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Understand Your Shipping Options and WIN at eCommerce!

 

Understand Your Shipping Options and WIN at eCommerce!

 

One of the biggest mistakes an online retailer can make is to not make sure that you have a competent shipping policy in place. Take the time to research the best and most effective, but not necessarily the cheapest, shipping options for your business. With a good shipping policy in place, your shipments will be on time and within a cost effective price point. You will be able to maximize profits as well as keep your customers happy. It will help in the short and long runs and propel your online business to new heights.

 

Cheap Shipping Isn’t Always the Best Shipping!

When pricing your products and allocating your shipping budget, don’t always go for the cheapest shipping tier. Cheapest isn’t always best when it comes to shipping. Cheap shipping will, eventually, get your product delivery delayed to your customer and maybe even lost!
If your products are sometimes getting delayed and lost, but your competitors’ are always on time, then your competitor has won!

To get ahead of your competitors, formulate a competent shipping policy. Think about these points. They were a big help to our customers when thinking about a shipping policy.

 

Packaging Plays a Big Role in eCommerce

Have you heard of the term ‘dimensional weight’, also called DIM weight? What is DIM weight? It is calculated by multiplying Length X Width X Height and the resultant number is divided by the Dimensional Factor, usually 166 for Domestic and 139 for International.

The DIM weight would determine the package density, i.e. how much volume it would occupy during shipping. It is important to make sure that the packaging of a product is not too big. It should be almost as small as the product but enough to be shipped safely to the customer.

A product that weighs just 2 pounds, could have a dimensional weight of 10 pounds. So, a shipper will bill it at 10 pounds. It’s important to know the ins and outs of DIM weight Shipping.

Also, dont forget about packing materials. They should not add too much to the final packaging’s weight. If your product weighs more than the DIM weight, then shippers will bill the heavier weight.

Related: Manage UPS and FedEx Dimensional Weight Pricing Like a Boss!

 

Minimize Returns and Exchanges

If your rate of Returns and Exchanges if high, it may increase your shipping costs quite a bit as products have to be returned to you and then replacement new product has to be shipped out again. Ensure that your product descriptions are correct and accurate. If you sell clothing or footwear, ensure sizes of your products conform to industry standards. If your sizing is different, display it clearly and prominently. Product images should be of high resolution so that your customers know exactly what they are getting. These points minimize returns and exchanges.

It is also very important to ensure that shipping addresses are correct. That will save you time and money as shippers levy surcharges for address corrections. Some shippers also offer an address correction or verification service for a fee. That helps to reduce returns because of bad address and in turn reduces shipping costs.

Related: 3 Tips for Better Returns and Exchanges

 

What Shipping Options do your Competitors offer?

It is important to know what your competitors offer for shipping options in their online stores. That will help you in formulating a sound shipping policy that will help keep shipping costs low. Free shipping is the best option, but your product price point may not allow that. Cheap, standard ground shipping is a good option too as it is cheap, but it takes time and there are tendencies for delays.

Also, some customers do not like to wait for 3 to 5 days ground shipping for their product. So, you may have to offer flexible shipping; fast shipping for those who are willing to pay for it, and standard shipping for those who don’t mind waiting.

Free shipping can somewhat be built into the price of your product, if that is how your particular industry operates, but you risk over-pricing your product. If your competition provides free shipping for all, then you may have to think seriously about it. You could offer free shipping for limited periods or above a certain checkout amount.

Another way would be to find a shipping advantage that could lower your fulfillment costs. Many eCommerce businesses partner with a Third Party Logistics company like Xipix Logistix to help them with Order Fulfillment.

Related: Save Money on Shipping with FedEx, DHL, USPS and UPS

 

How Can Xipix Logistix Help eCommerce Retailers Save on Shipping?

At Xipix Logistix, we strongly believe in the benefits of mixing and matching shipping services so that our customers have the best, most cost effective shipping service possible. We ship thousands of products daily for many of our clients and we get good discounts from shippers. Therefore, we get an even bigger volume shipping discount and our negotiated rates with UPS and FedEx are much lower than what any one eCommerce retailer could get.

So, by passing on these cost savings to all of our clients (YES, We Pass the Savings on to ALL of Our Clients), we help them save money on shipping. And we can provide you boxes for shipping! Again, we get bulk discounts on boxes and we can pass on the savings to our clients.

Order Fulfillment Free TrialWe have an Order Fulfillment Free Trial offer that you can try with no obligation. You send us a portion of your inventory and then experience how our straightforward receiving process works. We then do all the work of shopping cart integration, Excellent Customer Service, and Fulfillment. After 30 days, you get to evaluate us with detailed reporting and make your final decision. Click here to read more about our Free Trial Offer.

 

Contact Us to find out how we can start helping you save money on shipping as well as other areas of eCommerce like Managing Your Customer Service, Kitting and Assembly and Convention Logistics.

 

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