Shipping/Fulfillment Ideas and Strategies for Someone Just Starting E-commerce
If you’re about to start your e-commerce business, you’re probably looking for ways to save money and streamline your shipping processes. There isn’t a single perfect way to do this.
You can do many things, and each one will make it easier for your customers to get their products on time with the best possible service. In this article, we’ll go over some of the most effective strategies for saving money on shipping and fulfillment while still providing an excellent customer experience.
What is the e-commerce shipping process?
The e-commerce shipping process involves transferring your products from your warehouse to your customer’s doorstep. The importance of this process cannot be understated, as it directly affects your ability to deliver a great customer experience (CX) and can significantly affect whether you’ll earn repeat business.
Besides fulfilling orders on time, another major part of the fulfillment process involves managing your supply chain logistics—such as distribution centers, carriers, and freight forwarders—to ensure that you have enough inventory to meet demand.
Ecommerce Fulfillment Strategies for Beginners
If you’re new to ecommerce, you might wonder how to ship products or fulfill orders. This section will discuss some strategies for fulfilling orders and shipping goods.
1. Choose the Right Fulfillment Method
As you run your e-commerce store, you realize that there are many options for fulfillment. Each option has its own advantages and disadvantages. It is essential to choose the right fulfillment method for your business.
One of the most common choices is self-fulfillment, which means keeping all inventory in stock at your place of business. This method can be pretty affordable but has its drawbacks.
3PL (third-party logistics) companies may be more expensive than self-fulfillment but provide greater efficiency by allowing them to merge orders from multiple sellers.
Dropshipping is another option where a drop shipper receives an order from their customers directly from a manufacturer or wholesaler and then ships those items out, stocking no inventory themselves, which saves them money.
2. Focus on Locations
Once you’ve decided who your target customer is and how to reach them, it’s time to think about where this should occur. Where are the people that will buy from you? What are their needs?
You’ll want to consider shipping internationally if there are enough customers worldwide who would be interested in purchasing from you. Shipping internationally can be costly, so make sure it makes sense for your business before going through with it.
3. Integrate Software and Applications
Integrate your shipping software with an application that helps manage the rest of your e-commerce business. For example, you can integrate with a shipping order management system that offers multiple modules, such as order tracking, inventory management, and more.
4. Receive and Process Orders
If you’re selling online, knowing what to do with your first order is challenging. Once you receive an order, it’s essential to process it quickly so that customers know when they can expect their products.
This means that you should respond to emails promptly and update your customer’s order status in your store as soon as possible.
5. Package and Label Them
The last step of the fulfillment process is packaging and labeling each product. This is the most crucial part of your e-commerce business because it’s what will make your customers want to buy from you again. Packaging and labeling can be tricky, but some tools can help you do it right and save time.
Things to Consider for Successful Ecommerce Shipping
Ecommerce shipping is a part of the business that many new entrepreneurs overlook. Finding the time to develop your own shipping strategy and process is challenging. Still, it is essential to the success of your business.
Here are some tips to keep in mind when developing an e-commerce shipping strategy:
1. Product Size and Weight
The size and weight of your product are essential considerations when choosing a shipping carrier and shipping method. This will affect the cost of shipping, as well as the speed at which you can deliver your item.
When deciding on a product’s dimensions, consider its size relative to other products in its category.
2. Shipping Destinations
With shipping destinations and options, the key is specificity. One of the most important steps you can take when starting an e-commerce business is determining where your customers are and what shipping options are available in each region.
3. Different Shipping Options
Different shipping options can be tricky, especially when starting out. Do you ship free? Do you offer a flat-rate shipping option? What about offering 2-day and overnight delivery? Here are the options:
- 2-day shipping: 2-day shipping is a service that allows customers to receive their orders in two days. It’s an increasingly popular choice for consumers, who are all too familiar with waiting weeks for a product, only to find it’s out of stock and back-ordered.
- 1-day delivery: 1-day delivery is the service that allows customers to receive their products in one day. This is an excellent way for e-commerce businesses to attract new customers and increase sales. If you are considering offering this option, you should know that it can be costly. However, if you have the right infrastructure and logistics, it can also be a great way to differentiate yourself from your competitors.
- Overnight shipping: Overnight shipping is a service that enables an e-commerce business to ship out its products within a day or two. This is useful for businesses that need to deliver products quickly to their customers. One of the most essential benefits of overnight shipping is that it saves time and money for the business owner. With this service, you can get your product to your customers faster, making them more likely to come back for more in the future.
- Freight shipping: Freight shipping is the commercial movement of goods, usually one pallet or container at a time. Freight shipping allows you to ship your products in bulk and to multiple locations. This helps you save time and money when shipping products to customers worldwide.
- Shipping carriers: Shipping carriers are companies that provide transportation services and various other related services, such as package tracking, insurance, and logistics. They offer a complete service for businesses to deliver their products to the end consumer. These services have become an integral part of e-commerce businesses’ growth strategies because they reduce the cost per unit by reducing shipping costs and improving customer satisfaction.
4. Shipping Rates
Shipping rates are based on weight, dimensions, and location. The most common method is to calculate shipping costs based on the cost of an item, its weight, and its dimensions.
Here are some options for shipping rates:
- Free shipping: Free shipping can be a powerful tool. It’s no secret that many shoppers look for deals on shipping before buying. It may seem obvious, but offering free shipping is not always the best option. If you have limited funds available and are trying to run an e-commerce store efficiently, then offering free shipping may not make sense unless you have the right strategy in place to support it.
- Flat-rate shipping: Flat-rate shipping is a great way to save your customers’ money and your time. By charging them a flat rate for shipping, you don’t have to worry about calculating the weight of their package and adding that to the price of their product.
- Real-time carrier rates: The most accurate way to calculate shipping costs is to use the real-time carrier rates feature. Real-time carrier rates are based on actual costs. The carriers update the rates in real time and can even be accessed through your account dashboard.
5. Order tracking
This will come as no surprise, but please track every package. Not only is it a legal requirement for e-commerce, but it also helps with customer satisfaction and returns. When a customer orders something and doesn’t get it, they can check their tracking to see where it is or if there are any delivery issues. Also, remember that if someone returns something for whatever reason, this system will help ensure that everyone gets their money back quickly.
6. International Shipping
The first thing to consider is that there are different countries with various standards and regulations on shipping. If you’re just starting out and don’t have the resources to hire a team dedicated solely to international shipping, consider hiring a third party specializing in international fulfillment services.
They’ll have all the knowledge necessary to ship your products abroad safely and efficiently, so you don’t have to worry about anything.
7. Product Return Policy
You must have a return policy before you even begin selling your product. You should include this information on your website, where customers can easily access it, and make sure you’re prepared for returns.
Here are some questions to consider:
- What is the return policy?
- Do you accept returns, or do they need to be authorized first?
- If so, how long does authorization take?
- Do they get their money back or not?
- Who pays for shipping when something gets returned?