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. It would require proper coordination of multiple teams within the organization, from your marketing team up to your fulfillment team. 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. Are you planning on increasing your profit margins? Do you want to penetrate the international market? The different ecommerce shipping strategies and their short-term and long-term goals may evolve in increasing conversions, increasing the average order value, expanding market or target audience, decreasing costs, and improving operational efficiency. The most important things to consider when it comes to ecommerce shipping are the product size and weight, 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. It is possible to do this by classifying your products into groups, focusing on obtaining the products dimensions and weights for the largest or the heaviest 20% and lightest or smallest 20%.
According to experts, the top options available for shipping suited for ecommerce businesses include free in-store pickup, LTL freight carriers, free shipping, and same-day delivery. The top ecommerce shipping strategies include free shipping, flat rate and table rate shipping, carrier’s live rates, and alternative and mixed strategies. Free shipping should only be considered if you’re making more sales or enough sales to cover all shipping costs.
Use flat rate or table rate shipping to avoid some of the known challenges of free shipping. For example, you can offer $10 shipping rate regardless of the amount 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. If you like to offer the best possible rates, you can go for the live rates offered by UPS, USPS, FedEx, or DHL. The most popularly used shipping solution is mixed and alternative shipping strategies.