Are you looking to increase your return on investment when selling products to online customers? Have you noticed thinning profit margins? At first glance, you might think the key to addressing such situations involves increasing your sales volume. However, more is not necessarily better in this case. One of the most overlooked metrics in regards to e-commerce involves the type of shipping service that you employ.
After all, it makes little sense to utilize a carrier associated with slow delivery times or high rates if these only serve to detract from your overall sales efforts. This is why it is important to select the most appropriate provider from the very start. What are some metrics to consider and are there any pitfalls to avoid?
Stepping Away From The “One-Size-Fits-All” Mentality
We first need to realise that every carrier offers its own unique set of benefits and drawbacks. For example, one might be more capable of handling bulk shipping orders while another may be appropriate when sending products to overseas customers. This is why the e-commerce professionals at Shopify recommend uncovering the answers to the following questions:
- How quickly do you need to ship your products?
- Will the carrier offer any type of insurance?
- Do you have the ability to access additional services such as free or discounted shipping?
- What types of products is the firm able to handle?
Additionally, determine the level of customer service that is provided. There can be times when you need to contact the carrier directly to cancel an order or to rectify a mistake. It is always best to work in tandem with firms that provide numerous means of contact (such as a dedicated telephone number and a live chat widget).
Financial Risk Versus Overall Reward – Weighing The Cost Of The Service Provider
We should keep in mind that offering customers specific shipping packages can help to cement your brand identity and encourage future transactions. For example, let’s imagine that you provide free shipping when a client spends over a certain amount or when two specific items are purchased together. This can be a great sales tactic to remain one step ahead of the competition. Of course, you might have to incur such shipping costs in advance.
This type of strategy will only work if the initial fees can be outweighed by an increased number of transactions and more robust profit margins. This is why it is a good idea to experiment with a small number of customers before offering such a service option to the general public.
Shipping should be considered another segment within the overall conversion process. This is why knowing what to look for in a provider is essential. On a side note, it is wise to choose firms that offer dedicated smartphone applications so that you can track an order within a real-time scenario. If you keep your clients happy with such reliability, long-term success is one step closer to becoming a reality.
If you are interested in even more business-related articles and information from us here at Bit Rebels, then we have a lot to choose from.