Ecommerce Shipping Solutions: The Ultimate Guide

If someone clicks on"purchase" or clicks the "purchase" button on your website and they purchase something, you've crossed the finish line, right? Almost. Now you need a seamless electronic shipping system to make the sales and keep customers for life.

Follow this article to figure out a strategy that delights shoppers throughout the sales funnel, starting from when they put the item to their cart up to the moment it is delivered to their doorstep.

Shipping fulfillment options for your shop

The process of shipping fulfillment is complicated, and the first thing to consider when establishing the strategy for shipping your products to customers on the internet is who is responsible to fulfill the orders. Are you able to fulfill them yourself? Do they come directly from the wholesaler or manufacturer? Will you choose to contract with a third party logistics service (3PL) for the fulfillment of all orders placed on your eCommerce?

Let's review the various options, and then go over the benefits and drawbacks of each.

1. Ship orders yourself

If you're running a small company which produces products on-site, you may find it easier to send your products directly from your own offices or storage facility. This can be more cost-effective in particular if you're keeping your inventory in your own home or office, but this requires more effort to maintain.

There are pros and cons when it comes to handling order shipping for your online store yourself.

The advantages of sending orders yourself:

• You are in complete control of the ecommerce shipping process and are able to customize it according to your needs.
• Build connections with your customers by writing thank-you notes or putting small items in the order.

The disadvantages of shipping your own orders:

• The process of shipping can be lengthy especially if you are dealing with many orders.
• You may need to purchase shipping supplies and equipment such as boxes, labels and tape.

2. Dropship your orders to customers using a dropshipping service

Instead of ordering goods wholesale and keeping them in your own warehouse while you wait for orders to arrive You could let your suppliers directly ship the items to your customer. If your current suppliers do not offer this service then you can look to find companies who make similar, or identical, products and contract with them to ship the orders directly.

Dropshipping can be a great ecommerce shipping fulfillment strategy for large companies, too. Wayfair started its beginnings as a dropshipping only firm, and later expanded into using its own warehouses, in addition to continuing to use the dropshipping model. Houzz is a rival of Wayfair continues to use the dropshipping method exclusively. In the year that ended in June, Houzz made $500,000 in revenues. It's not bad for a company that doesn't design, manufacture, or ship anything that it sells.

Using a dropshipping service offers advantages, however it does have its drawbacks. This article will discuss the pros and cons of dropshipping to help you make the best decision for your company.

Benefits of dropshipping

• It's low-cost. It's not necessary to invest in stock up front as well as you won't have to employ staff to run your own logistics department.
• It is possible to be more flexible when it comes to the products you sell. You are able to easily alter the products you sell as well as not be tied to an inventory. This can give you the capability to swiftly react to any changes in demand.

The disadvantages of dropshipping

• It is harder to control the quality of your products. If you're using Dropshipping, you're relying on the supplier to provide quality products. If the products don't conform to your standards, it can reflect poorly on your business.
• More lengthy and unreliable time frames for shipping can prove frustrating for your customers, and could result in loss of sales. Because you're relying on a third party to handle shipping, there's always the potential for delays. If you're using several dropshipping firms, the items in an order may arrive in separate packages on different days, leading to customer confusion and increased customer support tickets.
• Problems with shipping can require more time to address. If you handle shipping yourself or use one 3PL company, you can handle customer service concerns quicker. If you're working with multiple dropshipping firms, you could encounter delays in communications that increase the length of time required to address the issue of a complaint from a client.

3. Ship orders with a third-party logistics (3PL) service

If you're a company that requires multiple goods from various suppliers, but lack the money, time, or the resources needed to manage your own warehousing it is possible to contract a third-party logistics provider for all of your online shipping.

This can be a good alternative if you don't have the storage space or capability to ship yourself however, it could be costly for smaller companies, based on your typical volume of the sales.

A few pros and cons of the use of a 3PL fulfillment service comprise:

Benefits of making use of a 3PL services:

• A fulfillment service can handle the entire process of shipping to you, from packaging, tracking and the delivery.
• Many of them have partnerships with large carriers. This can help you save money on cost of shipping.
• They can be scaled up rapidly to accommodate the demand spikes.
• There is no need to recruit an employee of your own to oversee shipping and fulfillment, which helps you cut down on time management duties.
• You don't have to keep the inventory at your home or office, which could reduce the cost of overhead and keep your work environment clear of clutter.

Cons of using a 3PL serviceare:

• You will have less control on the process of shipping and might not be able to tailor the process to meet your requirements.
• There may be a need to pay for a per-month fee or a per-order charge along with shipping charges.
• Certain customers might prefer to work directly with the shop rather than a third party.

Ultimately, the option that's suitable for your needs - you're shipping your own, using a dropshipping service and/or working with a 3PL - depends on a number of aspects that aren't listed previously. It's important to consider the pros and cons of each option. At the end of the day it's possible to decide for a combination of solutions. There is no need to choose the only one!

Shipping carriers and methods

Whatever fulfillment method you choose, you'll still need to familiarize yourself with the many shipping options and methods as you'll need to incorporate information regarding these into your store's delivery settings. Additionally, you'll need to offer information about your carriers and shipping methods to customers, particularly in the event that you're offering them several alternatives during checkout.

A shipping carrieris the company which physically delivers your items to customers, like USPS, FedEx, UPS and DHL.

Shipping options include the various options and prices that buyers can choose at the time of checkout, like free ground shipping, $5.00 three-day shipping, or $15.00 next-day delivery. The methods you choose to use are typically set by the shipping companies that you deal with, and affect the cost and speed of delivery.

Places, dates as well as the weights

Prior to deciding the shipping method and carriers consider the following key factors:

1. Places. What countries, states, or provinces can you ship to?
2. Dates. Considering where your customers live what is the average time for delivery to be to a specific nation, state or region? Are you interested in offering expedited shipping?
3. Weights. The size and weight of each item will affect your total shipping cost.

Countries: Choose which you will ship your items to.

There are a few points to take into consideration when looking to determine which countries the e-commerce site you're running should be serving. Consider first which markets your customers are within. If you're selling items that will be well-known within the United States, then it is sensible to deliver to the United States. But if you're selling products that are more specific or targeted to a specific location, then you may want to limit your shipping exclusively to the region in question.

Another thing to consider is the cost of shipping. Shipping internationally can be costly and you'll have to consider that in your selection. There is also the possibility of having be aware of customs requirements and other regulations to add more complexity and cost.

Consider your ability to manage shipping for different nations. It can be a lot of work managing different shipping regulations, carrier alternatives, rates and options, so make sure you're prepared for that prior to making the decision.

When you consider all these aspects into consideration and take into account all of these factors, you'll be able narrow your list of potential countries that you could ship to. Once you've narrowed it down, start researching the specific rules and regulations for every country, to ensure that you're ready to move there with ease.

Pro tip:Beyond extra expenses and logistics challenges international shipping has legal and customs requirements which can differ greatly by the country or region. It is important to work with an international shipping company that can automate as much of the process as possible.

Shipping has joined forces with DHL and DHL, so you can manage international orders through your account. There's also a savings of up to 67% on labels, get free pickups, be able to provide clients with complete tracking of their order and automatic customs form creation.

Timelines: Establish delivery dates as well as the method of delivery, including carrier and dates.

Determine the best delivery dates and delivery methods for your ecommerce store that most suit your needs. It is essential to select an option that will bring your goods to customers in a timely manner. If you're selling items that need to be delivered quickly, such as cosmetics or food This is especially crucial.

Based on the location you're shipping to , and the speed at which your items need to arrive You may provide several delivery options such as

• Standard Shipping: UPS Ground, 1-5 business days
• Express Shipping: USPS Priority Mail within 1-3 business days.
• For Overnight Delivery: FedEx Priority Overnight 1 Business Day

With a fast and efficient delivery, you can be sure that your customers are satisfied with the service they receive.

Weights: Package size and weight can influence shipping choices and costs.

When you begin shipping products, it's important to understand not only the size and weight of your products, but their size and weight when they're wrapped. This will help you decide the best method for each product or order to be shipped.

If you're a business that ships to the United States, the least costly method of shipping small packages is often USPS Priority Mail 3 Day Small Flat Rate Envelope , or Small Flat Rate Box. It offers tracking, quick delivery times, and it's a particularly good price if you're shipping smaller but heavy objects. You can ship something up to 70lbs and still pay the same flat rate. Also, you can avail the benefits of USPS giving you a free flat rate envelope or box.

If you're shipping large goods over the top, fees for oversized packaging may be unavoidable, but if you're shipping multiple items in an order it may be more cost effective to split these items over several parcels to avoid over-sized fees for packages.

The 3PL service is able to default to any method that's most economical both for them and your business. If your items must arrive together in one package, even if it's more expensive, or if you want to divide things up over multiple packages for some reason when it would be cheaper to put them in one larger box, you'll need to notify your 3PL that they should comply with your guidelines. If you're shipping and packing things yourself, you are in complete control and have greater control over the entire procedure.

If you're shipping internationally, you'll need examine the different options which are offered for every country of destination and decide which will work the best according to the size and weight of your products. While strategies like splitting up items to avoid oversized-package charges could be useful for domestic customers, the same strategy might not be effective for international deliveries. You'll need to map out the specific ecommerce shipping method for each country you ship to.

How do you package orders to ensure delivery

Size, destination of the container, weight, and shipping techniques all impact your shipping costs and practices. But equally important is considering the way the items are shipped. Being a company proprietor, you must ship orders efficiently and in a cost-effective manner while making sure that the products you send out are delivered in good order.

If products are packed poorly and not properly, you could end up having bad reviews, returned items as well as costly order reshipments. Whether you are shipping products yourself, using an 3PL service, or dropshipping direct from your supplier Make sure all of products are packed safely and securely.

Consider the quantity of each item that could fit into a package and whether different types of items should be packed in the same package or in separate packages. Also, you'll want to be certain that your items are safe from weather elements and damage due to dropping on them, stacking or the agitation that occurs during transportation.

Consider asking yourself the following concerns about your product to determine the best ways to package them:

• Are they too heavy?
• Is it fragile?
• Is it sharp?
• Do they contain fluids?
• Are you sure it's unique?
• It could be easily damaged when it's wet?
• Do you think it's too large?
• Are they very small?

When a client orders two distinct items - like a pair of champagne flutes in crystal or a set of free weights It is unlikely that you wish to put them all together in the same package. If someone is ordering multiples of the same product it is possible to split the order in several packages to minimize harm.

In the case of a customer who orders twenty 18" x 24" canvas prints from the store, it would not be a good idea to put them all in the same package. The weight of each piece could result in destruction to the canvas underneath it. Plus, you may incur much higher shipping costs by using a box that is too large.

Also, the larger and bulkier the box is, the more challenging it is to get it delivered without being dropped. A package's size that is notable could attract the attention of thieves who steal packages.

Small packages can be tricky also. Even if your item could be placed in a compact envelope that is padded, you could require a rigid cardboard or hardboard insert to stop the bending of your item, bubble wrap or any other padding to ensure that your goods arrive in a safe manner to the recipient.

If you have a mix of large and small things in an order it could be possible to combine them in the event that the smaller items be used as padding (like clothing or linens) or are lightweight and long-lasting.

Choosing packing material

Packaging materials that are suitable for small and big packages may increase your ecommerce shipping costs. You don't just have to spend the money to purchase these materials and make the package heavier, which will increase shipping costs.

There's a need to be sure that your containers and packaging materials are able to handle the size and weight of the goods you're sending, but that's not the only thing you'll want to think about.

In selecting the materials you will use to pack the e-commerce order, take into consideration these aspects:

• Fragility of item
• Brand experience
• Organic materials
• Packaging cost

Fragile merchandise

If you're sending fragile goods then you'll require different packing materials than if the items are not fragile. It is possible that you will require additional bubble wrap, foam or air cushions to ensure that your goods arrive in a safe manner. The addition of packing materials can make your package larger But ensuring the items arrive in good condition will reduce the cost of returns later on.

Take into account whether your goods could be damaged by rain or other components during shipment. Consider wrapping products that could be damaged by water in shrinkwrap, a plastic overbag or another waterproof container. If you're using bubble mailer, you should choose using a plastic option instead of a paper one.

Brand experience

If you don't mind cost it is possible to brand the packing materials. Organizations like Sticker Mule can provide customized packaging and tape that you can use to make every aspect of your shipment an experience that is branded.

When a container with your logo on it is delivered to someone's door the recipient will know that it's coming from the company. The presence of your logo can add a little more excitement to an individual's day. Plus, seeing that your business is willing to go the extra mile for packaging can build trust that you're making the same energy into your product.

Organic materials

If you're looking for your business to make use of environmentally friendly packaging products, there are plenty of options out there. You may even use eco-friendly packaging materials in your marketing strategy. If you're selling products that have a connection to nature, organic, or you simply value the use of sustainable production methods It could be beneficial to consider investing in environmentally friendly packaging.

Companies such as Hero Packaging, Mushroom Packaging, and Noissue provide sustainable packaging alternatives. Noissue even allows customized branding on your packing materials. Environmentally friendly packaging is sometimes costlier than other packaging and should be kept in mind if you're on an extremely tight budget.

Cost of packaging

You want to make sure your items are delivered safely and that the customer enjoys a pleasant experience the delivery. However, you shouldn't spend too much on packaging.

With these factors in mind Let's review of some of the most popular, cost-effective shipping supplies and see how they will benefit your online company.

Cardboard boxes are one of the most widely used packing items for orders made via e-commerce. They're strong and durable making them perfect to protect fragile goods. They're also lightweight, so they won't be a significant addition of cost to shipping. The best part is that cardboard can be recycled, which means it's an ideal choice for eco-conscious businesses.

You can even get cardboard made from recycled materials in the first place. Most packaging retailers like Uline sell environmentally-friendly cardboard boxes.

Wrapping in bubbles is another choice to pack materials. It is great for protecting fragile items and preventing damage during shipping. Bubble wrap comes in different thicknesses, so you can select the appropriate degree of protection for your goods. Similar to cardboard boxes bubble wrap is cheap and recyclable.

Peanuts for packing are commonly employed to fill up empty spaces inside packages, and to prevent the items from moving during transportation. They're constructed from various materials which include biodegradable ones such as cornstarch. Packing peanuts can be reused, so they're a good option for businesses that want to minimize their impact on the environment.

The air cushions are a viable alternative to packing peanuts. These are inflatable bags that are able to be utilized as filler in the packaging. Air cushions offer similar protection to packing peanuts however are more convenient to reuse and recycle.

Papier is yet another environmentally friendly packing choice. It can be used to protect fragile products and fill up empty space within packaging. Paper can also be recycled (and you can use paper made from recycled material), so it's another excellent option for companies that want to reduce the impact they have on the environment.

There are numerous packing materials on the market, therefore it's crucial to pick the appropriate one for your business. Consider your products, packaging requirements, and your company's identity when choosing packing materials for your eCommerce orders. If you choose the correct materials, you can ensure that your goods arrive safe on time and make a a positive impact on customers and a minimal impact on the planet.

Decide on your rates of shipping to customers

If you're aware of the location you're shipping to, what you're packaging, what techniques and shipping methods you're using as well as how weight and size impact the options for shipping You'll have to determine two factors: the cost for shipping and handling as well as the rates for shipping you're charging your clients.

While you can make use of a shipping calculator available at any of the top shipping sites, or even a multi-carrier shipping software to estimate the cost of shipping e-commerce depending on the method used and size, weight and the destination These calculators do not consider cost of handling.

It's up to you to decide what works best for your business, nevertheless, you'll need to put these handling costs to a place to ensure they do not eat away at the profit margins.

What are handling costs?

The handling is all that matters, not the shipping cost that the company will charge you. Handling can include and is not restricted to:

• Cost of shipping supplies like boxes, padding materials backing boards and plastic sleeves, tape, labels, and a thermal printer.
• Cost of storing inventory.
• Time spent packing orders and arranging carrier pickup.
• Service to customers regarding lost or damaged packages and communicating with customers on the status of their shipments.

An easy way to figure out the cost of handling for each purchase is to figure out the amount you pay per month for the above costs and divide it by the average number of items you place per month. You can then add that handling cost on top of the shipping cost for every purchase.

If you'd prefer to include the cost of handling to your pricing for your products, you could divide your average monthly handling cost by the average number of products sold per month. If you have high-priced products as well as low-priced ones You may want to proportionally distribute the handling costs. Products that are less expensive will probably have lower handling costs associated with them than the more costly products, although this isn't always the case.

How can I best approach calculating shipping rates?

Live rates

Table rates

Flat rates

Flat rates simplify your shipping plan by taking the guesswork out of calculating rates. Charge the same amount regardless of the amount or weight of the order. This is an excellent alternative if your inventory has a consistent size and weight, or if a majority of your customers purchase similar amounts. With default settings it is possible to offer a flat fee per item, or a percent-based price, or the minimum amount.

Free shipping

Free shipping makes customers content, however it reduces your margins. The costs of shipping into your product's price, but customers might be turned off by the higher dollar amount. You can also keep the price low and shipping free, in the hope increased sales can make it profitable financially.

Combined shipping

Combining shipping options gives you two options. If a one-size-fits-all approach to shipping doesn't align with your needs as a business You can combine and mix and match. One approach is to offer free shipping for orders that have a minimum value for customers to make more products to their carts.

Implement your ecommerce shipping strategy

When you've completed your study and weighed the options and finally made your choice, you're ready to put your strategy into position and begin setting up your e-commerce shipping procedure.

1. Back up your online store

If your store is live begin by making a full backup. If any unanticipated issues arise it will ensure that you do not be able to recover important data or the information about orders. We highly recommend Jetpack VaultPress Backup to handle this.

Once your backup is completed, update WordPress and your theme, and every plugin to ensure compatibility with any extension to your fulfillment or shipping system.

2. Configure settings

Click on the Settings tab - Navigate to Settings - Shipping in the dashboard. You can then create shipping zones to define rates according to the location of your customers, as well as shipping categories to define charges based upon groups of similar products.

Let's start by taking a look at shipping zones. Once you've set them up, you'll be able to define shipping rates based on the regions you are delivering to. And you can either just be a bit generic (like setting rates by country) or hyper-specific (like the definition of rates by zip code). No worries - regardless of the level of complexity every customer will only see the rates applicable to their specific shipping address.

Select the shipping zonestab and in the event that you're still not setting the zone then you'll get a message to create one.

Click Add shipping zone.

When the new window appears, you can name the new zone whatever you'd like. Next, choose the areas of operation that will be comprised in the zone. There are numerous ways to configure zones. Take your time to think of which is the most effective way to go about it for your particular business.

A retail store that is located inside New York City might have areas for areas like the East Coast, Midwest, and West Coast, with rates increase based upon the distance to New York. For example, a bakery may give free shipping to customers within their area as well as a discounted rate to all other locations.

Choose all locations that you'd like to be included in this shipping zone. If you wish to restrict the zone based on zip code, select Limit to specific zip codes or postcodes. Then, a new window will open which allows you to input the zip code in a list.

The next step is to establish the rates for shipping in the brand new zone. Select the "Add shipping rate" button. By default, you'll see three choices: flat rate, free shipping, or local pick-up.

If you choose Flat rate shippingyou'll have the option to choose a price for that area (e.g. $9.99 flat cost shipping). It is also possible to set the price based on shipping class, which we'll talk about in a moment.

If you select Free shipping, you can set the minimum amount of your order for free shipping, regardless of whether you wish to associate free shipping with coupon codes, and more.

And if you go with Local pickupcustomers who live inside of the set shipping zone are able to take their orders to the location of your business.

Be aware that you may make one or more the items listed above to every zone. Thus, for instance, you could give free shipping on the amount of your order and flat rate shipping for anything less than the total.

But what about shipping classes? While these aren't required however they're a fantastic option to determine the price to different kinds of items. For example, you may sell prints without frames of your work, as well as framed ones. They will not only be priced differently to ship based on their weight, framing options also need greater packing materials.

Let's take a look at the following example. In your dashboard, go to - Settings - Shipping and then select the shipping classes tab. Click Add new shipping class on the right-hand corner of the page.

Add the name of your class, the Slug (URL) along with a description. Click to save the shipping class.

The next step is create a product list for each class you've created. Navigate to Products and then All Productsand open the one you want to edit. After that, go to the box for product information and choose the Shippingtab.

When you are in the dropdown list to select the Shipping class,select the class that best matches your product. Save your adjustments. It is possible to do this for each product in that category. Save your changes.

It allows you to be much more precise with your shipping charges. So, for example when you're setting your flat rate shipping option and you want to specify an additional price for frames vs. frames that are not. As you can see from the screen below that there's now a separate option just for the "framed" shipping type.

That's all there is! As you can see, there's lots you can do with the default shipping settings.

3. Set up and activate the shipping extensions

To implement table rates live rates or to combine the two, you'll need an extension. It is also possible to use extensions to include features such as shipping labels and warehouse syncing.

Working in conjunction with a 3PL service? They might have an extension that is available on the market or directly on their site They may also design a custom integration for you.

4. Make it easy for customers to understand their order's location

The process of shipping your order online does not stop after you have dropped your package off. In fact, some most effective opportunities to provide good customer service occur after your order is in the post!

Customers must be able to quickly understand where their order is at all times, and know the time when it is expected to arrive. This is especially important if you offer items that typically are bought as gifts.

5. Take into consideration returning the shipment

While no one likes to consider returning items but they occur. And if you accept exchanges or returns It's crucial to have a plan that is in place.

Ship - and profit!

You're ready to start shipping! Remember to adapt the strategy of shipping you use as you go and make modifications as you discover more about your customers, and you'll soon find the options that are good for customer relations and the bottom line.

There are a variety of methods to deal with ecommerce shipping. You could do it on your own, partner with a logistics company and drop ship items directly from the manufacturer. To make these decisions be sure to take into consideration the main factors that determine which shipping options are offered in each case and if they are able to meet your needs.

Certain shipping companies on the internet limit the products they'll deliver, such as specific regulations that apply to specific kinds of material. And if you want to send your goods internationally, you'll have choose a shipping partner who can reach the areas you wish to focus on.

It is possible to pass on charges for shipping to customers and pay for all or a part of the costs yourself. There's pros and cons with each method and you may consider experimenting over duration. If you choose to opt to charge shipping, you could determine rates in almost unlimited methods ranging From flat rates to table rates to even liveprices in real time that is sourced from the shipping company.

Now, no matter how you choose to set the e-commerce shipping system It has the right tools to manage the entire process. Utilize extensions for shipping products cheaply effectively, quickly and securely and ensure your satisfied customers remain content and your shop is running effortlessly. Need more information? Check out our ecommerce shipping documentation.