Any business selling online must have a good
understanding of shipping. Shipping practices can make a business a success or
a failure. If the shipping is not efficient the customers will notice. There
are six important aspects regarding shipping.
On Time Shipping
Once the order has been placed by the customer
the product should be packaged immediately. Taking too long to ship an order
will make the customers angry because this delays the delivery. The best way to
ensure the customers remain happy is with a fast and efficient shipping system.
Free Shipping
More customers will shop at an online store when
incentives such as coupon codes or free shipping are provided. A lot of
customers will spend more when shipping costs are eliminated. In most cases the
shipping costs are covered and profits often increase. The shipping policy
should never be used to make a profit when shipping boxes. Customers will
notice if the business is making money on the shipping and they will not be
happy.
Calculating Shipping Costs
Shipping research is important to ensure the
business is not taking a loss on shipping. It is important the amount necessary
to ship products is known up front. Understanding the specific details of the
shipping and the exact costs are critical. The packaging is just as important
as the shipping. The size of the box must fit the product. The right box size
and packing materials are essential for the product. If the online store uses a
lot of ecommerce shipping or ships on a regular basis they may be able to
receive a reduced shipping rate or a discount. There are tools available free
online for calculating shipping costs. These online calculations will be
beneficial no matter what carrier is used. There are additionally numerous
popular services for international shipping.
Clarity
The shipping policy must be clear to the
customers. The policy must be straightforward and up front. A customer should
never have to navigate mazes of pages or register to be able to see the
shipping policy. These actions will not help the site make more sales. The
customer will be annoyed and the sale may be lost. Follow up communication is
recommended. This includes sending out tracking information, shipping
notifications, etc. Conflict can be avoided if the buyer is informed.
Shipping Insurance
Shipping insurance can minimize risks and is a
good idea. Insurance is a judgement call but will cover any packages damaged or
lost in transit. Without insurance the business must cover the loss. Insurance
can be used for all packages or just the most expensive products. This cost can
be passed to the customer but must be explained in the company's shipping
policies.
International Shipping
International shipping is trickier than domestic.
Potential problems must be considered including the expense, the fraud risk and
the overall uncertainty. International shipping increases the customer of the
business throughout the world. There are more profits due to the greater access
to the international markets. This will help increase the profits the online
store is capable of making.
The Decisions
Shipping requires numerous decisions. The first
step is establishing a shipping policy. The most important aspects include the
cost of the shipping for the business, if free shipping for customers is a
consideration, the insurance costs and if the risks are worth international
shipping.
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