How to Build an Effective Ecommerce Shipping Strategy

In a hyper-connected world, convenience has become one of the ultimate tools to win conversions and customer loyalty. And what could be more convenient than overnight delivery?

Convenience and flexibility mean different things to different people, so it’s important to have a range of shipping options available. By putting the decision in your customer’s hands, you give them the power to choose what matters most to them and set them up to have their expectations met.

Taking the time to set up an effective eCommerce shipping strategy is one of the best steps you can take to grow your business. But before you get shipping, you’ll need to get clear on your goals.

When thinking about your shipping strategy, make sure you consider how you can:

  1. Drive conversions and reduce cart abandonment
  2. Increase your average order value
  3. Make your product available to a wider audience
  4. Reduce your costs
  5. Make operations easier and more efficient

 

Crucial considerations for your eCommerce shipping strategy

How big are your products? Whether you’re selling screws or shelves, there’s no one-size-fits-all shipping strategy. Knowing how to ship both big and small items will help you decide what shipping options you offer your customers.

Pro tip: bulky doesn’t have to be burdensome.

Next up, think about where your customers are in the world. Flat fees can be a great option for domestic shipping, but when it comes to sending overseas you’ll want to look at what the different carriers offer.

Pro tip: if you’re not shipping overseas, you could be missing out on the massive potential of the world’s fastest growing eCommerce markets.

 

 

Once you’ve thought about what and where you’re shipping, it’s time to nail down an effective eCommerce shipping strategy.

Here are the five main eCommerce shipping options:

 

1. Free shipping 

Thanks to eCommerce giants like ASOS and The Iconic, free shipping has fast become the norm. This hassle-free choice not only makes your customers happy, but it can also increase conversion rates.

But free shipping isn’t free for you, so you’ll need to keep an eye on your margins to make sure they’re covering the shipping costs. Consider only making free shipping available when the customer spends a minimum amount or excluding products that are outside your usual size parameters.

 

2. Flat rate shipping

Flat rate shipping, where the customer pays a set price regardless of how much they spend, is an effective option for avoiding the challenges of free shipping. As long as you set a reasonable price, this remains an attractive and straightforward selling point for customers.

 

3. Table rate shipping

Tabled shipping is a slightly more complex option, where the customer won’t know the associated costs until they go through the checkout process. Tabled shipping can be based on the customer’s location, the combined weight of their order, or their total spend. Many eCommerce businesses charge a tabled rate that gets lower as the customer spends more, with the aim of getting free shipping above a certain spend. In an age where transparency is key, nasty surprises often lead to abandoned carts and can ruin your online reputation.

 

4. Live carrier comparisons

Rather than setting a fixed price, you could shop around to get the best live carrier price for each job, but this can be time-consuming if you’re trying to do it on your own. With Shippit on your side, the process becomes a whole lot simpler, allowing you to unleash the power of cloud-based shipping comparisons in just minutes.

Multi-carrier, multi-warehouse, multi-store, multi-location, multi-user – it doesn’t matter what you want to ship or where you want it to go, Shippit makes sending your goods easier.

 

5. Mix and match

Consumers want convenience and choice, so offering a range of shipping options is often the best bet. While many consumers are drawn to free shipping, research shows that they’re also prepared to pay for an express option. Putting choice in the hands of the customer can be a great way for you to work towards cost-recovery.

Having the right shipping system can be a powerful differentiator for your brand. To avoid the manual process of courier comparison, plug into a shipping platform like Shippit. With an easy, fuss-free experience no matter which carrier you ship with, talk to us about ways we can turn shipping into your competitive advantage.  

 

 

Track it, brand it, Shippit
Reduce inbound queries and complaints by up to 90% with Shippit. See how!