One of the most important steps you should take to make your ecommerce grow and become successful is having an effective and efficient shipping strategy. While many ecommerce business started with simple approaches such as providing free shipping with UPS or USPS, the most successful entrepreneurs use effective strategies for differentiating themselves from their competitors and increasing their profit margins. It would require proper coordination of multiple teams within the organization, from your marketing team up to your fulfillment team. By creating an efficient and effective shipping strategy for your ecommerce business, you can ensure a positive trend in your business, but ensure that everyone knows their role in the process.
You have to assemble the best team because every department in your company has a responsibility and job to ensure that the shopping strategy works well with your ecommerce business. Setting your clear goals is very important. Are you planning on increasing your revenue? Do you want to penetrate the international market? When it comes to the goals of an ecommerce shipping strategy, it should aim in increasing the average order values, conversions, target audience, improving operational efficiency, and decreasing costs. The most important things to consider when it comes to ecommerce shipping are the product size and weight, shipping destinations, and shipping options. When placing shipping promotions, they should be clear and easy-to-understand such as $5 shipping per item, $10 shipping per order, or free shipping over $100. In order to make this happen, you have to classify your products into groups, concentrating on getting the dimensions and weights of your products for lightest or smallest 20% and the largest or the heaviest 20%.
The top options for ecommerce shipping include free shipping, free in-store pickup, LTL freight carriers, and same-day delivery. As you might have noticed, ecommerce business utilize free shipping, flat rate and table rate shipping, carrier’s live rates, or alternative and mixed strategies, and knowing the best strategy for you is crucial to the success of your business. Free shipping should only be considered if you’re making more sales or enough sales to cover all shipping costs.
Use flat rate or table rate shipping to avoid some of the known challenges of free shipping. For instance, you can offer something life, $5 shipping regardless of order value. Entice your customer by offering promotions like $10 for orders up to $100, or free for orders over $200. The best way to go to offer the best possible shipping rate is through UPS, USPS, FedEx, or DHL. Mixed and alternative shipping strategies are the most popular type of ecommerce shipping solution used today.