If you’re running an e-commerce business, you know that keeping your customers happy is key to success. And one major part of that is ensuring the shipping process is as smooth as possible. That’s why we’ve put together a guide to help you in streamlining shipping on your e-store website. Sounds good? Let’s get started!
Let’s Take the Case of Amazon and How They Streamlined Their Shipping Strategies!
The global brand Amazon has become everyone’s first choice in online shopping. The products, sellers, user experience, easy checkout, shipping and everything are streamlined to make customers happy.
In its initial days, Amazon faced lots of challenges. To reach the current level, they have researched and adapted different strategies. An E-commerce company of any size has lessons to learn from Amazon.
Today we’ll take the case of Amazon and see how they reached this level which we see and experience today. Here are the measures that Amazon executed.
1. Established Amazon fulfillment centers
2. Launched the Prime membership program for expedited shipping
3. Developed Amazon Air for efficient cargo transport
4. Integrated robotics for automated order processing, and
5. Introduced innovative last-mile delivery options like Amazon Locker and drone delivery
These initiatives drove Amazon to unprecedented levels of customer satisfaction, market dominance, revenue growth, and operational efficiency, reshaping the e-commerce landscape and setting new industry norms.
Importance of Streamlining Shipping in E-commerce Business
So, when it comes to shopping, there are two options: the classic brick-and-mortar stores or virtual online shopping. The latter saves you the hassle of commuting and allows customers to shop from the comfort of their couch. But, there’s one thing that can either make or break your e-commerce business: shipping.
Thankfully, we’ve advanced and have some great technology these days that can make managing your orders, logistics, and shipping operations easier than ever. With the right ecommerce shipping solution, like AI and robotics, you can streamline your order fulfillment process, lower costs, and get your products to your customers faster. And you know what that means – more satisfied customers!
Plus, did you know that over 90% of customers prefer sellers who offer expedited shipping? It’s true. Just take the case of Amazon. They’ve set the bar really high by offering free same-day, next-day delivery and other expedited shipping options.
According to a study conducted by Baymard Institute, 48% of customers abandon their online shopping carts due to the extra costs of shipping which include shipping charges. Another 22% of them do it because of slow delivery service, and 12% abandon carts due to an unsatisfactory returns policy. Now you know why streamlining shipping is important. Let’s explore the effective ways of streamlining shipping in e-commerce.
Streamlining Shipping for Your E-commerce Website; Steps to Consider
Based on the case study of Amazon’s successful shipping, there are a few noteworthy points to consider for streamlining shipping for your e-commerce website.
1.Establish Fulfillment Centers
As mentioned earlier, Amazon has set the standard for customer delivery expectations. More than 90% of the customers who shop from your store expect faster shipping. We can take a cue from Amazon’s approach. They have set numerous fulfillment centers worldwide to ensure products get to customers quickly.
What are Fulfillment Centers?
Fulfillment Center is a network of warehouses and distribution centers of e-commerce stores. When you grow your e-commerce business, you should start placing fulfillment centers at different locations. This will enable you to deliver products to customers quickly and efficiently.
By the way, did you know that Amazon has a program where third-party sellers can enroll in their fulfillment program? You can send your products to their warehouses and they’ll take care of the rest – from storing to shipping. It’s perfect for small to medium sized e-commerce businesses who are on a tight budget. Pretty cool, huh?
What Advantages are Achieved by Streamlining Shipping Through Fulfillment Centers?
1. Ship Fast and More Accurately: By keeping stock of products at different warehouses worldwide, you can deliver products to customers within the shortest delivery time. This is essential as overnight and same-day deliveries are the customer’s priority.
2. Win the Competition: Customers expect rapid delivery and will often choose a competitor who delivers faster than you if you don’t. By establishing fulfillment centers, you can achieve faster delivery.
3. Sales and Revenue Boost: A better shipping system than other competitors will ensure more conversions and more sales.
2. Launch Programs for Expedited Shipping
Only a small percentage of people plan and buy in advance. Most of us are just last-minute shoppers, am I right? And we want everything as soon as possible. That’s why speedy shipping options were invented, like two-day delivery, next-day delivery, and even same-day delivery. Expedited shipping is basically just faster than regular shipping. If standard shipping takes, say, 5 days, then expedited shipping only takes 2 or 3 days.
Obviously, expedited shipping is going to cost you some extra bucks. But, with more and more consumers ready to pay extra for faster deliveries, you can consider giving expedited shipping to your buyers in different programs. As you may already know, the Amazon Prime program provides its members with fast shipping options.
3. Establish an Efficient Supply Chain and Operations
In the current e-commerce market, competition is fierce, especially with
major players like Amazon. Simply having a website and products is insufficient for e-commerce success. To stay ahead, a well-designed and effective supply chain is essential.
Understanding how to navigate the e-commerce supply chain can be beneficial in multiple ways. It can help you deliver your products to customers promptly. Besides, it can increase your return on investment while reducing your operating expenses.
What is an E-commerce Supply Chain?
The E-Commerce supply chain is basically all the behind-the-scenes things that go on when running an online store. It covers activities such as procuring raw materials, manufacturing finished goods, inventory management, warehousing, order fulfillment, and last-mile delivery. It is a complex process that requires careful attention to detail and efficient management.
How to Improve the E-commerce Supply Chain for Streamlining the Shipping Process?
Let’s take a look at how supply chains can streamline the shipping process in e-commerce.
Ensure Efficient Inbound Logistics: The process of bringing materials and goods into warehouses in a supply chain is known as inbound logistics. To ensure efficient inbound logistics, it is necessary to work with trustworthy and credible suppliers who provide on-time delivery, quick responses to inquiries, and quality customer support. If current vendors are causing delays in your supply chain, consider talking to them to overcome challenges or swapping to more competent suppliers.
Improve Inventory Management: Keeping track of inventory manually can be a real headache. Manual inventory tracking could be inaccurate and unreliable at times, which can lead to frustration for both you and your customers. Therefore, investing in inventory management software can help increase visibility into your stock and meet customers’ needs while improving productivity. Inventory management systems provide transparency with regard to your storage space and can help you create a better layout, increasing capacity and productivity. Such one-time investments will bring profit eventually.
Automation and Voice Enablement in the Warehouse: Everything is voice enabled these days! Just how inventory management solutions can save some money and prevent human mess-ups, automating other parts of warehouse management can do the same. Voice enablement and speech recognition systems can speed up work processes and reduce work hours.
Improving Delivery Efficiency and Paperwork Processing: While determining how to deliver goods to your customers, it’s important to consider more than just cost. Although choosing the cheapest option may save you money, customers may become upset if their packages arrive weeks or months after purchasing from your online store. By analyzing the locations of your manufacturers, warehouses, and customers, you can optimize delivery routes and times to be cost-effective and efficient. This will improve customer satisfaction and potentially increase profits.
Did you know that switching from old-fashioned paper systems to digital ones can really boost your efficiency? Switching from traditional paper-based systems to digital ones can also enhance efficiency. For instance, using barcodes and Radio Frequency Identification (RFID) to track goods can improve stock-keeping accuracy and allow customers to double-check their orders. RFID technology can also scan multiple tags from a distance, increasing efficiency. Adopting these methods can streamline your shipping operations and improve overall performance.
4. Integrate Robotics and AI into the eCommerce process
E-commerce is growing every day faster than our thoughts. Businesses are always looking for ways to better their operations and stay ahead of the race. One of the latest ways to do this is by incorporating robotics and AI into the eCommerce process.
Automating tasks like order fulfillment, inventory management, and customer service. By adopting this approach, businesses can save time and money and improve their customers’ experience by making it more convenient and efficient.
Maximizing Efficiency and Accuracy in E-commerce with Robotic Process Automation (RPA)
Robotic Process Automation (RPA) software automates everyday, time-consuming, and other rule-based tasks. This is done through dedicated software bots that are programmed to follow the rules and commands previously composed in a program. RPA can improve efficiency and accuracy in business processes, saving employees time to focus on more human-required tasks.
E-commerce businesses can utilize RPA to enhance various aspects such as customer service, content generation, product categorization, automated marketing, inventory management, supply chain management (including vendor/supplier onboarding), return processing, advanced sales analysis, and multiple back-office functions such as accounting and human resources.
5. Introduce Innovative last-mile Delivery Options
Last-mile delivery is the final leg of the delivery process that takes the product from a transportation hub to the customer’s doorstep. It is often considered the most critical part of the e-commerce logistics process as it directly impacts customer satisfaction and overall experience. Here are some solutions to make last-mile delivery smooth and successful.
Strategies for an Excellent Last-Mile Delivery in E-commerce
E-commerce companies can enforce various strategies to ensure flawless delivery of the final leg of the shipment. Route optimization software can help to determine the easiest routes for delivery, while real-time tracking and visibility can provide both customers and the company with updates on the progress of the delivery. Partnering with local delivery providers and utilizing automated delivery management tools can help to reduce transportation costs and streamline the delivery process.
Offering multiple delivery options, using data analytics, and implementing a return management system can improve customer satisfaction and loyalty. Additionally, utilizing artificial intelligence, geofencing, and sustainable e-commerce practices can optimize the delivery process and reduce environmental impact. Finally, providing accurate delivery tracking information and optimizing delivery density can further improve the last-mile delivery experience.
Wrapping Up
Ensuring a seamless and efficient shipping process is crucial for the success of any e-commerce business. By streamlining shipping on your website, you can enhance customer satisfaction, increase loyalty, and ultimately drive sales. By following the comprehensive guide provided here, you can take the necessary steps to optimize your shipping process and offer a top-notch experience to your customers. Remember, happy customers equal a happy business.
THANK YOU!