Consumers today expect an experience. Upon receiving that box, they want to be wowed. Customers will remember your brand and return when you have a strong shipping strategy.
If you are planning your shipping strategy, here are the most important things to remember.
An All-Important Branded Experience
Do you want to know how to lose a customer quickly?
Make their shipping experience miserable.
According to a study, 38% of consumers would only return to a retailer without a positive delivery experience. You can bleed money that way.
Your shipping process must be backed by superior customer service. Retailers must consider the branded experience, not just the package they deliver.
Acknowledging the order is the first step.
It is important to communicate with customers throughout the shipping process. Give your customers an update on their order and tell them as soon as possible if it will take longer than expected to deliver.
Your customers will also appreciate knowing exactly when to expect their package if you give them a tracking number order. Send them an email or text once their item has been delivered. People want their expensive purchases to stay on their doorstep for hours with their knowledge.
Nearly one-third of those surveyed in a 2017 Schorr package report had a package stolen. It's no wonder 53% of respondents changed their plans to be home to receive a package—even if they didn't have to sign for it.
Now your customer knows when their package will arrive.
Here's where you can reinforce your brand in a fun way. The unboxing experience should be awesome.
It's important to recognize that the unboxing experience is not just a part of your product's journey, but a significant element in shaping your brand's narrative. It should be given the same level of care and attention as your product design.
Build excitement, and - if you're lucky - you'll get some social shares.
Here are a couple of companies that have mastered the unboxing experience:
The Net-A-Porter
NET-A-PORTER is an online retailer of luxury fashion. You receive your NET-A-PORTER order. It comes in a standard brown corrugated cardboard box, but when you open it—wow! A high-end experience awaits you.
Upon opening the box, you will find A thank you card, a packing invoice, and a free return slip included.
The real wow factor is a black matte box with black and white ribbon. It is packaged in an understated manner that exudes class. A gift-like experience is what NET-PORTER excels at.
Aren't you impressed by what people say?
See how many videos pop up when you search for "NET-A-PORTER unboxing" on YouTube.
Crate of loot
Loot Crate uses its distinctive custom box instead of NET-A-PORTER's plain shipping box with a fancy box inside.
There is no mistaking the Loot Crate box on your front porch, with its logo emblazoned on the side.
The custom box also gives Loot Crate some free advertising.
Seeing the box on the front porch may pique passersby's interest enough to search for the company website after they get home.
Make Sure You Use The Right Packaging Supplies
Make sure you have all the packaging supplies you need on hand.
When those lucrative orders start rolling in, you want to save time looking for the right box.
The following packaging supplies are essential:
- Make sure your products will fit into boxes of varying sizes. To accommodate multiple orders, Even if all your items are the same size, you will need larger boxes.
- Ensure that the boxes are tightly sealed with packaging tape.
- Fill the void with tissue paper, bubble wrap, or biodegradable shipping peanuts.
- It could be stickers, thank you notes, coupons, etc.
- There is a packaging supply for every budget. Could you keep it simple or get fancy? Some supplies are even free from the USPS. When choosing them, consider your packaging supplies' main purpose - protecting your goods and promoting your brand.
Make Sure Your Goods Are Protected.
Packaging supplies serve only one purpose: ensuring your goods reach their destination safely.
There is nothing worse than opening a box full of broken pieces.
Packages can still be damaged during shipping.
What happened to a dented-up box during transit?
It likely went through a lot, depending on how far it had to travel. On top of heavy boxes, it may have been thrown onto a conveyor belt and into a truck.
The idea is clear.
It's a wonder anything arrives intact when some handlers are notoriously harsh with packages.
The following steps can help you protect your items:
- Make sure you use the box of the right size.
- The interior should be properly padded.
- Put fragile items on the stamp if you don't want this to end up. It's not a guarantee, but your package is more likely to be handled carefully.
- It's All About Looks.
In addition to the presentation, there are other factors to consider.
Getting noticed is what you want.
Your packaging offers many branding opportunities. You can accomplish this with custom shipping boxes printed on the side with your logo and company story, or go simple with tissue paper.
Remember to include labels and postage. A handwritten label may work well if you're starting or going for a folky vibe. For a professional look, use a label maker or an app.
Stamps.com and Shippo make applying proper postage and easy-to-read labels for your products easy, ensuring their safe arrival.
Learn How To Understand Shipping Variables.
The importance of presentation has been established.
This doesn't mean you should use crazy-shaped boxes or excessive padding.
It will only increase your shipping costs unnecessarily.
Understanding how shipping carriers determine their costs is crucial. Most companies use a term called dimensional weight.
A package's total volume is considered in addition to its weight. You want to use the smallest box possible without sacrificing product protection. Investing in a scale will also help you keep track of the package weight.
Shipping rates are also affected by location. USPS divides the country into zones. On their website, you can look up pricing by zip code.
Choosing the Right Shipping Company
There are different types of shipping carriers. Some shipping companies specialize in international shipping, while others specialize in close-to-home deliveries.
Check out these shipping calculators to get an idea of what major carriers charge:
- Calculate Shipping with USPS
- Calculator for UPS shipping
- Calculate your FedEx shipping costs
- Rate quote from DHL
The price should not be the only factor in your decision.
Your carrier's ability to deliver your packages quickly matters a lot. According to a study by Arvato, the delivery factor played an important role in the decision-making process for 53% of shoppers regarding whether to purchase.
According to the same study, one-quarter of shoppers canceled their orders when they discovered the delivery would take too long.
When you ship several products, consider business rates, which can be discounted. Also, check with the shipping company to ensure it offers package tracking. Consumers expect this service, so you may have to pay more.
Is Insurance Useful Or Wasteful?
It would help if you had life insurance - for example, medical or auto insurance.
The cost of insuring every item may not justify the effort involved in shipping. There is a good chance that not every package you ship will arrive damaged or go missing, but sooner or later, this will happen to some of them.
It is a numbers game when it comes to insurance.
Insurance coverage may even be included. Priority Mail Express, for instance, provides up to $100 coverage.
Would it be worth getting additional insurance if the item you're shipping is worth $110? It's unlikely.
However, you'll want additional insurance if the item costs $1,000. The amount of items you ship and their value will determine how much you charge.
Complications Associated With International Shipping
There are other variables to consider when shipping internationally.
Some countries require the recipient to pay customs and duties on the delivery. International customers should be warned that this is possible without your control. The last thing anyone wants is a nasty surprise.
It is also important to remember that some countries do not allow certain goods into their countries.
The USPS lists international restrictions in each country. Don't send those antlers to Azerbaijan.
Different Options For Fulfillment Should Be Considered.
Fulfillment needs will increase as your business grows.
Depending on how many orders you ship each day, you may be able to package goods in your garage and drive them to the nearest post office.
However, you must adjust your strategy once the orders start rolling in.
The following are three popular fulfillment options:
The merchant manages the inventory and packs up all orders in-house with self-fulfillment. Typically, businesses are starting to use this option.
Since you do everything yourself, self-fulfillment can be time-consuming. However, you are in total control. Once you have to juggle shipping out multiple orders every day with your other business duties, this option becomes more complicated.
It would help if you stayed organized. Provide a dedicated space for your packaging supplies. Remember to stock up on everything you need. Getting the right size box for shipping your items should be easy to carry around town.
As your inventory grows, you may need to hire someone to help, and you may also need some warehouse space and equipment.
Self-fulfillment is the best choice for a small company with a limited budget. On the other hand, it is the best choice for a large company. Have you ever heard of Amazon? It's a giant company that specializes in self-fulfillment.
You might want to consider outsourcing fulfillment if you have run out of space to store your products or if you're spending all of your time packaging.
They're experts at getting your goods packaged and out of the door safely because they work with many merchants. They can also offer discounted bulk shipping rates because they ship out many packages. Some companies can provide custom packaging and temperature control based on what you're selling.
When selecting a fulfillment warehouse, security and location are crucial. Proximity to airports and other shipping hubs provides assurance of efficient logistics and timely deliveries.
Drop-shipping merchants don't store or package their products. The products are manufactured, stored, and shipped by a manufacturer. The merchant never sees the items. The pros and cons of this are obvious.
With drop shipping, you don't have to worry about warehousing, boxing, or shipping your items, freeing up your sales time.
Moreover, drop shipping is a financially savvy choice. With low overhead costs and no worries about excess inventory, you're only charged when a sale is made, making it a cost-effective option for your business.
However, there are also drawbacks. First, there needs to be more quality control. Because you don't package your products, you must know what precautions your drop shipper takes to ensure safe and timely deliveries.
The customer will be disappointed in you when an item arrives broken and not at the drop shipper.
Additionally, drop shipping makes it difficult to establish your brand identity. As we discussed above, presentation is crucial. Unlike your branding efforts, drop shippers do not add all of the extra branding elements.
Who Should Pay For What
There is fierce competition in eCommerce, and customers have high expectations.
Shipments should be made as quickly as possible - and free of charge. No small part of this growth can be attributed to Amazon's phenomenal growth.
Of its products to about two-thirds of American households. No matter what you sell, you will likely have a competitor on Amazon.
Amazon's business model is only suitable for some companies. Your shipping prices must be competitive, but you must determine them yourself.
Consider these shipping pricing options:
- Make all your products available with free shipping. Many stores, such as Nordstrom and The Children's Place, now offer free shipping on all orders instead of requiring a minimum purchase.
- You can include some or all of your shipping costs in the item's price. Since this comes from your profit margin, it can get costly quickly. The best way to offer free shipping is to provide smaller and lighter goods in retail boxes that are in good condition.
- Offering free shipping to a store is another twist on free shipping. This only works if you also have a brick-and-mortar storefront.
- If you spend a certain amount, you can get free shipping. As a result, customers may spend more money. If I don't qualify for free shipping, I'll throw another small item into my virtual shopping cart.
- Provide a flat rate price. This works best when your products are similar in size and weight. However, a flat rate won't make sense if some items you're shipping are heavy and others are light. Those who buy inexpensive, light items must pay more to keep their business profitable.
- Offer free shipping as a promotion. If you give out free shipping coupons or codes, people will feel like they are getting something extra. Another option would be to offer free shopping around certain times, such as around Christmas. It will encourage shoppers not to dilly-dally with their purchases by imparting a sense of urgency.
- Free returns are another consideration. This may be a good option if you are starting and people are unfamiliar with your products. If you offer free returns, shoppers will likely take a chance on your yields.
Lastly,
You shouldn't set your shipping strategy and forget about it.
To find out what works, you need to experiment. Things are constantly changing. It is possible for your company to grow or your products to change. Keeping your shipping strategy current will allow you to meet the demands of your business.
