Courier with parcels on doorstep, closeup
If you run a business that involves e-commerce transactions, you likely experience shipping frustrations. It’s just a part of the process, regardless of whether you are conducting B2B or B2C transactions. However, there are ways to circumvent most problems before they arise. As a business owner, whether shipping to businesses or individual customers, the success of your company depends on overcoming some of the main e-commerce shipping challenges. Consumers are expecting better and better shipping service, year after year. Understanding the logistics — and potential problems — of routing your deliveries is essential to creating a smooth shipping experience for all parties.
Whether you ship large or small quantities of goods, you are likely to be hit with exorbitant shipping fees. Of course, customers prefer low shipping rates, but the charges have to be covered. Usually, that responsibility falls on the ECommerce business, and you are stuck subtracting shipping and e-commerce fees from your total profits.
However, there are cost-effective shipping strategies to lower these shipping costs for your e-commerce delivery business. Consider:
Take every opportunity to lower shipping expenses when shipping, because a little discount here and there will add up over time. Generally, the more items you ship, the better the discount will be. Keeping with the same carrier may help you accurately predict shipping costs and, therefore, adjust projected earnings appropriately.
Regardless of how much you’re paying for shipping e-commerce with a shipping carrier, you’ll sometimes encounter elongated times and slow delivery speeds. In theory, springing for expedited shipping should alleviate this issue — but that isn’t always the case. Depending on the nature of your business, this can make or break sales and affect customer expectations. Luckily, there are tools and tricks to help you avoid e-commerce shipment delays, including:
Big retailers like Amazon have capitalized on the consumer preference for instant gratification — or as close to instant as possible. Along with two-day shipping, Amazon uses advanced analytics to refine AS. AS predicts consumer behavior by analyzing previous data, allowing Amazon to stock warehouses with specific products geographically closer to consumers who are likely to purchase those products.
Depending on the physical location of your company, you may run into some location-specific issues when shipping. For instance, if you don’t run AS, you may end up stocking items at warehouses too far from your customer base and, therefore, misquoting the estimated time of arrival. If you’re shipping internationally, each country will have its own rules and regulations that you will have to consider. You may even lose GPS signals from drivers if you aren’t prepared for international delivery management.
Even within the United States, domestic shipping zones come with their own unique challenges. Zone 1 is the closest to the point of origin, and Zone 8 is the farthest away. Generally, the farther away the shipping destination, the more expensive the shipping and order fulfillment. If possible, the best way to avoid location issues is to procure multiple warehouses in targeted locations to best serve your consumer base.
If the shipped items do become lost during the shipping process, you should have a game plan. Predetermine what to do when you encounter lost, stolen, and damaged packages. Instead of just taking the loss, consider:
Of course, there is only so much you can do when the order is out of your hands and in transit to the customer. Shipping insurance may be offered to the customer, and you should have a clear policy of how that will be implemented. Place this policy, along with any other information about refunds, in an easily accessible spot on your website.
In most cases, buyers prefer a free shipping method. However, taking the brunt of the cost of shipping is not feasible for most companies and online stores. A simple way to offer free shipping without losing money is to adjust shipping fees in other ways. This may be done by:
Whatever route you choose, free shipping is more of a psychological marketing tactic than anything. Remember that it just must appear that consumers are receiving free shipping, but your profit margins should remain unchanged. As part of your ECommerce shipping solutions, you could see more profit from offering free shipping as a consistent option.
No online retailer wants to see a mass of returns, but returns are inevitable. Customers may be dissatisfied for several reasons, including some that have nothing to do with the quality of the product. However, you should keep tabs on these returns to minimize them and manage them effectively in the future. Some tips for managing returns are:
The e-commerce process is roughly cyclical. If you can streamline returns and pinpoint the origin of most issues, there will be fewer returns to deal with in the future.
Unless you are an extremely small business, it’s almost always worth it to invest in a shipping solutions provider. There are many tools available, but the most useful of the bunch will integrate with your preferred shipping carrier or postal service— UPS, USPS, FedEx, DHL Express, etc. In fact, FedEx has its own shipping platform, called FedEx Ship Manager. There are other providers, though, so make sure to outline your priorities and choose the best delivery method for your e-commerce business. You may do this by:
Common features include return management, tracking information, account numbers, and shipping discounts.
Most customers prefer to be able to track their orders, and understandably so. For this reason, you should have a system in place to track orders internally and send customized updates to buyers. You should:
The more you know about the location of each package, the easier it will be to resolve any issues that arise.
If your online business is expanding, you may want to consider starting your own delivery service. This is more involved than using a carrier, but it also allows for more hands-on management of the e-commerce shipping and fulfillment process. This may enhance the customer experience if done correctly. Here are the elements you need to have in place:
Fleets are usually a good option for local businesses, as they have set shipping boundaries. Plus, if the vehicles are adorned with your logo and branding, this serves as an extra promotion.
Consumers expect to receive their items quickly and in one piece when they shop online. They also expect to be able to reach you if any of the above online shopping issues occur. As an online retailer, you should have several points of contact. If you are able, employ knowledgeable customer service representatives for every step of the shopping experience.
All of these precautionary measures seem a bit daunting, but they will become old hat once integrated seamlessly into your organization. Preparing for e-commerce shipment issues will allow you to avoid the worst of them — while gaining loyal customers.
One of the most common tools that businesses use to improve their delivery process is logistics and distributionsoftwarelikeRouteManager. If your company is doing last-mile delivery or last-mile courier service on its own, this route optimization software is an inexpensive, innovative solution that will allow the goods to travel smoothly and arrive at their destination in a timely manner.
Using last-mile delivery mobile apps will help you keep track of all your orders and deliveries in real time.
RouteManager is a delivery routing software that helps drivers and delivery businesses with last-mile logistics. Some of the key advantages of using route planning software include:
1. Advanced Route Planning: Utilizes advanced algorithms to create optimized delivery routes that take into account factors such as traffic patterns, road conditions, and customer preferences. This ensures that drivers are taking the most efficient routes possible, saving time, fuel costs, and labor costs.
2. Real-Time Tracking: By providing real-time tracking of deliveries, businesses can monitor the progress of their drivers and ensure proof of delivery and that deliveries are being made on time. This can help improve customer satisfaction and streamline operations.
3. Reporting & Analytics: Offers comprehensive reporting and analytics tools that allow businesses to analyze delivery performance, track key metrics such as delivery times and fuel consumption, and identify areas for improvement. This data-driven approach can help businesses make informed decisions to optimize their delivery operations.
4. Integration with Existing Systems: Easily integrate with existing systems such as GPS devices, fleet management software, and customer relationship management (CRM) systems. This seamless integration streamlines the delivery process and ensures that all data is centralized and accessible in one place when planning routes.
E-commerce shipping problems can be overcome with proper planning, communication, and the right tools. By implementing security measures for vehicles, employing experienced drivers, utilizing route planning software like RouteManager, and maintaining constant communication with drivers, businesses can ensure smooth and efficient deliveries.
Partnering with RouteManager can provide numerous benefits to delivery businesses, such as improved route planning, real-time tracking, reporting and analytics, and seamless integration with existing systems. By utilizing these tools and Ecommerce shipping strategies, businesses can minimize shipping issues, improve customer satisfaction, and ultimately grow their e-commerce operations successfully. Ready to grow your business? Book a demo today!
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