Ecommerce Shipping Solutions: The Ultimate Guide

Jan 9, 2023

If someone clicks on"purchase" or clicks the "purchase" button on your site You've reached the finish line, aren't you? Almost. Now you need a seamless electronic shipping system to make the sales and keep customers for life.

Follow this article to figure out the best strategy to delight shoppers all the way through the sales funnel, from the moment they add your product to their cart until it arrives on their doorstep.

Shipping fulfillment options for your online store

Shipping fulfillment can get quite complex, so the initial thing you need to determine when developing the strategy for shipping your products to customers on the internet is who will be accountable in fulfilling your order. Are you able to fulfill them yourself? Will they ship direct from the manufacturer or wholesaler? If not, will you work with a third party logistics service (3PL) to handle all your ecommerce order fulfillment?

Let's look over the various options, and then go over some advantages and disadvantages of the various options.

1. Ship orders yourself

If you're part of a small-scale business who produces its own products It may be easy to deliver directly from your offices or warehouse. This can be more cost-effective, especially if you're keeping the inventory at your personal workplace or at home, however it does require more work to handle.

There are benefits and drawbacks in managing the shipping of orders to your store's online shop yourself.

The advantages of sending orders yourself:

  • You are in complete control of the shipping procedure for your ecommerce business and can customize it to meet your specific needs.
  • You can build relations with your clients by handwriting thank you notes or including small tokens of appreciation with their purchases.

Pros and cons of shipping yourself orders:

  • Shipping can be time-consuming, particularly if you have an abundance of customers.
  • You may need to invest in shipping supplies and equipment, including containers, labels, and tape.

2. Send orders via Dropshipping services

Instead of purchasing wholesale goods and then storing them in your own warehouse, while waiting for the orders to arrive You could let your suppliers ship them directly to the customer. If your current suppliers aren't able to offer this, you might shop around to find companies who make similar or similar products, and then contract with them to ship the orders directly.

illustration of the dropshipping process

Dropshipping could be an excellent ecommerce shipping fulfillment strategy for big businesses, too. Wayfair began its first start as a dropshipping-only business and expanded to using its own warehouses, in addition to continuing to use the dropshipping model. Houzz, a competitor of Wayfair is still using the dropshipping method exclusively. Last year Houzz earned 500 million dollars in sales. Not too shabby for a business that does not design, make, or ship anything it sells.

Dropshipping is beneficial, but there are some drawbacks. Let us discuss the advantages and disadvantages of dropshipping in order to make the best decision for your company.

Benefits of dropshipping

  • It's low-cost. It's not necessary to invest in stocks in the beginning, and you don't need to employ staff to run your own logistics department.
  • There is more flexibility when it comes to the products you sell. It is easy to alter your offerings as required, and you're not tied to an inventory. This will give you the ability to quickly adapt to fluctuations in demand.

Cons of dropshipping:

  • There is less control on the quality of your product. When you're Dropshipping, you're trusting the provider to deliver quality products. If they don't meet the standards you set, it could be a negative reflection on your company.
  • A longer and more insecure time frames for shipping can prove frustrating for customers and lead to reduced sales. Because you're relying on an outside company to manage delivery, there's always the possibility of delays. If you're working with multiple dropshipping firms, the items in the same order might be delivered in different boxes at different times, which can lead to customer confusion as well as increased customer support tickets.
  • Problems with shipping can be more difficult to solve. If you are shipping your own products or use one 3PL business, you'll be able to handle customer service concerns quicker. If you're working with several dropshipping businesses, you may have delays in communication that extend the amount of time needed to settle the issue of a complaint from a client.

3. Send orders using a third-party logistics (3PL) service

If you're a company that orders multiple products from producers, but you don't have the money, time, or resources to do your own warehousing it is possible to contract a third-party logistics provider for all of your online shipping.

This is a viable alternative if you don't possess the space for storage or ability to transport your own goods However, this can cost more for small businesses, based on your average volume of the sales.

There are pros and cons to the use of 3PL fulfillment services include: 3PL services for fulfillment include:

The advantages of making use of a 3PL serviceare:

  • Fulfillment services can manage all aspects of shipping for you, including packaging, tracking and delivery.
  • Many of them have partnerships with major carriers, which could reduce shipping costs.
  • They can scale up quickly to accommodate demands that are rising.
  • It is not necessary to employ employees to handle delivery and fulfillment. This reduces your time spent on management duties.
  • You don't have to keep all your items in your office or home. This will reduce your overheads as well as make your office free of clutter.

Pros and cons of making use of 3PL services: 3PL services:

  • The shipping process will be less controlled on the process of shipping and might not be able to tailor it to your needs.
  • It is possible that you will have to pay a monthly fee or per-order fee along with shipping charges.
  • Certain customers might prefer to deal directly with the shop instead of a third-party.

Ultimately, the option that's right for you - whether shipping yourself via dropshipping, using a dropshipping provider, or working with an 3PL is contingent on several factors beyond what we've listed above. You'll need to weigh the advantages and disadvantages of each alternative. In the end you could even settle for a combination of solutions. There is no need to choose only one!

Shipping carriers and methods

Whichever fulfillment solution that you pick, you'll need to familiarize yourself with the various shipping carriers and options, as you'll have to include information on the different shipping methods into your store's shipping setting. You'll also need to provide information about your carriers and the shipping options to your customers - especially in the event that you're offering them several alternatives during checkout.

A shipping carrieris the company who physically transports your goods to clients, such as USPS, FedEx, UPS as well as DHL.

Shipping methods include the various options and prices that buyers can choose at the time of checkout, such as 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 they work with and can affect the cost and speed of delivery.

Places, dates as well as weighs

Prior to deciding the shipping method and carriers, think through some of the most important factors to consider:

  1. Places. Which states, countries, or provinces can you deliver to?
  2. Dates. If you consider where your clients live, how long will delivery be to a specific nation, state or even a province? Are you interested in offering expedited shipping?
  3. Weights. The size and weight of every item affects your total shipping cost.

Locations: Determine which countries you will ship your items to.

There are several things to consider when you're considering which country the e-commerce site you're running should be serving. Consider first which markets your customers are within. If your products would be well-known within the United States, then it is sensible to send your products there. If you're selling goods that are more specific or specifically targeted at a certain area, you may prefer to restrict your delivery to just that region.

The other thing you should consider is the price of shipping. Shipping internationally can be costly therefore you'll need take into account that when making your choice. You may also need to deal with customs and other regulations to add the complexity and costs.

Also, consider whether you have the resources for shipping across several countries. It's a lot of work to manage various shipping rules, carriers options, and rates So make sure that you're ready for this before you make the commitment.

When you consider all these aspects into consideration, you should be able to narrow down your list of potential destinations to ship your goods to. From there, you can look into the particular rules and regulations for every country, to ensure you're able to send your package efficiently.

Pro Tip:Beyond extra expenses and logistics challenges international shipping has legal and customs requirements that can vary dramatically by the country or region. Make sure that you partner in a shipping business which can streamline all of the processes as it is.

purchasing a DHL shipping label

Shipping has partnered with DHL - so now it is possible to handle international orders through your account. There's also a savings of up to 67% on labels, receive free pickups, be able to provide your customers with complete traceability, and enjoy automated customs forms creation.

Timelines: Establish delivery dates for the carrier, delivery methods, as well as other ways

Determine the best delivery dates and methods of shipping for your ecommerce store that best suit your business. You'll need to choose the best shipping method to bring your goods to customers quickly. If your products require a certain amount of time, like food or cosmetics 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
  • Expedited Shipping USPS Priority Mail, 1-3 business days
  • Delivery Overnight: FedEx Priority Overnight 1 Business Day

With a fast and efficient delivery, you can be sure that your customers are happy with their experience.

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

When you begin shipping products, it's important to understand not only the dimensions and weights of your products, but the size and weight of your products once packed. This can help you determine which method is best for every product or purchase to be shipped.

If your business ships from the United States, the least costly method of shipping small parcels is usually USPS Priority Mail 3-Day Small Flat Rate envelope or Small Flat Rate Box. It comes with tracking and quick delivery times, and is an especially good price if you're shipping smaller but heavy items. It is possible to ship anything up to 70lbs and still pay the same flat rate. Additionally, you get the advantage of USPS giving you the flat rate envelope or box.

If you're shipping large objects the cost of oversized packages are not a must, however, if you're shipping multiple items , it might be more cost effective to split them up over multiple parcels to avoid over-sized package charges.

A 3PL service will default to whatever method is cheapest both for them and your business. If you need items to arrive together in one package even though it's more expensive, or split things in multiple packages due to reasons that make it better to place all of them into one large container, it is important notify your 3PL so they can adhere to your policies. If you're packing and shipping items yourself, you'll have more complete and granular control over the entire method.

When shipping international it is necessary 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. Although strategies such as splitting packages to prevent oversized shipping charges can be helpful for domestic shipping but the same method may not work for international shipments. The best way to do this is to design the specific ecommerce shipping method for each country you ship to.

How can I package orders for shipping

Destination, size of the container, weight, and shipping techniques all impact your shipping expenses and procedures. But equally important is considering how the items are shipped. Being a company manager, you need to deliver your items efficiently and in a cost-effective method while also ensuring that your items are delivered in good order.

If your products are not properly packed and not properly, you could end up having bad reviews, returned items, and expensive order reshipments. If you're shipping items by yourself, employing an 3PL service or even dropshipping direct from your provider, ensure that all your items are packaged safely and securely.

You'll want to consider how many of each product will fit in one package and whether different types of products should be shipped together or in separate packages. You'll also want to make sure that the products you purchase are secured against the elements as well as damage due to dropping or stacking them, as well as an agitation in transport.

You can ask yourself these questions regarding your items to figure out the most efficient way to store them

  • Do you think it is weighty?
  • Does it have a fragile structure?
  • Are they sharp?
  • Do they contain fluids?
  • Are you sure it's unique?
  • It could be easily damaged if it gets wet?
  • Do you think it's too large?
  • Does it seem tiny?

When a client orders two very different products for example, a pair of champagne flutes in crystal or an assortment of weights for free - you probably don't need to pack them within the same container. If someone is ordering multiples of the same thing You may want to break the order up in several packages to minimize harm.

If, for instance, someone purchases twenty 18" 24" canvas prints through the store, it would not be prudent to pack them all into the same package. The weight of each piece could cause damages to the canvas beneath it. Additionally, you could pay more shipping charges when you use a larger box.

Also, the larger and bulkier the box is, the more difficult it can be to have it delivered without being dropped. Its notable size may also catch the eye of package thieves.

The small size of packages can pose a challenge also. Even if your item could be placed in a compact envelope with padding, you might have to include a strong cardboard or hardboard insert in order to stop the bending of your item, bubble wrap, or other padding materials to make sure your items arrive safely at the destination of the buyer.

If you've got a mixture of big and smaller products in your order, it is possible to ship them all together in the event that the smaller items be used as padding (like clothing or linens), or are lightweight and sturdy.

Picking the right packaging material

Materials for packing small and large packages could make shipping more expensive for e-commerce. You don't just have invest the cash for these supplies and add weight, which can raise shipping costs.

There's a need to be sure that your boxes and packing supplies can handle the size and weight of the goods you're sending, but that's not all you need to take into consideration.

If you are deciding on the packaging materials to use for your online orders, think about these aspects:

  • Item fragility
  • Brand Experience
  • Materials that are eco-friendly
  • Cost of packaging

Fragile merchandise

If you're sending fragile goods, you'll need to use different packaging materials than when you're sending non-fragile goods. It is possible that you will require additional bubble wrap, foam or air cushions in order to make sure your items arrive safely. Additional packing materials may increase your overall package size However, ensuring that your products arrive safely will reduce the cost of returns in the long run.

Take into account whether or not your items are susceptible to damage by water or any other element during the shipping process. Think about wrapping items that may be damaged by water in shrinkwrap, plastic bags, or other waterproof packaging. If you're using a balloon mailer, opt for using a plastic option rather than one made of paper.

Brand Experience

If you aren't bothered by cost it is possible to brand your packing materials. Companies such as the Sticker Mule provide custom-branded packaging and tape you can use to make all of the shipments you receive from your orders an experience that is branded.

When a container featuring your brand's image is delivered to someone's door and they'll be able to tell it's from you. Your brand's presence can bring a little more excitement to an individual's day. Plus, seeing that your company is going to the next level for packaging will help build confidence that you're investing the same amount of energy into your product.

packing items for shipping, including branded materials

Eco-friendly materials

If you're looking for your business to make use of environmentally friendly packaging materials, there are definitely options out there. It is possible to use environmentally friendly packaging materials in your marketing plan. If you're selling products that have a connection to nature, organic or just want to promote sustainable manufacturing practices, it might make sense to purchase eco-friendly packaging.

Companies such as Hero Packaging, Mushroom Packaging, and Noissue have sustainable packaging options. Noissue even provides custom branding options for packaging products. The packaging that is environmentally friendly can be more expensive than other materials and should be kept to your heart if you're operating on a an extremely tight budget.

Cost for packaging

It is important to ensure that your items arrive at their destination in a safe manner and the recipient has a positive experience with the delivery. However, you shouldn't spend too much on packaging.

With these factors in mind, let's take a look at some of the most well-known, affordable packaging materials and the ways they can benefit your ecommerce enterprise.

Cardboard boxes are among the most frequently used packaging materials for ecommerce orders. They're durable and strong, which makes them ideal for protecting fragile items. The cardboard boxes are lightweight, so they won't make a huge difference in weight to the shipping cost. And best of all, cardboard is recyclable, so this is a good option for eco-conscious businesses.

There's even cardboard made from recycled materials from the very initial place. Most packaging retailers like Uline sell environmentally-friendly cardboard boxes.

Wrapping in bubbles is yet another option for packing material. It's ideal for protecting delicate items and preventing damage during shipping. Bubble wrap comes in various thicknesses, so you can pick the best level of protection for your products. And like cardboard boxes, bubble wrap is cheap and recyclable.

Packing peanuts are commonly employed to fill up empty spaces in packages and prevent items from shifting during shipping. They're composed of various substances which include biodegradable ones like cornstarch. Packing peanuts can be reused, so they're a good option for businesses that want to lower their carbon footprint.

Air cushions are a viable alternative to packing peanuts. They're inflatable bags that are able to be utilized to fill the empty spaces within packages. Air cushions offer the same security as packing peanuts but are easier to reuse and recycle.

paper is a different eco-friendly packaging material option. Paper can be used for cushioning fragile objects and fill up empty space within packages. Paper can also be recycled (and it is possible to use papers made from recycled material) This makes it a ideal option for those who are looking to limit their environmental impact.

There are numerous packing materials available, so it's important to choose the best option for your company. Think about your product, shipping needs, and brand image when selecting packing materials to ship your online orders. By choosing the appropriate packaging materials, you can be sure that your products arrive safely at their destination while making a positive impact on customers and a minimal impact on the planet.

Determine your shipping rates for your customers

Now that you know which location you're shipping from, how you're packaging, what techniques and shipping methods you're using as well as the effect of size and weight on the options for shipping It's time to estimate two things: your cost for shipping and handling as well as the rates for shipping you charge your customers.

While you can use a shipping calculator on one of the main carriers' sites or an application that can multi-carrier ship to estimate the cost of shipping e-commerce depending on the method used and size, weight and destination The calculators won't consider cost of handling.

It's up to you to decide what works best for your business, however, you'll have to include these handling costs to a place to make sure they don't impact the profit margins.

What are the costs for handling?

The handling is all that matters, not the shipping cost which the shipping company charges you. Handling may include and is not restricted to:

  • Cost of supplies for shipping like boxes, padding materials, backing boards and plastic sleeves, tape, labels, and a thermal printer.
  • Cost of storing inventory.
  • It is time to pack orders, as well as arranging for pick-ups for carriers.
  • Service to customers regarding damaged or missing packages as well as providing customers with information on the status of their shipments.

An easy way to figure out your handling costs per purchase is to figure out what you spend per month on average on these costs, and then divide that by the amount of monthly orders. You can then add that handling charge on top of the shipping cost for every order.

If you'd prefer to include the handling cost to your pricing for your products, you could divide your handling costs for the month by the number of products sold per month. If you sell high-priced items and products that are priced low, you might want to divide the handling costs. Products that are less expensive will probably come with lower costs for handling to them than higher-priced items, but this isn't always the case.

How can I best approach the calculation of shipping prices?

shipping calculator in checkout
Photo (c) https://xeroshoes.com/

Live rates

Table rates

Flat rates

Flat rates make it easier to implement the shipping process by taking the guesswork out of calculating rates. You can charge the same price regardless of the amount or weight of your order. This is a great option if your inventory is similar in size and weight, or when most of your clients order the same quantity. If you use default configurations, you can charge a flat rate per product, a percentage-based cost, or a minimum fee.

Free shipping

Customers who receive free shipping are happy - but reduces your margins. It is possible to include the cost of shipping in the price of your product, however customers might be turned off due to the increased cost. Or keep your pricing low and shipping free, hoping that increased sales could make it more financially viable.

Shipping combined

Combining shipping options gives you the most benefits of both. If the one-size-fits-all method of shipping doesn't align with your needs as a business, you can always mix and mix and match. One approach is to offer free shipping on orders that exceed a certain amount for customers to make other items 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 place and set up the ecommerce shipping process.

1. Make sure you back up your online store

If you have a live store, start by taking an all-encompassing backup. In the event of any unexpected issues it will ensure that you do not lose valuable data and the information about orders. We suggest Jetpack VaultPress Backup to handle this.

When your backup has been completed, upgrade WordPress and your theme and all plugins to ensure full compatibility with updates to fulfillment and shipping extensions.

2. Setup settings

shipping zone options in

Click on the Settings tab - Settings - Shipping in your account dashboard. There, you can create shipping zones for defining rates depending on the locations of customers as well as shipping categories to set rates based on the same products in a group.

We'll begin by taking a look at shipping zones. Once you've set them up, you'll have the ability to set shipping costs based on specific areas you deliver to. And you can either just be a bit generic (like setting rates by country) or more specific (like the definition of rates by ZIP code). Do not worry about it - regardless of the level of complexity, each individual customer will only be able to see rates that apply to their shipping address.

Click on the shipping zonestab and in the event that you're still not setting an area yet, you'll see a prompt to set it up.

option to add a shipping zone

Click Add shipping zone.

setting shipping zone name

The new window that appears, you can name the zone however you'd prefer. Select your areas of operation that will be included in this zone. There are many options to create zones, so think through the best way to do so to benefit your company.

As an example, a store that is located within New York City might have zones that cater to the East Coast, Midwest, and West Coast, with rates increase based upon the distance to New York. For example, a bakery may provide free shipping within their zip code as well as a discounted rate to every other place.

Pick all of the places you'd like to be included in this zone of shipping. If you wish to restrict the zone based on zip code, click Limit to specific zip/postcodes. A new box will appear where you can enter an alphabetical list of zip codes.

The next step is to define the shipping rates that are available for the new zone. Simply click to click the "Add shipping rates" button. As a default, you'll be presented with three choices: flat rate, free shipping, and local pick-up.

If you select Flat rate shippingyou'll have the ability to choose a price for that area (e.g. $9.99 flat cost shipping). You can also set this according to the shipping class which we'll discuss shortly.

flat rate shipping settings

If you opt for Free shipping You can choose to set a minimum order total required to qualify for free shipping. You can also choose whether or not you want to include free shipping in coupon codes, and more.

free shipping settings

In the event that you select local pickup,customers that reside within the designated shipping area can take their orders to the location of your business.

local pickup settings

Keep in mind that you could make one or more these items to each zone. For instance it is possible to offer free shipping above an amount specified in the 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 for various types of merchandise. You could, for instance, sell unframed prints of your work, as well as frames. Not only will these costs differ in shipping based on their weight, framing options also need additional packing materials.

Let's run with this example. On your dashboard, browse to - Settings - Shipping Then, click on the Shipping Classes tab. There, click "Add new shipping classes" on the right-hand corner of the page.

Then, add a class name, Slug (URL) as well as a description. Finally, click Save shipping classes.

You'll need to assign products to each class you've created. Navigate to Products and then All Productsand open the that you'd like to change. Then, scroll down to the Product Data box, and click the Shippingtab.

When you are in the dropdown list to select the shipping class,select the class that best fits the product. Save your modifications. This can be done for every product within that class.

This lets you be even more granular with the shipping costs. So, for example, when you set the flat rate for shipping it is possible to set the price of framed as opposed to. unframed prints. In the image below that you can now select an additional option for"framed" shipping classes "framed" shipping type.

That's all there is! You can see that there's plenty that you can do with default settings for shipping.

3. Set up and activate the shipping extensions

To implement table rates live rates or to make use of a mix with live rates, you'll need an extension. You can also use extensions to incorporate features such as shipping labels or warehouse syncing.

Are you working using the 3PL service? They may have a extension on the market or directly from their website They may also design an extension specifically for your needs.

4. It should be easy for the customer to comprehend where they placed their order

The process of shipping your order online isn't over once you've dropped the parcel off. Actually, many of the most rewarding opportunities for excellent customer service happen when your purchase is placed in the mail!

Customers must be able to quickly understand where their order is at all times, and know when they can expect it to be delivered. This is particularly important when you offer items that are frequently purchased as gifts.

5. Think about returning shipments

Although nobody likes to consider returning items, they do occur. And if you accept exchanges or return shipments it is essential to have a system that is in place.

Shipping - profit!

You're ready to start shipping! Be sure to adjust your strategy for shipping as you go and make modifications as you discover more about your customers. Eventually, you'll soon find the options that are good for relationships with customers as well as your profit margins.

There are a variety of ways to handle ecommerce shipping. You could do it on your own, partner with a logistics firm, or drop ship products directly from the manufacturer. When making these choices be sure to take into consideration whether companies are readily available in each case and if they can take care of your needs.

Certain shipping companies on the internet are restricted on what items they'll deliver, such as specific regulations that apply to particular kinds of products. And if you want to send your goods internationally, you'll need choose a shipping partner who can reach the areas you wish to reach.

The option is to transfer the cost of shipping to your clients, or cover all or part of the costs your own. There's pros and cons to any method and you could want to experiment over time. If you do opt to charge shipping, you could calculate rates in a variety of options ranging from flat rates to tables rates, and even liveprices in real time fed from your shipping carrier.

And, regardless of what you decide to do when setting the e-commerce shipping system It has the right tools to handle everything. Take advantage of extensions for shipping products cheaply effectively, quickly and securely and ensure your satisfied customers remain happy and your store is running smoothly. Want more details? Go through our online shipping instructions.