What is e-Commerce Shipping? Shipping Methods and Strategies

1) Summary

Merchants always drive the stores decked up to provide a seamless customer journey. But what next and equally essential? We always leave customer experience till they buy our products. On the contrary, shipping and fulfilling are where customers connect the brand in person, and the overall experience makes them return to the store again. E-commerce shipping is all about picking, packing, and fulfilling customer requirements. This article is about e-commerce shipping and vital points to set your shipping policies to convey the benefits.

2) What is e-commerce shipping?

With no stone untouched, e-commerce shipping is also a significant aspect of your digital business. Agreed, those who are not familiar with it find it complex. It may break or make your e-store thrive for success and give more returns. E-Commerce shipping is a process of understanding consumer behavior and crafting the shipping methods accordingly by thorough understanding. Yes! It’s a learning process to reach out to profitable retrievals.

From small home base shop owners driving their store and delivering the products manually to big giants, everyone is involved and innovates their own brand experience while shipping. E-commerce shipping gets evolved with time in terms of packaging and personalization. 

Let’s roll to the kind of shipping methods and the price breakups.

3) Basic Shipping Methods

There are various methods to set your shipping based on your requirements and products. Generally, carriers set the pricing according to height, Weight, and volumes. Selecting a shipping method that aids you good margin is a kind of tried and tested process. 

Here, you can determine which method you should apply based on the price breakups. You can find the basic price breakup to see what one should consider before setting up pricing and shipping. Listed are the costs and amount that merchants should assess.

• Cost of product
• Packaging
• Shipping costs
• Customs/Duties
• Credit card fee/transaction fees
• Profit margin

Based on each calculation, merchants should set the product pricing. 

Let’s head up and see what methods are available for shipping and how it affects consumers’ buying pattern.

3.1) Free Shipping

It is the most triggered promotional point to apply. 90% of the consumers say they shop more often when free shipping is available. Merchants can even set the base cart pricing rules for such shipping—these promotional and marketing tactics increase AOV. 

3.2) Flat Rate

Itself depicts the nature of this shipping. The proportional amount of shipping charges are applied per item or shipment. This method is used with Flat-rate packaging and appears at the checkout when enabled. When merchants have similar products to sell, this method sets equivalent margins. 

3.3) Table Rates

Such method applies with a combination with the distance from the origin to destination of delivery. Let’s say price versus destination, Weight versus destination, or items versus the destination. Having a B2B environment or extensive catalog with variety of products, one should use Table rates. Predefined table rates are set and imported to the store. Based on the request, quotes are given in a section of the shopping cart page—a thing to remember: one table rule at a time.

3.4) In-Store Delivery

As the name says, the In-store method allows customers to choose the source to pick up the products at checkouts. While enabling this method, merchants should have non-default stock and the source. Moreover, make sure to configure a distance priority algorithm.

3.5) Dimensional Weight

Yes, You get it right. Dimensional shipping calculates rates based on volumes and Weight. This method applies when your products are light in Weight but require a massive amount of space to set in a carrier. A slight variation in volume may affect the price in many dollars.

As we know the kinds of methods used for shipping, let’s glance at the known shipping carriers worldwide. 

4) Points worth remembering your shipping needs

Sharp rise in e-commerce due to covid and post-pandemic situation, Shiping become as vital as other touchpoints for B2B and B2C shop owners. Merchants find it challenging to surpass the shipping and return management, especially after festive seasons. According to Pitney Bowes Online Shopping Study: Consumer Dissatisfaction with Holiday Shopping Experience Doubles to 60%. Such frustration is due to delayed shipments, shipping charges, and inaccurate tracking. 

If merchants don’t strategize the shipping properly, it will make or break the entire business. Listed are some facts that allow you to outperform your shipping and fulfilling strategies that can be word of mouth too! It is not just delivering your products to consumers’ doorstep but sending the entire brand experience through packaging and personalization. 

Moving to some key points, you can strategize.

4.1) Be transparent with your policies

Remember, shipping influences the buying behavior, same as other offers and discounts. Display it properly. Mention your return policies and terms before actual purchase. Clearly shows the shipping charges while showcasing the pricing at checkout, or if you are providing free shipping, use it as a marketing tool and highlight it in a more focused area.

If merchants don’t show the pricing and shipping clearly, there are high cart abandonment rates. Make sure to display it in front to get the most attention. 

4.2) Packaging

Nowadays, timely delivery with accurate shipping methods and packaging is also essential. Retailers are keener on thinking How to introduce the product to their customers. This is the first time customers feel the brand and have the product in person. Get your creative team involved while defining the packaging that loudly conveys the brand values.

Hold, note the packaging material and its Weight while crafting the design as pricing is connected. Retailers must take a reasonable compromisassion while having a lasting impression on customers.

4.3) Express Shipping

With various shipping methods to get a look at, this shipping tactic is helpful for the customers who are willing to have the product reach early than expected. Irrespective of the kind of shipping, customers can pay some extra amount to expedite the delivery. 

One can display the delivery dates as standard delivery and express delivery or express shipping available on the product detail page. 

4.4) Live Rates

Yes, Live! This is not that actively used method while calculating shipping cost, but yes, customers can get to know the exact amount of what they are paying. This method displays the live rates from the carrier provided with the selected delivery option, and customers can choose one from the listed ones. 

Retailers can still cover the packaging and fulfillment charges by surplus the carrier rates that customers choose ultimately.

4.5) Expected Delivery Display

A small effort to display the expected delivery date on a standard delivery option is a valuable practice. It allows customers to be aware of the delivery, especially when choosing COD. The delivery date should be displayed prominently on the product detail and cart pages. 

This also aids n calculating the difference when choosing express shipping for early access of the products compared to standard options.

4.6) Notify your customers

E-commerce carrier providers allow customers to get the latest updates of their product transits by live tracking. Product labels are for tracing the delivery. Aiding with Google mapping, Carrier providers share the labels to print on each purchased product. 

Customers can get the notification via mails, messages on each transit phase. They can also check the live tracking of the products through their profiles.

4.7) The right team to fit in

Being retailers or merchants, we must be aware and plan the best strategies for the business. Yet, We cannot master all and manage everything. So, Hire a team that fits in the environment and get your store running smoothly. 

A team must answer the queries, support, and communicate through the entire journey with all the connected entities from consumers to third parties. 

Lastly, a few more trends are coming and emerging these days in this digital world. Machine learning and AI ease human efforts and get through the seamless and stellar user experience. 

5) Wrap up

Merchants involve themselves and the team for storefronts and ease of operations to aid the customers with a stellar shopping experience. However, shipping and order fulfillment is also a concern to take a look at. With trial and testing, the best shipping methods need to be set. It will boost the brand connection and make customers return to the stores.

Navigate commerce allows its clients to build a store that meets all the support, from drafting to choosing the best shipping carriers and methods. Drop us “hi” to see and create such strategies.