Supply chain optimization Archives | Lateshipment.com

How to Overcome E-commerce Shipping & Delivery Challenges

Sashank Ravindranath — Fri, 23 Feb 2024 07:59:21 +0000

The shipping and delivery phase of an e-commerce order is filled with opportunities or ‘touchpoints’ that you can capitalize on to convert one-time shoppers into repeat customers and spread positive word of mouth to influence their close ones, all while hoping that you don’t encounter any challenge that can infuriate your customers and get your costs ridiculously high.

Some of these challenges might be common and inevitable but doesn’t mean you have to step back and watch. Here’s taking a deeper look at them for better understanding and how you can overcome them.

Frequent Shipping and Delivery Challenges and How You Can Overcome Them

High Shipping Costs

Skyrocketing shipping costs are the most frequent challenge for both e-commerce merchants and customers. A not-so-fun fact is that shipping is arguably one of the biggest cost-centers for any e-commerce business.

The problem with shipping costs lies in major shipping carriers transferring the ownership of these costs to the shippers (e-commerce businesses, 3PLs, etc), and these costs are ultimately paid by the end customers, who are prone to be repulsed by high costs and would prefer the brand that offers the least shipping costs than one that offers faster deliveries.

Solution

Every carrier has their own set of pros and cons. Compare their prices across different locations, etc, and pick a carrier who fits your business’s needs
Offer ‘free shipping’ as a marketing strategy (based on distance, cart value, no.of items, etc). Don’t worry for bearing the shipping cost, you can balance the scales by spurring shoppers to spend more with your brand

Use proper packaging techniques to reduce DIM weight costs
Invest in flat rate shipping to optimize costs if your business frequently ships packages to select locations
Analyze where your shoppers are frequent and set up a warehouse/delivery hub in that zone to reduce shipping distances as well as improve delivery speed
Encourage options such as BOPIS (Buy Online Pickup In Store) for shoppers at close distances to prevent shipping in the first place

Shipping costs are not just the primary challenge in the post-purchase front for their frequency in occurrence but almost all other challenges that we’re set to discuss below have a definite impact on shipping costs directly or indirectly. So, not just these solutions but there are multiple ways to cut down shipping and delivery costs and ensure post-purchase profitability.

Late Delivery Incidents

On average, more than 10% of all shipments get delayed, with this number increasing multifold during peak shipping season times like the holidays.

Unfortunately, with high customer expectations and CX playing the role of a competitive differentiator, you cannot afford delays that are common, inevitable, and have the potential to cause bad delivery experiences.

Prevention is better than cure might be cliched but it holds true to this context. Delays may be unavoidable, but their impact on your business can definitely be prevented. Here’s how.

Solution

Proactively reach out to customers whenever their package is about to be delivered late via customized and empathetic messages. Remember, it is YOU, who should reach out to customers with an ‘order delayed’ notification and not the other way around.
If the delay looks like it can be fixed, this is your chance to course correct and ensure that the delivery is made on time or when the customer requests. If not, you can check with the customer on how they would like the issue to be resolved (refund, replacement, coupon on their next purchase, etc).

When it comes to reducing your late delivery spend, shipping carriers have a money-back guarantee policy, where shippers can claim refunds when packages are delivered late because of carrier error. However, the process of filing these claims manually is tiresome and time-consuming. To make things easier, you can use a parcel audit solution that automatically audits your invoices and files refund claims on your behalf. P.S. Just ensure that you haven’t signed a money-back guarantee waiver with the carrier.

By following these actions, even if the issue goes unresolved, your customers will still appreciate your efforts to provide them with a great experience and be satisfied enough to shop with you for the next time.

Lost and Damaged Packages

Following delays, comes another inevitable duo that takes up the top spots for the most common delivery issues — lost and damaged packages.

11-15% of all packages get lost or damaged in the U.S. in a year. Of course, this includes packages that get stolen or the ones that get damaged after being left unattended on the porch. But, there is no doubt like delays, packages are bound to get mishandled or misrouted by carrier representatives, leading the orders to get marked as ‘damaged’ or ‘lost’ in transit.

While lost and damaged packages are hurtful on their own, they can incur more damage when these packages have higher emotional value (gifts). Customers who are faced with lost and damaged packages don’t hesitate to share their grievances on social media/ word of mouth and tarnish your brand’s reputation, thereby preventing others from shopping with you.

Solution

Common action for all delivery incidents – proactively step in and notify the customer about their package getting lost or damaged, and get their requirements on the next course of action.
Apart from delays, refunds can be claimed for 50+ carrier errors like lost and damaged packages
Not just the shipping costs, but by insuring your packages (via a shipping carrier or a third-party), you can recover the entire product cost in case of lost and damaged packages

Dealing with porch pirates or miscreants who damage packages is a whole different challenge that requires you to come up with specific measures to keep such issues at bay.

Returns Management Issues

As much as e-commerce merchants don’t like to hear it, the harsh truth is that returns are inevitable. All customers at some point want to return their product and at times, the reason would have nothing to do with you.

More than half of e-commerce returns that merchants face are size and fit-related. However, not the number of returns but the way businesses manage them poses a challenge. For instance, customers returning their product are already in a not-so-positive mood, having to return something that they’ve waited long enough to collect.

So, why make the experience even more frustrating for them? Instead, by making the returns process easy and convenient, you can ensure positive experiences, reduce costs and prevent other ways in which returns are a logistical burden.

Solution

A returns policy that is clear and easy to understand with longer return windows and lenient return conditions (but not too much to encourage fraudulent returns)
A returns portal for the customers to easily initiate returns
Return status notifications and tracking at all times to keep them engaged as well as reduce the burden for your support team
A returns management solution that allows you to set return rules and resolve returns faster
Track returns consistently to gain intel into your returns process – why are customers returning their purchases, what items are they frequently returning, how do I cut down unwanted returns/ reduce return-related costs, etc.

Remember, returns only become complicated when they are not controlled as most businesses leave out returns in conversations about shipping and delivery. However, returns are a necessary evil that helps you improve post-purchase CX. So, start optimizing your returns experiences and see the benefits come in for yourself.

Pre-Parcel Jitters

Even when things are going all great and there’s absolutely no issue with your packages during transit, there is still one challenge that you’re set to face in the modern e-commerce era — customers being left in the dark regarding their orders.

On average, 1-in-5 parcels shipped face delivery issues. So, it is understandable that your customers are worried about their parcels facing the same fate, not to forget the high anticipation that comes naturally with each order.

If your customers are unable to determine their parcel status or track their orders, they are prone to bombarding your support reps with WISMO inquiries that can consume all of their time.

WISMO inquiries also take up 50% of customer inquiries.

Send proactive shipping notifications as the order successfully crosses each delivery cycle (shipped, in transit, out for delivery, etc). Make sure these notifications are sent across channels, wherever your customers are active (SMS, Email, WhatsApp)
Enable your customers to track their own orders via a widget that is embedded in your emails and website or sent as a link via SMS and chat
Instead of taking your customers to the carrier’s tracking page that is dull and boring, you can create your own branded tracking page, filled with branded elements and marketing assets to encourage cross-selling and increase revenue in the post-purchase phase

Keeping your customers in the loop of their orders can help you cut down WISMO (Where Is My Order) inquiries by up to 72% and allow your support reps to focus on other important tasks at hand.

Other Frequent Challenges

While we’ve mainly kept our focus on shipping and delivery issues that happen out of your control, how they can pose a challenge to you, and most importantly what you can do to prevent them; there are quite a few challenges that happen within your control and may escape your concern as they are less frequent or trivial. But let’s not take risks — here are some more challenges that your business might face in the post-purchase phase.

The problem of international shipping – Getting your products across borders involves overcoming a whole bunch of challenges such as exchange rates, customs, duties, etc. In such cases, you can familiarize yourself with the documentation, make use of an international carrier, etc to supercharge your cross-border shipping game!
Supply chain disruptions – Remember the recent crisis that happened as a result of increased demand from the COVID-induced lockdown and other restrictions? Similar to such instances, there can be cases of pandemics, political unrest, and natural disasters that can prevent smooth shipping. While these disruptions cannot be controlled, you can inform your customers about the ongoing crisis and how it can lead to their parcels arriving late.
Outsource to a third-party logistics provider (3PL) – If you find shipping expensive and hard, you can hire a 3PL to take care of your last-mile logistics needs. 3PLs can help you with warehouse space, equipment, and personnel. This can help you improve efficiency and scalability and can be especially helpful for small businesses.

Final Word

Time and again, the emphasis on shipping and delivery in an e-commerce environment is stressed enough for two main reasons.

One, ‘the post-purchase’ or the phase of the order after it is shipped out, opens the door for the first set of events that happen outside of anyone’s (particularly the business’) control.

Second, most businesses assume their job is to be done once the order has been handed over to the shipping carrier and move on to the next customer while waiting for this shopper to make their next purchase. What they don’t realize is that a positive post-purchase experience directly leads to an increase in repeat purchases and revenue. On the other hand, it costs 5x more to acquire a new customer than retain an existing one. Thus, the math clearly states that your efforts in the shipping, delivery, and returns phases of the order guarantees your success in the long run.

And this success does not attribute just to positive experiences and customer spending, but also to the reduced operational costs for your business via cutting down unwanted shipping and return shipping related costs.

Thus, no matter how many challenges shipping and delivery might throw at you — handle it in the best way possible to go a step ahead of your competitors.

The post How to Overcome E-commerce Shipping & Delivery Challenges appeared first on Lateshipment.com.

4 Emerging and Promising Ecommerce Logistics Trends for 2024

Ian — Sat, 13 Jan 2024 13:36:12 +0000

Based on Statista’s prediction, global retail e-commerce sales are expected to grow 9.5% from 2023, a slight decrease from last year’s increase (10%). A line that we’ve all been hearing since the end of the pandemic and the dawn of the new age of e-commerce shopping is expected to return this year as well — while the growth rate is slow, e-commerce is still growing.

There are two ways to look at this.

Customers are still open to shop online amidst the re-opening of brick-and-mortar stores
E-commerce merchants are going to adopt new initiatives to spur more customers to spend time with their business

While the growth of e-commerce means so many things, it directly translates to higher parcel volumes. As consumers increasingly turn to online shopping, there exists a surge that places significant pressure on shipping carriers and the supply chain’s infrastructure.

Research predicts global parcel volume to grow from 8.5% through 2027. This necessitates continuous adaptations within the e-commerce and logistics spaces to handle the increasing demand and ensure timely and efficient order deliveries.

That said, 6,913 billion dollars being spent on an industry worldwide in a single year is a huge deal. The question is “How much % of it are you spending on growing your business”?

Knowing what other businesses are cooking, what industry leaders are predicting, and what is going to happen in the e-commerce logistics landscape can help you put your best foot forward and enjoy the fruits of success.

E-Commerce Logistics (B2C and B2B Parcel Shipping) Trends For 2024

Enter 2024, a year poised to be a turning point in the e-commerce logistics saga.

Businesses and consumers alike are consistently raising the bar. Sustainability, efficiency, and hyper-personalization are the new buzzwords. There is a consistent demand for revolution in how goods journey from virtual carts to living rooms.

So, what’s new, what’s hot, and what matters most? Here’s a straightforward article that covers the key trends you need to know to optimize your shipping strategy and deliver a seamless experience for your customers this exciting year.

Here’s something that you can expect inside:

The newer role and impact of AI in logistics
The need for sustainability in packaging and shipping
The increasing demand for faster and efficient deliveries
The evolution of customer expectations and hyper-personalization
The changes in trade regulations and customs procedures

1. Integration of advanced technologies in the form of AI and machine learning

According to a recent report by McKinsey, 55% of business professionals confirmed that their organizations have already integrated AI technology into their operations. Also, with the e-commerce logistics industry expected to witness substantial growth in the adoption of AI in the upcoming years, businesses that haven’t tapped into using this technology will probably get left behind in the race toward redefining the game.

One of the primary roles of AI in e-commerce in 2024, is enabling predictive analytics and real-time data, helping businesses make data-driven decisions in areas like demand forecasting, route optimization, and inventory management. For example, with predictive analytics, retailers can better plan for seasonal fluctuations and avoid overstocking or stockouts. Also, with automated processes, there is a reduced workload on manual processes like paperwork, leading to lower errors, and delays and increased efficiency and cost-effective operations.

Ultimately, with access to AI technology, stakeholders who are dependent on the supply chain can make informed decisions quickly, adapt to changes, and respond to disruptions effectively, thereby making it a critical asset in today’s e-commerce environment.

What you can do to keep up: Make use of Inventory Management tools such as Zoho Inventory, Salesforce, etc, to forecast demand fluctuations, avoid stockouts, and ensure smoother deliveries.

2. A greater focus on sustainability

Amidst timely deliveries and growing technology, a trend that has witnessed a spike for the last couple of years is sustainability in logistics practices. This comes from the place of today’s shoppers’ growing awareness of environmental concerns and a desire for more eco-friendly practices and businesses catering to their needs.

Here are a few boxes that businesses are looking to tick in 2024 in the context of sustainability:

Reduced packaging waste: E-commerce businesses are increasingly adopting practices that minimize packaging waste. This includes using packaging materials that are recyclable, or easily biodegradable. Also, businesses are optimizing packaging sizes to reduce the amount of excess material used.
Green logistics: Major shipping carriers like DHL, FedEx, and UPS have always committed to reducing their massive carbon footprint from frequent order deliveries that they take up on a day-to-day basis. This involves taking up initiatives in the form of carbon–neutral shipping, EVs and other alternative fuels, efficient routing leading to lower fuel consumption, etc.

What you can do to keep up: Use eco-friendly materials for your packaging needs, prioritize shipping partners that use electric vehicles and other carbon-neutral delivery options, sustainable warehousing, etc, will all come together to minimize the environmental impact of e-commerce logistics. Don’t forget to promote yourself as an eco-conscious e-commerce brand and ensure that consumers favor you.

3. A shift towards customer-centric experiences

In today’s highly competitive e-commerce landscape, the CX that businesses provide acts as the competitive differentiator. This leads to brands increasingly adopting a customer-centric approach to cater to the evolving needs and expectations of online shoppers. This approach encompasses various strategies and initiatives aimed at enhancing the overall shopping experience and building customer loyalty.

2024, much like previous years, taking a customer-centric approach involves providing personalized product recommendations, having a user-friendly Interface to minimize friction in the buying journey, offering proactive responsive customer service channels, faster shipping and delivery options, flexible returns and exchanges, omnichannel experiences, etc.

Also, with the abundance of data available and customers willing to share their data for a more personalized experience, businesses are increasingly tailoring their logistics operations to individual customer preferences. This means not only personalized product recommendations but also customized delivery options including delivery preferences like time slots and delivery locations.

4. Increased focus on strengthening Cybersecurity

As we progress further into the digital age, the e-commerce industry has become a prime target for cyberattacks. The increasing digitalization of supply chains has made them vulnerable to various threats, ranging from data breaches to ransomware attacks. In 2024, cybersecurity will take center stage as companies strive to fortify their defenses and safeguard the integrity and trust of their operations.

This includes secure backups, network segmentation, employee training to recognize and prevent phishing attacks, and improved user identity verification methods.

Naturally, businesses can expect stricter regulations and cybersecurity measures to safeguard customer information and ensure the integrity of delivery systems. Additionally, the physical security of packages will be paramount, with advanced tracking and anti-theft solutions becoming commonplace.

What you can do: Cybersecurity tools like IBM and Kaseya to safeguard customer information and ensure the integrity of delivery systems. Additionally, physical security of packages is paramount, so make use of a post-purchase automation solution like LateShipment.com with real-time tracking to stay in the know of parcels at all times and communicate the same with your customers.

Over to You

2024 promises to be a turning point in e-commerce logistics. By embracing these trends, businesses can gain a competitive edge, build customer loyalty, and contribute to a more sustainable future of deliveries. Whether you’re a tech-savvy start-up or a seasoned retailer, buckle up and get ready for the thrilling ride ahead!

The post 4 Emerging and Promising Ecommerce Logistics Trends for 2024 appeared first on Lateshipment.com.

15 Shipping Strategies for SMBs to Reduce Costs

Sashank Ravindranath — Mon, 17 Jul 2023 09:24:15 +0000

Shipping is an Inevitable Cost-Center of The E-Commerce Industry

Shipping in e-commerce holds a higher priority for two reasons: One, it plays a huge role in the CX, and two, it is the second most expensive area of a business, only next to product costs.

Product costs can be cut down by making executive decisions. However, shipping, on the other hand, is one of the primary areas where merchants don’t directly take up things but outsource things to a third-party shipping carrier.

Making the shipping process effective requires merchants to invest more and more as technology advances. Also, with the risks of shipping being frequent given the events that happen outside anyone’s control, cutting down shipping costs is a real challenge.

Shipping involves substantial logistics and fulfillment expenses, including packaging, warehousing, and transportation.
With the rise of giants like Amazon, customer expectations for fast and free shipping have skyrocketed. SMBs too are forced to meet these expectations to remain competitive
Shipping is closely tied to customer service. Delays, lost packages, and damaged goods can harm a brand’s reputation
Managing returns is a complex aspect of e-commerce. Handling reverse logistics efficiently is costly but necessary to maintain customer satisfaction and loyalty

All of these processes incur significant costs that cannot be avoided. However, while shipping comes with financial challenges, investments in it are crucial for e-commerce businesses aiming for sustainable growth.

Large businesses always have tricks up their sleeves to make profits but SMBs? Each time their shipping budget goes a bit high, they are forced to go back to the drawing board and relook things, cut down budgets for other areas to make room for an effective shipping process, etc.

How SMBs find it harder to manage things compared to large businesses

Luckily, time-tested strategies work for all e-commerce businesses, small and large, as cost-cutting measures. And the purpose of this guide is exactly that.

This guide is specifically designed for SMBs, particularly new merchants looking for ways to cut down on their expensive shipping bills and make profits akin to market leaders.

If you’re an SMB owner, leveraging these strategies allows you to manage your shipping costs better and stay ahead of the competition.

15 Shipping Strategies to Reduce Costs

1. Packaging effectively

Smart packaging can help reduce your shipping costs, especially if you’re sending out multiple packages in a single day.

You can start with repurposed boxes and packing materials whenever possible, reusing shipping labels is also a perfect norm in the shipping industry. Bulk buying packaging supplies can also lead to significant discounts.

As much as the packaging matters, the content within it matters too. Don’t miss out on secure packaging while cutting costs.

On an average, 1-in-10 e-commerce packages arrive damaged

Remember, damages to your packages can prove to be costly when they happen frequently in the long run. Thus, keep in mind to use proper materials like bubble wrap, packing peanuts, crinkled kraft paper, etc.

2. Adjusting based on DIM weight

Dimensional weight (or volumetric weight) was introduced because lightweight, low-density packages had become unprofitable for shipping carriers due to the amount of space they occupy in relation to their weight. So, for each shipment, carriers charge you based on the dimensional weight or actual weight of the package—whichever is greater.

DIM weight is calculated based on the formula:

Dimensional Weight = (Length x Height x Width) / DIM factor (traditionally 139)

If you’re a merchant, who deals with odd-sized packages frequently, then DIM weight would make shipping packages more expensive. It is therefore important for you to ensure that you use the right packaging techniques to save on costs.

In this case, the key is to use the right size of box that can comfortably hold your odd-shaped item without taking too much excess space.

3. Making the right shipping carrier choices

Making the right carrier choice for your shipping needs is like a falling pile of dominoes where one thing leads to another and ultimately you end up saving a lot or paying more than you ought to depending on your choice.

As a priority, you can understand your needs by asking yourself these questions:

Is my shipping volume higher than usual so that it might require frequent services?
Am I selling products that are based on urgency and require faster shipping options?
What are my most frequent shipping destinations?

Following up, you can check if your carrier offers any value-added services that can help you avoid unnecessary cost inflation.

4. Claiming refunds for carrier service failures

Order deliveries aren’t always 100% successful.

Shipping carriers are prone to mess up on deliveries and billing from time to time. In fact, there are over 50 types of carrier errors such as late deliveries, products damaged on delivery, lost packages, etc.

Unless you audit your shipments, you will never know how much you’re actually overpaying your shipping carrier.

Thus, regularly auditing your shipping invoices helps you hold your carriers accountable for their mistakes by claiming refunds for service failures. This can help you get your carrier to improve the quality of their service and also be a negotiating tool.

Auditing can be a pain if done manually, but there are automated options to make your life easier.

LateShipment.com is one of them. Check us out. We’re waiting.

5. Not falling prey to money-back guarantee waivers

Out of all service failures, the most frequent and damaging in the current e-commerce delivery scenario is the ‘late delivery’.

Around 8-12% of shipments are delivered late

Customers are already blaming the brand (you) for delivering their parcels late. So, why bear the brunt of the costs as well? Carriers too are aware of this and have their policy titled ‘money-back guarantee’ or ‘guaranteed service refunds’ that allow you to file refund claims and ensure you are rightly compensated for each late delivery incident.

However, here comes the catch. Carriers also have ‘waivers’, a small clause in the money-back guarantee policy that once signed, discourages you from claiming refunds. Of course, it is suggested under the guise of discounts and other benefits but these waivers often come with a series of pitfalls.

Therefore, ensure that you haven’t signed a money-back guarantee waiver and file refund claims for late deliveries.

6. Negotiating with your carrier

Many new SMBs fail to realize that shipping rates are negotiable.

Don’t just settle for the rate your carrier charges you. Do a thorough comparison of the rates various carriers offer before settling on a carrier, and then negotiate.

The carrier needs your business as much as you need their service. Inform the carrier representative of the rates other carriers offer. Tell them your options are still open. You will probably end up getting a sweet deal!

Also auditing your shipping invoices gives you insights into your carrier performance that you can leverage to gain an upper hand while negotiating.

7. Using multiple carriers for your shipping needs

As mentioned, each carrier has their own set of pros and cons.

One might offer superior speed for urgent deliveries, while another excels in cost-effective ground shipping. By having access to multiple options, you can choose the carrier that best suits the specific needs of each shipment.

Also, if the performance of one carrier isn’t keeping up with your expectations and is frequent with delays or service disruptions, you can still fulfill your shipping needs by seamlessly switching to another provider with minimal impact on your customers.

8. Including the cost of shipping in the final bill

This is something many small businesses overlook.

Explicitly state and include the cost of shipping on the billing page. If you don’t, the burden of paying for shipping will fall on you.

Another thing that is possible is that the customer will be required to pay for shipping on delivery. This can lead to a bad delivery experience, and the customer may choose to not buy from you again.

Also, if the shipping price varies from region to region or you plan on shipping internationally, make sure you include the relevant rates on the billing page.

P.S. On that note, absorbing shipping costs entirely might be too expensive at times and on the other hand, not offering free shipping can be a factor for the customer to avoid your business. Thus, the key is to offer ‘free shipping’ only for customers in the loyalty program or have an item/spend threshold.

9. Choosing multiple delivery options

As a shipper, you have the advantage of choosing a list of delivery options that work best for your business needs at that point. For instance,

Invest in flat rate shipping to optimize costs if your business frequently ships packages to select locations
Encourage options such as BOPIS (Buy Online Pickup In-Store) for shoppers at close distances to prevent shipping in the first place
Offer options like standard, expedited, and even same-day delivery to cater to a wide range of customers. P.S. Allow customers to see the exact cost of different delivery options upfront, empowering them to make informed choices

10. Setting up delivery areas

Creating designated delivery warehouses or hubs within your city, region, or where your shoppers frequent can significantly save last-mile delivery costs, which are often the most expensive part of the shipping process. Here’s how:

Firstly, optimized delivery routes and consolidated multiple deliveries, mean fewer stops for your carriers, thereby minimizing travel time and fuel consumption.

Secondly, reduced shipping distances and the number of individual trips needed also improve delivery speed and lower the chances of late delivery incidents.

Remember, this strategy is most effective if you have a high volume of deliveries concentrated in specific geographic areas. Individual carrier pickups might be more efficient for a low volume of dispersed deliveries.

11. Preparing yourself for the peak season

The peak season is the perfect time for SMBs to boost sales.

However, amidst all your shipping strategies, things can still go out of control during peak season times like the holidays. This is because the shipping volume increases multifold during such times, forcing carriers to strain their capacity to deliver parcels on time.

With the probability of late deliveries becoming 2-3x, things get even worse with carriers temporarily suspending their money-back guarantee owing to the increased demand.

Here’s where you can bring your a-game to the table and draft special plans for the peak season like shipping out parcels early, letting customers know that delays are imminent once we get close to the holiday season, getting familiar with carrier service schedules for closing times and last day to ship, etc,. Such actions can ensure that a sudden surge in demand has less/ no damage to your shipping.

12. Tracking your orders

Tracking your shipments, especially in real-time, empowers you to stay on top of your customers’ orders. You can then extend the capabilities of ‘real-time tracking’ by communicating the same with your customer. With customers in the loop of their orders, they are less prone to contact your support team with WISMO inquiries. This frees up staff time and reduces costs associated with fielding inquiries.

Similar to order status information, tracking also allows you to identify exceptions like delays and lost packages promptly. This enables you to take proactive actions such as course-corrective measures to minimize delays and potential re-delivery costs.

Also, frequent tracking gives you detailed records of on-time deliveries and delays for each carrier you use. This data strengthens your position when negotiating with carriers for better rates. You can demonstrate your business value and hold them accountable for performance.

Tracking packages manually is an option that is not preferable, given that there’s no room to scale. Thus, you can always make use of a real-time tracking solution like LateShipment.com that:

Provides the most up-to-date order tracking information for your support team to intervene and proactively fix issues
Enables easy access to tracking information to customers through your website, emails, or SMS notifications.
Reports of trends or recurring issues to help you optimize your fulfillment process to minimize delays

All of which can contribute to significant cost savings.

13. Insuring your shipments

Unexpected damage or missing items during shipping can be a significant financial blow for you

In such cases, insuring your shipments provides peace of mind from the financial protection that you get while covering the cost of replacing the items.

Plus, with insurance absorbing the costs and potentially impacting your cash flow, you can confidently commit yourself to resolving any issues that might arise during shipping. This builds trust and confidence, potentially leading to repeat business.

Now, you can either insure shipments with carriers or pick a third-party insurance provider that offers custom insurance rules that allow you to decide on what gets insured and what doesn’t, thereby keeping insurance cost-effective.

14. Optimizing order returns and return shipping

Contrary to popular beliefs of being a cost center, when optimized, order returns can be a goldmine for cost savings for your business. Here’s how:

Returns are a necessary evil. Thus, they need to be kept to a minimum to display high customer satisfaction metrics. Start with high-quality product photos, detailed descriptions, and size charts to ensure customers receive what they expect. This minimizes the chance of unwanted returns due to size or feature mismatches
Apart from ensuring reasons for return and a nominal return window, you can also offer and incentivize customers to opt for exchanges/ store credits over refunds
Also, tracking and analyzing the reasons for returns can help identify recurring issues and areas for improvement in your product descriptions, packaging, or fulfillment process, etc, and can lead to fewer returns and lower costs in the long run.

Apart from cost-cutting, if you’re also a CX-obsessed brand, you can choose a tool like LateShipment.com that makes returns self-service and helps you boost buyer confidence.

With an easy returns portal, flexible return methods, seamless return shipping, automated and immersive returns tracking, LateShipment.com can be your one-stop solution to offer return experiences that your customers truly love.

15. Using a 3PL for your shipping needs

For SMBs fairly new to the market or ones struggling with managing shipping costs, a 3PL partnership can be a strategic decision.

Since 3PLs have expertise with shipping packages of multiple SMBs, they already have established relationships with major carriers and can leverage this buying power to negotiate significantly lower shipping rates.

Outsourcing warehousing to a 3PL eliminates the need for SMBs to lease or manage their own warehouse space, reducing overhead costs like rent, utilities, and equipment. Also, with shipping-related tasks now outsourced, your staff can now focus on core business activities, and you can reduce labor costs associated with in-house fulfillment.

How Lateshipment.Com Helps You Save On Shipping Costs

Want to make the right choice of shipping carrier?

Want to reduce your WISMO tickets-related costs?

Want to build return experiences that retain profits?

Want to reduce your shipping costs by up to 20%?

Look no further.

LateShipment.com is the ultimate all-in-one post-purchase success platform for e-commerce retailers, D2C brands, and businesses shipping small parcels, no matter their size or shipping volume.

Delivery Experience Management (DEM): To build memorable experiences that prevent bad delivery experiences and also boost recurring revenue during order tracking moments.

Returns Experience Management (REM): To make returns hassle-free with flexible return options and smart automations to help retain revenue.

Parcel Audit and Shipping Refunds: To save big on shipping costs through automated shipping refunds and drive supply-chain optimization with in-depth shipping analytics and insights.

Shipping Insurance: To simplify protecting your e-commerce parcels from lost and damaged packages via fully customizable and automated processes for maximum cost savings.

LateShipment.com seamlessly integrates with 600+ Shipping Carriers and Business Tools that include E-commerce platforms, Order Management Systems, Helpdesks, and Marketing Automation tools to help you drive post-purchase experiences and shipping cost savings, at scale.

The post 15 Shipping Strategies for SMBs to Reduce Costs appeared first on Lateshipment.com.

5 Supply Chain Tips For Smooth E-commerce Delivery in 2023

Sashank Ravindranath — Thu, 08 Dec 2022 11:51:07 +0000

Customer centricity has quickly become the name of the game for e-commerce companies as they look for ways to find competitive advantages in a crowded marketplace. From AI customer service bots to interactive product tours, businesses are meeting customer needs in increasingly sophisticated ways.

But the real key to success lies in successful supply chain management — and this requires much more than just a warehouse and good inventory planning. To deliver the seamless, high-quality delivery experience customers expect in 2023, e-commerce companies need to go beyond the basics if they are to continue to thrive.

Overcoming the Fragility of Global Supply Chains

It’s safe to say Covid-19 well and truly proved just how fragile global supply chains can be. And with a recession looking like a foregone conclusion in the coming year, it seems as though many companies are about to head out of the frying pan and into the fire.

With this in mind, here are five supply chain tips to ensure your e-commerce supply chain and delivery systems are up to the challenge.

Supply Chain Tips For Smooth E-commerce Delivery

1. Increase Supply Chain Visibility

Knowing where your goods are at all times is essential if you want to avoid unplanned disruptions. After all, how can you expect to keep customers informed of delays if you don’t even know where the goods are?

When you consider the sheer variety of carriers, subcontractors, and suppliers involved in most supply chains today, it’s easy to see why visibility is such an important issue. However, only 6% of companies report having full visibility into their supply chain, leading to a whole host of inefficiencies and missed performance objectives.

Fortunately, there are a handful of simple solutions that companies can implement to achieve the visibility they need. For example, investing in a smart tracking system can help to keep your supply chain in check and go a long way to improving real-time tracking and inventory management.

This is especially effective when combined with automated supply chain analytics and AI-enabled insights, which can help companies better identify areas of inefficiency, as well as where additional investments may be needed.

2. Improve Cash Flow

Supply chains often need to be supported by cash flow, and this can be difficult for small businesses in particular. One way to mitigate this issue is by developing a strong relationship with creditors and lenders who can provide funding when needed.

However, bank loans are not always the best solution since they require collateral and often come with hefty interest rates – not to mention the time it takes to secure the funding.

Fortunately, there are various alternative financing solutions, such as e-commerce-specific funding platforms like 8fig, that offer e-commerce stores access to the funds they need to keep their supply chains running smoothly and deliveries on time in the unpredictable economic climate of 2023.

3. Enhance the Customer Service Experience

Customers expect more from e-commerce businesses these days, and part of this is providing them with an enhanced delivery experience.

One way to do this is to provide customers with real-time updates on their orders, to keep them connected to the process and be kept informed of any delays or changes in delivery status.

Plus, if they encounter any issues with their deliveries, they’ll have an easier time getting in touch with customer service. This is especially beneficial for customers who are making urgent orders or dealing with perishable goods.

In order to do this, you need to ensure that your customer service team is well-equipped with the necessary tools and resources they need to effectively respond to customers. This could mean investing in AI-powered chatbots or advanced ticketing systems.

4. Work on Optimizing Last-mile Delivery

The last-mile delivery is often the most challenging and costly part of the supply chain. Moreover, this is the only element of the supply chain that directly involves the customer, so it’s important that you’re doing everything in your power to optimize it.

One way to do this is by leveraging data-driven insights and predictive analytics to plan routes more efficiently. This will help you reduce the cost of last-mile delivery and maintain your desired level of service.

Alternatively, you could consider using a third-party logistics provider such as Postmates or FedEx Fulfillment. This can often be a more cost-effective solution since these companies will have the necessary infrastructure and resources to manage the delivery process more efficiently.

Overall, you need to understand what your customers want and develop a strategy to ensure that last-mile deliveries are as streamlined, cost-effective, and hassle-free as possible. This could mean offering deliveries to self-service lockers, same-day delivery options, or even allowing customers to pick up orders at a local store.

5. Increase Warehouse Space

Okay, you may be wondering who on earth would want to invest in more warehouse space during a recession. But here’s the thing – as sales begin to dwindle and customers start pinching pennies, it’s likely that the price for warehousing space will begin to decrease.

This allows you to take advantage of lower monthly costs and expand your warehouse space. In turn, this allows you to store more inventory and take greater control and responsibility for the supply chain.

Furthermore, increasing the warehouse space can help you create a more efficient order fulfillment process, reduce shipping costs, and provide customers with faster delivery times.

In other words, while everyone else is playing defense and waiting for the recession to be over, you can play offense and take advantage of the situation and get your ducks in a row for when the economy starts to improve.

The Importance of Flexibility

Not everyone will be in a position to snatch up more warehouse space during the recession. But regardless of your current situation, it’s important to remain flexible and agile so you can quickly adapt to any changes or challenges that may arise.

If you are willing to think outside the box, there are plenty of opportunities to stay ahead of the competition. Whether it’s utilizing digital platforms for order fulfillment, partnering with local stores for last-mile delivery, or finding ways to optimize existing processes, there are plenty of strategies you can test out.

In conclusion, the strength and health of your supply chain will likely play an increasingly important role in the year to come. If you want to ensure a smooth delivery process and continue providing your customers with the best possible experience, you need to make sure that you’re making the necessary investments and staying flexible in an ever-changing landscape.

Good luck!

This is a guest post by Hazel Raoult

Hazel Raoult is a freelance marketing writer and works with PRmention. She has 6+ years of experience in writing about business, entrepreneurship, marketing, and all things SaaS. Hazel loves to split her time between writing, editing, and hanging out with her family.

The post 5 Supply Chain Tips For Smooth E-commerce Delivery in 2023 appeared first on Lateshipment.com.

Nola Skinsentials – A skincare brand that went from a humble beginning to 200k+ community

Hemalatha Sekar — Fri, 26 Nov 2021 13:22:07 +0000

If two things could define the last two years other than the pandemic, it is the rise of TikTok marketing and conscious consumption of skincare products.

Jane Ormon, a young entrepreneur has taken advantage of both and has built a rapidly growing skincare brand that has grown beyond double its production value in the past year alone. She and her fiance have put in their educational background, personal experiences, and love to create a community to create Nola Skinsentials.

We sat down with Jane herself to know the secret behind the exponential growth of Nola Skinsentials, and their secret to building a loyal customer base turned community. Here’s what Jane had to say about it.

Could tell us a little bit about yourself and your role in the company.

Yeah, so my name is Jane. I am the CEO of Nola Skinsentials. I pretty much handle the entire team. Anything that’s associated with admin, marketing, and customer service, I have my hands on all of that.

We love talking to leaders who are very hands-on with their business as that's where we get the most lessons from. Tell us a little more about Nola Skinsentials, where the idea came from, and how the business has developed from there?

Nola is where my fiance and I, who’s also my business partner, met at a seafood cafe when we were vacationing. We eventually became friends and later started dating. He’s a cosmetic chemist, I was going to school for pre-med. That’s how we got to the idea to start a skincare business with both of us as partners.

That's a really cool story! One thing we noticed about your brand is that you have created a skincare plan that is focused on melanin-rich skin tones. Could you tell us about that and how you pick that particular category? I'm assuming there's a personal connection with that.

Yeah, definitely. Back when I was a college student who was dealing with hormonal acne, there weren’t a lot of skincare products on the market that were compatible, products that were created specifically for women of color, and their skin tones.

Everything was marketed for all skin types and skin tones. And you know that that’s not true. Darker skin tones have different skin ailments and skin concerns than lighter skin tones. We deal with a lot more hyperpigmentation cases, we scar differently. We would need products that cater to our skin tones. We saw the need there and a big gap. So we went ahead and kind of created a solution for that and that’s kind of how Nola Skinsentials originated.

Skinsentials is just a play on the skin, obviously, and essentials. The things that your skin needs. So Nola has what your skin needs and just all that good stuff.

Awesome. Again, we love the effort that you're taking to make beauty and beauty products more inclusive. We see your business doing really well through Instagram marketing. Any tips for brands looking to grow a following on Instagram?

When we first started our brand, we by default created pages on all social media platforms. But the initial engagement we received was from Twitter. It was organic and conversational.

We could be our authentic selves there and create a community. I’d credit our brand’s initial success to Twitter. This made it easy for us to create an Instagram presence.

Even before we started running ads on Instagram, we had good word-of-mouth community building going on. We also started working with influencers and did paid promotions, which were also fruitful.

For newer businesses that are just starting out on social channels like Instagram, what would you offer as advice to them to be successful in these areas?

Starting a new business is no easy feat. It’s definitely super challenging and I feel like it’s even more challenging now because there’s so much competition, there are so many new platforms, and there are so many things that you have to do to be a successful brand.

For people that are just starting out, I would say, focus on your why you’re starting your brand. What is your reason for the mark? Like, why should somebody buy your product, and live by that? Don’t compare yourself to other brands, believe in your brand. Focus on the why. Once your customers understand your why and believe in your products, you’re going to be successful and grow.

Don’t focus too much on paid social, as you wouldn’t be able to create an organic community through plain paid promotions. Fixate on building an organic and engaging community and getting people to understand and what they can benefit from your product. And definitely put your customers first, they’re going to be the backbone of your products.

It’s so hard to get someone to shop at your brand for the first time. But it’s so much easier for repeat customers to keep coming back to you. And they refer their friends.

I'm sure anybody needing this or hearing this is going to appreciate that. How did the pandemic affect your operations as a business? What are the challenges you had to face and how did you overcome them?

One of the things we struggled with was supply chains.

A lot of our packaging and inventory materials come from overseas. So when the pandemic first hit, luckily, our packaging orders were in transit on the way to the US. It just was delayed. But anything after that was super delayed.

We really weren’t able to place large orders like we generally did with our suppliers to get anything done. Because at the same time, while we were struggling to send out our orders, we were growing exponentially. A lot of people migrated to online shopping, and black-owned businesses were getting a lot of support from the social movements.

Meanwhile, the work from home mandate made us lose a lot of employees and the job market was extremely hard to find like top talent. But the main outcome from the pandemic was definitely growth for us.

I'm sure you're expecting even more of a growth spurt as the holiday season rolls those boots. So what are your strategies to combat that spike in shipping volumes? How do you plan for a busy season like that?

First thing is to be super transparent with your customers. If there’s ever an issue, we always are super transparent with them. We’re starting our holiday sale a little bit earlier this year to alleviate the expected delays with shipping to help our customers out.

We were informed by USPS and UPS that there could be massive shipping delays, and with only four weeks between like Black Friday and Christmas. We realized we had to equip ourselves to make all ends meet. Thus we stocked up accordingly and hired additional staff in our warehouse to get things going smoothly.

Can you tell us about the efforts you take on the post-purchase side to ensure that your customers have a great experience? Even after the auto-ship?

Yeah, for sure. A lot of things that I’ve learned just about customer service and post-purchase CX are from the reviews and complaints on the website or social media of our competitors.

Many brands think that when a customer orders from your website and you ship the package to them, their relationship and the service stops which is not true. Because if they’re coming to you for something, it’s our duty as a brand to ensure that they get their items.

We, at Nola Skinsentials, tend to stay in contact with a customer for at least two or three weeks after their order has been delivered because we truly want to know what’s going on and how our customers are benefitting. Thus we focus a lot on our post-purchase phase and make sure that they’re getting the best service that they can possibly get.

As an extension of this, if there are one or two important takeaways from your experience that you would like to leave behind for any new young brands reading this?

Number one is to realize from the very beginning that you cannot do everything all on your own and build a solid team to grow your brand. Building and finding a core team is an investment, and also mentally healthy for an individual as an entrepreneur, and in turn, brings a better return on investment.

Number two, even though you may be an expert in your field and expert in some of the things you study, you never ever stop learning. There are always new things coming out on the market, new platforms, for instance, new-age platforms like tick tock you may not be as well versed in. Open yourself to learning, listening to people, and getting advice, to become the best version of yourself.

We see that your mom has played a very important role in you becoming an entrepreneur. We’d love to hear more about her role in your success.

Coming from a Caribbean background where people take the traditional routes of profession like teachers, doctors, or nurses; my mom never imposed such expectations on me. I never wanted anything traditional even back when I was a kid, and my mom never forced me into anything.

She got me thinking life is full of endless possibilities and gave me the confidence to explore less trodden routes. Thus, I went to pre-med school, started my own skincare brand, and today also own a spa. Had she limited my potential, I would’ve never gotten this far. And I think everyone needs a support system like that to succeed.

That’s inspirational. Do you have any closing comments on how Lateshipment.com has enhanced the customer experience at Nola Skinsentials?

Yes, definitely. Lateshipment.com is one main enabler for us to be transparent about shipping updates and delays, and be in touch with our customers in general as I mentioned before.

I found your app on an integration page of Klaviyo and had my mind blown by the fact that someone was making the post-purchase phase of the customer cycle to be customer-friendly. It also eventually led us to be ahead of the customer service curve, curbing our helpdesk ticket volume.

Before we partnered with LateShipment.com, we were using a different platform that required a lot of money and manpower to ensure our deliveries were made at a maximum of five-day windows.

Since we send an automated email through Gorgias integration on shipping updates, we’ve had so many customers thanking us for being proactive in communicating shipping delays and such. All this wouldn’t have been possible without LateShipment.com.

So again, on behalf of all our readers, and me personally, it was an absolute pleasure to talk to an owner and a business that is very tuned in to the community of customers, and also offering a product that not only meets quality requirements but actually stands for something right. It was a pleasure to talk to you in that regard.

Interview with LateShipment.com CEO, Sriram Sridhar. Transcripted by Hemalatha Sekar.

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Supply Chain Crisis in the US: Causes, Effects, and Corrective Measures

Sashank Ravindranath — Tue, 26 Oct 2021 05:58:15 +0000

If you have happened to follow the news in the recent past, you might be aware of the global supply chain crisis that is happening:

The number of container ships around ports has doubled since April
Dwelling times of containers has reached 6-10 days, way above the average 4-5 days
Railyards have also been clogged, with trains at one point backed up 25 miles outside a key Chicago facility.

All of this can threaten to spoil the Holiday season joy for e-commerce retail businesses such as yours by eating into your profits.

There are more negative consequences of this supply chain crisis but before we look at them, let us find the answer to the question, what really is causing these logjams?

What is Causing This Supply Chain Crisis?

“There are going to be disruptions and shocks to the system as long as the pandemic persists and could last into 2022” – Pete Buttigieg

Americans who chose to stay home and came outside after feeling trapped at home for a long time have been equally spending dollars on shopping goods such as laptops and at places such as restaurants, triggering an unprecedented increase in demand that the nation’s unprepared logistics system was unable to handle.

Consumer goods demand is overall 22% higher compared with pre-pandemic levels (comparing February 2020 with August 2021). – BBC

This sudden increase in demand doubled with the negative consequences of the pandemic such as workers getting affected by the virus, nationwide lockdowns, shutting down of operations, etc., resulted in lower production and distribution businesses and thus businesses ended up not being able to handle the demand.

This demand > supply factor doubled down with external factors such as shortage of workers and effects of climate change, etc is said to have caused this crisis in the supply chain.

E-commerce activity has witnessed major gains and has subsequently impacted warehousing and importing, straining logistics and supply chain networks. – White House media release

Large businesses have the bandwidth to double down on their logistics operations and make sure they are least affected by this global phenomenon. But what about small businesses?

What Does This Supply Chain Crisis Mean for E-commerce Businesses?

Industry experts see momentary changes between the situation getting worse and staying at a standstill. Either way, it doesn’t look like it’s normalizing.

As the customer demand doesn’t seem to be going down anytime soon, you can expect the situation to continue into 2022 (beyond the Holiday season).

This naturally conveys that your customers’ Holiday season orders could hit a slump and would lead to a big blow on your revenue. Everything from Halloween costumes, to tech products such as computers and printers for Black Friday, Christmas decors and lights are all set to reach your customers late due to the current crisis.

The commercial pipeline that each year brings $1 trillion worth of toys, clothing, electronics, and furniture from Asia to the United States is clogged and no one knows how to unclog it. – Washington Post

If these disruptions don’t seem enough to lose revenue, your shipping and freight costs are known to increase, leading to a cut down on your customers’ discounts in order to meet ends.

Moreover, you can as well anticipate lower purchases from customers, who will shop less due to the sudden inflation.

But don’t let your hopes down. There are measures simultaneously being taken and which you can take to counter the crisis. Understand what they are and make sure that you are least affected by them.

Corrective Measures Being Undertaken and What E-commerce Merchants Can Do to Ease the Supply Chain Crisis

Even though the crisis doesn’t look to get any better, the White House primarily and others who have been affected by it have been taking appropriate measures to rectify the situation and reduce considerable damage, if not already done.

Following President Joe Biden’s urge, The White House has issued orders for congested ports of Los Angeles and Long Beach to work 24/7 and keep containers out of ports by doing doubling trips
Biden also said he’s considering deploying National Guard to help ease the stress on the US supply chain as it prompts growing concern about the economy
Retail giants such as Walmart, Target, Home Depot, Samsung, etc and shipping carriers such as FedEx and UPS have all considered committing to increase usage of nighttime hours.

Similarly, experts have some suggestions for growing businesses such as yours to overcome this disruption:

Now that road and sea cargo costs have risen considerably and the fulfillment time difference being huge, businesses can consider aircargo as a better option
This year the holiday battleground is not only the CX you provide but unexpectedly the availability of your products. Therefore, look for ways to keep your inventories stocked
Encourage customers to start shopping early as 3-4 weeks during the Holiday season days, especially right before Thanksgiving and Black Friday to avoid last-minute delays on their orders
Provide a realistic estimated delivery date of delivery even before customers make their purchase so that they become aware of the crisis and refrain from blaming you in case the delivery timeline gets extended
Keep your customers in the loop of their orders via tracking information across post-purchase touchpoints to avoid getting blamed for delays that are no fault of yours.

Bottom Line

From the experts’ point of view, the past stands for an unprecedented issue, the present stands at the situation getting worse before it gets better, and the future is the calling out of the existing logistics operations model.

The supply chain and logistics system will not and should not revert to the original model that existed during the pre-pandemic times as the current scenario calls for desperate measures in the form of modernization.

While increasing operations, availability of products, getting help from everyone possible would indeed help businesses and the economy itself circumnavigate past the Holiday season, the actual transformation of the supply chain model is the key for long-term benefits.

From your customers’ point of view, it looks like they’re indeed aware of what’s happening with their parcels as they would’ve been affected by the delay during the past few weeks. This is what led their work on permutations and combinations to understand where exactly the demand is cropping up.

They will also start shopping earlier this year and not wait for discounts during times like Black Friday. This is because they are well aware that higher demand, labor, and shipping costs will result in businesses, especially smaller ones, providing fewer discounts to meet ends. They will not risk their order getting stuck somewhere for some bargain, which would obviously be an awful gamble.

And as of now, follow the experts’ advice, understand the consumers’ buying behavior, and hope for the situation to get better or ‘normalize’ if there were such a thing.

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8 Ways Dropshipping is Empowering eCommerce Business

Ian — Fri, 05 Jun 2020 09:37:38 +0000

Dropshipping is a profitable and effective way of doing business. The strategy ensures that there are no consumer goods in stock. The dropshipping model mostly involves retailers working with other retailers, or working with players up the hierarchy.

It is up to manufacturers and wholesalers, rather than dropshippers, to ensure that customers get their goods at designated places. In some scenarios though, dropshippers purchase their products from wholesalers and sell them to the consumers in turn.

Do you have an eCommerce retail business? Read till the end for a way to save up to 20% on shipping costs & provide customers a delivery experience that has them coming back for more.

Considering that dropshipping is convenient for both the customer and the selling company, this business model is thriving. eCommerce and dropshipping profits have reached over $4 billion annually, a 7% year-on-year increase for the last 10 years.

There are numerous ways in which dropshipping is changing the world of eCommerce and we’ll name the most notable ones. This will help you understand its benefits and impact on eCommerce.

Before we get into the benefits, if you are planning to create a store that dropships, we suggest you take a look at these tips to create a unique dropshipping store, particularly in 2021.

1. Lowers Startup Costs

Dropshipping gives ambitious individuals a chance to start their business. Considering the low startup and operating costs, it provides many people an opportunity to give online business a try.

In 2019, there were approximately 1.92 billion digital buyers and eCommerce sales accounted for 14.1% of retail purchases worldwide.

Online shopping is growing at such a fast pace that the global online shopping market is predicted to hit 4 trillion this year.

The dropshipping model solves the problem of those who have the idea but don’t have the initial budget. If someone knows the type of product they want to sell but don’t have enough money to prepare the stock, dropshipping is their solution.

“To get started, simply partner with a dropshipping wholesaler and begin marketing their products from your site. They handle all shipping and other logistics involved in getting the product to your customer.”
– Smallbiztrends

The process is quite simple and recommendable for those who are just starting with eCommerce business.

2. Contributes to Business Efficiency

eCommerce is all about efficiency. The entire business model relies on different independent components for optimal functioning. The strategic delegation of tasks helps the process of online purchases run smoothly.

Dropshipping ensures that retailers do not have customer goods in stock. This helps reduce the backlog and allows these retailers to carry on their business and scale.

When there is no backlog, the entire business operation witnesses increased efficiency.

“Running an eCommerce business is much easier when you don’t have to deal with physical products. You don’t have to manage a warehouse, pack and ship orders, track inventory, handle returns, and manage product inventory.” That is why dropshipping is so efficient.
– A Shopify representative

3. Helps Build Trust

One key challenge within the eCommerce industry is trust. Customers are always unsure if they will receive what they have ordered in time and in good condition. However, dropshipping changes the whole picture of eCommerce.

When a supplier sends goods to a store and then the store sends out the goods to the customer, the delivery is unnecessarily prolonged. In the dropshipping model, the supplier sends the goods directly to the customers and the customer gets their product faster.

This helps build trust and increase the customer’s confidence in the eCommerce business. With each satisfied customer, come more recommendations and an increased number of online sales.

Either way you slice it, at the end of the day, you gain from increased confidence and shopper happiness.

4. Reduces Operating Expenses

Without dropshipping in the picture, more warehouses will be in play for storage purposes. More people will need to be employed to work in these warehouses. The downside here is that these expenditures will raise the overall cost of doing business.

Ultimately, increased costs cut into profits.

With dropshipping, products don’t have to be stocked and paid for in advance. Only when an order is placed does a product need to be sent from the supplier.

Therefore, by assuming the delivery role, dropshipping raises the prospects of growth, success, and expansion of eCommerce.

“More and more eCommerce owners are being motivated to adopt the dropshipping model. The recognition and validation that dropshippers get from current users promises further growth. The main benefit they stress is the reduction of costs and expenses,”
– Donna Hayes, digital marketing expert

5. Allows for Budget Repurposing

Saving money on one end means that it can be channeled into other aspects of the business. Besides costs like storage, employees, and stocking products, there are numerous other expenses you might not even think of.

For example, conventional eCommerce owners need to prepare professionally taken photos of products if they want to be taken seriously by customers. That leads to either hiring a professional photographer or purchasing an expensive camera, lighting, and other necessary equipment.

Instead of taking chunks of the budget for such expenses, money can be repurposed on expanding the business.

Marketing plays a huge role in growing a business, which is just one example of where money can be channeled.

6. Is Conducive to Selling Niche Products

One thing evident from the digital community is that it is best to enter the market while an idea isn’t still completely worn out. That’s what makes dropshipping so exciting.

The dropshipping model is still in the growth phase. Which means there are lots of options that are yet unexplored.

Those who wish to sell highly-specific products stand a better chance of success with dropshipping. Creating a one-of-a-kind shopping experience is possible with the dropshipping model.

Customers are always looking forward to something original and new, which is exactly what dropshipping can provide them.

A unique business model and interesting website design can make a business stand out among competitors and boost profits.

7. Lends Itself to Innovation

Every new segment in business welcomes innovative minds to introduce information technologies that are yet unseen.

As previously mentioned, dropshipping is still a growing model. Consequently, there are numerous possibilities for technology experts to come up with new software advances that will improve this business model.

For example, Ecomdash’s dropshipping management system helps users have hands-off communication between the suppliers and sales channels.

Another example of innovative dropshipping software is AutoDS, an all-in-one dropshipping platform that allows you to manage product uploading, customer service, price and stock monitoring, automated orders, and so on.

The demand for the dropshipping model on the online marketplace is expected to increase, a solid reason for us to expect innovations within the model.

8. Provides Opportunities to Scale

eCommerce stores that use the dropshipping model can start as a hobby but end up an empire. This unlimited growth potential sends an inspiring message to the entire online community.

Consider Amazon. Jeff Bezos’s journey started in 1994 when he introduced Amazon to the world. A promising idea quickly grew into something spectacular.

Who would have guessed then that the dropshipping business that originated in his basement would turn him into the richest man in the world?

While aiming to become the next Jeff Bezos can be a long shot, the dropshipping model still promises that an individual can achieve something great from a simple eCommerce website.

Take Wayfair for instance. They work with over 10,000 suppliers and have 8 million products at their customers’ disposal. This massive scalability is unlikely to be achieved by a conventional eCommerce store.

In summary, dropshipping is changing the eCommerce landscape for the better. By reducing the logistical burden, retailers can focus on doing more business and developing their eCommerce wing.

On the other hand, this model also works in customers’ favor. Since suppliers directly send goods to customers, the waiting time is shorter.

There are no complications with sending a product from the supplier to the store and from the store to the customer.

Dropshipping simplifies the process.

This article is a contribution by Elisa Abbot

Elisa is a passionate traveller, a translator, and a digital marketer at PickWriters. Her love of learning languages developed when she was just a child, and she wants to share that passion with her children. Elisa believes that learning a language can be a fun experience with the necessary component that is picking out the right activities.

Perhaps you own a retail business and don’t plan to dropship anytime soon.

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Automatically auditing your shipping invoices for 50+ service failures,
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The value we offer is best experienced first hand and LateShipment.com integrates with your existing tools.

It only takes 2 minutes to sign up, so give it a shot!

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3 Ways Data Science Will Benefit Logistics in 2019

Ian — Sun, 04 Aug 2019 15:36:18 +0000

Introduction

Few technologies have generated as many advances in logistics as data science. The inception of the so-called “Industry 4.0,” which is driving growth in the supply chain management industry, is hinged on data science and its applications.

With the extensive use of generated data, statistical and quantitative analysis, and predictive models, data science can enable enhanced insights, decision-making, and process automation. Throughout the years, data science has helped the entire supply chain industry drive down costs, improve operational efficiency, and increase the velocity of turnover. These are much needed improvements in this notoriously complex global industry.

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A big part of all this is Big Data, which has been growing at a fast pace in recent years. Information Age details how the adoption of this new technology grew by 59% in the space of under three years. This number is only expected to increase soon. Maryville University reports that the annual data created worldwide will reach 180 trillion gigabytes by 2025. This shows how prominent data has become and why so many industries are investing in data science. The logistics industry will be a key area that takes advantage of this rise in available and still burgeoning volumes of data.

A single part of the supply chain alone can generate many streams of data, leaving an ever-widening door of opportunities for logistics companies and analytics providers. Current advances in data science are enabling businesses in the logistics industry to use these data points for innovation.

A single part of the supply chain alone can generate many streams of data, leaving an ever-widening door of opportunities for logistics companies and analytics providers.

All said and done, there are three principle benefits that data science brings to the logistics industry.

1. Improved visibility, quality, and growth potential

Data analytics is one of the key enablers of visibility. Visibility has been one of the key trends in logistics over the past few years. The demand for greater transparency and on-demand traceability of products being moved across the supply chain is higher than ever with the advent of direct-to-consumer marketing business models.

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DHL’s Resilience 360 provides multi-tier visibility into its supply chain. The Resilience 360 app it launched to accompany its business platform offers near real-time visibility across transport modes. By leveraging multiple streams of data and modeling systems, the current platform boasts a capability to identify key areas of improvement even beyond suppliers or factories. This, as Google notes in its review, will address the various risks logistics companies face in a proactive way.

In its “Data Analytics in SMEs: Trends and Policies” white paper, the Organisation for Economic Cooperation and Development notes that innovations in data science are making it more accessible to small and medium enterprises, which increases scalability potential. The increasing business-to-business data analytics platforms targeted to SMEs can help them envisage the same visibility as big transnational logistics businesses without the heavy cost of an ICT infrastructure. Last mile delivery applications and small e-commerce platforms can now overlay their businesses on top of third party logistics companies.

Closing data gaps in the industry also facilitates a smoother transition to automation and other applications including the deployment of Internet of Things and artificial intelligence technologies.

Data science also helps in achieving efficiencies on the operational front.

2. Operational efficiency

Amazon’s data analytics technology that is called “anticipatory shipping” takes efficiency to another level. With data analytics, the company predicts demand in specific locations to strategically position its products. This makes one to two-day deliveries easier to accomplish for customers who demand them. And not surprisingly, this patented technology can disrupt the logistics industry as we know it. With products placed near the “anticipated demand” category, consumers can greatly benefit from the reduction in delivery times and, as Amazon projects, delivery costs.

Accurately predicting demand to synchronize supply is among the top benefits of having data science systems in place. At any given time, there are multiple data points which companies will be able to model and take into consideration – this includes currency rates, commodity trends, weather data, together with the predicted demand. And with the more efficient modeling of these data points, companies can significantly drive down costs and develop better inventory management capabilities.

Being able to cut costs without sacrificing quality is one of the key features data science affords logistics companies. Managers can then make on-demand and data-driven decisions to improve operational efficiency.

[bctt tweet=”Being able to cut costs without sacrificing quality is one of the key features data science affords logistics companies.” via=”no”]

Data-driven modeling in the adoption of new technologies and innovations is also one of the key optimizations data science offers to the logistics industry. For example, research published by the Industrial and Systems Engineering Magazine used previously generated data to create a simulation designed to aid in deciding whether or not to adopt an RFID system in warehouse management systems.

Data-driven modeling removes the guesswork and minimizes the risk in adopting new assets and technologies, and it can accurately predict the return of investments in adopting these innovations.

Data science’s impact can go as far as boosting the bottom line of businesses.

3. Raising profit margins

Optimizing efficiencies at scale saves a lot of overhead costs across every part of the global supply chain. UPS’ ORION (On-Road Integrated Optimization and Navigation) uses massive amounts of customer data to reduce costs in last-mile deliveries.

The parcel delivery company reports that it has saved at least 100 million delivery miles since the tech was employed. The technology, which is integrated with its proprietary map UPSNav, continuously refreshes and optimizes routes for its delivery transports – greatly reducing greenhouse gas emissions as well as delivery costs.

With many factors affecting a supply chain, being able to have information and insights through data science can give companies that much-needed edge against their competitors. Some of these factors are regulatory effects, environmental factors, capacity challenges, and end-to-end trends. As previously mentioned, data-driven modeling acts as a catalyst to efficiently adopt technologies and cuts the costs of trial processes entirely.

Logistics is a very costly and often risky business. However, data presents an opportunity to work toward stability and the capacity to manage, if not mitigate, risks involved in both forward and backward linkages. Even in shipping insurance, Big Data analytics can tell you exactly whether it is risky to let go of insurance costs.

Conclusion

Cybersecurity is a growing concern among logistics companies. But as data science advances in applications like fraud and attack detection, its adoption is bound to save companies billions of dollars. Especially with the changing regulatory environment around data collection, having good data-driven cybersecurity systems in place protects you from costly litigations – not to mention possible damage to your customer base.

All things said and done, expect to hear more about the role of data science in logistics in the months and years to come.

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This article is a guest post by Nicole Bowles.

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A Little about LateShipment.com

We at LateShipment.com work hard to make “parcel shipping & delivery” transparent and help businesses be fully in control of their last-mile success.

Some of our high-impact offerings are:

Automating refund claims from your shipping carriers for service failures to help you save money on shipping.
Giving you full control over delivery delays that harm your brand and sales. You can now predict parcel delays and even fix them by keeping customers informed.
Reporting at every stage of “shipping & delivery” to enable you with critical supply-chain insights.

The value we add to businesses is most evident when experienced first-hand. Learn more about our solution here.

The post 3 Ways Data Science Will Benefit Logistics in 2019 appeared first on Lateshipment.com.

Why You Should Hire a Third Party Logistics Provider

Kevin — Tue, 30 Apr 2019 08:37:10 +0000

Third-party logistics (3PL) providers offer an all-in-one solution for assembly, packaging, warehousing, and distribution.

A reliable 3PL logistics process provider can maximize your profitability through their knowledge, expertise and resources. Let’s look at some advantages of hiring a 3PL provider.

6 Advantages of Hiring a 3PL Service Provider

1. It Saves Money in the Long Run

It may seem like hiring 3PL services provider would be expensive, so you may be against the idea. However, hiring their services will save you money in the long run.

By using their services, you won’t have to invest in transportation, technology, warehouse space and staff. All this will cut down your costs significantly.

2. The 3PL Provider Brings Their Expertise

A 3PL provider is aware of industry best practices. They also stay up-to-date with the latest developments in the manufacturing and logistics industry.

When you hire a 3PL provider, they will bring with them their industry expertise. They will help you incorporate industry best practices in your business. For example, they would suggest using industrial floor scales as it is one of the best weighing practices.

3. It is Less Expensive than Handling Logistics Yourself

If you want to handle logistics yourself, you would have to spend on various things. For example, building warehouses, facilitating transport, hiring labor and investing in technology. 3PL services take care of all these things, thus reducing your costs considerably.

Moreover, 3PL providers also eliminate the hassles of billing, paperwork, audits, staffing, and training. They also optimize and improve the supply chain.

3PL providers eliminate the hassles of billing, paperwork, audits, staffing, and training.

4. It Helps You to Position Yourself in Newer Markets

One major benefit of 3PL logistics outsourcing is gaining the ability to establish yourself in newer markets.

You will have access to distribution centers and warehouses in multiple locations across different regions. This will allow you to grow your business in new markets by being able to ship your product anywhere across the globe.

You will be able to locate and track products in a new market without spending on equipment, warehousing and labor. You can save money and instead spend it on positioning yourself to your new customers.

5. It Frees Up Time to Focus on Core Competencies

Outsourcing 3PL logistics operations will free up your time. This will allow you to focus on the core competencies of your business. Since the experts would be handling your logistics, you won’t have to worry about logistics management.

6. It Helps in Continuous Optimization

The amount of work required to ensure the smooth running of supply chains can be overwhelming. You may even have to put in a lot of work with limited resources. All this can be eliminated by hiring 3PL providers.

When you partner with a 3PL provider, you can optimize the supply chain. 3PL providers offer faster delivery times and more accurate order fulfilment. This leads to happier customers.

How to Choose the Right 3PL Service Provider

Partnering with a third party logistics provider will help your business as it scales up. However, not all 3PL providers are created equal. As a result, one needs to put in the effort to zero in on the right 3PL provider.

Your 3PL provider should have the following:

1. The Ability to Scale

As your company grows, so should the services of the 3PL provider. If they don’t have the ability to scale their operations to the growing needs of your business, move on to the next one.

Apart from scaling up, they should also be able to scale down when the customer demand is low. Ideally, look for a 3PL supplier who can offer you comprehensive and holistic services. They must be able to handle a sudden growth of your company.

A good 3PL will be able to handle a sudden growth of your company.

2. Technology to Support Clients

Every 3PL supplier has multiple clients. This means that they should have the technology to manage each client successfully.

Ensure that the 3PL supplier is abreast of the latest technologies in your space. They must be adept at handling ongoing technological changes.

Check if the company invests in relevant technology and innovation-related projects. Lastly, they should be able to integrate their system with your automation requirements.

3. The Ability to Offer Various Warehousing and Transportation Options

Choose a supplier who can offer you a wide range of shipping and warehousing options that meet your operational needs.

If the 3PL provider has extensive relationships with numerous suppliers, you will also benefit from their association. You can choose an option that offers the lowest cost.

4. Financial Stability

Ensure that your 3PL partner has a stable financial past. If their payment history is solid, the chances of them quitting on you due to financial problems is low.

Ask for a listing of their partners and enquire about the 3PL provider’s payment history. If they have never missed a payment, it indicates they are stable financially. This could act as a litmus test of how they would treat your company.

When you get a clear view of their financial stability, you can be sure of a fruitful association with them.

As you can see, outsourcing to a 3PL provider can benefit you in numerous ways. They help you minimize wait times, maximize profits, and improve customer service. If you are in the logistics industry, outsourcing to a 3PL service provider is highly recommended.

________________________________________________________________

A Little about LateShipment.com

We at LateShipment.com work hard to make “parcel shipping & delivery” transparent and help businesses be fully in control of their last-mile success.

Some of our high-impact offerings are:

Automating refund claims from your shipping carriers for service failures to help you save money on shipping.
Giving you full control over delivery delays that harm your brand and sales. You can now predict parcel delays and even fix them by keeping customers informed.
Reporting at every stage of “shipping & delivery” to enable you with critical supply-chain insights.

The value we add to businesses is most evident when experienced first-hand. Learn more about our solution here.

Also Read:

5 Ways to Improve a Customer’s Post-Purchase Shipping Experience (Bonus Tips Included)

The post Why You Should Hire a Third Party Logistics Provider appeared first on Lateshipment.com.

Green Packaging: The What, Why, & How

Ian — Fri, 15 Mar 2019 15:23:32 +0000

The Making of a Hellhole

As I emptied my trash last week, I realized it was filled with the plastic packaging from all the products i had ordered online. Each of them had arrived in neatly wrapped layers of plastic (sometimes more than two).

As a retailer, have you ever wondered if you could reduce your carbon footprint on the planet?

Have you considered the ill effects of the packaging materials used on a daily basis?

If not, it’s high time we started seeing things through the eco-conscious lens of the new age consumer.

The stark reality of these packaging materials is that they lie in landfills and clog acres of land. A multitude of plastic materials also make their way into the sea and get into the stomachs of marine life, killing them slowly. What’s more? Once a seal dies after consuming plastic, the seal is scavenged or it decomposes. But the plastic lodged in its stomach resurfaces again and poses the same threat to other marine life forms. It is the same on land too. So, one plastic sheet or cover can keep killing innocent animals until it decomposes.

And guess what? Plastic takes over 500 years to decompose.

In order to look out for the welfare of our species and the others that inhabit this planet, we need to look for viable alternatives to plastics, styrofoam, cardboard, and paper used in the supply chain process.

Enter Green Packaging

As the name suggests, Green Packaging involves the use of eco-friendly packaging materials that pose no (or little) threat to the environment.

Green packaging is sustainable packaging that uses biodegradable materials and energy efficient manufacturing methods for the packaging of goods. It has minimal impact on both energy consumption and the environment.

The Why of Green Packaging

Being responsible world citizens, we are duty-bound to reduce our carbon footprint and figure out a way to slowly eliminate plastic from our systems.

The first and foremost reason to embrace green packaging is that it is the right thing to do. You save the earth through meaningful efforts. Moreover, when you do the right thing, you build your reputation. Businesses seek reputed partners to work with. Governments give brownie points, tax breaks, and more to companies that work on reducing their carbon footprint.

Beside that, 85% of consumers seem to want packaging that is recyclable or reusable!

Alternate Materials

As they say, necessity is the mother of invention. Figuring out alternate sources to the ones currently in use is an ongoing process spanning several decades.

Green packaging eliminates contaminants and chemicals that destroy the water, soil, and atmosphere. This is possible through biodegradable and recyclable packaging like returnable and reusable crates for beer and wine.

Green packaging, as a practice, also includes lower packaging content. This philosophy encourages the use of alternate renewable energy sources in supply-chain processes.

Some of the green packaging materials used today are:

Biodegradable plastics
Plant-based plastics
Recycled products
Post-consumer recycled polyethylene bags made from recycled waste
Recycled moulded packaging for eggs

Starch-derived PLA (lactic acid) is 90 percent biodegradable within 9 months when subjected to industrial composting processes. It is made out of sugar cane, potatoes, corn, or other starch-rich plants. PLA is a great alternative to plastics as plant starch decomposes with little external help.

Adding OXO and BIO additives to packaging material: OXO and BIO additives can expedite the decomposing process of packaging material.

What should your business avoid in green packaging concepts?

Plastics made from polyethylene
Styrofoam
Multi-layered packaging
polystyrene
Fossil fuel energy

Several retailers are now exploring sugarcane waste and hemp packaging. Bagasse is a by-product from sugarcane production all over Asia. After sugar is extracted, the waste is turned into pulp and pressed into plates, bowls and boxes. Bagasse has high cellulose and is very stable, heat resistant and moisture resistant.

Hemp (yes you read it right), is a good source of bio plastics. While hemp brings in concerns and is outlawed in some regions due to its CBD content, it can be a saviour when it comes to green packaging.

Industrial hemp, a variety of cannabis that has less than 0.3 percent of THC, is a good raw material for bioplastics. It is an easy-to-maintain plant that absorbs carbon dioxide and grows rapidly (which makes it a renewable resource).

Organizations That are Doing Their Bit

The bigwigs haven’t been sitting this one out.

Some of them have rolled up their sleeves and braved the murky plastic-infested waters of packaging to do their bit.

Governments offer subsidies to organizations that practise and promote green packaging. To make use of these schemes, to save the planet, and to promote themselves as champions of a good cause, organizations leave no stone unearthed in coming up with innovative methods of packaging.

McDonald’s plans to achieve 100% all fiber-based packaging from recycled or certified sources by 2020.

Logistic companies like FedEx and UPS have their own green initiatives. The best thing about one company going green in a competitive sector is that others follow suit rapidly. UPS and FedEx had committed to reduce emissions from their airlines by 20 percent between 2005 and 2020. It’s safe to say both companies are well on their way to go beyond the set target!

Carriers like UPS have become increasingly eco-conscious.

DHL offers a carbon report through its Go Green Initiative. It maps emissions generated from transportation within the DHL network. When you use DHL as your primary carrier, you can view these reports on monthly, quarterly, or yearly basis and bring down your carbon footprint accordingly.

In China, Alibaba and L’Oreal have teamed up to come up with a green packaging strategy for all of L’Oreal’s products. Several other beauty brands are expected to follow suit. Studies reveal that consumers are willing to pay more for a product that encapsulates green principles.

Giants like Unilever are also stepping up to do their bit. Partnering with recycling leader Terracycle, the brand is testing out a packaging model named Loop that uses reusable packaging made from aluminium and glass. REN skin care, Love Beauty and Planet, and Seventh Generation will be some of the brands in this trial. Some of the other big names who have currently signed up with Terracycle’s Loop include Procter & Gamble, Nestle, PepsiCo, Mars, Clorox, Coca Cola, Carrefour, and UPS.

Fast fashion retailer ASOS is also looking to go green in the near future by having customers return their packaging so that their next order can be packaged in the same one.

What You Can Do As a Business

The supply chain, as we know, encompasses everything from sourcing to sale. Every link in the chain has its share in the carbon footprint.

Resize packaging to fit the contents. Many studies indicate that conventional packages are far bigger than the required size.
Wherever possible, use 100% PCW paper and recycled plastic.
Recycle boxes and packaging material you receive in shipments. Among things you can recycle are plastic lids, packaging cushions, air pillows, and beads.
Label packaging material so that people know what goes into a landfill and what goes into a recycler.
Work on a standardised Recycling-Reusing plan that is understood throughout your supply chain. This can be built into a process that facilitates reuse and recycle in a more efficient manner across businesses.
Try alternatives like Scoby (which is produced like Kombucha) when it comes to packaging food stuff or fresh produce. It can be grown quite easily in two weeks.
Sign up with a green partner who will help you through all aspects of the supply chain including green packaging methods. They will also help you promote your eco-conscious efforts.

Going green is not something we can achieve in a day or a month or even a year. We have years of pollution to unravel before we make a positive impact on the environment. But every single step counts. No matter how small a step, it is your contribution to the cause that matters. What we cannot do alone, we certainly can together. Here’s to a better future that begins with green packaging.

A Little about LateShipment.com

Do you have a strategy when it comes to handling parcel delays and driving more meaningful customer engagement in the last-mile? We at LateShipment.com work hard to make “parcel shipping & delivery” transparent and help businesses be fully in control of their last-mile success.

Some of our high-impact offerings are:

Automating refund claims from your shipping carriers for service failures to help you save money on shipping.
Giving you full control over delivery delays that harm your brand and sales. You can now predict parcel delays and even fix them by keeping customers informed.
Reporting at every stage of “shipping & delivery” to enable you with critical supply-chain insights.

The value we add to businesses is most evident when experienced first-hand. Learn more about our solution here.

The post Green Packaging: The What, Why, & How appeared first on Lateshipment.com.

7 Valuable Shipping Tips for Small Businesses

Rohan Rinaldo Felix — Wed, 13 Mar 2019 06:41:57 +0000

Are you a small business owner? Do you ship? Do some parts of the process totally frustrate you?

If you are tired of all the opaqueness associated with the shipping process and you just want things to be simpler, I’m here to help. I’m as tired of the machinations of the shipping industry as you are.

One area which many small business owners struggle with is DIM weight.

1. Understand how DIM weight works

Unless you ship using USPS flat-rate boxes, you are going to have to deal with the concept of dimensional weight. This can be be a little confusing for those new to shipping. Dimensional weight (or volumetric weight) was introduced because light-weight, low-density packages had become unprofitable for shipping carriers due to the amount of space they occupied in relation to their weight.

DIM weight is calculated based on the formula:

Dimensional Weight = (Length x Height x Width) / DIM factor

The DIM factor is a number that can change from carrier to carrier.

The implication of dimensional weight has been that shipping packages has become more expensive. It is therefore important for you to ensure that you use the right amount and type of packaging to save on costs.

If the concept of DIM weight daunts you, worry not! Major carriers like FedEx and UPS have dedicated DIM weight calculation tools.

2. Don’t forget to negotiate with your shipping carrier (you actually can)

Many small businesses fail to realize that shipping rates are negotiable.

Don’t just settle for the rate your carrier charges you. Do a thorough comparison of the rates various carriers offer before settling in on a carrier, and then negotiate.

Of course, the actual process of negotiation will differ from carrier to carrier, but this is the basic way you need to go about things.

You could also consider using multiple carriers to fulfill your shipping needs. This way, you will end up getting the best deal each carrier has to offer for your needs. For instance, you could use one carrier for domestic shipments and the other for cross-border shipments.

3. Make sure to include the cost of shipping in the final bill

This is something many small businesses overlook. Explicitly state and include the cost of shipping on the billing page. If you don’t, the burden of paying for shipping will fall on you. Another thing that is possible is that the customer will be required to pay for shipping on delivery. This can lead to a bad delivery experience, and the customer may choose to not buy from you again.

Also, if the shipping price varies from region to region or you plan on shipping internationally, make sure you include the relevant rates on the billing page.

4. Audit your shipping invoices regularly

Many small e-commerce businesses seldom do this. And what is the outcome? They end up losing a lot of money.

The thing is, shipping carriers mess up with their billing from time-to-time. Unless you audited your shipments, you would never know. Regularly auditing your shipping invoices helps you evaluate the service you are receiving. This can help you get your carrier to improve the quality of their service and also be a negotiating tool.

Auditing can be a pain if done manually, but there are automated options to make your life easier. LateShipment.com is one of them. Check us out. We’re waiting.

Auditing shipments gives you the opportunity to claim refunds for service failures. What are service failures, you ask? Let me explain.

Service failures are when shipping carriers mess up. There are over 50 service failure types. Some of the easy ones to identify are late deliveries, products damaged on delivery, and lost packages.

When shipping carriers mess up, they owe you money. But they don’t just own up and hand over the money to you. By design, they have a complicated process by which you need to apply for refunds within a particular time period.

Thankfully, you can be at ease using automated services like ours which track your shipments and watch out for service failures. We get your refunds for you and credit them back into your account. How cool is that?

5. Track your orders in real time

Manually tracking multiple orders in real time can be cumbersome. It’s a hassle to enter the tracking number of every single package you’ve dispatched into the portal of your shipping carrier to determine status.

A service like Pulse can help you in this regard. Pulse is a free service that is part of our offering. It works with all your shipping carriers to give you real-time updates on the status of your deliveries. It provides a great deal of insight into the shipping process, so you can stay ahead of delays or inform your customers about them. This way, you can ensure customer satisfaction regardless of the issues that occur during shipping.

A view of the Pulse Dashboard

6. Be an early adopter of technology

Stay informed of the latest tech trends affecting shipping. Be an early adopter of technology. This will give you an advantage over your competitors and also help you stay on top of challenges associated with tracking and auditing shipments. Scaling becomes easier when you move to an tech-driven process.

Automation is already beginning to play a big role in the shipping industry. Automated parcel auditing and shipment tracking is a growing industry in and of itself. Automation in these areas helps free up valuable human resources so that core business areas can be given the attention they require.

7. Package well enough to avoid damage

This may seem like a no-brainer, but a lot of damage is possible in transit. Your parcel will undergo a lot of stress during the shipping process. It is one among thousands of others that require shipping. In most cases, those who handle it will not give it special consideration.

Many young businesses fail to factor this when packaging their products. The amount of shock absorbent material required to protect your product is probably more than you might imagine.

Be generous rather than frugal with the amount of protective packaging you use. You will not regret it. The last thing any small business owner wants to hear from their customer is that the product shipped was damaged when received.

A Little about LateShipment.com

Some of our high-impact offerings are:

Automating refund claims from your shipping carriers for service failures to help you save money on shipping.
Giving you full control over delivery delays that harm your brand and sales. You can now predict parcel delays and even fix them by keeping customers informed.
Reporting at every stage of “shipping & delivery” to enable you with critical supply-chain insights.

The value we add to businesses is most evident when experienced first-hand. Learn more about our solution here.

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The post 7 Valuable Shipping Tips for Small Businesses appeared first on Lateshipment.com.