Tried and Tested Shipping Management Strategies

A successful eCommerce company is run by its exquisite shipping strategies. Shipping costs money. If the customer is not paying, then someone has to pay because shipping is an expensive affair. So, where most companies offer shipping services and free shipping and minimum shipping charges, the most successful are those who work on strategic shipping policies. This is how they separate themselves from other brands and earn higher margins than their competitors. 

And this is where shipping strategies come into play. A strategy where both the parties are at the winning end, and no one has to bear more than needed.

#1 Use several shipping companies for your courier services

We all know that shipping is expensive. Countries closer to your location may be inexpensive, but faraway countries or inaccessible locations are really costly. To make things worse, different countries have higher shipping costs due to taxes, distance, delivery time, and much more. In such cases, work with several shipping companies. Know their shipping costs and compare them to make use of the best shipping costs. It is not necessary to use the same shipping company for all the destinations. 

#2 Save the Shipping Company Details

When dealing with multiple orders and having to ship quite frequently, do not forget to store the shipping details. Bifurcate them according to the locations or most used shipping companies. This way, whenever you have to ship to a particular destination, you don’t have to worry about the hard work. Just select the pre-saved shipping company details and ship your products.

For example: A small parcel to Germany costs $20 from QuickShip, and it costs $50 from ShipMe. As you can see, QuickShip is the right choice. You need to save these details in your software so that each time you want to ship a small parcel to Germany, you know, you have to ship via QuickShip itself.

#3 Free Shipping on Bundled Products

You can always offer to provide free shipping bundled products. Bundled products are those that are bought together. This helps increase customers’ interest, and two of your products are sold out at one go. 

For example: You are selling iPhone 12 and a customer has already put it in the cart. Ask them ‘Add an iPhone 12 case with this purchase and avail free shipping’. Most customers get intrigued by these offers as they buy a case along with the phone instead of going in the market for it and also avail free shipping. And, as a seller, you can sell two products at one go.

Image Courtesy: Amazon

#4 Free Shipping on Order Above a Fixed Price

Shipping costs are high! As a seller, if you want to provide customer satisfaction and retention, you need to bear shipping costs as most customers prefer that. So, you can get innovative. Set up a fixed shopping value and ask customers to avail free shipping if they shop for that value.

For example: You are a car accessory online seller. You have set the minimum order value to $100 for free shipping. Your customer just bought a GPS navigation system for $60. You can ask them, ‘Add products worth $40 and avail free shipping on your order’. This way, you are transparent with the customer, and they will have to bear the shipping cost if the order value is less than $100.

Image Courtesy: Penny Arcade Store

#5 Are you Insured

These days you can find anything and everything online. This means from a small hairpin to glass crockery sets and showpieces to electronic items like refrigerators and dishwashers. You can find everything online. To avoid any damages, theft, or even natural disaster, it is always wise to be insured. Especially if you are shipping expensive products, this way, you know your assets are safe, and losses will be minimal. Make sure you are insured against theft, damages, loss of product, or any disasters. 

Image Courtesy: Shipwire

#6 Check for Shipping Companies providing Insurance

If you are frequently selling expensive products, and that is one of your main businesses, you need to find shipping companies that provide insurance. Yes, you can still have external insurance for your goods and assets. But, when dealing with a shipping company that automatically includes insurance, it becomes easier for you to claim in the future. This will expedite the process and will not hamper your business as well. Moreover, you can focus more on customer service if anything goes wrong in the delivery process.

Check out the list of Shipping Insurance Companies.

#7 Research Flat Rates, Table Rates, and Live Rates carefully

Different types of shipping rates are available at your disposal. You can choose the best possible rates for your products and the benefit of your customers. You need to carefully go through the shipping rates and understand the difference between them and your product’s most reasonable rates.

1. Flat Rate – You levy the same amount of shipping charges no matter the size.
2. Table Rate – Calculates shipping costs specially customized to the product description. 
3. Live Rate – Add a shipping calculator to your shopping cart, and the customer can calculate the shipping costs themselves.

Now, each of them has advantages and disadvantages, and you need to learn more in-depth. 

Image Courtesy: eFavormart

#8  Make sure you can Track your Product

All the shipping companies provide product tracking facilities. But, not all of them are providing detailed information. They give an overview of the shipping and hardly offer step by step product tracking facility. This can be very frustrating. Especially if you are shipping an expensive product or shipping to a remote location, make sure you partner with a shipping company that allows you to have tracking information and complete transparency. This will be highly beneficial if you are shipping long distances, remote locations, or worried about thefts. 

#9 Do not throw the old packaging material

Recycle and Reuse. As a seller, you receive multiple carton boxes and packaging material from your vendors. Please don’t throw them away. You can reuse them for packing materials. Or you can use them for fragile packaging material. Well, let’s face it. These things are costly. Then why to waste or throw them away. Materials like bubble wrap, tissues, carton boxes, plastic wrap are expensive to buy from the market. And add up your shipping costs. So, why throw them away when you can further use them. 

#10 Add the Shipping Cost in your Product

Shipping is never free. We all know that. And nearly 88% of the shoppers prefer to shop from sites offering free shipping. In such cases, sellers are at a loss. It becomes almost impossible to offer free shipping, bear the expenses, and provide customer satisfaction. To create a balance between your margins and customer satisfaction, add the shipping cost in your products before putting them on the marketplace. 

For example: If you are selling a smartwatch for $40 and your shipping cost is $5, then increase the product cost to $45 and offer free shipping on it. Customers tend to prefer free shipping. This way, both parties are happy at the end of the deal.

#11 Work on Automation

Automation is going to help you to save time, money, and effort. It will store your information so that you need not work on it every time you place an order for a particular country. You just have to add the triggers to make this happen.

For example: You have multiple orders and regular shipping in Brazil. Out of all the shipping companies you have used, FedEx offers the lowest shipping costs and helps with quick deliveries as well. So, set your automation saying whenever you place an order for Brazil, automatically you will be connected to FedEx.

#12 Invest in a Shipping Management Software

It is crucial to have multiple options under one platform. A Shipping Management Software does that. You can receive orders, integrate with various sales channels and shipping partners, calculate shipping rates, access to a transparent tracking system, generate shipping labels, import and export shipping information, and much more. Shipping Management Software is a centralized platform that can give you access to multiple functions under a single dashboard.

Don’t consider yourself isolated when it comes to shipping problems. Almost every second company is facing shipping hassles. Many hire a specialized team dedicated solely to manage the shipping process. And that is why it is essential to understand the benefits of shipping management software and how you can reap its benefits. Once you take on a new approach to shipping, stick to it for quite some time, and make a report on your advancement. A proper guide to shipping management and a good shipping strategy can also help with proper inventory management.

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• Guide to Shipping Management 
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