One of the most important steps you should take to make your ecommerce grow and become successful is having an effective and efficient shipping strategy. The most successful business owners utilize strategic shipping options so they can differentiate themselves from their competitors and increase their profit margins. From your marketing team all the way to your fulfillment team, proper coordination is required by multiple teams within your company or organization. By creating an efficient and effective shipping strategy for your ecommerce business, you can ensure a positive trend in your business, but ensure that everyone knows their role in the process.
It is important to assemble the right team in your organization to implement the ecomemrce solution effectively for a more successful ecommerce business. It is important to set your clear goals. Do you want to increase your profit margins? Are you planning to engage business worldwide? The short-term and long-term goals of an ecommerce shipping strategy aim to increase conversions, average order values, expand the target audience, decrease costs, and improve the overall operational efficiency. When it comes to choosing the right ecommerce shipping solution for your business, it is important to consider the product weight and size, shipping destinations, and shipping options. When placing shipping promotions, they should be clear and easy-to-understand such as $5 shipping per item, $10 shipping per order, or free shipping over $100. Breaking your products into groups and concentrating on getting their dimensions and weights for the largest or the heaviest 20% and lightest or smallest 20%.
Based on studies, the top options for ecommerce shipping include free shipping, same-day delivery, free in-store pickup, and LTL frieght carriers. As you might have noticed, ecommerce business utilize free shipping, flat rate and table rate shipping, carrier’s live rates, or alternative and mixed strategies, and knowing the best strategy for you is crucial to the success of your business. Free shipping is a simple and effective way to get the buy-in of customers so they want to buy more just to avail your shipping promotion, but this option should only be considered if you are making enough sales to cover all the shipping costs, and yet still making profits.
You might as well offer flat rate or table rate shipping to prevent facing the challenges of free shipping options. For instance, you can offer a good promotion for shipping such as $10 regardless of the value of the order. You may also charge based on the subtotal of the order like $10 for orders up to $100, or free for orders over $300. The best way to go to offer the best possible shipping rate is through UPS, USPS, FedEx, or DHL. Mixed and alternative shipping strategies are the most popular type of ecommerce shipping solution used today.