Chat with us, powered by LiveChat

This website uses cookies

Our website, platform and/or any sub domains use cookies to understand how you use our services, and to improve both your experience and our marketing relevance.

Ecommerce Shipping Guide: Cost Calculations, Strategies, Methods, and Best Practices

August 9, 2019

8 Min Read
Ecommerce Shipping
Reading Time: 8 minutes

“It takes 20 years to build your brand’s reputation but only five minutes to ruin it. When you think about that, you’ll start doing things differently.” – Warren Buffet

Creating a flawless user experience is – and must be – the utmost priority of every ecommerce business. Unlike high-resolution images, faster loading pages, or email marketing campaigns which help in building a seamless customer experience, ecommerce shipping may put you in a pickle.

Importance of Ecommerce Shipping

Shipping is a significant factor that directly impacts the reputation of your ecommerce business. Do you know that according to Shipbob, 60% of customers tend to buy from ecommerce companies that are able to offer them easy and convenient shipping solutions?

When you dispatch the goods, your customers will experience your shipping. Their experience will either generate a positive word of mouth, or a negative one, you must avoid the second one at all costs.

Shipbob research shows that negative shipping experiences have forced 38% of online customers never to purchase from the same store again. So, don’t lose your customers!

To avoid the negativity, you must understand ecommerce shipping best practices and follow them rigorously in your entrepreneurial journey.

Best Ecommerce Shipping Tips

1. Clarity is Key!

You may not believe it, but simplicity works like a charm. Your first and foremost ecommerce shipping tactic must be to provide crystal clear information when it comes to your order fulfillment criteria and your shipping policies.

This is the basic necessity to establish a seamless ecommerce shipping experience. You must pen down any information that concerns your shipping policies and pin it onto your website for your customers so they know exactly what to expect from you.

One example to demonstrate this strategy is to clearly mention when you’re charging your customers a sum for shipping. Also, if you’re not charging any shipping fee, then this must be the first thing your customers should see on your product’s landing page.

2. Hire the Right Team

As clichéd as it sounds, having the right team has become a core competency attribute for many organizations across the globe. Therefore, you must recruit the best team to enhance the shipping experience you wish to provide to your customers.

For instance, you need a team of experts who can handle the marketing of your shipping. They must be able to develop strategies to inform customers about your shipping promotions such as flat rate shipping or free shipping.

They are responsible to attract relevant audience onto your ecommerce store. Thus, what you must ensure is how your marketing team is spreading the word that reaches the right audience, for instance, what media or tools will they use?

On the other hand, you will want to build a team that is solely responsible for fulfilling customer orders successfully. Their primary responsibility will be to ensure the orders are being appropriately packed and shipped to the right person at the right time.

3. Weight Matters

Efficiency is paramount when it comes to staying ahead of your competitors. Therefore, to establish a smooth and efficient system, you must make it your top priority to continuously update the weight of your products.

You must be wondering why this particular ecommerce strategy is effective as far as ecommerce shipping is concerned? For starters, this will allow you to get a firm grip onto the costs of your products. Also, you will be able to determine the right shipping costs to charge your customers which creates a significant line between you and your competitors.

For example, renowned courier companies like DHL or FedEx have an updated list of shipping costs based on the weight of the product(s). It states the minimum shipping cost against the minimum weight, as well as the additional shipping cost which may increase with the increase in the shipping weight.

4. Same Day Delivery

According to Shipbob, 61% of customers are willing to pay an extra few bucks if ecommerce businesses can ship their products on the very same day? It can be daunting for some ecommerce entrepreneurs however it’s not impossible.

One of the biggest challenges of delivering on the same day is having reliable courier carriers. The better your courier carrying agents are, the better service they can provide to your customers.

These courier carrying retailers use software that allows customers to track the progress of their order. It streamlines your business operations and maximizes the level of your customer satisfaction.

Regardless, it’s much more challenging for smaller businesses to handle same-day deliveries. Many are unable to manage their inventory, and the inability to plan or lack of information makes it much harder to deliver on the same day. But, if you streamline your processes, coordinate with resources, manage inventory, and maintain excellent relationships with courier companies, same-day deliveries are possible!

5. Overnight Shipping

This overnight shipping method ensures customers that they will receive their product the very next business day. The two-day shipping benchmark has been drafted by Amazon Prime. Overnight shipping may not be your cup of tea, as you may not be a giant like Amazon or AliExpress. But if you can manage it, many courier agents offer different prices for overnight deliveries.

It’s not just about getting the shipment delivered on time. It’s also about the correct packaging for sensitive products, and the right labeling that would ensure the product reaches its destination safely. This not only helps your business run efficiently but also increases your credibility.

Moreover, providing the best customer service today is what will make your business stand out in an ocean of ecommerce businesses, and therefore you must treat your customers right, but most importantly supply them with goods and services on time.

Ecommerce Shipping Costs

Several factors affect ecommerce shipping costs such as package dimensions, weight, shipping zones, stopover or transits, the shipping carrier used as well as the value of content.

Other factors may include the location of your business, whether you’re shipping a local consignment or it’s an international shipping. If your variables include other shipping options such as tracking or insurance, then again the rates may significantly differ for you. You must consider all these factors when calculating your shipping costs.

What you also need to understand is that ecommerce shipping budget can take up a considerable amount of your time. Therefore, what you must be ‘street smart’. It is extremely important that you do your homework so that you don’t wind up losing all your money on shipping. Therefore, you must carefully choose which costs will you bear.

Below is a list of the shipping calculators by some of the most popular ecommerce shipping couriers so that you can compare shipping costs without hassle.

Ecommerce Shipping Methods & Rates

It’s important to build a definite and well-defined shipping strategy. The process of order fulfillment and shipping can become complex if you’re not familiar with ecommerce shipping methods. Henceforth, here’s an overview of the best shipping methods for your business.

1. Free Shipping

One of the best ecommerce shipping methods that attracts customers is free shipping! However, the reality is that ecommerce shipping is a cost that has to be borne by either the company or the customer. It’s never actually ‘free’.

So, what are your options that can help you make shipping free for your customers?

  • Raise the cost of your product so that your customers pay the shipping cost indirectly without knowing it.
  • Pay the shipping costs from your own pocket, precisely from your profit margins.
  • Balance the price of your products in such a way that the shipping cost is borne partially by both the customer and you.

Bonus Tip: Offer your loyal customers with free shipping services.

2. Flat Rate Shipping

Many ecommerce companies prefer and use diverse shipping rate structures when charging respective customers. One amongst them is Flat Rate Shipping.

When ecommerce shipping carriers charge their customers a fixed shipping amount, it’s called flat rate shipping. Some charge a flat rate shipping fee on all orders, whereas some ecommerce businesses charge a flat rate shipping fee against orders that come under a particular weight range, order worth, or any other categorization.

The flip side of this particular shipping method is that you must be aware of the numbers at all times. Some orders may fully cover the shipping costs under the flat rate shipping category however, in comparison, other orders may not cover the shipping cost under this category.

3. Real-Time Carrier Rates

The real-time carrier rates are sometimes displayed at the checkout by ecommerce businesses. It is an effective ecommerce shipping plan to charge real-time carrier charges from your customers. How so? Well, this strategy helps to get the exact shipping rate based on the customer’s destination and delivery choices. It allows the ecommerce shipping companies to charge customers precisely the amount it costs the business to ship the order.

Ecommerce Packaging

If we time travel back to a few years where online shopping had just laid its roots into this world, it was more about receiving the product you have ordered rather than its presentation.

Fast forward to 2019, expectations of customers have risen since they not only expect the shipment to be on time, but also want the packaging to speak for the product itself. Therefore, remember these few pointers for your ecommerce shipments:

1. Choose your packaging wisely

Ideas for ecommerce packaging are endless for ecommerce shipping companies, however it also depends on your product and its shape. Other considerable factors are how heavy the product is or how fragile it is. You must make a decision about your packaging accordingly.

2. Eco-Friendly Packaging

Environmental Protection Agency has stated that packaging takes up around 1/3rd of waste that is available within homes. This is the 21st century and people are becoming more aware of choosing to buy products from those ecommerce companies that use eco-friendly packaging.

Therefore, it will be a wise practice for you to choose eco-friendly packaging and give the customer what they want, alongside creating a better world for everyone.

3. Keep It Simple

You must keep your packaging as simple and as light as possible. Simply because the calculation of most of your shipping costs depends on your product weight or its size. You must also accurately inform your associated ecommerce shipping companies. Therefore, it’s better to work on these little details to save money.

Ecommerce Shipping Solutions

Data is key when handling ecommerce shipping operations because that is what will set you apart from your competitors. There are a large number of shipping solutions available at your disposal. These include:

#1 USPS

USPS is one of the most convenient options if you are looking for an economical ecommerce shipping company in the USA. It is a trusted shipping carrier and is used by many ecommerce businesses who sell their products in the USA.

#2 FedEx

FedEx is one of the most renowned names in the ecommerce shipping industry. They offer various delivery options for ecommerce merchants as well as different prices to choose from.

FedEx has a special program – FedEx Small Business; that caters to the needs of all those ecommerce merchants who are looking for easy shipping solutions.

#3 UPS

The United Parcel Service (UPS) following the footsteps of FedEx, also offers a program that caters to the needs of small ecommerce businesses who want convenient shipping solutions. They can manage the returns effectively and also specialize in covering a large number of shipping zones.

#4 DHL

DHL – an international shipping courier whose brand reputation speaks for itself, provides services all around the world. They are quite popular for their tremendous customer service, however, it can be costly for fresh ecommerce entrepreneurs. You can calculate its prices through its Rate Quota and transit tool.

#5 Shopping Easy

Shipping easy is yet another name that provides easy ecommerce shipping solutions to small and medium-sized businesses. They have an extremely friendly user interface for their clients and provide economical rates to their customers.

Ecommerce Shipping Best Practices

Utilizing the best practices for ecommerce shipping is essential. Not just because it inevitably leads your business to success, but also because it allows you to stand out in the limelight in a crowd of millions of competitors. In simple terms, it grants you the power to change the game for good.

Before we proceed, you must know that nearly 60% of online shoppers actually refuse to buy from ecommerce stores that offer unexpectedly higher costs than the customer had anticipated. Henceforth;

  • Indicate your shipping options as clearly as possible. It is essential to highlight the significant elements of your product alongside its shipping options, as well as your shipping policies for the customers so that they know precisely what they’re dealing with.
  • You must convey the importance of ecommerce shipping to your team so that they can handle customer concerns effectively, and take actions accordingly.
  • Set clear and realistic business goals for yourself. What you are aiming for? Do you want to expand your shipping operations internationally, or you simply wish to generate more profits? Clarity will allow you to streamline your shipping operations with ease and come up with a profitable ecommerce shipping strategy.

By and Large,

Ecommerce shipping demands proper planning and strategies so that your business can taste success with minimum effort. It has its challenges which require you to work hard so that you can streamline your process effectively.

What you must understand is that setting up the right ecommerce shipping business takes time, so keep experimenting and fine-tuning your strategies. It’s not necessary what’s working for your competitors may work for you too. You know what’s best for your business in particular, so act accordingly.

You must ensure that you provide your shipping services via reliable shipping carriers. It creates a whole lot of difference. Your product and service may be top-notch, however, if your customers don’t receive the goods on time or if they receive damaged goods, it directly impacts their shopping experience, and consequently, affects your profits.

Share your opinion in the comment section. COMMENT NOW

Share This Article

Convert Traffic into Buyers with Managed Ecommerce Hosting

See your business grow without worrying about server management!

Reza Merchant

Reza Merchant is a Foodie by passion and a Digital Marketer by profession. He enjoys creating digital content for various platforms and aspires to be the change he wants to see in this world.

Get Our Newsletter
Be the first to get the latest updates and tutorials.

Do you like what you read?

Get the Latest Updates

Share Your Feedback

Please insert Content

Thank you for your feedback!

BFCM 2019