By putting an efficient and effective ecommerce shipping strategy, you can grow and expand your business, making it successful. 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.
It is important to assemble the right team in your organization to implement the ecomemrce solution effectively for a more successful ecommerce business. It is important to set your clear goals. Do you want to increase your profit margins? Are you planning to engage business worldwide? 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. The most important things to consider when it comes to ecommerce shipping are the product size and weight, 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%.
Based on studies, the top options for ecommerce shipping include free shipping, same-day delivery, free in-store pickup, and LTL frieght carriers. When it comes to the ecommerce shipping strategies available, most online stores and marketplaces choose from 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 instance, you can offer something life, $5 shipping regardless of order value. 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.