Shipping strategies are extremal vital in E-commerce. Online sales and purchases is one of the fastest-growing markets in the world, with a market size of $14.30 trillion, which is set to hit $58.74 trillion by 2028. With the rapid expansion, the competition is also increasing. Online stores compete on several key factors, such as price and shipping. But for them, optimizing their shipping process is the best way to gain a competitive edge.
Shipping Strategies To Optimize The Ecommerce Process
E-commerce inventory consists of processing /receiving, labeling, shipping, and managing returns. E-commerce businesses can create a successful shipping strategy by using the following strategies;
1. Offer Free Shipping
The free shipping option is a bold player in boosting sales. However, if you are offering free shipping, it means that the delivery cost is on you. So, it is essential to evaluate your revenue and profit margins. Moreover, you must assess your competitors selling prices to evaluate their free shipping strategy. You can offer free shipping to orders above $50 or more with good revenue. However, by following the strategy below, you can offer free shipping on all your orders:
Source the initial price at a low cost and offer a decent discount on bulk orders. Once you have a low shipping cost, include the sourcing, marketing, and delivery cost in your product price. The overall price will cover the shipping cost, and you can offer free shipping. This will not only keep you from paying for the additional benefits but also help you attract more customers.
2. Charge Real-Time Carrier Shipping Rates
Charging real-time shipping rates is another effective way to acquire more customers or increase customer loyalty. Customers have to pay the exact shipping price instead of brand-set charges. For example, customers can choose their preferred shipping carrier and rates. Some customers may need fast shipping and could be willing to pay extra.
However, one thing which you must ensure is to have a real-time shipping calculator that corresponds to the latest shipping costs.
3. Offer Free Pick-Up For Local Delivery
The “Click and Collect” strategy works well for many online stores. This strategy allows customers to use online shopping for same-day delivery and quick pick-up from different locations.
In addition, local delivery will allow you to save on the carrier cost by delivering the goods directly to the customer at their doorsteps.
4. Trust Reputable Services
There are some reputable courier companies that you can trust in terms of reliability, speed, and prices. Following are the popular courier services you can integrate with your digital store;
These courier service providers can play a significant role in gaining customers’ trust and increasing your conversion rates.
Shipping rates significantly impact customer preferences when it comes to shopping online. Optimize your shipping method and model it to perfection to increase customer loyalty and profit margins.