s only if the products meet size and dimension requirements. These services make shipment easier and convenient. They ship the merchandise to the nearest customer post office location. The post office then delivers to the customer’s doorstep.
Like we’ve said earlier, shipping costs are projected to significantly drop in the future, considering that drones, parachutes and self-driving cars are being developed to help with shipping. But before these technologies come into effect, leverage the tips discussed above to lower your shipping costs.