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.
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.
Your shipping bill consists of vital information about your package, from details about the recipient to how much you can expect to pay for a shipment. To avoid any nasty surprises or accidentally overpaying for shipping, you want to make sure to read your invoices carefully.
In this post, we’ll look at three leading carriers (FedEx, UPS, and DHL) and the structure that each of their shipping bills follows.
Reading Your FedEx Bill
Here is the format that each shipping bill from FedEx follows:
1. Contact / Bank Information
The first thing you’ll see on your shipping invoice is your contact and bank information. Here are the different things that it will consist of:
Electronic Funds Transfer (EFT): Your EFT will include your account name, bank, IBAN, and BIC.
Credit cards: FedEx makes it possible to choose which major credit card you want to use to pay your shipping bill.
Direct debit.
2. Invoice Type
There are two invoice types when it comes to FedEx shipping bills. These include:
Freight invoice: This consists of the transportation charges incurred per Air Waybill.
Duty tax invoice: It details all the clearance charges imposed in the destination region or country.
3. Shipping Information
This part of the invoice covers all of your package’s shipping information, such as:
Shipping number information
Ship date
Reference
Taxable/non-taxable / Total charges
4. Shipper Details
Next, your invoice will include all of the information about the shipper. These details include:
Company name
Postal code
City
Etc.
5. Charges
Here, you’ll see a breakdown of charges incurred at the Air Waybill level.
6. Proof of Delivery
This part of the shipping invoice confirms that your recipient received the order. The bill will show you the signature, date, and time of your shipment to show proof.
7. Overall Summary of All Charges & Total Amount Due
As you reach the end of the shipping bill, you’ll see a summary of all charges, such as taxes, discounts, and more factors that could affect the price.
8. Payment Remittance Address
Finally, the invoice ends with the remittance address to the UPS office.
To avoid any nasty surprises or accidentally overpaying for shipping, you want to make sure to read your invoices carefully
Reading Your UPS Bill
UPS is another popular option to get your shipping and packaging handled. Here’s how shipping bills from UPS are formatted:
1. Account Status Summary
On each UPS invoice, you get a summary of your account, which includes your previous invoices with the provider.
2. Payment Terms
The bill will have a section that outlines UPS’s payment terms and what they entail.
3. Outbound Shipping Charges
In this section of the bill, you’ll get an overview of any outbound shipments during the invoicing period and a tracking number for your package. It will also include information on your shipping zone and product weight.
4. Adjustments and Other Charges
There may be other additional costs that impact the total cost of your bill. These can include late payment charges, same-day pickup, and other factors.
Your package’s dimensions can also add extra charges. UPS determines how much you can expect to pay by taking into account the length, width, and height of your package.
5. Taxes
The invoice will cover which taxes you’ll have to pay for each item you ship.
6. Return Portion
If you’re paying by cheque, this section includes the amount due and the return form to fill out.
Reading your DHL Bill
DHL is one of the global leaders in the logistics industry. Here’s how to read the format of each of their shipping bills:
1. Type of Invoice
DHL has different forms for shipping bills, such as:
Inbound invoice
Outbound invoice
Credit adjustment
Debit adjustment
Your shipping bill starts by identifying which one corresponds to your package.
2. Customer’s Billing Information
Next, your DHL bill will cover all of your customer’s billing information, which includes:
Invoice number
Account number
Invoice date
Payment due date
3. Shipment and Package Information
This part of the bill covers the shipment origin details of the package and the destination receiver. It includes the total number of pieces associated with each waybill and the total weight of the shipment.
4. Service Description and Extra Charges
It’s possible that you chose a particular form of service and have some extra charges that impact the price of your shipping bill. They will all be covered in this section.
5. Total Due
By taking everything above into account, the invoice shows you how much you can expect to pay in total.
6. Billing and Payment Information
The invoice ends with all the bill and payment information (including the customer’s billing address), so you can proceed to pay the invoice in full.
Conclusion
Make sure you take the time to read your shipping bill carefully. While shipping invoices may defer from carrier to carrier, they all provide you with information on the recipient and consider extra charges that could impact the cost.
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.
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!
It can be a headache figuring out your exact shipping rates. There are many factors involved, and if you’re relying on third-party software or a marketplace, then you can be reliant on the rates they give you.
One mistake to avoid is overcharging your customers for shipping. If shipping rates are too high, customers will abandon their carts.
At the same time, you don’t want your shipping rates to be too low. Scaling a business while eating high shipping costs is a recipe for disaster.
So what’s the solution? As a business owner, you likely have other priorities than calculating your shipping costs. It’s the reason why you need to have real-time carrier shipping that helps do the job for you.
What is Real-Time Carrier Shipping?
Real-time carrier shipping consists of software that automatically calculates the shipping rates for buyers during checkout. It considers factors such as product weight and shipping destination to charge the proper rates.
Here are some of the benefits that come with adding real-time carrier shipping to your store:
Avoid Calculating Shipping Rates Yourself
Real-time carrier shipping helps take the guesswork out of calculating shipping costs. Just as buyers are about to checkout, they instantly get access to rates without you manually calculating it yourself.
As a result, you’ll gain extra time to focus on what truly matters the most — running your business. You gain peace of mind knowing you’re charging the correct shipping rates each time.
Charge Customers the Right Amount for Shipping
There are many things to take into account when charging your shipping rates. If you’re not setting up your rates correctly, you risk losing potential sales and revenue over shipping costs.
Real-time carrier shipping ensures you charge the correct amount each time, even if you’re shipping your items overseas.
Provide Transparency to Customers
Any friction during the buying process will cause customers to drop their shopping carts, so you want to ensure they don’t get nasty surprises.
Real-time shipping gives customers an idea of how much exactly they’ll be paying for shipping. As a result, they’ll be more likely to follow through with their purchase.
It’s important to note on the product page that shipping charges will be calculated at checkout—that way, they know exactly what to expect.
Your Carrier Options on Shopify
Shopify has three leading shipping carriers: USPS, UPS, and FedEx. At checkout, customers will get to see the negotiated rates based on the carrier that you selected.
The carrier-calculated shipping feature typically comes with the Shopify Advanced and Shopify Plus Plans. However, you can add it for $20/month, no matter which plan you’re currently on.
Let’s dive into the requirements for each carrier and how you can connect them on Shopify:
USPS
To start with USPS, you must register for a USPS User ID by signing up on their web tools registration form. The ID will give you access to package tracking and shipping rates.
From there, here’s how you can connect your shipping rates to USPS from the Shopify admin:
Go to Settings > Shipping and delivery
Go to the accounts and integration section and click on Manage Integrations.
Add USPS as the shipping carrier you want to connect
Enter your USPS User ID in the Connect USPS dialog
At this point, you can add USPS rates to your current shipping zones, even those that don’t currently use USPS rates.
UPS
To calculate your shipping rates with UPS, you must create an account on their official website. Setting up your account is going to be free of charge.
The next step is to find your custom shipping number to connect with UPS. If your UPS account doesn’t have a shipping number yet, you will have to register for one as well.
Here are the different steps to follow when connecting your UPS account on Shopify:
Go to Settings > Shipping and delivery
Go to the accounts and integration section and click on Manage Integrations.
Add UPS as a shipping carrier
Enter your UPS credentials in the Connect UPS dialog
Click Submit and continue
Add your account and invoice details on the Verify your UPS® account dialog.
Click submit
FedEx
FedEx is a popular carrier option for many stores. To set it up on Shopify, you must first create a FedEx account on their official website. The different types of shipping rates you can offer customers with FedEx include:
FedEx 2 Day
FedEx Express Saver
FedEx First Overnight
FedEx Ground
FedEx Priority Overnight
Here’s how to connect to FedEx as a shipping carrier from the Shopify admin:
Go to Settings > Shipping and delivery
Go to the accounts and integration section and click on Manage Integrations.
Add FedEx as a carrier.
Enter your FedEx credentials in the Connect FedEx dialog
Select whether you want to add FedEx rates to your existing shipping zones
Click Save
As a business owner, you likely have other priorities than calculating your shipping costs. It’s the reason why you need to have real-time carrier shipping that helps do the job for you.
Learn How to Get the Best Shipping Rates Today
Connecting a carrier to your Shopify store is one of the best ways to estimate shipping rates. By charging customers the exact price, you won’t have to worry about overcharging them or losing money.
When selecting a carrier, you should understand some of the benefits and negatives associated with each carrier. Not everyone can offer free shipping, at least not immediately, but you should review these tips to see how to do it.
Getting reasonable rates involves negotiating with each carrier to get the best rates. Another method is using third-party software that has previously negotiated rates plugged into their software.
Essential Hub works with all our customers to ensure they’re getting the best rates and are taking advantage of a multi-carrier shipping approach. Find out how we can get you up and shipping with better rates immediately!
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.
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.
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!