Bianca BarathThey want it free. They want it now! Online buyers are spoilt for choices. Retail giants such as Amazon and Walmart have made free shipping on every order an entitlement, not a perk.
Thankfully online buyers still consider next day delivery or two-day delivery, a premium service. However, with Prime’s next day delivery and Walmart’s same day in-store pickup option, even these turnaround times are become hygiene. While ecommerce stores could resort to either or both these strategies to match soaring customer expectations, each one of them is more challenging than the other.
Let’s break down those challenges:
Free Shipping
Free shipping could pose a major challenge to small and medium businesses, especially when they are working on slim profit margins. Should you continue to promote free shipping, hoping to recover your investment from the increased sales? Or should you slip in the shipping cost with the listed price ? or Should you let the buyer decide the shipping fee? Deciding on a shipping strategy could be tormenting. Here are a few tips:
Freemium: You could offer free shipping on high-value purchases or set a minimum purchase limit to be eligible for free shipping. This will ease the impact of shipping cost on your bottom line.
Free shipping during the holiday: Holiday season has been traditionally known to result in plummeting sales. Promoting free shipping will not only boost sales but also drive customers who wait till the last minute to make the purchases to your store.
Subscription Model: Advertising free shipping only for members is a great way of rewarding loyal customers and assured means to fostering a long-lasting relationship with new customers.
Fast Shipping
Fast shipping is bundled into delivering a unique last mile delivery experience for the customer. Domestic package deliveries longer than 5 business days is a passé’. To match the online customer experience with in-store shopping, retailers are opting to deliver the items next day or within 2 days. However, the catch is express shipping on every item can swell your shipping expend. Here are a few strategies that could help you cope:
Embracing new technology: Customers always want to know the exact location of their package, expected delivery time and reasons for potential delays. A real-time shipment tracking service that sends notifications to your customer whenever there is a detour in package delivery route is great way to engage your customers, post-purchase.
Choosing the right shipping carrier: Your shipping partner should be reliable and transparent. It is important to research thoroughly before choosing a carrier. Does this carrier deliver packages at the committed time? How are they factoring the fluctuating fuel prices? What assurance do they provide for safe delivery of packages? Mitigate the risk of handing over the last mile delivery experience to shipping carriers by agreeing on these terms upfront. Check out our blog on How To Choose The Right Shipping Carrier.
Strategic placement of distribution centers: The location of distribution centers has a huge impact on delivery deadlines. While building a centre, remember to take into account the package delivery points and customer base. Additionally, optimizing the order consolidation and packaging process helps in faster order fulfillment, delighting your customers.
Check out other related blogs:
5 factors to consider when choosing a shipping carrier.
Are you really getting a fair deal from your shipping carrier?