Table of Contents
Introduction
Understanding Standard Shipping for eCommerce
Four Steps to Ship eCommerce Orders Using Standard Shipping
Calculating Standard Shipping Costs for eCommerce
Seven Tips to Improve Your eCommerce Standard Shipping
Conclusion
FAQs
Introduction
Establishing a delivery supply chain for your eCommerce business can be financially and operationally challenging. Fortunately, standard shipping services offered by courier companies can provide cost-effective and efficient solutions for your shipping needs.
In this article, we will delve into the details of standard shipping as a shipping option. By exploring its pros and cons, you will gain valuable insights to help you make informed decisions for your eCommerce platform.
Understanding Standard Shipping for eCommerce
Standard Shipping is the most basic delivery option provided by carriers. It is an affordable and reliable choice for merchants, particularly for domestic shipments that primarily utilize ground transportation. However, it's important to note that standard shipping may have longer delivery time frames compared to other expedited services, which can impact the overall customer experience.
Four Steps to Ship eCommerce Orders Using Standard Shipping
When utilizing standard shipping for your eCommerce orders, you can follow these four steps:
1) Order Creation: After a purchase is made, a fulfillment request is generated in the backend system, notifying the warehouse about the order details. An Air Waybill (AWB) is created with the carrier, and the item is retrieved from the warehouse to be packaged.
2) Labeling: Print a shipping label provided by the courier services, ensuring it includes accurate shipping and sender's addresses, as well as contact details. Additionally, consider using precautionary labels to inform handlers about the nature of the items (e.g., fragile, flammable) for added protection during transit.
3) Packaging: Properly pack the item in boxes or pallets, depending on the order size. Ensure the packaging secures the item(s) and can withstand potential rough handling during transit. If an order contains multiple items, consolidate them securely into one larger package for easier delivery.
4) Fulfillment: Once the item is packaged and labeled, you can either drop the parcel at the nearest center or schedule a pickup. From this point forward, the carrier assumes responsibility for the package, which will travel through the shipping process until it reaches its destination and is delivered to the customer's doorstep, completing the eCommerce shipping workflow.
Calculating Standard Shipping Costs for eCommerce
When calculating the cost of standard shipping, several factors come into play:
1) Package Size: Most carriers charge a standard fee if your package falls within the dimensional and weight limits. Failure to comply with these guidelines may result in additional charges for oversized packages.
2) Package Value: The value of the package often determines the cost of insurance. Carriers typically charge around 3-4% of the total value as insurance charges.
3) Distance: The distance between the origin and destination is a significant factor in determining shipping costs. Carriers often divide countries into different shipping zones to calculate costs more efficiently.
4) Value-added Services: Value-added services such as tracking, customer notifications, and doorstep pickup usually require separate purchases when using standard shipping services.
Seven Tips to Improve Your eCommerce Standard Shipping
Consider implementing these tips to enhance your shipping and delivery experience for both you and your customers:
1) Leverage Your Order Volume: Negotiate a separate Service Level Agreement (SLA) with a single carrier based on your order volumes. Tailor the agreement to meet your product and customer requirements, including clauses for minimum thresholds, improved delivery times, and handling of damaged or delayed shipments.
2) Choose the Right Packaging: Opt for packaging materials that effectively protect your products during transit, reducing the risk of damage. Ensure your packaging adheres to
dimensional guidelines to avoid oversize charges.
3) Enable Multi-Carrier Shipping: As your business expands to new regions, consider integrating multiple carriers to optimize your shipping choices for each shipment. AI-based carrier recommendation and allocation engines can automate this process, helping you optimize shipping costs and improve delivery experiences.
4) Purchase Third-Party Insurance: While shipping insurance is essential, consider exploring third-party insurance providers, as they often offer more cost-effective options compared to carrier-provided insurance.
5) Integrate an Address Verification API: Implement an address verification API in your fulfillment workflow to reduce Return to Origin (RTO) rates caused by address errors. This API verifies addresses before sending them to the carrier, minimizing delivery issues.
6) Obtain Real-Time Shipment Tracking: If your standard shipping services do not include tracking, consider investing in real-time tracking services. These updates enhance the post-purchase customer experience and provide visibility for efficient order management and resolution of "Where Is My Order" (WISMO) complaints.
7) Regularly Monitor Shipping Data: Regularly analyze shipping and delivery data to identify areas for improvement in your shipping operations. These insights can help address issues with carriers or warehouses and contribute to better inventory forecasting and management.
Conclusion
As the retail sector continues its transition to the online model, logistics and delivery remain critical challenges for many businesses. Standard shipping offers a reliable and affordable solution for organizations looking to establish their delivery services. Its balance of affordability and quality makes it a suitable choice for most eCommerce businesses.
FAQs
Q: What is standard shipping for eCommerce?
A: Standard shipping is the basic delivery option provided by carriers for eCommerce orders. It is affordable and reliable, primarily utilized for domestic shipments using ground transportation.
Q: How do I calculate standard shipping costs for eCommerce?
A: Standard shipping costs depend on factors such as package size, package value, distance to be traveled, and any value-added services required. Carriers often provide guidelines and fees for dimensional limits and offer insurance options based on the package value.
Q: How can I improve my eCommerce standard shipping?
A: Some tips to enhance your eCommerce standard shipping include leveraging your order volume, choosing the right packaging, enabling multi-carrier shipping, purchasing third-party insurance, integrating an address verification API, obtaining real-time shipment tracking, and regularly monitoring shipping data for insights and improvements.