You’ve seen the stats, like this one from CIEDEC—that 95% of the world’s consumer market awaits you outside US borders. And, after reading our tips for international sales growth, you’ve laid the groundwork to expand your international business shipping horizons. Now, it’s time to get up to speed with international shipping.
Though it may seem daunting, follow these steps, and your products will soar—literally.
1. What Can I Ship, and Where Can I Ship It?
First, review the Commerce Control List (CCL) to verify whether your product is allowed for export or if it is a controlled commodity that requires an export license. Also, depending on where and to whom you are shipping, you’ll want to check whether the government has sanctions or embargoes and prohibitions on end users or the product’s end-use. Then, check the Country Commercial Guides to determine whether your product is allowed for import in a particular country.
The good news is most commercial products do not require an export license and are designated EAR99 in the Export Administration Regulations, but before exporting, you will still need to ascertain your product’s Harmonized System classification and Schedule B number to complete the export and import forms.
An easy way to start offering international shipping to Canada and Mexico first and branch out from there. Trading with our neighbors has been simplified with the US-Mexico-Canada Agreement (USMCA) which allows qualifying small package shipments valued at less than $150CAD (in Canada) and $117USD (in Mexico) to ship duty-free, and the taxes have also been simplified.
Or, select from the 20 countries with a free trade agreement with the US. If the customs regulations of the country you are shipping to are rather complicated, and you plan to ship there frequently, you may want to hire a customs broker to help you cut through their red tape.
33Countries with Free Trade Agreements with the United States
Australia
Bahrain
Canada
Chile
Colombia
Costa Rica
Dominican Republic
El Salvador
Guatemala
Honduras
Israel
Jordan
Korea
Mexico
Morocco
Nicaragua
Oman
Panama
Peru
Singapore
2. Decide Who Should Pay For What
Incoterms define the rules of the ownership transfer… for instance, During the delivery process, when does ownership transfer; who is responsible for covering the licensing, customs fees, and taxes; and who, if applicable, is insuring the product for loss and damages? What’s the de minimus value for the country you’re shipping to?
As you consider handling these expenses, you should also estimate what your landed cost (or total expenses from the point of sale to the final receipt of the product) will be—there are many online calculators available to help you. Does it make sense for you to offer free shipping? Split the costs? Will you accept returns, and if so, who covers that cost? Should you adjust your product pricing to reflect the additional cost and work?
An easy way to start offering international shipping to Canada and Mexico first and branch out from there
Selecting which carrier to use is a big part of this step. Price is often the primary concern, but speed and convenience of delivery are factors as well. While USPS can often be the least expensive, its tracking capabilities and delivery responsibilities end once the product leaves its jurisdiction. Many private carriers handle delivery from door to door and offer more services, but those costs will fit into your overall price.
3. Sell Your Product(s) and Get Them On Their Way
Yay! You’ve cut through the red tape, done your research, and it’s paying off—the cash register is ringing.
Now, it’s time to generate a detailed Commercial Invoice (or Pro Forma Invoice for samples) outlining the terms of both the sale and the delivery, then finalize the required export and import forms (which you will have already determined through your research). Some of these can be completed online.
Then, package your product in a sturdy container that meets the standards of your selected carrier; create and affix your international shipping label, carefully proofing your recipient’s address and contact information; and attach your Commercial Invoice along with any other necessary customs paperwork.
Finally…
Transfer the package to your carrier of choice
Cover your contractual portion of the delivery costs
Receive a tracking number to provide to your buyer
After you pat yourself on the back, get back to selling!
Easy as 1-2-3.
Research 2. Analyze 3. Ship
Right? Okay, maybe we’re oversimplifying it. But, once you perform the cost-benefit analysis and create the foundation, the process will become systematic and, ultimately, well worth it.
Final Thoughts
However, if you find you do not have the capacity for it. eHub can help. We’ve done our due diligence in the export arena, developed relationships and pricing contracts with multiple carriers, and built the databases to support a seamless e-commerce API that will facilitate every international sale you make. To explore whether our international shipping solution could work for you, click here.
At eHub, it’s our pride to help clients work with all the major shipping carriers available to them. We work with UPS, FedEx, DHL, and, of course, USPS, or the US Postal Service, providing a vast range of shipping options and services from and to any area of the country.
Our carrier-related services span several areas, including helping our clients understand and react to rate increases from any of these carriers. USPS recently filed its planned rate increases for the 2021 year with the Postal Regulatory Commission (PRC) – what are these changes, and how might they impact your standard USPS shipping formats? We’ll go over this plus dig into some of the general benefits of using USPS to begin with.
Benefits of Using USPS
Firstly, why USPS? There are several reasons why many businesses rely primarily on the US Postal Service for their primary shipping needs, including:
Delivery to any address in the USA
No fuel or residential delivery surcharges to companies
Free Saturday delivery
Free shipping supplies and scheduled pickups for no additional cost
That said, many of USPS’s competitors also have these same themes at play. For this reason, shipping rates will often be one of the key elements a business considers when choosing a shipping partner. Let’s go over how USPS rates will change in 2021.
Basics and Approval
As noted above, USPS has submitted its planned rate increases to the PRC for 2021. We’ll review the precise rate increases briefly, but some general basics first.
Firstly, if approved, the new USPS rate changes will kick in on January 24, 2021. In addition, a $100 charge will be imposed on packages found in the USPS mail stream that are larger than the maximum size of 130 inches (combined length and girth) – this applies to all service levels, from standard ground and air mail up to First Class package service and any areas in between.
Average Increases for Common Labels
Here are the average percentage increases that will be seen for the varying service levels within USPS once the rate increases take effect – if they are approved, which has not happened yet:
First Class Package Service: Average increase of 6.5%
Priority Mail: Average increase of 4.5%
Priority Mail Express: Average increase of 2.5%
Parcel Select Ground: Average increase of 1.3%
Are these changes enough to impact your business and make you consider switching to another shipping carrier? This is where our pros come in – we’ll use all our latest techniques to help you find the best shipping company and save money on shipping in several ways.
For more on USPS rate increases or to learn about our shipping API or software programs, speak to the staff at eHub today.
Summer is almost over, and it’s time to think about your strategy for the holidays.
The holiday season is typically the most chaotic time regarding online orders and shipping. To make it worse, the world is currently battling against COVID-19, which makes 2020 a year like no other for e-commerce.
As stressful as everything may seem, we’ve got your back.
Here’s our 2020 shipping checklist to make sure you stay on top during this year’s holiday season:
1. Forecast Demand
As the pandemic continues, you must forecast customer demand for the upcoming holidays.
COVID-19 has changed everything from the customer’s channel selection frequency to shopping and the products they want. For example, there’s a more robust demand for items that align with social distancing, such as entertainment products or home goods.
Look at your sales during the lockdown — which types of products were in high demand? It should give you a clue on what to expect from customer behavior during these next months.
There is a science to forecasting demand, but let me give you a simple metric: compare sales from March to May this year versus last year. Take that percentage difference and multiply last year’s holiday sales to see how much bigger it could get.
Also, think about talking with your 3PL to find out how they can help you prepare for the upcoming holiday demand.
2. Implement a Strong Communications Plan
Another critical factor to consider during the holidays is communication with your customers.
Make sure to keep them up-to-date with each of their orders. One thing that will make customers worry, for example, is how COVID-19 will impact shipping delays. You’ll need to provide tracking and let them know when they can expect the item to arrive at their doorstep.
During your communication with your customer, it’s also a good idea to promote upsell offers. You can run post-purchase email campaigns with other products they can buy to complement their order. It will help deliver more value to the customer and boost your average order value.
3. Get Ready for More Customer Returns Than Usual
Dealing with customers is part of running an e-commerce business. However, you can expect returns to skyrocket during the holidays.
The reason is that customers will feel reluctant to step into retail stores due to virus fears. To gain peace of mind and avoid getting infected, they’ll be doing most of their shopping online.
Customers love the ability to buy and try on or see how something looks in real life. They often buy two or three sizes or styles, keep one, and return the rest.
As a result, your business must come prepared with reliable customer service staff or shipping software to manage returns effectively.
Dealing with customers is part of running an e-commerce business. However, you can expect returns to skyrocket during the holidays.
4. Get Shipping Insurance
No one can predict what will happen to your product once it is out for delivery. Nothing is worse for a customer during the holiday season than to make a purchase only to have the item damaged or never even arrive.
With an expected surge in shipments this holiday season, these problems will be multiplied. You can protect yourself and your customers, however, with shipping insurance.
It’s why you want to plan in advance and get shipping insurance, which is easier than you think. No matter what happens to your product, you’ll be protected against significant financial loss and gain peace of mind.
The holidays are the time when orders reach their peak throughout the year. As a result, you can expect new rules, restrictions, and deadlines for all major carriers. Look into the specific provisions of your carrier for different times of the year and figure out what measures and fees are required.
5. Do Research on Seasonal Fees and Restrictions
Keep in mind as well that major carriers will be surcharging their rates on shipping due to coronavirus and customer demand. For example, UPS plans to make businesses that ship more than 25,000 orders per week pay an extra $1 to $4 for each package.
6. Offer Multiple Shipping Options
If you offer free shipping, you’re probably sending things via Ground or Priority Mail. Those options have been impacted the most by slow delivery times, and you’ll have customers who will want something faster.
Offering an expedited shipping option – like 2-day, overnight, or even same-day delivery, is a must this holiday season. Here’s why:
It sets clear expectations for delivery times
Customers have the option to pay for faster delivery
Free shipping has a higher perceived value
Anyone who is expecting free shipping will see that delivery times affect cost. They will appreciate that the slower option is still accessible compared to the expensive, expedited option.
7. Make Your Packaging Stand Out
The holidays represent a unique opportunity to strengthen brand loyalty and delight new customers. One of the best ways to do this is to create a fantastic unboxing experience that wows them.
Branded packaging is the first approach because it makes each purchase feel unique and delivers a great impression. Since shoppers also buy gifts for their friends and family, you’ll surprise multiple customers simultaneously.
Customers also love to share brand packages on social media, which promotes your store and boosts your reach.
The next step is making what’s inside stand out with different packing paper, a hand-written thank you note, or even surprise gifts you’ve included.
There are so many things to handle regarding shipping during the holidays. You have inventory to manage, orders to pack and ship, tracking, and many more tasks on your list.
Software is the best way to improve processes like this. With automation, you can improve the pick-n-pack process, automatically select the correct shipping method, batch print labels, and update tracking information.
Essential Hub’s software provides all the tools you need for success this holiday season. Not only do we help you get the best rates on shipping, but our software also comes with order tracking, inventory management, and more.
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.
As frustrating as returns can be, managing them is an inevitable part of an e-commerce business. 30% of online products are returned, compared to only 8% for brick-and-mortar stores.
While dealing with customer returns might not be fun. However, it’s still possible to manage and minimize them effectively. Sometimes, you can flip them around and turn them into a sale.
While you may hate them, customers expect the returns process to be painless.
In this blog post, we’ll cover six ways that stores can manage returns effectively and improve their business:
Make Your Returns Policy Easy to Access and Lenient
More than 60% of customers will read your return policy before purchasing. That’s why you want to ensure your return policy is clear and easy to find on your web store.
The best places we recommend to make your returns policy visible include:
Your website’s footer
Your header
Each of your product pages
Checkout & cart page
Another good tactic is to be generous and extend the deadline for returns. This works because it gives customers peace of mind and ample time to see if the item fits.
For example, Zappos is a top-leading brand that offers returns within 365 days of purchase. With so much time to test out the product and return it, customers may even forget to return the item in the first place!
Collect Data on Customer Returns Through Surveys
One of the best ways to prevent returns is to understand why customers are returning your items in the first place. One way to collect this information is through customer surveys.
With surveys, customers will have to go through a series of questions so you can understand the reason behind their return. Some of the best questions you can ask in the survey include:
How did you find our product?
What features are you looking for that our product lacks?
What questions came to mind during your buying process?
Did you compare our items to the competition?
What can we do to improve our item to fit your needs?
As Bill Gates said himself, “An unhappy customer is the best customer.” Once you understand why customers are returning their orders, you can improve your products and web store.
For example, if a specific item always comes back faulty, you can find ways to fix it. Maybe it’s a flaw in the design, or the item’s packaging isn’t strong enough to sustain the transportation to the customer.
Maybe there’s a line in the product detail that is misleading customers. Understanding their expectations allows you to communicate more effectively in the first place or improve what you’re delivering.
If customers complain that your product looks bigger on your website than in real life, you can focus on improving your images to reflect the actual size of the item.
One of the best ways to prevent returns is to understand why customers are returning your items in the first place
Offer Product Recommendations to Customers
Even if a customer decides to return your item, it doesn’t mean that they won’t ever buy from you again. It could just be that they’re looking for a different product to meet their needs instead.
Especially for clothing or fashion-related items, customers want to see how they look and fit in person. If the returns process is easy, then they will continue to try out different products until they find what they like. Then you’ve got a lifetime customer!
What you can do in this situation is to offer them suggestions for other products that might interest them. If they’ve bought from you before, you can look at their history and see which type of item they typically like.
To take it a step further, you can also offer them redeemable coupons they can use on future purchases. It’s a great tactic to get them to return to your store and eventually buy products from you.
Measure How Much Your Returns Are Costing Your Store
As you manage returns, you must take the time to measure how they’re affecting your revenue. Doing so will help you set up a strategy to minimize them and do better.
Here are some crucial questions you need to be asking yourself:
How much money are you losing because of returns?
How much is your return rate compared to industry averages?
If you also have a retail store, do you have more returns online or in-store?
How are returns affecting your warehouse, inventory, and transportation costs?
Make the Return Process Simple and Convenient
How your brand manages returns could make or break your customer relationship. 92% of buyers will shop at your store again if the returns process is fast and straightforward.
For example, you can add a prepaid return label on packages to make the process less frustrating for the customer. You can also give customers a tracking number that lets them know when you receive the item.
Another way to make the returns process worry-free for the customer is to make your order policy straight to the point. Avoid complicated terms, disclose return fees, and set clear expectations between you and the customer.
There are tools you can use that simplify managing returns, which we’ll get into below.
Manage Your Returns With a Shipping Tool
Managing returns isn’t an easy task. Plus, you likely have other priorities in mind for your business, such as marketing your product or optimizing your website. It doesn’t hurt to get a bit of help along the way.
To save you time, various return management tools make the job easier for you. Some of the best tools we recommend on Shopify include:
AfterShip Returns Center: The platform uses automation to manage and process your refunds from one dashboard. Customers will be able to return their items online within minutes.
ReturnMagic: Acquired by Shopify in 2018, ReturnLogic makes it simple to create an RMA and print shipping labels. It includes over 50 carriers worldwide.
Returnly: With Returnly, customers can send back your products by generating their own return shipping labels. Some of its users include Everlane and Outdoor Voices.
Conclusion
Returns are part of shopping online. Making it easy will create a more positive customer experience and boost your retention of new customers. Managing them can be a headache, but setting clear policies and effective back-end processes will make them painless. With the right strategy, you can make returns just another selling point for your business!
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!
Introduction
Delivery is one of the most critical steps for customers trying to purchase your products. How are you handling it?
It’s what can determine whether a customer will buy from you again or not. A poor delivery not only makes you lose customers but gives a big hit to your brand’s reputation as well.
It’s also where you’ll need to assess your shipping costs. You want to ensure your item arrives at your customer’s doorstep without losing too much money on shipping.
So, to help you out, here are our top 11 tactics you can use to boost your shipping strategy and delight customers:
1. Offer Free Shipping Without Hurting Your Profit Margins
Free shipping is an effective way to boost sales. 93% of customers are likelier to buy if free shipping is available.
The issue with free shipping is that it isn’t exactly “free” — you’ll have to cover shipping costs, making you lose money. Shipping can also get expensive if you’re sending items overseas.
Here are the two main ways you can offer free shipping without breaking the bank:
● Increase the product price: Raising the price of the costs of your items will help you squeeze in cash to pay for shipping.
● Offer free shipping for minimum orders: For example, you can provide free shipping for orders above $20.
2. Make Your Order and Returns Policy Clear
Your store needs a concise order policy that sets clear expectations between you and your customers.
Online shoppers want access to all relevant information about shipping. They need to know your shipping cost, where you ship to, and when they can expect the item to arrive.
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?
Are you using Shopify? Learn more about setting up your order and returns policy on Shopify here.
3. Flat Rate Shipping
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 charge 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.
4. Table Rate Shipping
Table rate shipping, on the other hand, is the opposite of flat rates. It consists of determining shipping costs based on various criteria.
These factors include product size, weight, shipping destination, and value. Here’s an example of what it could be like if you charge shipping based on weight:
Product Weight
Shipping Price
1 — 5 LBS
$3
5 — 10 LBS
$6
10 — 15 LBS
$12
15 — 20 LBS
$24
5. Use Email Marketing During Delivery
Once the item gets shipped out, it’s an excellent time to engage customers via email.
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 fromTheDollar 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:
It is especially important to maintain communication with customers throughout the order and delivery process. Many customers will visit your website once to order a product but open your email confirmation to click on tracking several times.
6. Offer Same Day Delivery
Offering same-day delivery can make you stand out from other stores and win extra sales. 61% of customers are willing to pay a few extra bucks to get their products shipped the same day.
Now, why does same-day delivery work so well?
Because of modern technology, our attention span and patience are progressively reducing. We are used to getting things fast, and customers expect the same with their orders.
Same-day delivery is a great way to boost customer satisfaction and brand loyalty. Best Buy, for example, rolled out same-day delivery in 2015:
When offering same-day delivery, you need to measure how it’s impacting your sales. There are a ton of startups out there offering same-day delivery services. A simple Google Search will reveal some in your area.
7. Show Customers How Close They Are to Free Shipping
One way to encourage customers to buy more is to show how close they are to getting free shipping. By knowing how much they need to qualify, they’re more likely to add a couple of extra items to the cart.
A great app that helps you do this is Free Shipping Bar. 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.
8. Get Insurance for your 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 on items up to $100.
You can add insurance automatically through your carrier contracts (they include it in your cost), or you can offer it to your customers at checkout using a product like Route.
9. Give Customers Tracking Information
One way to improve the buyer experience is by giving customers tracking information on their orders. It’ll help you avoid repetitive questions like “where is my package?”.
With tracking information, you’ll reduce complaints and drive better customer satisfaction. To track packages efficiently, you can use Shopify apps such as Tracktor.
10. Create An Incredible Unboxing Experience
Your goal as an online store should always be to stand out from the crowd. One excellent way to do this is to make opening your packages memorable every time.
A memorable unboxing experience increases brand awareness and loyalty. Customers are much more likely to refer your product to their friends once they’ve received it. Making your brand stand out makes you much more likely to be talked about by your new brand-evangelists!
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:
Notice how they’re not afraid to showcase their personality on their packaging: “Nuts! Nuts! Nuts!”, “We’re all nuts!” etc. It’s a great way to spice up the delivery process.
11. Invest in Shipping Software
There are a lot of tasks that go into shipping tactics: fulfilling orders, managing returns, getting tracking information, etc. It can feel quite overwhelming at times, especially if you’re starting out.
That’s why it’s best to get shipping software that cuts the work in half. At EHub, we connect all of your eCommerce operations in one place. The platform comes with:
● The best discounts on shipping
● eCommerce integrations for all your channels
● Insurance for every delivery
● Order tracking
Make sure you’re getting the most out of your shipping software. With technology, you can simplify your packing and label printing processes to get packages out the door as fast and accurately as possible – with the desired carrier service at the best price.
Wrapping Things Up
Managing your delivery effectively is vital to retain customers and make them come back to your store. Now, it’s up to you to test one of these tactics and see what works best for your business! To learn more about how Essential Hub’s solutions can boost your store’s shipping strategy, contact us below and find out how we can turn shipping into one of your most significant assets.
UPS and FedEx love to advertise their low carrier charges, hoping to draw in business from e-commerce companies who are none the wiser about a range of additional surcharges and accessorial fees.
Your e-commerce business needs full transparency to minimize shipping expenses. That’s why we’ve compiled this list you need to know about:
For example, research shows that 23,223 of the 41,702 ZIP Codes in the US are being impacted by Delivery Area Surcharges. It equates to over 55% of the country, while 25% of the US population is affected.
This can translate to thousands of dollars in extra fees, which is why you’ll need to pay attention to the small print and not the seductive prices offered by the likes of UPS and FedEx as they aim to get your business in the door.
Accessorial fees are a significant part of the business model for most carriers, so the United States Postal Service (USPS) is often the most economical option if you send packages frequently.
Here are five dirty secrets about accessorial fees and why USPS could solve your eCommerce shipping needs.
1. UPS: A 4.9% Overall Increase in Price for 2020
2020 has been a challenging year for businesses, but there’s been no respite if e-commerce is your model for making money.
UPS announced an average rate increase of 4.9%, effective in December 2019.
FedEx has also recently increased its fees and went a step further by “implementing a temporary surcharge on all FedEx and TNT international parcel and freight shipments beginning April 6” in response to the COVID-19 crisis.
It’s worth remembering that there will always be discrepancies depending on the circumstances of your business, so you could end up paying much more than you’re used to.
They may cite margins and higher costs as reasons for increased fees each year, but there are also numerous surcharges to consider first.
2. Hiding Accessorial Fees
UPS and FedEx make a point of making accessorial fees challenging to understand, and they keep them hidden away in the small print.
Eating up the costs is an accepted part of doing business, but you don’t necessarily have to pay for a service that tacks on more charges than your average budget airline.
Most importantly, you’ll need to work out any additional costs as soon as possible, and they add up more quickly than you might expect.
3. Residential Delivery Surcharges
Residential delivery surcharges are often the most egregious example of accessorial fees.
Let’s say you need to ship a small package to a residential address, as many e-commerce businesses do daily, to multiple homes. As well as the advertised price, a $4.40 ‘residential delivery surcharge’ will be tacked on by FedEx, eating into profit margins that sit at roughly 40% for the best-run companies.
For eCommerce businesses, most packages will likely be sent to residential addresses, while B2B deliveries come with their own set of separate surcharges.
The USPS Flat Rate is an excellent option if you’d prefer to pay a simple set fee with no extra surcharges. Prices start at $7.50, and they have discounted rates for business customers.
4. The Cost of Handling Weight
Everything from package weight to fuel consumption is becoming more expensive for e-commerce businesses that rely on shipping services to get their products to customers.
The UPS Additional Handling – Weight charge is now applied from 50lb rather than 70lb and comes in at $24 per instance. It’ll start to add up quickly if you’re sending heavier items regularly and can eat into your profit margins if you’re not careful.
UPS has also introduced four additional new surcharges for 2020;
● C.O.D
● Signature Required
● Additional Handling
● Peak Additional Handling
Alternatively, the USPS Flat Rate will allow you to ship packages up to 70lb to any state at the same price, which is ideal for smaller, heavier items.
5. USPS – Cubic Pricing and Potential Savings
USPS Cubic Pricing is possibly the best kept secret of all if you’re hoping to lower shipping costs.
High-volume customers can access discounted rates, while it works by calculating the length, width, and height of your package. They offer five tiers depending on the overall cubic size, and it often works out to be cheaper than FedEx, UPS, or even USPS Priority Mail.
For example, a Tier 3 (8” x 6” x 8”) package shipped to Zone 6 would incur a delivery charge of $22.47 if you’re using Priority Mail Commercial Base rates. It drops to just $10.98 with USPS Cubic Pricing, working out as a saving of 51%.
In an ideal world, competition between UPS and FedEx would lead to lower prices and improved services. Instead, they have a stranglehold on much of the market, and they’re not necessarily the most economical choice when you factor in the multiple accessorial fees that are inevitably attached.
As mentioned, you won’t have to deal with residential delivery fees with the USPS, and their flat rates are easy to understand. A competitive shipping program should utilize the advantages of each carrier’s strengths and minimize their weaknesses. You should not be using a single carrier, even if you’re only shipping one product.
Ensure your software can handle multiple carriers to maximize your savings on every shipment you send out the door. The best part is you don’t have to do this alone. With a partner like Essential Hub, you get a competitive shipping program tailored to your needs. Find out how today!
