A vital shipping program is central to e-commerce success. Very few e-commerce companies, however, know how to set one up. This guide will walk you through how to set up shipping on your Shopify store [and more].
It doesn’t matter if you have the best user experience and products on your website. Without the right shipping strategy to satisfy customers, you’re shooting yourself in the foot.
For example, a customer finds a product they like from your store and adds it to their cart. They discover your high shipping rates and start hesitating in their purchase. They search the web and look for cheaper alternatives. Next thing you know, they’re ditching their cart and going to your competition.
In this complete guide, you’ll learn everything about setting up a shipping strategy on Shopify to ensure this never happens. Here’s what we’ll cover (click any topic to jump ahead):
45% of customers ditched their cart because of poor delivery options
61% of consumers are “somewhat likely” to cancel their purchase if free shipping is not offered
One thing to note is that your shipping strategy will change over time. For example, you might change your shipping carriers, price, unboxing material, etc.
What’s important is defining a game plan now and continuing to adjust as you grow.
Understanding the Different Default Shipping Options on Shopify
When you sign up with Shopify, the platform offers three different plans: Basic, Shopify, and Advanced.
Each plan you choose has different options and discounts when it comes to shipping. Depending on your Shopify plan, you might be eligible for reduced shipping rates from these three carriers:
Let’s take a look at how each Shopify plan differs from each other:
Basic Plan
Shopify Plan
Advanced Plan
Monthly Price
$29/Mo
$79/Mo
$299/Mo
What does the plan consist of?
All the basics for starting a new business
Everything you need for a growing business
Advanced features for scaling your business
Shipping Discount
up to 64%
up to 72%
up to 74%
Print Shipping Labels
Yes
Yes
Yes
USPS Priority Mail Cubic pricing
Yes
Yes
As you can see from the table above, the higher you upgrade, the more discounts you’ll get on shipping and labels. While each plan offers the possibility to print shipping labels, the basic plan doesn’t come with USPS Priority Mail Cubic pricing.
While Shopify offers reasonable rates, you’ll still gain more value using a shipping app. With Essential Hub, we connect all your eCommerce operations so you can get the best discounts and save up to 35% on shipping.
Shopify Shipping – How to Set up Zones and Rates
Once you decide which plan is the right fit for your business, it’s time to get started on your shipping strategy. The first thing you’ll have to do is set up your zones from the Shopify admin.
What Is a Shipping Zone?
On Shopify, a shipping zone is a specific location based on region or country. It defines where your package is shipping from and to which destination.
Your shipping zones play a vital role in setting up your rates. Typically, the farther you ship the item, the higher shipping costs will be.
Here’s how you can define your shipping zone from the Shopify admin:
Step 1: Go to the Shipping Section From Your Admin
From your admin dashboard, click on “Settings” at the bottom left on your screen. Click on “Shipping” to start setting your zones and rates.
Step 2: Click on “Manage Rates”
Once you land on the shipping section, hover over the “General shipping rates” section and click on “manage rates.”
Step 3: Scroll Down and Click on “Create Shipping Zones”
On the “manage rates” section, You’ll get to see all of the products that you added to your store. Scroll down underneath to get access to your shipping zones.
In the example above, we already defined some specific rules for shipping in the US. We’re offering shipping for product orders of $25 and up.
To create a new shipping zone, click on “create shipping zones”.
Step 4: Name Your Shipping Zone and Add Countries
In the textbox, add a name to your shipping zone to differentiate it from others.
When you create your zone, you can search and select countries where you want to ship. Once you choose them, click Done.
Step 5: Add Any Rates You Want for the Shipping Zone
Once you create your shipping zone, you can start adding rates that apply to it. You can set your own prices and let the shipping carrier do it.
Should You Offer Free Shipping?
As you set up your shipping zones and rates, you may ask yourself — should I offer free shipping or not?
You already know that customers love it. 91% of online customers will leave an eCommerce store if they don’t offer free shipping.
As practical as it may be for customers, free shipping might not be appropriatefor your business. There are many different factors to consider before offering free shipping.
Here are a couple of things to consider before you make the jump and offer free shipping on your store:
You’ve Calculated Your Profit Margins
First, you’ll have to do some math to determine if free shipping is right for your business.
Keep in mind that you’re the one who’s going to have to cover the shipping costs. That often means you’ll have to increase the price of your product to cover costs.
You also have to be careful when raising the price of your item — you want the price to cover shipping and marketing costs but not high enough that it scares away customers from buying from you.
A good strategy on Shopify is to offer free shipping when a specific amount of items are ordered, which we’ll get into later.
Your Supplier Offers Free Shipping
Whether or not you should offer free shipping also depends on your supplier.
If the supplier you choose offers free shipping, then it’s ideal to offer free shipping to your customers. In this case, it won’t be fair to charge them for shipping costs.
If they don’t offer free shipping, however, it’s up to you to decide whether you want to cover the shipping costs and make your customers pay for them.
The Competition Is Offering Free Shipping
If competitors in your niche are offering free shipping as part of their strategy, then it’s best that you do the same.
You don’t want your store to be falling behind everyone. However, even if the competition isn’t offering free shipping, it could still be a way to make your business stand out from the crowd.
Online customers value free shipping during their purchase. If they explore their options and see that you’re the only one who offers free shipping, they’re most likely to pick you.
Your Customers’ Location
Ask yourself: where are your customers located? Are you only shipping to the United States, or do you have customers overseas as well?
The customer’s location has a significant influence on your shipping costs. That’s why it might be better for your store to offer free shipping only to specific locations.
How to Offer Free Shipping on Shopify
Once you’ve considered all these things and decided if your business will offer free shipping, it’s time to set it up on Shopify.
There are various ways you can set up your free shipping options from the Shopify admin. You can offer free shipping based on the following criteria:
Product Cost
Product weight
Let’s take a look at the different steps and ways you can set up your free shipping:
Step 1: Go to the Shipping Section From Your Admin
Similarly to setting your shipping zones, click “Settings” at the bottom left of the Shopify admin. After that, click on “shipping.”
Step 2: Click on “Manage Rates”
Once you land on the page for “Manage Rates,” you want to scroll down and click the specific zone where you want to offer free shipping.
Step 3: Click on “Add Rate”
To set up your free shipping, click on “add rate.” It’s where you can create specific conditions for free shipping to apply.
Step 4: Type in Free Shipping and Click on “Add Conditions”
When you click on “add rate,” you’ll receive this popup on your Shopify admin:
In the text box, type “Free Shipping” to differentiate the rate from others. Next, click on the “add conditions” button to define the conditions of your free shipping.
Step 5: Offer Free Shipping Based on Product Weight or Order Price
When you click on “add conditions,” Shopify offers you two choices: either provide free shipping based on weight or product price.
If you want free shipping based on order price, check the “Based on order price” box. You’ll be able to provide a minimum order amount for customers to qualify for free shipping.
However, to offer free shipping based on item weight, check the “Based on item weight” box. Here’s what will pop up on your Shopify admin:
From there, type in the minimum item weight, and you’re good to go.
Choosing the Right Kind of Packaging for Your Orders
Packing is one of the most significant factors of a successful shipping strategy. You don’t want to make the mistake of spending more than you have on packaging or choosing the wrong material to transport your product.
Here’s how your store can select the proper packaging to fulfill your orders:
Determine Your Packaging Budget
First, you’ll need to assess your current budget for packaging.
How much money you’re willing to invest determines the packaging material you’ll use. For example, a popular brand option is corrugated cardboard, which ranges from around $.075 to $0.95.
It’s also possible to get free packaging from Shopify’s three leading carriers: DHL Express, UPS, and USPS. You can order your free shipping supplies online or pick them up. Check out free shipping supplies from the USPS here.
Pick the Appropriate Packaging Weight and Material
Since the shipping cost relies on the size and weight of your products, you want the packaging to be light. Your box should be big enough to transport your product but not heavy to the point it inflates your shipping costs.
For the best delivery, your order must be protected with suitable material. Here are examples of different types of packaging material you can choose from:
Paper and Cardboard
Cardboard is one of the best packaging materials for shipping. It’s low-cost, durable, and is easy to customize to reflect the look and feel of your brand. It’s particularly useful when it comes to shipping heavy products.
Poly Mailer
Poly mailers are lightweight and adjust to different product weights. They’re ideal if you’re shipping products that don’t need much cushioning, such as socks or shirts.
Plastic
What makes plastic practical for shipping is that it’s lightweight and flexible. As a result, you’ll be able to ship more items with less packaging material.
Airbags
Airbags are handy when filling up empty spaces in your packaging box. It’s something you want to consider if you sell items with sharp edges. They also act as cushioning for fragile objects.
Glass and Jars
The glass looks great aesthetically, and its transparent material makes your product visible. The obvious disadvantage, of course, is that it’s pretty fragile and can break during transportation.
To pick suitable packaging for your product, find and assemble different materials. From there, select the best fit for the product you plan to ship. While the outside might be plain, you can still create an incredible unboxing experience with a few simple additions inside the packaging.
Make Sure the Packaging Gets From Point A to Point B
It doesn’t matter how fancy your packaging looks. If your packaging can’t travel without being damaged, it will be useless.
It all goes back to picking the suitable material for packaging. If your packaging material isn’t strong enough, customers will receive broken or damaged products.
It will cost you less to invest in adequate packaging design than replacing damaged products.
Tactics You Can Use to Boost Your Shipping Strategy
As you can see from the above, Shopify makes it easy to set up and manage your shipping. If you want the best results, however, you also need some strategy.
Use Third-Party Shipping Software
If you’re handling one or two orders a day, then you won’t mind using the Shopify platform to print shipping labels. Once your volume rises, however, you’ll want to use a software program to help. Effective shipping software provides better rates, automation (always selecting the best price for the desired service level), and the ability to print labels either all at once or one at a time.
Essential Hub integrates with different software solutions to provide our clients with the best system for what they need. If you have any questions about the software, please reach out using the contact form at the end of this post.
Offer Free Shipping Without Hurting Your Profits
As mentioned earlier, free shipping is an effective way to capture customers’ attention and stand out from competitors. It’s a marketing tactic that can skyrocket your sales and continually drive new customers.
There’s a catch; however, remember that you need to think about how free shipping could potentially affect your profit margin. While free shipping can boost sales, you’ll have to cover all shipping costs as well.
One way to effectively do this is to offer free shipping when customers pay a certain amount in your store. It could help you squeeze in some cash to pay for shipping.
Let’s say, for example, that your average order cost is $22. To invite customers to pay more in your store without feeling like they’re being tricked into buying more, you can offer free shipping for orders above $25.
Alternatively, you can offer free shipping on any order with a particular product. You can choose those that you know have higher margins and can cover the cost of free shipping.
Another option is to offer a membership program for customers who seek free shipping. Customers are charged a yearly or monthly fee in exchange for free shipping on items.
It’s all about testing what works and making changes from there.
Make Your Order Fulfillment and Return Policies Clear
Your store needs a concise order policy that sets clear expectations between you and your customers. Setting clear expectations is a simple tip when getting started in shipping.
Online shoppers want access to all relevant information about shipping. They need to know where you ship to and when they can expect the item to arrive.
One thing that matters to them, in particular, is your shipping cost.
For example, if part of your strategy is to offer free shipping, you need to mention this the second visitors land on your home page. Doing so could completely transform your conversions.
When announcing free shipping on your website theme, make sure you make it work in the Shopify backend by setting it as a rule. This can be done by making an announcement under your theme settings.
If you’re delivering overseas, customers need to know exactly how much they’ll pay to cover shipping. Nobody likes nasty surprises.
Here are some questions that your shipping policy should cover:
Which countries do you ship to, and which do you not?
What shipping method do you use?
Do customers get access to shipping tracking information?
Can customers pick up your item at a physical location?
What is the procedure and deadline for refunds?
Charge by Flat Rate
Flat rate shipping consists of offering a single rate for shipping an item, regardless of weight or size.
It means that the value or size of products doesn’t get taken into account. For many eCommerce brands, this simplifies the shipping process and encourages buyers to spend more.
For example, for each order, you could offer a flat rate of $5.
Setting up a flat rate is a good strategy if you’re starting out and don’t know how much your shipping costs will be. However, you can still offer different rates based on how fast the customer wants to receive the item.
For example, if customers really want to get your product in two days, you can set up a special rate for two-day shipping on Shopify. They’ll receive the item faster, expecting that they’ll have to pay a higher flat rate.
Get Insurance for High-Value or Fragile Items
If you’re selling an expensive or fragile item, you want to ensure you get insurance to protect it in case issues arise.
Insurance is handy if your product gets lost, stolen, or broken during shipping. When something goes wrong, you’ll need to prove the item’s value, and the insurer will pay you back the total amount.
While insurance is helpful, remember that you might have to raise your shipping rates to cover it. Logistical services such as USPS, UPS, and DHL only offer free insurance for items up to $100.
Alternatively, there are some really great services out there, like Route, an app we will review below. They let the customer add insurance at checkout and manage any issues with lost, stolen, or damaged packages.
Actively Engage With Customers During Ship” ing With Email Marketing
Once the item gets shipped out, it’s an excellent time to engage with customers and improve their experience with your brand.
A good tactic is to send email updates to your customers once the item ships. You can also feature sales and promotions for other products that could interest them.
Check out this perfect example from The Dollar Shave Club. Each time a customer buys from their store, they receive an order confirmation email with the shipping date and items they can buy before the product ships:
Offer Same-Day Delivery
Offering same-day delivery can boost your sales and make you stand out from other stores. 61% of customers will pay extra bucks to get their products shipped the same day.
Same-day delivery is a great way to boost customer satisfaction and brand loyalty. Best Buy, for example, has rolled out same-day delivery since 2015:
To take advantage of same-day delivery, customers must order with Best Buy Before 3 p.m. local time. It’s available seven days a week, and shipping costs depend on the product.
When offering same-day delivery, you need to measure how it’s impacting your sales. If more transactions are driven thanks to it, and it’s enough to pay for shipping, then it’s a good strategy.
To set up same-day delivery on Shopify, take advantage of their same-day app – you can find it on the app store. To set up local delivery, you’ll need to turn on one of your locations as available. You can do this through the Admin panel settings Shipping and Delivery button Local Delivery section (click manage next to a location).
Create An Incredible Unboxing Experience
Your goal as an online store should always be to stand out from the crowd. One excellent way you can do this is to ensure customers remember to open your packages every time.
A unique unboxing experience makes your business memorable and leaves customers hungry for more. As a result, you’ll create a loyal customer base that will repeatedly return to your site.
Here are some ideas of how you can do this:
Make your packaging material branded or unique. Whatever you use as filler to protect the contents can be colorful and wow your customer.
Provide a custom thank you. A simple note with the customer’s name, even hand-written and signed, goes a long way to improving customer retention.
Give a free sample. Do you have other products that make sense to give away? These can act like a simple gift showing off your additional products.
Include discount codes or special offers. Give them a reason to revisit your website!
Add branded stickers inside and out.
Focus on creating epic packaging like this from nuts.com
The best part is that you don’t have to spend much money creating custom packages for all the different sizes you ship. With stickers on the outside and cool stuff inside, you can make any package stand out!
Useful Apps That Will Up Your Shipping on Shopify
Before we conclude, there are many apps you can use on Shopify that make the shipping process so much easier for you and your customers.
Here are the best apps you can integrate on your Shopify store to better manage shipping at each stage of the product delivery:
1. Free Shipping Bar
Free Shipping Bar is a tool that displays your free shipping offer in a bar on your website that you can easily customize. Its goal is to encourage customers to add to their carts and buy more.
As customers add more to their cart, the Free Shipping Bar will show them progressive messages on how much they have left before they get free shipping.
You can congratulate customers once they have landed on a free shipping offer and measure the results of each bar to see which free shipping goals create more sales.
As a bonus, its currency detection features make it easy to auto-detect the local currencies of visitors. The platform then converts the free shipping amount with real-time exchange rates.
Pricing:
Basic Plan: Free with limited options
Premium Plan: $9.99 per month — gain access to unlimited active bars, Performance tracking, Auto currency conversion, and more
2. Parcelify
Parcelify makes it simple to create custom rates for your Shopify store.
With Parcelify, you control the shipping pricing and options that customers see during checkout. Customers can get live, accurate rates of what they’re actually paying for shipping.
Parcefily also comes with local delivery and in-store pickup. With cheaper options to receive their product, you’ll satisfy customers and drive more repeat purchases.
Pricing:
Basic Plan: $12.99 per month. Parcelify comes with a free unlimited 14-day trial.
3. AfterShip
Tracking and managing each customer shipment can be a time-consuming headache. Aftership cuts the work in half by tracking all shipments across 600+ carriers in one place.
AfterShip is currently being used by more than 30,000 Shopify stores worldwide. You’ll be able to keep customers updated on the placement of their orders and when they can expect delivery.
As a result, your store will see a drastic decrease in customer inquiries and complaints.
Pricing:
Free Plan: Free for 50 monthly trackings with no extra charge
Essential Plan: $9 per month for 100 monthly trackings with $0.08 per extra tracking
Growth Plan: $29 per month for 500 monthly trackings with $0.08 per extra tracking
Pro Plan: $99 per month for 2000 monthly trackings with $0.08 per extra tracking
Advanced Plan: $199 per month for 5000 monthly trackings with $0.08 per extra tracking
4. Tracktor
The modern customer has higher expectations than before. One of those expectations is expedited shipping and being able to track down exactly when their item arrives.
Tracktor makes it easy for customers and store owners to track down the delivery of a shipped item. The platform integrates with hundreds of carriers across the globe, so you can track exactly where the package is going.
The best part? You can do all of this from a single app. Customers won’t have to come to you and ask, “Where’s my order?” anymore. As a result, you’ll boost customer satisfaction and reduce support costs.
Pricing:
Basic: $5.99 per month
Professional: $14.99 per month with custom branding
Premium: $44.99 per month with custom branding and custom order statuses
Enterprise: $119.99 per month with custom branding onboarding services and more feature
5. Route – Shipping Insurance
No one can predict what can happen to your product during shipping, which is why getting insurance is so important.
Route is a tool that offers insurance on any item that gets lost broken or stolen during delivery. Customers gain peace of mind knowing that their purchases are guaranteed, and you get to keep more of your revenue.
Since Route covers the cost of refunds, you won’t be losing any money. The app is also 100% free for merchants and only takes a few minutes to set up on your store.
Pricing:
Free
6. Aftership Returns Center
As frustrating as custom returns can be, there’s software you can use to handle returns more efficiently. Aftership Returns Center uses automation to track and manage your returns like child’s play.
When you integrate Aftership into your online store, you’ll be able to:
Manage all of your returns in one dashboard
Process refunds easily
Automatically send notifications to users on the status of their returns
Make returns a simple one-click process for buyers
Pricing:
Starter: Free for up to 3 return quotas per month. $0.5 for each extra return.
Essential: $9 per month for up to 20 monthly return quotas. $0.5 for each extra return.
Growth: $29 per month for up to 100 monthly return quotas. $0.5 for each extra return.
Pro: $99 per month for up to 400 return quotas. $0.5 for each extra return.
Advanced: $199 per month for up to 1000 return quotas. $0.5 for each extra return.
7. Sales Box
Sales Box offers an exciting way to manage shipping and personalize offers for your customers.
Your store can set up different shipping fees and promotions for individual products or countries. Right under the “add to cart” button, customers will have all the shipping information.
Each sales box is fully customizable and easy to edit. No coding knowledge is necessary — you get instant access to templates that make your offer stand out.
Pricing:
Basic Plan: $19 per month. The app comes with a 7-day free trial with unlimited features.
Next Steps
There you have it! By following our tips and tricks above, you should have a solid roadmap of where to go with your shipping strategy. It might require some testing, but soon enough, you’ll be able to blow customers away with your fantastic service and delivery.
Shipping delays can negatively impact your brand reputation and sales.
If your item doesn’t arrive on time, customers won’t feel they can trust you with their money and won’t return to your store for more.
Even worse, they can post negative reviews and spread the word to their friends and family. It doesn’t take long for bad reviews to spread.
Why do Shipping Delays Happen?
Even if you think everything’s under control, no one can truly predict what happens to your package once it leaves the warehouse. Your item’s delivery could get delayed for various reasons, which include:
World Events
World events can have a significant impact on shipping operations. Just take a look at what happened this year with COVID-19 — with new social distancing measures put in place and thousands of business shutdowns, many stores had a hard time making sure their package got into the hands of customers.
With more e-commerce orders than ever, all major carriers are struggling. The USPS has had the most challenging time since they have the most significant volume.
Unexpected Weather and Natural Disasters
Sudden weather changes can prevent your orders from arriving on time to the customer’s doorstep. It’s something that’s unfortunately beyond your control, but there are tactics you can use to handle the situation (which we’ll get into later).
Domestic & International Customs
Your package can get held back if it doesn’t respect customs procedures. For example, if you’re trying to ship ivory products to Italy (where the material is banned), your package might even get destroyed. That’s why you need to do your research on customs before shipping the item to the customer.
Shipping insurance protects you from any drastic financial loss and takes extra stress off your shoulders
Holidays
E-commerce sales tend to skyrocket during holiday seasons or important dates. As a result of record items being ordered, carriers can’t consistently deliver to your customer on time, which is not practical when everyone expects to receive their gift quickly (or by a specific date).
Poor Inventory Management from Your 3PL
Your item’s shipping delay could also result from poor management of your 3PL.
While investing in a logistics provider can provide you with many benefits in the long term, choosing the wrong one can be detrimental to your brand. Check our blog post on picking the right 3PL for your business to avoid making this mistake.
The Best Tactics You Can Use to Handle Shipping Delays
Get Shipping Insurance
Preparing yourself in advance goes a long way. Before shipping the item to your customer, you should consider investing in shipping insurance to protect yourself from any trouble during delivery.
Shipping insurance protects you from any drastic financial loss and takes extra stress off your shoulders. If the customer demands a refund because of the delay in delivery, you’ll have the means to give it to them without hurting your profits.
Be Upfront With The Customer
When your shipping is delayed, you’ll need to let the customer know what’s going on, especially as the world still battles with COVID-19.
Make sure to follow up with them via email, social media, and SMS. Apologize, explain the current situation to the customer, and how you plan to solve it. Holding yourself accountable proves to the customer that you’re someone they can trust.
Offer Order Tracking on the Delayed Item
Not having an order delivered on time can cause a lot of anxiety for the customer. To give them peace of mind, you can give them a tracking number to monitor their package.
With eHub, each item you ship comes with order tracking to get updates as they happen for your customers. We can also provide insurance if your package doesn’t arrive or is stolen during delivery.
Offer Special Discounts and Deals
Shipping deals can be an unpleasant experience for the customer. To make up for it, you can offer them special discounts and promotions on future orders.
Giving customers discounts proves that you value them and take their satisfaction seriously. For example, if your package doesn’t arrive on time, you can offer free shipping for their next order or a 20% discount on future items.
Use Multiple Shipping Carriers
Regarding shipping, it’s essential not to put all your eggs in one basket. Using multiple carriers ensures your package arrives on time if one fails to deliver.
Finding suitable shipping carriers, however, takes a bit of time and search. That’s why we do the hard work for you by connecting all major carriers in one place on our platform.
Offer Multiple Shipping Options at Checkout
Providing transparency into expected delivery times is vital to the ordering experience. Showing customers two options (at least) – one for expedited and the other for slow delivery – lets them choose what will work best for them.
If you’re offering free shipping on the slower service, then the value of the expedited shipping will be improved. While many people expect free shipping, they are willing to pay for faster delivery times when it is essential to them.
Conclusion
Shipping delays don’t have to be the end of the world. Handled effectively, you can still shine in the eyes of your customers and retain their trust.
If you’re looking for a platform covering everything you need to manage shipping effectively, we can help. From inventory management to order tracking, our platform gives you all the tools you need for smooth delivery.
As your business continues to grow, managing shipping will become more and more difficult.
Getting more orders indicates that your business is on the right track. However, managing your orders and getting the best rates can be a time-consuming process.
Thankfully, some apps help you manage your shipping and orders effectively without sacrificing your precious time.
Free Shipping Bar is a tool that displays your free shipping offer in a bar on your website that you can easily customize. Its goal is to encourage customers to add to their carts and buy more.
As customers add more to their cart, the Free Shipping Bar will show them progressive messages on how much they have left before they get free shipping.
You can congratulate customers once they have landed on a free shipping offer and measure the results of each bar to see which free shipping goals create more sales.
As a bonus, its currency detection features make it easy to auto-detect the local currencies of visitors. The platform then converts the free shipping amount with real-time exchange rates.
Pricing:
Basic Plan: Free with limited options
Premium Plan: $9.99 monthly — unlimited active bars, Performance tracking, Auto currency conversion, and more.
You need a solution that makes it possible to connect all of your eCommerce operations in one place
Parcelify makes it simple to create custom rates for your Shopify store.
With Parcelify, you control the shipping pricing and options that customers see during checkout. Customers can get live, accurate rates of what they’re actually paying for shipping.
Parcefily also comes with local delivery and in-store pickup. With cheaper options to receive their product, you’ll satisfy customers and drive more repeat purchases.
Pricing:
Basic Plan: $12.99 per month. Parcelify comes with a free unlimited 14-day trial.
Tracking and managing each customer shipment can be a time-consuming headache.Aftership cuts the work in half by tracking all shipments across 600+ carriers in one place.
AfterShip is currently being used by more than 30,000 Shopify stores worldwide. You’ll be able to keep customers updated on the placement of their orders and when they can expect delivery.
As a result, your store will see a drastic decrease in customer inquiries and complaints.
Pricing:
Free Plan: Free for 50 monthly trackings with no extra charge
Essential Plan: $9 per month for 100 monthly trackings with $0.08 per extra tracking
Growth Plan: $29 per month for 500 monthly trackings with $0.08 per extra tracking
Pro Plan: $99 per month for 2000 monthly trackings with $0.08 per extra tracking
Advanced Plan: $199 per month for 5000 monthly trackings with $0.08 per extra tracking
The modern customer has higher expectations than before. One of those expectations is expedited shipping and being able to track down exactly when their item arrives.
Tracktor makes it easy for customers and store owners to track down the delivery of a shipped item. The platform integrates with hundreds of carriers across the globe, so you can track exactly where the package is going.
The best part? You can do all of this from a single app. Customers won’t have to come to you and ask, “where’s my order?” anymore. As a result, you’ll boost customer satisfaction and reduce support costs.
Pricing:
Basic: $5.99 per month
Professional: $14.99 per month with custom branding
Premium: $44.99 per month with custom branding and custom order statuses
Enterprise: $119.99 per month with custom branding, onboarding services, and more feature
No one can predict what can happen to your product during shipping, which is why getting insurance for your products is so important.
Route is a tool that offers insurance on any item that gets lost, broken, or stolen during delivery. Customers gain peace of mind knowing that their purchases are guaranteed, and you get to keep more of your revenue.
Since Route covers the cost of refunds, you won’t be losing any money. The app is also 100% free for merchants and only takes a few minutes to set up on your store.
As frustrating as customer returns can be, there’s software you can use to handle returns more efficiently.Aftership Returns Center uses automation to track and manage your returns like child’s play.
When you integrate Aftership into your online store, you’ll be able to:
Manage all of your returns in one dashboard
Process refunds easily
Automatically send notifications to users on the status of their returns
Make returns a simple one-click process for buyers
Pricing:
Starter: Free for up to 3 return quotas per month. $0.5 for each extra return.
Essential: $9 per month for up to 20 monthly return quotas. $0.5 for each extra return.
Growth: $29 per month for up to 100 monthly return quotas. $0.5 for each extra return.
Pro: $99 per month for up to 400 return quotas. $0.5 for each extra return.
Advanced: $199 per month for up to 1000 return quotas. $0.5 for each extra return.
Sales Box offers an exciting way to manage shipping and personalize offers for your customers.
Your store can set up different shipping fees and promotions for individual products or countries. Right under the “add to cart” button, customers will have all the shipping information.
Each sales box is fully customizable and easy to edit. No coding knowledge is necessary — you get instant access to templates that make your offer stand out.
Pricing:
Basic Plan: $19 per month. The app comes with a 7-day free trial with unlimited features.
There’s a lot that goes into managing shipping and customer orders. You have to keep track of inventory, calculate your shipping rates, print your labels, and so much more.
It can be time-consuming and frustrating to bounce from software to software to get all of this handled. You need a solution that makes it possible to connect all of your eCommerce operations in one place.
That’s where eHub comes in. From the admin, your business gets access to:
The best shipping rates from all major carriers
Accurate parcel-level reporting
Label generation
Insurance of each item shipped
And more!
Essential Hub also integrates with more than 100+ e-commerce and shipping tools.
Pricing:
Free! Essential Hub technology is free for any e-commerce business that ships with us. The app is private, however, so you’ll need to contact our support team to get started.
Conclusion
We hope you enjoy our list of the best apps you can use to manage your shipping. These tools should help save money on shipping and manage your orders effectively to delight your customers. To learn more about how Essential Hub can improve your shipping strategy, feel free to contact us.
You started out doing the shipping yourself. You loved putting products into packages and printing the labels because it represented all the hard work you’ve invested in starting your business.
Now, your online store is growing, and shipping has turned into a headache. It needs to be done every day, but your business has a lot of other needs, too.
If you’re currently evaluating whether you should expand your operations and hire someone to take over fulfillment, you may want to consider a third-party logistics provider (3PL) to do the job for you.
What is a Third-Party Logistics Provider (3PL)?
A 3PL is a logistics provider that allows you to outsource your fulfillment operations. The provider will handle various business activities for your company, such as:
Warehousing
Distribution
Fulfillment
Inventory management and forecasting
And more
Sooner or later, there will come a time when it will be necessary to enlist a 3PL (or expand operations to do it yourself). If you’re starting to run out of space or are shipping around 10-20 daily orders on your own, a 3PL can help you save time so you can focus on business.
It’s also an excellent investment if you’re looking to expand overseas or adapt to seasonal changes. Here’s what to consider to pick the 3PL that’s the right fit for your business.
Payment History and Financial Stability
When choosing a 3PL, consider what would happen if they were to shut down or go bankrupt suddenly. If you’re not ready, it could have brutal consequences for your business.
It’s always better to be safe than sorry, which is why you need to pick a 3PL with financial stability and a solid payment history. You’ll be saving yourself a lot of trouble in the long run.
Do your research and ask around to learn more about how they’ve handled payments in the past. If they have a history of not being reliable, then it’s best to move on and find a better partner to fit your needs.
Excellent Industry References
Not all 3PLs are created equal. You’ll also have to find out what others in the industry say about their services, along with strong financial stability.
One of your goals during your research should be to network with their existing customers and get their opinions on the 3PL. Here are some questions you can ask them to learn more about how the logistics provider does business:
Is the 3PL easy to work with?
Are their customers satisfied with the results they’re getting?
How much money could they save on shipping, labor, and other rates?
Does the 3PL offer reports and updates on key performance metrics?
How were they able to scale thanks to the logistics provider?
Technology Integrations
There’s plenty of technology that helps you manage your supply chain easier. A quality 3PL should be able to integrate tools that give access to automation, connect with major carriers, and help you get the best rates.
Look at the 3PL’s website and see which e-commerce integrations are possible when you work with them. They should be able to integrate with the best platforms, such as:
Amazon
WooCommerce
Shopify
Whatever your store needs
Their Industry and Area Specialization
Specialty is key to finding the perfect 3PL. The right 3PL for your business depends on your location, the type of products you sell, and your current logistical needs.
For example, let’s say that you’re selling high-tariff items such as consumer goods and luggage. An option to consider is cross-border fulfillment, which is perfectly legal if you sell items with a 15+ tax rate.
Another aspect to consider is the 3PL’s location. Thanks to Amazon, customers expect to receive their products as soon as possible. As a result, it may be better to choose a 3PL that’s close to your customers. That will save you on shipping costs and keep delivery times to a minimum.
You can save on shipping costs by using one in the middle of the country or close to the region where you make the most sales. Larger 3PLs will have multiple locations you can leverage to cover the entire country.
A Strong Business Relationship
Collaborating with a 3PL is different from other traditional businesses. They are crucial in growing your business and effectively getting your product into customers’ hands.
To build a strong relationship with the 3PL, you want to know exactly what you need. Outlining your goals to the logistics provider will help set clear expectations that will lead the way to a solid partnership.
This should include:
Expected level of service – how fast do things get out the door?
Accuracy levels – sometimes, they ship the wrong product.
Cost to ship each package (with a breakdown for different SKUs)
How do they handle returns?
3PLs are notorious for being bad at handling returns. Have a frank discussion with any potential vendors so that you understand what they’re willing to do (and not do). Some will do it (for a price), but there are many with piles of unsorted returns sitting in their warehouse.
Scalability
Each company’s goal should be to grow and eventually reach a global market.
As your company starts to scale, its needs will change over time. You must consider what happens as you grow in SKUs and regions and hire more employees.
The right 3PL will fuel that growth and help you take your business to the next level. For example, the holidays are a period that significantly influences the supply and demand of your products.
A high-performing 3PL should also help you adapt to unexpected events. In the case of a natural disaster, you want to ensure they know how to handle the crisis and minimize the damage to your business.
When you meet up with a potential 3PL partner, ask them what their primary strategy is for scalability. It’ll show you if they’re worth the investment or not.
Pricing and Budget
Lastly, you’ll have to factor in your current budget. Investing in a 3PL can be costly, but it’s not a reason to go after the cheapest option.
As mentioned in this blog post, investing in the right 3PL helps you scale and grow your reach. A cheap 3PL is useless if it can’t adapt to unexpected situations and loses you money in the long term.
Many 3PLs will charge a flat fee, while others will charge variable pricing depending on your product type. Let’s take a look at an example:
You’re a clothing company with a high SKU that ships lightboxes. If your 3PL charges companies based on their SKUs, you will get charged more.
When checking out 3PLs, comparing pricing is just as important. Here are some questions that you should be asking the 3PL:
Does the 3PL come with an onboarding fee?
What type of products do they specialize in?
Does the 3PL charge based on the number of orders?
Do they take care of customer returns?
What kind of inventory transparency do they have?
At the end of the day, what matters is your return on investment. Partnering with a third-party fulfillment company can save you time and reduce labor costs at a significant price.
Wrapping Things Up
It takes a lot of time and research to find the 3PL that’s the right fit for your business. With these seven things to consider, you should have a clear idea of what to look for and find the best for you.
eHub manages a network of 3PLs with our technology. If you’re considering a 3PL for your fulfillment needs, we can help you find the right one for you.
A customer just bought a product from your store. You collect their mailing address, set up your branded packaging, and ship their ordered item.
But have you thought about what happens if your product gets broken or lost during the delivery process?
No one knows what can happen to your product during its transportation to the customer. Your business needs a game plan to prepare in case things go wrong.
What is Shipping Insurance?
When people hear “insurance,” they typically think of insurance for their health or home. But little do people know that it’s also possible to get insurance on products you ship to customers.
Shipping insurance covers the delivery fees and costs of your item in case something goes wrong during transportation. Let’s dive into the reasons why investing in shipping insurance is a smart move for your business.
Why You Should Consider Shipping Insurance
It’s impossible to predict the future, even if you think that you have everything under control. Your product could get lost or broken during delivery, leading to a disappointed customer. Some of the benefits of getting shipping insurance include:
Peace of Mind
Without insurance, you’ll be in charge of covering shipping costs and refunds if your item doesn’t arrive at the customer’s doorstep. It’s a process that adds extra stress to your workload, and you probably already have a busy schedule.
Getting shipping insurance takes stress off your back. No matter what happens to your package, you get peace of mind knowing that your item is always covered.
It Protects You From Any Financial Loss
Your item is in good hands when you get shipping insurance. The process might require a bit of paperwork, but the insurer will handle everything to ensure you get your money.
It’s also possible to get insurance for high-value items. Some carriers cover items up to $50,000, which we’ll explore later.
Getting Shipping Insurance Is Fast and Easy
Getting shipping insurance doesn’t have to be a complicated process. There are plenty of options at your disposal to get your items insured quickly. It’s even faster when you integrate a tool like eHub, which makes it simple to incorporate insurance.
The Different Types of Shipping Insurance Available
Here are the two main types of shipping insurance that you can choose:
Carrier Insurance
Different companies such as UPS, USPS, and FedEx all offer insurance for items you ship. Price varies from carrier to carrier, and each has limits on the maximum value of products that are covered.
Third-Party Software
You can also get insurance by integrating shipping software into your store. A shipping platform can ensure you get insurance on each item and offers the best shipping rates to customers.
How Much Does Shipping Insurance Cost?
If you decide to get your shipping insurance from a carrier, here’s how much you can expect to pay:
Things To Take Into Consideration Before Getting Insurance
International Restrictions
Remember that international restrictions influence whether your item qualifies for coverage or not. There are certain countries that carriers will not insure. For example, if your item gets lost in Paraguay, you won’t be able to obtain shipping insurance since it goes against US trade rules.
Certain countries also block you from importing certain goods. You cannot get coverage on items prohibited from shipping in the country you are targeting.
It’s impossible to predict the future, even if you think that you have everything under control
Terms and Conditions of the Insurance Contract
You must also be careful of the terms and conditions that come with shipping insurance. Some items don’t qualify for coverage, even if you ship them domestically.
Maximum Item Value
Carriers also offer limits to shipping insurance based on the item’s value. Let’s take a look at them below:
How to File an Insurance Claim
Next, you may wonder how to file an insurance claim on a lost or damaged product. Some carriers require you to file a claim within 60 days, while others give you up to nine months.
Here’s what you’ll need to do to get insurance for your product.
Your Package Got Lost During Delivery
If a customer reports that they’ve never received your item and can’t track it online, you’ll need proof of loss. Here are the documents that you’ll have to prepare in advance:
Evidence of pickup from your warehouse
The sender and recipient address
Tracking information
Package information: size, type of product, and more
Your Package Got Damaged
How you respond when your package gets damaged depends on your carrier. You’ll likely have to take pictures of the damaged packaging to compare it with the package’s photos in its normal condition.
It will also be required to provide documentation such as the original invoice, recipient address, declared value, and more. The carrier might inspect the package as well.
Your Package Got Stolen
Getting one of your items stolen is a tricky situation to be in. If you’re tracking an order, but it never seems to arrive to the customer, here’s the documentation you need to prepare:
Order tracking number
Description of what’s in the package
Recipient and sender mailing address
Proof of damage and value
Resources to Help You Out
If you need more information on how to file your insurance claim, check out these main couriers’ resources:
Running a business can be stressful enough. If you’re seeking extra peace of mind, getting shipping insurance goes a long way. No matter what happens to your item during delivery, you can rest assured that you’ll be covered if things go unexpectedly.
Everybody wants to save the most money on shipping. With so many shipping methods and carriers, however, it isn’t easy to know the best option, which can change based on the situation.
The type of shipping option that’s best for you also depends on various factors, such as delivery time, distance, and product weight. Here are some basic recommendations to help you find the best shipping method and make sure you save money on shipping:
The Cheapest Ways to Ship Based on Your Product Weight
To find the most cost-effective shipping method, your product’s weight is the first thing to consider. Here are our recommendations to get the best rates on your items based on how heavy they are:
Items That Are Under 1 Pound
If you’re shipping light items below 1 pound, the best carrier to go with is USPS. USPS First Class Mail is a fast, low-cost way to send any lightweight package.
Items That Are Under 10 Pounds
For products weighing only 1-10 pounds, we recommend going with USPS Priority Mail.
Heavier Items That Go Beyond 10 Pounds
There are various options available if you plan to ship heavy items. The best ones include:
UPS Ground: An excellent solution for merchants that want to ship items up to 150 pounds. Each package gets sent within three to five business days.
FedEx Ground: This option is available for stores that ship items up to 70 pounds. Like with UPS Ground, you can expect packages to ship within three to five business days.
USPS Parcel Select: If you’re shipping items up to 70 pounds, another solution is to go with USPS Parcel Select. It also comes with order tracking at no extra cost.
Unicorn Shipping: Priority Mail Cubic
If you’re shipping any items up to 20 pounds, one of the best-kept secrets in shipping is Priority Mail Cubic. Cost is determined by size, not weight, so this service is excellent for more minor but still relatively heavy items. Not using Priority Mail Cubic is #3 on the list of Deadly Sins when it comes to shipping.
The Cheapest Ways to Ship Based on Delivery Time
Delivery is vital in what kind of shipping option and carrier is best for your business. Here’s how you can get the best shipping rates depending on how fast the customer needs their order to arrive:
Next-Day Delivery Service
Here are our recommendations for shipping carriers to get your items delivered the next day:
USPS Express: The cheapest option you can get for next-day delivery, though not always the most reliable.
UPS Next Day Air Saver: Not only does this option offer competitive rates, but UPS will also refund you if the item doesn’t get shipped the next day. You will need to file a claim, however, if that is the case.
FedEx Standard Overnight: FedEx offers same-day delivery for all addresses in the US. However, if you’re shipping items over 150 pounds, you should get FedEx next-day freight services instead.
A note on guaranteed delivery: when a carrier says the delivery time is guaranteed, you can get a refund if they don’t make it. Guaranteed delivery does not mean the package arrives as expected every time.
If You’re Looking to Ship Within 2 Days
For two-day delivery, our best recommendations are FedEx 2 Day and UPS 2nd Day.
If You’re Looking to Ship Within 2-3 Days
To send orders within 2-3 days, the best option to go with is USPS Priority Mail. It offers the lowest rates compared to UPS and FedEx, which can cost almost twice as much.
You can see on their website that USPS Priority Mail coverage is two days for most of the country. If you don’t need guaranteed 2-day delivery, then this option is the most economical option for that service.
The Cheapest Way to Ship Internationally
International customers are a great way to expand your reach, but delivering products can seem more complicated. The cheapest way to ship your items internationally is through USPS, which will be less expensive than UPS and FedEx (which can cost three times as much).
Other Tactics You Can Use to Save Money on Shipping
Outside of these shipping methods, there are also things you can do from your side to save money on shipping. Here are a couple of tactics to employ:
Provide the Right Protection for Your Items
You want to ensure that each of your items gets to the customer safely from A to Z. If your product gets broken or stolen during the delivery process, that’s money; you’ll lose shipping.
There are two main ways to do this. First of all, you want to make sure that you’re using a suitable packaging material to protect your items during transportation.
Secondly, you should consider having insurance if anything unexpected happens to your item during delivery.
Integrate a Shipping App
A great way to save on shipping is to integrate shipping software into your store. A quality app should have access to discounts on shipping with major carriers to ensure you get the best rates on shipping every time.
The best part about using shipping software is that you can set up automation so the software finds the best rates for each and every shipment, so you don’t have to worry about figuring it out every time.
Keep Your Packaging as Light as Possible
The heavier your package is, the more expensive shipping will be. To save money, avoid using heavy packaging material to ship items. For example, instead of cardboard, consider using light materials such as air pillows or packaging peanuts.
Reuse Packaging Material
Lastly, a great way to save on shipping costs is to recycle your old material for future orders. It’s a great way to save money and respect the environment at the same time.
Grow Your Business With The Best Shipping Rates
Shipping can quickly feel like a liability, but there are ways not only to minimize its effects but also to deliver a great customer experience simultaneously. That’s why you need to weigh all your options and select the shipping option that will save you the most money.
By following our recommendations, you should have a good idea of how to get rates for shipping. To learn more about how Essential Hub can help you save money with the best shipping discounts, contact us today.
However, don’t let the word ‘free’ fool you — there are cases where free shipping might cause you to lose more money than you’re gaining. Remember that you’ll have to cover the shipping cost, which may hurt your total revenue.
So what do you do? In this blog post, you’ll learn about the benefits of free shipping, what to consider before setting it up in your store, and the tactics that can turn losses into additional sales for your business.
The Benefits of Free Shipping
There’s a reason why offering free shipping is a gold standard in the eCommerce world. Here’s how free shipping influences the purchasing behavior of customers:
Free Shipping Boosts Your Sales and Average Order Value
Everybody loves to get free stuff, and free shipping is no different. According to statistics:
61% of customers are “somewhat likely” to cancel their order if it doesn’t come with free shipping
Orders with free shipping average around 30% higher in value
93% of customers are encouraged to buy more if free shipping is available
Increase Your Brand Loyalty
Your success in eCommerce depends on your ability to adapt.
Free shipping from brands is now an expectation for the modern customer. A recent survey proves that 8 out of 10 consumers prefer free shipping over getting their items faster.
By offering free shipping, you meet your customers’ needs and give them a reason to return for more.
Decrease Cart Abandonment
Put yourself in the shoes of the customer for a couple of seconds.
Let’s say that you find a product you like and add it to your cart, only to find out about the high shipping rates. What would you do? Chances are, you’d likely leave the cart.
That’s where free shipping comes in. By covering the shipping cost yourself, you’ll encourage customers to follow through and reduce cart abandonment.
What to Consider Before Offering Free Shipping
With that in mind, however, there are cases where free shipping isn’t the right fit for your business. Here are a couple of factors you need to consider before setting up free shipping on your store:
Your Supplier Offers Free Shipping
Whether or not you should offer free shipping also depends on your supplier.
If the supplier you choose offers free shipping, it’s ideal to offer free shipping to your customers. In this case, it won’t be fair to charge them for shipping costs.
However, if they don’t offer free shipping, it’s up to you to decide whether you want to cover the shipping costs or make your customers pay for them.
The Competition Is Offering Free Shipping
If competitors in your niche are offering free shipping as part of their strategy, then it’s best that you do the same.
You don’t want your store to be falling behind everyone else. However, even if the competition isn’t offering free shipping, it could still be a way to make your business stand out from the crowd.
Online customers value free shipping during their purchase. If they explore their options and see that you’re the only one who offers free shipping, they’re most likely to pick you.
Your Customer’s Location
Ask yourself: where are your customers located? Are you only shipping to the United States, or do you have customers overseas as well?
The customer’s location has a significant influence on your shipping costs. That’s why it might be better for your store to offer free shipping only to specific areas.
You’ve Calculated Your Profit Margins
First, you’ll have to do some math to determine if free shipping suits your store.
How free shipping will affect your margins depends on the type of product, where your customers are, and more factors. Keep in mind as well that you’re the one who’s going to have to cover the shipping costs.
Knowing the average order value and average margin on every order will determine if free shipping can work for your business. Does the average order cost you $10 to ship? If your average order margin is more significant than $10, you can cover the cost of shipping.
To compensate for the lost money, you’ll have to develop an effective strategy, which we’ll get into later. You can also keep your shipping expenses down by investing in the right software.
How to Offer Free Shipping Without Hurting Your Bottom Line
As you can see, there’s a lot of thinking that goes into offering free shipping. You can’t just set it up in your store and hope for the best. Thankfully, there are strategies you can use to offer free shipping without going broke. Here are a couple of tactics that should help you:
If competitors in your niche are offering free shipping as part of their strategy, then it’s best that you do the same
Increase the Price of Your Products
An excellent way to win back the money you’re losing to shipping is to increase the price of your products.
However, you also have to be careful when raising your item’s price — you want the price to cover shipping and marketing costs but not high enough that it scares away customers from buying from you.
Customers find free shipping offers twice as compelling as discounts, so consider that when considering a lower price versus a free shipping offer.
Offer Free Shipping for a Minimum Order Size
Another way to cover shipping costs is to offer free shipping when customers pay a specific order size. The extra cash should help you cover the rest of the shipping costs.
However, just like with increasing the price of your products, you need to have a strategy in mind. You can’t just throw a random number around — customers will catch on to your actions.
Let’s say that your average order cost is $22. To invite customers to pay more without feeling like they’re being tricked into buying more, you can offer free shipping for orders above $25.
Here’s an example from skincare company Frank Body, that offers free shipping for orders above $20:
Create a Membership Program for Free Shipping
An option that’s gaining in popularity is setting up membership programs. To qualify for free shipping, customers must sign up and pay a yearly or monthly fee.
A great example of this in action is Barnes & Noble. On top of getting free shipping when customers sign up for their membership program, they also get exclusive perks and bonuses.
Offer Multiple Shipping Options at Checkout
Giving customers more than one option will increase their perceived value. When you display rates, include the estimated delivery date. Customers will be able to select a faster option (and choose to pay for shipping themselves) versus selecting the standard, slowest, and low-cost option for your business.
Your Shipping Rates are As Low as Possible
No doubt, getting access to cheaper rates makes offering free shipping easier. The problem is that small and mid-sized businesses can’t access the same discounts as their bigger competitors – or Amazon. A lot of platforms promise better rates, but what they’re really offering is a discount below retail (what you would get at the USPS or UPS store). Any business can access better than retail by setting up a business shipping account.
More tools are available, however, and that’s where a company like Essential Hub can help. We leverage our network of software partners to get customers the best rate and program for their particular needs, and our experts craft a custom shipping profile to leverage the strengths of each carrier. Check out some of our shipping tips, and if you’d like to learn more about how we can help, fill out the contact form below.
Wrapping Things Up
Whether or not you can offer free shipping depends on various factors. These include the type of product you’re shipping, your customer’s location, and what others are doing in your industry.
When free shipping is done correctly, you can boost sales and create loyal customers. It’s all about having the right strategy to make it work.
Keep Your Costs at a Minimum with a Great Shipping Program
Shipping is more than just low rates. An excellent shipping program gets you the best rates for the service you need for each and every shipment. Essential Hub helps our customers with strategy, software, and rates so their business can win more customers and grow!
If your store struggles with cart abandonment, you are not alone.
While it’s impossible to eliminate cart abandonment, there are various ways you can minimize it. In this article, we will review the top 4 reasons customers abandon their carts and determine the tactics you can use to eliminate those problems.
Top 4 Reasons Why Customers Abandon Their Cart
There are many reasons why customers don’t follow through with their purchases. Here are the most common ones:
High shipping costs
A complicated checkout process
Lack of payment options
Glitchy or slow website
Let’s get a little more in-depth with each of these.
High Shipping Costs
The #1 reason why customers abandon their cart is because of unexpected shipping costs.
When customers see that what they’re paying is more than expected, it gives them a reason to leave the checkout page. As a result, they might check out what rates your competition is offering and buy from them instead (also known as checking on Amazon for Prime delivery).
If you’re not offering free shipping, you should seriously consider doing it. There are tactics you can use to make it work for you financially; free shipping isn’t just about straight profit/cost.
A Complicated Checkout Process
Another big reason for cart abandonment is a checkout process that’s too difficult to follow. Online customers are impatient — they don’t want to jump through hoops to make their purchases—too many windows, boxes, and form fields to fill out.
The checkout process should be as fast and straightforward as possible, which we’ll get into later in this blog post.
Lack of Payment Options
Customers have different preferences when it comes to making their payments online. Some prefer to use their credit card, while others want to pay with PayPal.
Ideally, you want to provide customers with as many payment methods as possible. A lack of choice can lead certain customers to leave their cart since they can’t find a payment option that fits their needs.
Glitchy or Slow Website
Lastly, your website’s speed has a vital role in your online conversions.
According to Google, 53% of visitors will ditch your site if it takes more than 3 seconds to load. If your website is too slow or glitchy, customers will bounce and won’t bother buying anything.
The quicker your website performs, the higher your conversion rate will be.
The Best Tactics You Can Use to Prevent Cart Abandonment
Now that you know why customers leave their carts, you may wonder how to prevent it. Here are our best recommendations to make sure customers go past checkout:
Use Exit-Intent Popups
You need creative ways to engage web visitors. One of the best ways to do this is by implementing exit-intent popups on your site.
Exit popups track the visitor’s mouse movements to capture their attention as they’re about to leave your website. It’s super helpful on checkout pages, where you can offer customers a discount for the product they plan to buy.
Offering a discount or promotion to customers gives them an extra incentive to stay on your page. As a result, they may change their mind and follow through with their purchase.
Here’s a great example from Roadside Vapes. Not only is it fun with its imagery and copy (“Can’t You Stay a Little Longer?”), customers can get 10% off their first order by entering their email address.
Implement a Buy Now, Pay Later Payment Option
Your success in e-commerce depends on adapting to changes in consumer behavior.
86% of consumers are now looking for payment options that are more flexible and help them save money. It’s why Buy Now, Pay Later (BNPL) is becoming popular among consumers, particularly with millennials and overseas.
BNPL is pretty much the modern version of layaway. Instead of paying the total price upfront, customers can buy your products in installments. It’s a payment method that helps customers split their budgets better and encourages them to make larger orders.
Two options we love for BNPL are Sezzle and Klarna. Both are interest-free and provide you with the money upfront to make sure you get paid. They take care of collecting from the customer, so you see an immediate boost to sales from people who weren’t sure they could afford the purchase up front.
Have a Clear and Generous Returns Policy
Around 66% of customers read a store’s returns policy before purchasing. If your returns policy is complex to read or is unfair, customers may decide to go with your competition instead.
You need to make sure that you write your returns policy with simple language and no complicated jargon. Another good tip is to extend the return deadline — up to 365 days if you can.
Customers want to know that if the item doesn’t fit them, they can always return it with no problem. Ikea is a great example, with a 365-day return policy on an item bought from their store.
Keep in mind that one of the biggest reasons why customers love shopping online is convenience, but one of the biggest problems is that you aren’t there to see how the items look, fit, or feel. You must overcome any worry or fear about returns to grab the purchase and create a loyal customer.
Providing simple and free returns overcomes this problem and assures customers they can expect a smooth and fun shopping experience with your brand!
State Your Shipping Rates
As mentioned earlier, shipping rates are one of the top reasons customers abandon their carts. No one likes to find out they’re paying more than they initially thought.
If you offer free shipping, state it clearly on every page. That’s a great reminder for customers that they won’t have to pay for shipping.
If you don’t offer free shipping, offer an incentive to earn it. Minimum order thresholds for free shipping should be clearly stated on every page. That does two things:
Incentivize customers to add more to their cart to get free shipping
Subtly tell your customers that they will have to pay for shipping at checkout
Clear communication in e-commerce is critical.
Offer Guest-Checkout
Any friction during the buying process will cause customers to abandon their shopping cart.
A common issue among e-commerce stores is that customers must create an account before buying their items. That can feel like extra work for customers who want to purchase quickly.
Instead, your brand should allow customers to checkout as guests. Ask them to give you their email address, and they’re ready.
Offering a membership program is a great way to engage with repeat and loyal customers. Instead of focusing on setting up accounts for everyone trying to buy from you, focus on retaining the best, repeat customers.
Abandoned Cart Emails
A classic way to recover lost sales is to send abandoned cart emails. Ecommerce 101.
Don’t make boring emails. On-brand humor is engaging and much more likely to get the win. You should be using sequences for abandoned cart emails. Here’s an example:
One hour after leaving the cart: simple reminder email. Favorite subject line: “Did life get in the way?”
Twenty-four hours after leaving the cart: something more engaging and funny.
Forty-eight hours after leaving the cart: offer a discount or another incentive.
Simple A/B testing can help you find the right messaging or incentives that resonate with your customers.
Don’t give away the discount immediately; this is a common strategy for people looking for better deals, and sometimes people are just thinking about it. Remember that with abandoned cart emails, you need to keep things creative. Online shoppers see a lot of these and will ignore them, so keep it light, fun, and on brand.
Here’s an excellent example from Dote. Notice the creative copywriting — your shopping cart has abandonment issues. It’s a fun and creative way for customers to finish their purchases.
Install a Facebook Messenger Chatbot
65% of customers prefer using a messaging app to contact brands. On top of that, Facebook Messenger typically has a 90% open rate compared to 15-20% for email.
An alternative to abandoned cart emails is to use a Facebook Messenger chatbot. When customers abandon their cart, you can send them a personalized message on Facebook to invite them back to your store.
Facebook chatbots are also helpful when it comes to answering questions customers may have about your product. They improve the buyer’s journey and cut your customer service work in half.
Anything that makes the checkout process simpler will get customers to buy their cart.
Autofill takes your customer’s details and includes them on your form, so they don’t manually do it themselves. With their information already in place, customers will be more likely to continue their purchase.
Optimize Your Website’s Speed and Responsiveness
The best products worldwide will never make up for a slow and glitchy website. There’s nothing worse for a customer than to run into some technical problems as they’re about to checkout.
You also must make sure that your website is mobile-friendly. By next year, brands can expect 54% of e-commerce traffic to come from mobile. If you’re using Shopify, you can expect a fast and responsive website by default. If you’re on WordPress, then you’ll need to ensure that your developer is on top of page load speeds.
An excellent way to optimize your website is to invest in PWA technology, which offers faster speed, fewer glitches, and better UI for your website. It also makes your website easy to browse during periods of high traffic or poor internet connection.
Wrapping Things Up
Cart abandonment can be a significant headache for businesses. Understanding how your customers purchase and what is important to them makes it possible to increase conversions and drive more sales. Like anything, you must implement and test to see what works. After implementing the best practices mentioned in this article, start by testing one thing at a time to see how abandoned cart rates improve.
It’s Cheap to Be a Cube
Every industry has its little annoyances. You know, those aspects you wish you didn’t have to deal with, the ones your friends in other verticals hear about and say, “Sure am glad I don’t have to deal with that.” That frustration can turn to gratitude very quickly, however, with the right motivation.
Let’s pick a random example, such as…brick-and-mortar retail vs. e-commerce. It’s pretty easy to imagine e-commerce brands envying their retail relatives in the physical realm when it comes time to charge users shipping fees and customers abandon their carts.
That dynamic might invert itself if, hypothetically, worldwide circumstances are arranged in a manner that either compels or impels large percentages of the human race to do as many daily activities from home as possible.
In such an environment, retailers, great and small, would likely find that if people can’t do it online, they won’t do it at all and that shipping fees are only a secondary concern.
Such a situation—should it ever come to pass in our lifetimes—would, however, make the cost of shipping a central point of competitive advantage. Brands that can charge less for shipping will earn more market share, and those that can reduce their shipping overhead will maximize profits.
But how, exactly, can e-commerce brands capitalize on that without Amazon-level budgets and infrastructure?
The same way you win a poker game against a cheater: with an Ace up your sleeve.
Priority Mail Cubic—The Shipper’s Secret Weapon
There is a little-known shipping program that the USPS offers for packages under 20 pounds that can meet certain size restrictions. It’s cheaper and faster than other shipping methods for qualifying parcels, but most e-commerce retailers either don’t know about it or don’t use it.
So, what is this mystical gateway to delivery delightfulness? It’s called Priority Mail Cubic, or just “Cubic” for short. It’s a unique service the USPS offers, and it can do wonders for reducing shipping overhead for your business.
With Cubic, your business gets charged based on the dimensions of your package, not its weight. It’s an excellent alternative to FedEx and UPS if you want to save the most money on shipping, as it’s just as fast (if not faster), and you don’t have to stress about package weight as long as it’s under the 20-pound limit.
Let’s take a closer look at how it works. The trick is to use software that offers this incredible service at the correct rate (some shipping platforms mark this up to make more money).
Let’s learn about the benefits of Cubic pricing and how the service works.
How USPS Priority Mail Cubic Works
The Requirements
In order to avail yourself of Cubic shipping, your package has to meet specific criteria, so before we explain how to calculate costs or what savings you can expect, we should determine whether your shipments are candidates for the program.
Cubic parcels must match the following three attributes:
Weight—less than 20 pounds
Volume—0.5 cubic feet or less
Size—no dimension longer than 18 inches
If your shipping meets these precise specifications, it can be shipped via Priority Mail Cubic.
Determining Postage
The reason Cubic is such an effective tactic for reducing shipping costs is because of its unique pricing method that doesn’t take into account the weight of the package. As long as it’s less than 20 pounds, the USPS doesn’t give a ship what it weighs. If that’s the case, though, how do you determine shipping prices?
Well, it takes a little bit of math. So dig your old algebra notes out of the trunk; you might need them.
Here are the steps you need to take to calculate your package with Cubic:
Measure the length, width, and height of your package. Round each dimension down to the nearest quarter inch. For example: 3 x 10 x 12 package
Multiply the dimensions (Height x Width x Length) and divide that number by 1728. For example: 3 x 10 x 12 = 360 / 1728 = .2083
The decimal you get back is the size of your package in “cubic feet.”
Finally, round up your cubic feet measurement to .1, .2, .3, .4, or .5. For example: .2083 rounds up to .3
After you’ve done all that number crunching, you can compare the final cubic feet measurement against the USPS’s pricing tables (which you can find below, up to date with pricing for 2022). Determining the price is simply a matter of matching the cubic measurement to the number of shipping zones the package will have to travel. And that’s it.
Benefits of USPS Priority Mail Cubic
First and foremost, Cubic pricing means weight doesn’t come into the equation, allowing you to ship cheaply when your package is less than 20 lbs and is smaller than .5 cubic. Beyond that, though, USPS Priority Mail Cubic pricing offers many benefits you won’t find from other carriers. These include:
Fast Delivery Within 1 to 3 Business days: USPS’s Priority Mail Cubic service makes it possible to ship your items to customers within 1 to 3 days across all states in the USA.
Free Package Tracking: USPS will offer free package tracking on shipments so you can follow the journey of your product.
Reduced Shipping Costs: With Cubic, you get much more competitive rates than other shipping methods.
“That’s great!” you might be saying. “If it’s so easy to ship cheaply, though, why doesn’t everybody do it?”
Cubic Shipping Caveats (and How to Get Around Them)
Caveat #1: The Threshold
Cubic offers you the possibility to save big on all of your shipping. What makes it difficult is that the USPS won’t let just anyone ship Cubic. To get these special rates from your friendly neighborhood postman, you have to meet a certain order volume threshold.
Think of it as a minimum order value to qualify for free shipping. Except, instead of “free,” it’s just “much cheaper,” and instead of $30 in product, it’s 50,000 packages a year.
This requirement prevents everyone and their mother from shipping holiday gifts to faraway families using Cubic pricing. Unfortunately, it also prevents smaller retailers from doing the same, at least unless they have help.
Solution #1: The Inside Man
Okay, so you’ve found your secret weapon, but you need some help putting it to use. So, you do what any sensible individual would: you find yourself a wingman who will put in a good word for you. Though, in this case, it’s not necessarily a wingman, but a wingbrand.
Several solutions can help you bridge this volume gap, and there are some names to call them by. They go by titles such as “shipping aggregators,” “independent postage vendors,” and “online postage providers,” just to name a few.
But while there are variations on the business model or services provided, the base functionality is the same: they allow you to print your own postage and shipping labels.
This particular industry niche began as a way to save businesses a trip to the post office or other drop-off locations. As it grew, however, additional core features were added to make the service more beneficial and to give the brand offering it a competitive edge.
These included features like reduced shipping rates (resulting from the vendor/aggregator’s brokered deals with the carriers), API integrations to calculate and populate shipping costs automatically, and more.
We could go on and on here (and we have, in fact, in other places), but what’s relevant to the current discussion are the agreements with shipping carriers. These arrangements allow aggregators to treat an entire lot of shipments with a given carrier, made using their system in a given year, as coming from a single business entity.
In other words, the shipments are “aggregated” together, and it’s easier for ten retailers using a single aggregator to ship 5,000 packages each to break that limit of 50,000 than it is for any of them to do alone.
This is what a solution like this can offer: convenience and improved shipping rates. But not every brand approaches the task of passing on the savings to your business with the same philosophy.
Caveat #2: The Grift That Keeps on Giving
It’s essential to be aware that not all third-party shipping software offers Cubic as an option. For those that do, it’s not always the actual Cubic pricing they offer. Here’s what we mean.
The USPS offers the Cubic program because they want to reward shippers for using smaller packages (making it easier for them to ship more in fewer trucks/planes/etc.). That’s why the pricing is better. And they work with vendors and aggregators to offer the rates because it gets more shippers in line with those requirements.
Obviously, businesses in this space are, well, businesses, meaning they intend to turn a profit (as opposed to, you know, non-profits). So, almost every solution will either charge a fee or mark up the Cubic rates to generate revenue from offering those rates to their clients (and eHub is no exception).
But both as business professionals and as consumers, we are all well aware that there’s a difference between an equitable exchange and scalping.
Some brands mark up their Cubic prices more than others, obviously. But keep in mind here: this is an offering that requires effectively zero overhead.
Unlike product brands, which can market themselves as a “premium” brand off of the ostensible promise of products built with better materials, design, and engineering (no matter how flimsy that excuse might be—looking at you, Apple), these brands are only offering access to reduced shipping costs, so excessive markups aren’t warranted.
Solution #2: Second Opinions to Avoid Second-Rate…Rates
This may seem an obvious solution, but it’s hard to overstate its relevance or efficacy. Never be afraid to exercise your right to shop around—even in B2B arrangements—especially here.
The USPS doesn’t publicly list their cubic shipping rates, so you’ll have to do some good, old-fashioned price matching on this one. While we mentioned above that everyone using Cubic is essentially getting the same “product,” there are variances in the level of customer support you’ll receive from different solutions, not to mention how easy support is to contact.
Beyond that, what determines the value of a lot of these solutions (and which clients are happy with their service) are the available API integrations. There’s no universal solution, so your best bet is to look for one that offers the integrations that are most critical for your business or find one with a team willing to prioritize building the functionality you need.
So, look for positive reviews and ratings, check with your peers in the e-commerce industry for referrals, and ask any hard questions you can think of so you can find a provider that meets your brand’s unique needs.
The Nitty-Gritty: USPS Cubic Pricing
Cubic Pricing Tiers
Now that we’ve covered the what, the why, and the who, let’s talk about the “how”—as in, “how much?”
Regarding Cubic feet measurement, your package will fall into one of five tiers that USPS uses to calculate the shipping rate. Here is what each tier consists of:
Tier 1: Packages up to .10 cubic feet
Tier 2: Packages more than .10 and up to .20 cubic feet
Tier 3: Packages more than .20 and up to .30 cubic feet
Tier 4: Packages more than .30 and up to .40 cubic feet
Tier 5: Packages more than .40 and up to .50 cubic feet
These tiers don’t change year-to-year, so regardless of fluctuations in actual pricing, a given size of the package will always be the same tier.
2022 USPS Priority Mail Cubic Rates
Cubic Ft. Range Up To:
0.10
0.20
0.30
0.40
0.50
L, 1 & 2
$7.54
$8.02
$8.25
$8.37
$8.50
Zone 3
$7.81
$8.20
$8.62
$8.85
$9.07
Zone 4
$8.05
$8.49
$9.01
$9.57
$10.04
Zone 5
$8.37
$9.12
$10.03
$11.83
$13.18
Zone 6
$9.18
$10.96
$13.48
$15.92
$17.79
Zone 7
$9.77
$11.62
$15.22
$18.73
$22.31
Zone 8
$10.43
$12.67
$17.93
$21.59
$25.74
Zone 9
$18.56
$25.09
$34.46
$42.67
$51.21
The rates, on the other hand, tend to change on an almost yearly basis. How much you’ll pay depends on your cubic dimensions (the tiers mentioned above) and zoning—including the zone of origin, the destination zone, and the number of zones in between.
Here’s a table of what the 2022 rates for USPS Priority Mail Cubic look like to give you an idea:
How You Can Get Started With Priority Mail Cubic
There’s one more “how” to answer here: “How do I get started?”
The best way to start with Cubic is to find an appropriate vendor or aggregator and integrate their shipping app or API into your fulfillment process. We should warn you, however, that since Cubic is a relatively unknown program, it’s hard to find a platform that offers favorable pricing, let alone the shipping option itself.
Even some of the most popular tools, such as Shipstation, don’t offer commercial-level pricing for Cubic, so don’t decide on brand visibility alone.
We won’t pretend that we’re a perfect fit for every e-commerce retailer or 3PL outfit, but at eHub, we build our pricing structure so that we profit with you, not from you. In other words, if maximum access to the discounts of Cubic shipping is a significant factor in your decision, we’re probably worth a look.
While we can’t qualify you to sit on the throne of Asgard or claim the crown of England, we can help you significantly reduce your shipping costs (which is almost as good).
So, if you’d like to know more about the program or how it can save you 15% on car insurance shipping fees, give us a call.
In modern-day commerce, your closest rivals could be located anywhere in the world, and they could be anything from a small home-based business all the way up to a high-volume operation. As a small business, are you really ever going to get the same shipping rates, savings, and discounts as your larger, higher-volume competition?
Maybe not. However…
There are many different types of shipping software and lots of new ways you can optimize your small business shipping arrangements. In this post, we’re offering you a few key tips on the topic of small-business shipping. With this, we hope to inspire some new practices to help you on the path to lower shipping rates, better customer experience, and, ultimately, higher profits for your business.
Avoid Using a Single Carrier One of the most limiting things you can potentially do for your business is fail to accumulate many shipping options. Be prepared, as there’s a little leg work to do, and you need to have a solid understanding of your key parcel data—not just your volume but also your product weights, sizes, packaging, and any service-level agreement (SLA) requirements.
The more data you have, the more clearly you will be able to articulate your needs to potential shipping partners. You should try to obtain quotes, SLAs, and contracts for multiple carriers, including regional, national, and specialty shipping providers.
Don’t completely rely on any single carrier like UPS or FedEx. There are scenarios where each carrier makes the most sense, and it’s important for you to understand how they can work together.
Yes, it will take time, but in the long run, these efforts will be really beneficial.
Audits While this may not be the most appealing of tasks, it could be exceptionally fruitful in terms of the ROI. If you don’t already have a process in place to check your shipping invoices, then it’s time to get one! When you ship with guaranteed delivery options like overnight or 2-day, you’re entitled to a refund when they’re late. But the carriers aren’t going to do this for you.
A regular audit, such as monthly or quarterly at most, might not just reduce your shipping costs but also give you an indication of the service levels from a specific carrier. Either way, it’s a win-win.
Earlier in this post, we mentioned the importance of using shipping technology for your small business. Manual auditing could be time-consuming, but there are also many automated options that can save you time and money! LateShipment.com is just one of many options to consider.
Harness Small Business Shipping Technology It’s safe to say we all use technology in business. However, not everybody maximizes their use of technology in small business shipping. The best shipping software will help you manage your orders, check against multiple carriers for the cheapest shipping option, print labels, track packages, arrange pickups, and more!
Nowadays, all the top small business shipping software companies will offer seamless integrations with most of the popular e-commerce platforms, such as BigCommerce, Shopify, Amazon, Woo-Commerce, and many others.
With intelligent automation working for your business, you can realize a more streamlined, cost-effective, and less time-consuming approach to small business shipping.
Packaging At a time when consumers and companies alike are looking at ways to reduce their costs, reviewing your packaging is another essential task, and it’s something that’s firmly within your control.
According to a recent e-commerce survey, over 70% of consumers aged between 18 and 30 and over 60% of all shoppers state they are more likely to buy products from brands that use sustainable materials. Furthermore, another similar survey demonstrates that consumers tend to have a higher opinion of companies that use paper packaging instead of plastic or other unsustainable materials. The best thing is that eco-friendly packaging doesn’t always equal more expensive packaging, so it’s worth looking into.
Did you know that many carriers now give away free packaging?
For instance, USPS has hundreds of free shipping supplies on their site, as do DHL Express, FedEx, and UPS. All of these are worth a look!
Earlier in this post, we mentioned the importance of getting a handle on your data in order to rate shop across multiple carriers. You can go further by understanding how close your existing packaging is to cheaper rates if you were to make things ½” smaller or ½ lbs lighter.
Free Shipping Alternatives Regardless of the type or size of the products you sell, you might not always be able to afford to offer free shipping across your store. However, there are a few alternatives that you can still consider.
Minimum Order Thresholds One way of incentivizing customers who want free shipping is to set a minimum order value. This tactic often encourages people to order more and pushes up average order values while giving the customer a feeling of value in the process.
Offer a loyalty program with free shipping Many major brands are doing this, but it’s also highly applicable to smaller businesses. For your loyal customers who order from you regularly, offer them the option to pay a small annual or monthly fee in exchange for free delivery.
Consider a flat-rate cost of shipping The applicability of this depends on the size and type of products you sell. However, a flat-rate shipping charge provides customers with complete transparency with their shipping costs, making it easier for them to see the exact cost of their order. In many cases, this also acts as an incentive for customers to place larger orders as they try to take advantage of the fixed shipping cost.
Include the shipping cost in your price By including shipping costs in your prices, you can promote ‘free delivery’ as part of your offering. If you’ve implemented some of the earlier shipping tips for small businesses and optimized your company’s shipping operation, you can still offer value to your customers without having to cover the cost of shipping out of your own margins.
Bonus Tip – Reviews
People trust online reviews. One way smaller shippers can compete with their larger counterparts is by building up a quality online profile with lots of positive reviews. So, if you haven’t already optimized your shipping to include an insert or incentive for leaving a review, then doing so is a great idea!
Final Thoughts With poor or no planning, shipping can end up being complicated and costly, and it can heavily impact your reputation and the overall customer experience. For smaller businesses that don’t have the demand for volume shipping, getting the right partners, processing, and pricing in place is essential.
Online shipping is so much more than an operational process. It’s also an opportunity to build loyalty and improve your customer experience, and it can also be crucial to your profit margins. In some cases, the flexibility and strength of your online shopping options could also help you make a sale in the first place.
We hope you’ve been able to find at least a couple of shipping tips for your small business.
Have a question or want to know more? Let us know!
