4 Quick & Actionable Shipping Solutions for eCommerce Operations

Posted by Benjamin Meskin on Jun 25, 2018 11:56:00 AM
Benjamin Meskin


ecommerce shipping solutions

Whether you sell small, fragile novelties or bulky household items through your website, it's normal to be concerned that your shipping and insurance policies are costing too much or are simply not competitive.



In a rapidly evolving ecommerce environment, neglecting to keep up with newest shipping technologies and strategies can present many issues. Fortunately, there are 4 actionable solutions you can implement to lower your shipping costs while attracting more customers.



1. Optimize Your Shipping Strategy to Fit Customer (& Your Own) Needs



Some organizations give little thought to shipping strategy. For example, they choose one option included in their e-commerce platform and forget about it. This results in a lot of lost business and inefficiencies. The ecommerce shipping solutions you choose should be tailored to the type of customers you market to and your own needs.



One popular option that some of the biggest online retailers use is free shipping on domestic orders with a minimum value. Buyers are encouraged to purchase more, and the extra revenue earned from sales goes towards shipping costs. Free shipping also decreases the chance of shopping cart abandonment when a potential buyer gets ready to close out their cart. Another strategy companies use is a flat rate system. No matter how much a customer purchases in your store, they pay the same shipping. This encourages them to get the most value for their money, and again, part of the increased revenue can be used to pay the extra shipping fees. You can also be completely upfront with your customers and just charge them what you get charged. You can keep prices low for both your company and customers by using shipping rate calculators available through UPS, FedEx, and the USPS.




2. Review the Cost of Your Packaging



Tape, boxes, packing foam, and labels aren't very expensive on a piece-by-piece basis, but if you're shipping lots of orders, pennies turn into dollars and beyond. It's important to carefully review the cost effectiveness of your packaging from time to time to see if they're still priced correctly.



Traditional foam peanuts and several other modern wrapping alternatives work great to help cut costs depending on the item you are shipping. Buying in bulk can seem like a significant upfront expense, but will reduce packaging costs over time with economies of scale, where applicable.



In addition, review your packaging procedures to see if the amount of packaging material being used is appropriate for the products being shipped and there is no extraneous weight.



3. Using 3rd Party Shipping Insurance 



The shipping insurance provided by most carriers is an afterthought, meaning claims are processed slowly and the prices are usually too high.


Third-party shipping insurance providers, however, build their businesses around providing their customers with huge savings and optimal coverage. They are positioned to offer flexible plans that offer quick reimbursements. Choosing the right third-party parcel insurance plan doesn't have to be a challenge. You need to find a company that offers:

• Competitive insurance rates on all shipping methods
• Seamless integration with your existing shipping system
• Simple and responsive claim support
• Insights into improving efficiency and risk management strategies



4. Leveraging Automated Tech



If you're already utilizing technology in nearly every step of the shipping process, you're perfectly positioned to take advantage of more automation. For example, Cabrella's multi carrier shipping software can be integrated with your existing systems through a seamless API integration. The software includes automated risk assessment processes, automated claim managing, and real-time notifications.



Combining both automated shipping and insurance technology will benefit your company in terms of productivity, accuracy, efficiency, and customer satisfaction while reducing shipping costs.



Implementing shipping solutions for ecommerce operations that match your company's vision and commitment to customer service will give you a strong competitive edge. It's important to make your customers feel like they are getting the most for the money they pay on shipping.  There may also be other customized ecommerce shipping solutions that would uniquely benefit your specific type of product or industry. Think creatively and always look for new opportunities and technologies on the horizon.



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