It’s a fact! The link between your logistics strategy and your conversion rate is undeniable! Today’s consumers demand more and more and both want faster delivery and free shipping. Taking care of the delivery of your products is therefore an essential step for the customer experience and the success of your e-commerce!
Consumers do not like to pay shipping costs: neither shipping costs nor return costs, and this are one of the main reasons for shopping cart abandonment! The e-client is willing to browse multiple competing sites looking for free shipping costs and if you are in a very competitive industry, they are sure to find satisfaction elsewhere at the expense of quality, price, or even product safety.
There are studies that reveal approx 67% of people place prices and delivery times at the top of their online purchase criteria. However, e-merchants are still far from offering solutions adapted to the expectations of their customers:
As you can see, there is a gap between the expectations of customers and the actions taken by online merchants.
As we have seen, the delivery time and its cost have a significant impact on the purchasing decision, but the quality of the logistics service is also taken into account. 35% of online shoppers will indeed order from a competitor’s site after a bad delivery experience.
Each delivery method has advantages and disadvantages for both your online business and your customers.
Combine several delivery methods (home delivery than to a relay point in case of absence, fast delivery to a relay point, etc.).
Signing a contract with just one carrier can be risky. To avoid finding yourself helpless, it is wise to choose several companies. To make the right choice, make sure that they respect the delivery deadlines and that they offer:
If the task seems complicated to you, there are e-commerce logistics platforms that manage a whole network of carriers. You often benefit from preferential rates and each customer can select their delivery method and carrier.
You can of course ensure your shipments yourself to increase your margins, but it’s a lot of work. You will have to manage the processing of orders, the management of their deliveries and returns, the printing of shipping labels. Depending on the size of your e-commerce, it is more advantageous to outsource logistics.
Free delivery is a strong selling point for attracting new customers. However, you can subject it to certain conditions such as a minimum purchase or delivery offered for the first order placed. It is up to you to define your marketing policy to convert your prospects into customers. Large e-commerce brands are gradually putting delivery costs back in place. Take the time to explain to your customers the environmental and financial impact of free shipping. On the other hand, product returns must remain free as far as possible.
You now understand the value of taking care of the delivery of your products. One last tip to avoid ordering errors: take care of your product sheets too!
Srividya Kannan is a techie by heart having global working experience in the USA, Europe, and Asia. She is the director and co-founder of MyXBorder, a company providing cross-border shipping solutions. She is an entrepreneur who is always enthusiastic about applying technologies to solve business problems and also a busy mom of 2 who is always exploring ways to make life easier.
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