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. While many ecommerce business started with simple approaches such as providing free shipping with UPS or USPS, the most successful entrepreneurs use effective strategies for differentiating themselves from their competitors and increasing their profit margins. It would require proper coordination of multiple teams within the organization, from your marketing team up to your fulfillment team. Establishing an efficient and effective shipping strategy for your ecommerce business ensures that you are on the right path, but you have to make sure that everybody knows their specific roles.
Assembling the right team in your company is important to ensure that every department does their job in making the shipping strategy work for your ecomerce 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 product weight and size, shipping destinations, and shipping options are the most important factors you have to consider when it comes to choosing the right ecommerce shipping solution for your business. It is best to offer easy-to-understand shipping promotions such as free shipping over $100, or $5 shipping per order. In order to make this happen, you have to classify your products into groups, concentrating on getting the dimensions and weights of your products for lightest or smallest 20% and the largest or the heaviest 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 instance, you can offer something life, $5 shipping regardless of order value. Entice your customer by offering promotions like $10 for orders up to $100, or free for orders over $200. Go for the best shipping rates to offer to your customers through the most trusted and reputable carriers such as UPS, USPS, FedEx, or DHL. The most popular type of ecommerce shipping solution used today are mixed and alternative shipping strategies.