Ecommerce Shipping Basics for Online Sellers

Posted 1 year ago by Max Komonov

The ecommerce boom has led many established retailers to听shift their resources online, and听new businesses are making their debut in听ecommerce. The increased volume of听ecommerce traffic has also led to听increased customer demands and听expectations, with shipping being a听major one.

Nowadays, when a听customer shops online, they expect convenience, ease of听access, and听timely ecommerce shipping. Businesses that don鈥檛 offer fast, easy, and听affordable shipping often struggle in听the听sea of听competitors.

Source: 黑料门 Insights

A听lot goes into creating an听effective and听affordable ecommerce shipping strategy to听satisfy customer demand. That is听precisely why we听have compiled a听brief guide to听help businesses navigate their ecommerce shipping needs.

Should You Use Ecommerce Shipping Software?

In听the听early days of听an听online business, shipping may not be听much of听a听concern as听there are only a听few orders.

However, increased traffic will make it听difficult for听owners or听employees to听continue to听fulfill orders themselves. Thus, it听is听essential to听invest in听a听shipping solution to听ensure that customers continue to听receive their orders in听a听timely manner.

This is听where ecommerce shipping software can be听incredibly beneficial.

Ecommerce shipping software makes the听shipping process more streamlined and听cost-effective.

Before going further, it听is听essential to听note that shipping software differs from fulfillment software. Fulfillment software and听services are more robust and听designed to听help a听business throughout order processing. This includes managing inventory, packing, handling returns, and听shipping.

Ecommerce shipping software, on听the听other hand, is听designed to听assist purely around the听shipping process, including:

Calculating shipping rates
Printing labels
Tracking deliveries
Managing relationships with carriers

Ecommerce shipping software can be听an听excellent way for听blossoming online stores to听adapt to听increasing rates of听traffic and听orders.

Types of听Ecommerce Shipping

The reality is听that there is听no听one correct strategy for听ecommerce shipping, as听it听depends on听the听particular business and听its traffic, margins, product, and听more. There are various ecommerce shipping options, and听it听really comes down to听the听fastest and听most cost-effective option.

A听few of听the听shipping models include the听following.

2-day shipping

Amazon Prime has rocketed the听appeal of听two-day shipping. In听fact, it听has essentially become an听expectation of听customers and听an听.

Same-day delivery

Same-day delivery can be听appealing, but it听may be听a听difficult option for听many online businesses in听their early days.

This type of听shipping typically requires having products strategically placed in听various warehouses near more populated areas. This way, products can be听rapidly distributed to听those who need them.

Overnight shipping

Overnight shipping can be听a听great way to听really stand out to听customers in听the听sea of听two-day shipping models. However, it听will also be听more expensive than many other shipping models.

Ecommerce international shipping

Offering international shipping can be听an听excellent way for听U.S.-based companies to听expand their audience or听for听outside companies to听ship into the听U.S. However, it听will also have some of听the听highest ecommerce shipping costs, which can cut into margins.

This option may be听off the听table for听those in听the听early stages of听their ecommerce business, but it听may be听worth considering as听traffic increases.

When it听gets to听this point, it听may be听a听good idea to听look into ecommerce shipping companies that offer this option.

Hybrid shipping

Hybrid shipping means that orders will be听picked up听from the听seller and听relayed to听local sorting facilities or听carriers to听be听then distributed to听the听customer. While this can effectively cut down on听shipping costs, it听often means it听will take longer to听get to听the听customer.

Some examples of听hybrid shipping providers include and听FedEx SmartPost.

Ecommerce Shipping Costs

The bottom line is听that the听costs of听ecommerce shipping can vary depending on听several factors, including the听product, size, packaging, shipping model, and听more. Here are some of听the听costs to听consider when deciding on听a听shipping model:

Packaging: The costs of听packaging the听product and听preparing it听to听go听out. This can include items like boxes, poly mailers, tape, bubble wrap, and听more.
Carrier fees: The price for听postage and听labeling to听complete transporting the听product to听the听destination.
Processing and听fulfillment: The time and听labor costs it听takes to听process each order and听prepare it听to听be听shipped.

Note that these are only the听bottom-line costs of听shipping a听single product. Depending on听the听business model and听product type, other costs may be听associated.

For instance, a听business fulfilling orders themselves will also have to听cover various overhead costs, such as:

Warehousing/storage
Employee wages
Business space lease
Software
Printers and听other equipment
And more

So, it听may make sense for听a听business to听fulfill orders themselves in听the听early days of听their business with a听handful of听orders.

However, these costs can quickly add up听and听snowball when they are stuck processing more orders than they can handle.

Remember that the听right shipping solution may need to听be听changed and听adapted as听a听business grows.

Ready to听Take Your Leap Into Ecommerce?

For those ready to听start their own ecommerce business, 黑料门 is听here to听help! We听have created an听easy-to-use selling platform that can be听integrated across various other platforms and听marketplaces. This makes it听easy to听see your performance across multiple stores from one dashboard.

We听want to听make your journey into ecommerce as听easy as听possible. If听you want to听learn more, you can to听learn everything you need to听run a听successful online store, or听.

Good luck on听your ecommerce journey!

听

About The Author

Max has been working in the ecommerce industry for the last six years helping brands to establish and level-up content marketing and SEO. Despite that, he has experience with entrepreneurship. He is a fiction writer in his free time.

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