You can make your ecommerce business competitive and successful by putting in place effective ecommerce shipping strategies. You might be offering free shipping via UPS or USPS, but if you want to increase your profit margins, create an edge, and differentiate yourself from your competitors, you have to use a strategic shipping option. It is important to have an effective collaboration with all your teams, from marketing to fulfillment. Establish an effective and efficient shipping strategy for your online store, ensuring that everybody who is involved in it knows the guidelines and their role in the process.
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? When it comes to the goals of an ecommerce shipping strategy, it should aim in increasing the average order values, conversions, target audience, improving operational efficiency, and decreasing costs. 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. It is best to offer easy-to-understand shipping promotions such as free shipping over $100, or $5 shipping per order. 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%.
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 is an effective way to get the buy-in of consumers buying more to avail your shipping promotion, but this option should only be considered if you are making more sales or enough sales to cover all shipping costs.
If you want to prevent the challenges of free shipping, it is best to offer flat rate or table rate 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. Mixed and alternative shipping strategies are the most popular type of ecommerce shipping solution used today.