One of the most complicated and yet important parts of any ecommerce company is order fulfillment. While the process of shipping a product to a customer often seems like the end of the process, customers certainly don’t see it that way.
It’s not just about getting the order from point A to point B, it’s also about getting the order from point A to point B in a timeframe and price that works for both you and the customer.
If you think shipping options don’t matter, think again. According to a 2015 eCommerce survey, 66% of shoppers bought goods from one retailer in preference to another because the delivery services offered were more appealing.
So what are your options?
Basic Ecommerce Shipping Options
There are many different names for the different shipping options available to you: standard, priority, express, 2-day, overnight, first class, USPS, UPS, FedEx, DHL. The list goes on and on and it can be very confusing for you and your customers.
The United States Postal Service (USPS) delivers a majority of ecommerce orders in the United States. We have found the USPS to be the most reliable and economical which is why they are the primary delivery company that we work with.
The USPS offers both flat rate and variable shipping rate options. Flat rate shipping means if it fits, it ships and the size box determines how much it costs to ship it.
Other options are variable and they depend on the size and weight of the package. This is called dim weight. The price can also vary depending on where you send it as well. There are pros and cons to both options and it really depends on your product and what’s being shipped.
Shipping Methods
We offer a variety of shipping methods. Whether you want to offer all of these to your customer is really up to you. Having options is great but too many options can lead to confusion and analysis paralysis.
Most of the time customers just want to know which option is going to give them the most bang for their buck. They’re looking for an option that fits both their wallet and their timeline.
These are the most common shipping methods that our customers use.
- USPS First Class Mail (3-5 days)
- USPS Priority (2-3 days)
- USPS Express (1-2 days)
- UPS (1-5 days)
Ship Central is based in West Jordan, UT, 84081. This map shows the amount of time a USPS Priority Mail package takes to get delivered from our warehouse. The majority of the U.S. is two-day shipping, while there are a few remote pockets that take three days to get a package delivered.
Most of our customers ship orders within the United States which is why the above methods are the most popular. We do have customers that ship internationally as well though. That’s why we offer other alternative methods for whatever your needs.
- DHL eCommerce for international shipments 4 lbs. or less (6-15 days)
- DHL Express
- Freight/Trucking/LTL (a.k.a. less than truckload)
Who Should Pay for Shipping?
There’s obviously no such thing as free shipping, someone has to pay for it! Unfortunately for small ecommerce startups, many customers demand cheap or free shipping. Thanks to Amazon Prime consumers have become accustomed to free 2-day shipping.
Anyone in the ecommerce industry knows the struggle of balancing shipping costs with the desire to please customers and try and turn a profit at the same time. Free shipping is sure to make attracting new customers easy but at what cost? On the other hand passing the full price of shipping on to customers will help your bottom line but it might stunt growth.
Here are a few options to think about:
- Offer free standard shipping (You Pay)
- Offer free shipping but increase your product prices (Customer Pays)
- Charge full price for shipping (Customer Pays)
- Charge a reduced price for shipping (Both Pay)
While offering free standard shipping all the time can be a great way to attract new customers there are some benefits for charging. Free shipping can be a great “carrot” so to speak when trying to entice customers to buy more in order to increase your average order value. Free shipping on orders over $XX is a proven method and might be an option you don’t want to dismiss.
The Takeaway
Offering different shipping options is extremely important in our very competitive ecommerce economy. It doesn’t have to be crazy expensive or complicated. At Ship Central Fulfillment we can help to simplify the process even further.
We specialize in ecommerce order fulfillment for small to mid-sized companies who are looking to grow and outsource areas of their business that don’t help them add value.
We would love to talk to you about shipping rates and options that would work best for you. Contact us today to set up a free consultation!