10 Signs It’s Time To Rethink Your Shipping Strategy
Shipping effectively is one of the most complex aspects of online selling, and a topic we focus on frequently here at Merchant Maverick. With so many variables affecting shipping, it can be difficult to know where your business stands. You could be missing out on valuable opportunities for savings or faster shipping without even knowing!
To help reveal some of these potential blind spots, we’ve compiled a list of 10 red-flag indicators. It may be time to rethink your shipping strategy if…
Table of Contents
- 1. You Have Not Reevaluated Your Shipping Strategy Within The Past Year
- 2. You Use Only One Shipping Carrier
- 3. You Don’t Use Shipping Software
- 4. You Don’t Give Your Customers Options
- 5. You Don’t Get Packaging Materials For Free
- 6. Customers Complain About Late Packages
- 7. You’ve Never Heard Of Last Mile Delivery
- 8. You “Wing It” When It Comes To Return Shipping
- 9. You Don’t Include Branded & Promotional Inserts
- 10. You Spend Too Much Time Filling Orders
- Final Thoughts
1. You Have Not Reevaluated Your Shipping Strategy Within The Past Year
Shipping rates change as often as teen fashion. If you aren’t up to date on the most recent pricing adjustments, your dollars may be flying right out the door.
And shipping rates aren’t the only elements in flux. Very likely, your fulfillment trends are changing frequently as well. Your customer base and shipping volume will vary from year to year. You may now have more international customers than you did in 2016, and you may be shipping larger items than in previous years.
A shipping strategy is not something you can set and forget. Much like your annual budget, your shipping strategy is something that should be monitored and reconsidered regularly.
If it’s been a year (or more) since you last considered your shipping methods, now is the time to look again!
2. You Use Only One Shipping Carrier
Variety is the spice of life, but it’s also the key to success when it comes to shipping. What one shipping carrier does poorly, another does well. If you sell products in multiple dimensions and weights (and most merchants do), you should be using at least two shipping carriers in your fulfillment process.
The main three shipping carriers are USPS, UPS, and FedEx, and every one has its own strengths and weaknesses. In fact, we’ve written an entire article describing the pros and cons of each carrier. Take a look at that article for more information or view a very brief summary of each carrier’s best qualities below.
USPS: Cheapest Option For Small & Light Packages
The USPS (US Postal Service) is without a doubt the cheapest option for merchants selling small and light products. If your packages weight less than two pounds, USPS will likely ship for the lowest rates — and if packages are lighter than 13 ounces, USPS simply can’t be beat.
UPS: Guaranteed Express Shipping
If you’re an Amazon Prime user, you may have noticed that many two-day shipments are delivered by UPS. That’s because UPS provides dependable, fast shipping with advanced tracking services. If you need to get a package to your customer ASAP, UPS may be the way to go.
FedEx: Saturday Delivery
Unlike UPS, FedEx does not charge additional fees for Saturday delivery. It’s all part of their regular offerings. Delivering products to your customers two days early could be the edge your business needs.
For more detailed information about the pros and cons of each shipping service, take a look at our article: USPS, UPS, Or FedEx: Which Shipping Carrier Is Best?
3. You Don’t Use Shipping Software
If you’re already using two or more shipping carriers, you know that juggling multiple shipping rates can be difficult. Integrating with a robust shipping software can eliminate or diminish a few of the challenges that inevitably come with a diverse shipping strategy.
Shipping software programs, like Shipping Easy, ShipStation, Ordoro, and Stamps.com simplify the shipping process by running rates calculations for you. They also generate packing slips and shipping labels, which you can print in bulk.
What’s more, these software companies typically make arrangements with major shipping carriers to offer discounts on shipping rates. If you haven’t tried a shipping software yet, the discounts alone may be worth it.
Read our article, The Best Shipping Software Solutions For eCommerce Businesses, to learn more about which options may be right for your store.
4. You Don’t Give Your Customers Options
Customers love options. When it comes to shipping speed and price, you should provide customers with at least few different choices.
I recommend giving customers three options: free and slow; cheap and moderately paced (around 5-7 business days); and fast and expensive.
Not every merchant can offer free shipping to all their customers, but I recommend finding some way, however limited, to provide free shipping without breaking the bank. For example, you could try offering free shipping for purchases over a set amount or running free shipping promos. Test your options until you find something that works.
By giving your customers choices, you decrease the risk of cart abandonment. You won’t scare away customers who would rather wait a few days than pay for expedited shipping, and you won’t frustrate customers who need your products tomorrow.
5. You Don’t Get Packaging Materials For Free
If you purchase all of your shipping materials, you could be missing out on big savings.
Many merchants are unaware that the USPS offers free boxes and envelopes to their customers. You can order these packing materials and have them delivered to your warehouse. Keep in mind that these boxes are intended to be used for USPS’s Priority Mail. So, if you’re going to be using these free packaging materials, you should also be shipping via Priority Mail.
If you’re really trying to save a buck and you don’t mind getting your hands a little dirty, you can take a dumpster diving approach. Contact local brick-and-mortar businesses and ask if you can raid their recycling bin. Retail stores get rid of loads of cardboard and filler material every week, and they might not be opposed to you repurposing some of that waste.
Be creative, and you will find ways to save on the everyday aspects of shipping!
6. Customers Complain About Late Packages
This one is a no-brainer. If customers aren’t receiving their purchases on time, something needs to be done.
Start by considering your order processing system. How long does it take to get an order packaged, labeled, and out the door? Is there anything you can do to streamline that process?
Next, revisit your site’s shipping promises to make sure they’re in line with what shipping carriers can reasonably deliver. Only advertise delivery times that you can guarantee.
If the fault for your delivery delays lies with your shipping carriers, you should consider signing up with 71lbs. 71lbs will automatically file for shipping refunds on FedEx and UPS packages that are delivered even one minute late. This could amount to big bucks for you, which may redeem some of the damage done by late shipments.
7. You’ve Never Heard Of Last Mile Delivery
With last mile delivery, your packages ship first with a private carrier (UPS or FedEx) until they reach your customer’s local post office. The USPS handles the delivery from there.
Letting the USPS handle the last mile of your deliveries will add an extra day or so to your delivery time, but it will also eliminate the residential surcharges that you would have incurred with UPS and FedEx.
You will have to determine for yourself whether an extra day’s delay in shipping is worth the savings. Either way, just being aware of the option is a step in the right direction.
8. You “Wing It” When It Comes To Return Shipping
You work hard to sell your products, so it’s discouraging when customers change their minds about their purchases. Unfortunately, no matter how good your product descriptions and images are, you will always be faced with customers who simply don’t want your products after they’ve been delivered.
With a return rate as high as 20% for apparel and soft good (up to 30% during the holidays!), returns are inevitable. So when it comes to managing returns, failing to plan is planning to fail.
Create a refund policy early on and make that policy very clear. Put it on your FAQs page, on every product page, and on your checkout page.
If you have chosen to offer free refunds, one strategy you may consider is including pre-printed return labels with your shipments. Your customers will simply attach these labels to their returns and drop them off at a nearby carrier office. You will only be charged for these shipping labels when they are scanned.
If you’d prefer not to make returns quite so available to your customers, you can also offer free (or paid) return labels through email when requested.
Regardless, you should have a set plan for returns, rather than scrambling every time the issue arises.
9. You Don’t Include Branded & Promotional Inserts
The way you choose to package your products says a lot about your brand. eCommerce marketers refer to this branding as the “unboxing experience,” and you want your brand to shine as your customers receive their orders.
However, for many sellers, the expense of custom boxes and luxurious filler material is simply too much to justify. If this is you, you may consider instead including a few branded inserts in your packages.
This is your opportunity to communicate with your customers away from a computer screen. Send thank you notes, promotional inserts, or small gifts in every package. Engage with your customers in a more personal way by giving them a tangible piece of your brand.
10. You Spend Too Much Time Filling Orders
Your main job should be managing your business, not filling orders. So, if you spend a large portion of your time packaging and shipping orders, now is a good time to reevaluate your shipping strategy.
Consider integrating with a solid shipping software program and/or hiring additional help to tackle that overwhelming number of orders. Just one extra person working a few hours each week can free you up to take care of more important things, like actually running an online store.
If you’ve tried all of that already and you’re still swimming in packing peanuts, it may be time to go one step further. Look into outsourcing your fulfillment with a professional logistics company. These fulfillment services will store, package, and ship your products. What’s more, they’ll handle all aspects of customer service pertaining to shipping. Of course, convenience comes at a cost, so be sure to weigh the pros and cons of these services as you make your decision.
Take a look at our article, Learn To Delegate: What It Means To Outsource Your Fulfillment, to learn more.
Do you resonate with any of the statements above? If so, it’s time to dive back into your business plan and rethink how you do fulfillment. Simplify, streamline, and save!