Ecommerce Shipping Solutions: The Ultimate Guide

Jan 9, 2023

When someone clicks"purchase" or clicks the "purchase" button on your site and they purchase something, you've crossed the finish line, right? Almost. Now you need a seamless online shipping procedure to maintain your new customers to stay.

Utilize this guide to find the best strategy to delight shoppers all the way through the sales funnel from the time they add your product to their cart to its arrival on their doorstep.

Shipping fulfillment options for your online store

The process of shipping fulfillment is complicated, and the first thing you'll want to consider when establishing your ecommerce shipping strategy is who will be responsible to fulfill your orders. Are you able to fulfill them yourself? Will they ship direct from the wholesaler or manufacturer? If not, will you work with a third party logistics service (3PL) to handle the fulfillment of all orders placed on your eCommerce?

Let's review the options and walk through some pros and cons of the various options.

1. Ship orders yourself

If you're a small business that makes products in-house It may be easiest to ship directly from your offices or storage facility. This can be more cost-effective particularly if you keep the inventory at your personal office or home. However, this requires more effort to manage.

There are benefits and drawbacks to managing order shipments on behalf of your own online store.

Pros of shipping orders yourself:

  • You have complete control over the ecommerce shipping process and are able to customize it according to meet your specific needs.
  • It is possible to build relationships with customers by hand-writing thank-you notes, or by including small gifts in their orders.

Cons of shipping orders yourself:

  • It can take a long time to ship especially if you are dealing with an abundance of customers.
  • You may need to purchase shipping supplies and equipment, including containers, labels, and tape.

2. Dropship your orders to customers using a dropshipping service

Instead of purchasing wholesale goods and storing them in your own warehouse until the orders to arrive You could let your suppliers ship them directly to the customer. If they don't offer this option, you might shop around for companies that make the same, or comparable, products and contract with them to send orders directly.

illustration of the dropshipping process

Dropshipping can be a great option for e-commerce shipping fulfillment strategies for big businesses, too. Wayfair got its start as a dropshipping-only business and expanded to using their own warehouses as well as to continuing to use dropshipping as their primary model. Houzz is a rival of Wayfair, still uses the dropshipping model exclusively. The year before, Houzz generated 500 million dollars in sales. This isn't bad considering that the company does not design, make and ship any product that it sells.

Using a dropshipping service is beneficial, but it does have its drawbacks. This article will discuss the pros and cons of dropshipping so you can choose the right option to suit your needs.

Benefits of dropshipping

  • It's low-cost. There is no need to put money in stock up front, and you don't need to staff the shipping department on your own.
  • You can be more flexible with the products you sell. It is easy to alter your offerings as required You're not bound to a specific inventory. This can give you the ability to quickly adapt to fluctuations in demand.

Pros and cons of dropshipping

  • You have less control over the product's quality. If you're using Dropshipping, you're trusting the provider to provide quality products. If the products don't conform to the standards you set, it could reflect poorly on your business.
  • A longer and more insecure delivery times can be troublesome for your customers, and could result in reduced sales. Because you're relying on a third party to handle delivery, there's always the potential for delays. If you're working with multiple dropshipping companies, products in the order could arrive in different packages on different dates, leading to customer confusion as well as increased customer support tickets.
  • The shipping issues may require more time to address. If you handle shipping yourself or work with a 3PL business, you'll be able to resolve customer-related issues more quickly. If you're using multiple dropshipping businesses, you may be experiencing delays in communication which prolong the time it takes to resolve the issue of a complaint from a client.

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

If you're a business that requires multiple goods from various suppliers, but lack the time, money, or resources to do your own warehouse management it is possible to contract an outside logistics company for all of your online shipping.

It's a great option if you do not have the storage space or the capability of shipping yourself however, it could cost more for small businesses, based on your typical volume of sales.

A few pros and cons of the use of 3PL fulfillment services include: 3PL fulfillment provider comprise:

The advantages of using 3PL services: 3PL services:

  • A fulfillment service can handle all aspects of shipping for you, including packing, tracking, as well as the delivery.
  • They often have relationships with large carriers. This will reduce transportation costs.
  • They can scale up quickly to meet demands that are rising.
  • You don't have to hire an employee of your own to oversee shipping and fulfillment, which makes it easier to focus on the management tasks.
  • There is no need to maintain your inventory in your own office or home. This will reduce your overheads and keep your work environment clear of clutter.

The cons of using the 3PL service:

  • There is less control on the process of shipping and may not be able to tailor it according to your preferences.
  • You may need to pay a monthly fee or a per-order charge along with shipping charges.
  • Certain customers might prefer to deal directly with the store 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 the help of a 3PL - depends on a number of factors beyond what we've listed previously. It's important to consider the advantages and disadvantages of each choice. Then it's possible to decide on a mix of fulfillment solutions. You don't have to pick only one!

Shipping carriers and methods

Whatever fulfillment method you choose, you'll still need to familiarize yourself with the different shipping companies and techniques, since you'll need to incorporate information regarding them into your store's shipping settings. It is also necessary to give specific information regarding your carrier and shipping methods to your customers - especially when you offer them multiple options during checkout.

A shipping companyis the business who physically transports your goods to customers, like USPS, FedEx, UPS and DHL.

Shipping methods are the options and prices that buyers choose from at checkout - such as free ground shipping, $5.00 three-day shipping, or $15.00 next-day delivery. These options are generally determined by the carriers you work with and impact the price and speed of delivery.

Factor in places, dates, and weighs

When you are deciding on the shipping method and carriers consider the following key factors:

  1. Places. What countries, states, or provinces can you ship to?
  2. Dates. If you consider where your clients live, how long will delivery be to a specific country, state, or even a province? Do you want to offer express shipping?
  3. Weights. The size and weight of each product impacts the overall cost of shipping.

Countries: Choose which you will ship your items to.

There are some aspects to think about when considering which country your online store must serve. The first is to think about the nations your market you want to target within. If you're selling items that would be well-known in the United States, then it makes sense to ship there. But if you're selling products that are more niche or targeted towards a particular region, then you might want to limit your shipping exclusively to the region in question.

Another thing to consider is the expense of shipping. International shipping can be expensive, so you'll need to factor that into your decision. It is possible that you will need to deal with customs and other regulations that can create additional complexity and expense.

Consider your ability to manage shipping for multiple nations. It's quite a bit of work to manage different shipping regulations, carrier choices, and prices, so make sure you're prepared for that prior to signing the contract.

When you consider all these elements into consideration and take into account all of these factors, you'll be able to narrow your list of potential countries to ship to. Once you've narrowed it down, begin researching the rules and regulations for each country to make sure that you're ready to move there successfully.

Pro tip:Beyond extra expenses and logistical issues International shipping is a challenge because it has the legal requirements and regulations for customs that vary greatly depending on country and region. It is important to work in a shipping business who can simplify every step of the process as it is.

purchasing a DHL shipping label

Shipping has partnered with DHL - so now you are able to manage international deliveries from directly within your dashboard. You'll also save up to 67% off labels, enjoy free pick-ups, be able to provide customers with end-to-end tracking as well as automatic customs form creation.

Dates: Determine delivery times, carrier, and methods

Determine the best delivery dates and methods of shipping for your online store to will best fit your company. You'll need to choose an option that will bring your goods to customers quickly. If you're selling items that need to be delivered quickly, such as cosmetics or food, this is even more important.

Based on the location you're shipping to and the speed at which your items need to arrive you can offer one or multiple ecommerce 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

If you can provide fast and secure shipping, you can ensure that your customers are content with the experience.

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

Prior to shipping your products, it's important to be aware of not just the dimensions and weights of your items, but also the size and weight of your products after they've been packaged. This will help you decide the best method for each item or order to be shipped.

If your company is based in within the United States, the least cost method to send small parcels is usually USPS Priority Mail 3-Day Small Flat Rate Envelope , or Small Flat Rate Box. It offers tracking, quick delivery times, and is an especially good bargain if you're shipping tiny but heavy objects. The shipping cost is that weighs up to 70lbs, and pay the same flat rate. Also, you can avail the benefits of USPS giving you an envelope with a flat rate or box.

In the case of shipping bulk items, oversized package fees are not a must, however, if you're shipping multiple products in a single order, it might be more cost effective to split the items into multiple packages to avoid oversized package charges.

The 3PL service will default to the method that is most cost-effective to them as well as for your company. If you need items to be delivered in the same box even though it's more expensive, or split things in multiple packages due to some reason when it would better to place them in one larger box, you'll need to notify your 3PL to ensure they adhere to your policies. If you're packing and shipping things yourself, you are in complete control and have greater control over the method.

For international shipping it is necessary examine the different options which are offered for every country of destination and decide which will work the best based on the size and weight of your items. Although strategies such as splitting products to reduce the cost of shipping could be useful for domestic customers however, this strategy may not work for international shipments. It is necessary to create the specific ecommerce shipping method for each country you ship to.

How do you package orders to ensure delivery

Dimension, size and weight, the carrier and shipping methods all influence your shipping costs and practices. However, equally important is determining how your packages are packed. Being a company manager, you need to send orders efficiently and in a cost-effective manner while making sure that your items are delivered in good order.

If products are packed poorly, you can end up with poor reviews, return as well as costly order reshipments. Whether you are shipping products by yourself, employing a 3PL service, or dropshipping directly from your vendor, ensure that all the items you ship are safely and securely.

You'll want to consider how many items could fit into a package and whether different types of products should be shipped within the same box or separately. Also, you'll want to be sure your products are protected from the elements and from damage due to dropping on them, stacking or agitation during transport.

Ask yourself the following concerns about your product to figure out the most efficient way to store them

  • Is it too heavy?
  • Does it have a fragile structure?
  • Are they sharp?
  • Does it contain fluids?
  • Are you sure it's unique?
  • Could it be damaged easily if it gets wet?
  • Are they too big?
  • Are they very tiny?

If the customer purchases two different items for example, a pair of crystal champagne flutes and a set of free weights It is unlikely that you wish to put them all together in the same package. However, even if a customer orders several of the same thing it is possible to split the order over several packages to prevent the risk of damage.

In the case of a customer who purchases twenty 18" 24" canvas prints through the store, it would not be wise to ship them all in the same package. The weight of each item could cause damages to the canvas beneath it. In addition, you might be charged more for shipping by using a box that is too large.

The bigger and bulkier the item is, the more difficult it is to get it delivered without being dropped. A package's size that is notable could attract the attention of package thieves.

Smaller packages aren't easy as well. If your product can be placed in a compact envelope that is padded, you could require a rigid cardboard or hardboard insert in order to keep it from bending or bending. You can also use bubble wrap or any other padding to ensure your items arrive safely at the destination of the buyer.

If you've got a mixture of small and large things in an order it is possible to ship them all together if the small items can serve as padding (like clothing or linens) or are light and sturdy.

Choosing packaging material

Packing materials for both large and small packages can increase your ecommerce shipping costs. In addition, you will need pay for the cost for these supplies however, they can also add weight, which can increase shipping costs.

You'll need to make sure that your boxes and packing supplies can handle the size and weight of the goods you're sending however that's not all you need to take into consideration.

In selecting the materials you will use to pack your online orders, think about the following:

  • Item fragility
  • Experience with brands
  • Organic materials
  • Cost for packaging

Fragile merchandise

If you're shipping fragile items then you'll require different packing materials than if the items are not fragile. You may need extra bags of bubble wrap or air cushions to ensure 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 later on.

Consider whether your goods could be damaged by rain or other elements during shipping. 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 the one made of plastic rather than a paper one.

Brand experience

If you're not concerned about costs it is possible to brand the packing materials. Businesses such as Mule Sticker Mule can provide customized packaging and tape that you can use to make everything about your order shipments to be branded.

When a box featuring your brand's image arrives at someone's doorstep, they'll know it's from you. Your brand's presence can bring some excitement a customer's day. Also, knowing that your business is willing to go the extra mile for packaging will help build confidence that you're also putting just as much effort into your products.

packing items for shipping, including branded materials

Materials that are eco-friendly

If your company wants to use environmentally sustainable packaging products, there are plenty of options out there. There are even eco-friendly packaging materials in your marketing strategy. If your products are nature-related, organic or just want to promote sustainable manufacturing practices is it logical to invest in eco-friendly packaging.

The companies like Hero Packaging, Mushroom Packaging, and Noissue offer sustainable packaging options. Noissue even offers customized branding on your packing materials. Eco-friendly packaging can be higher priced than other types of packaging and should be kept to your heart if you're operating on a a tight budget.

Packaging cost

It is important to ensure that your goods are delivered in a safe manner and the recipient has a positive experience with their delivery, but you shouldn't overspend on packaging.

With this in mind, let's take a review of some of the most popularand cost-effective shipping materials and how they can benefit your ecommerce enterprise.

Cardsboard containers are among the most commonly used packing products for online orders. They're durable and strong making them perfect for packaging fragile products. They're also light, which means they don't add a lot of extra weight to your shipping costs. The best part is that cardboard is recyclable so it's an ideal choice for businesses that are environmentally conscious.

It's possible to purchase cardboard made of recycled materials from the very initial place. Most packaging retailers like Uline sell environmentally-friendly cardboard boxes.

Wrapping in bubbles is another choice as a packing material. It's ideal for protecting delicate objects and also preventing damages during the shipping process. Bubble wrap comes in different thicknesses, so you can select the appropriate degree of protection for your items. Like cardboard boxes, bubble wrap is cheap and recyclable.

Packing peanuts can be employed to fill up empty spaces within packages. They also prevent packages from shifting during shipping. They're constructed from various materials which include biodegradable ones such as cornstarch. The packing peanuts are reusable, so they're a good choice for firms looking to lower their carbon footprint.

air cushions are a viable alternative for packing peanuts. These are inflatable bags that are able to be utilized to fill empty space inside the packaging. Air cushions give similar protection to packing peanuts however are more convenient to recycle and reuse.

Papier is another eco-friendly packing choice. You can use paper to cushion fragile items or fill empty space in packages. Paper can also be recycled (and it is possible to use papers that is made of recycled materials) This makes it a excellent option for companies that are looking to limit their environmental impact.

There are a variety of packing materials available, so it's crucial to pick the appropriate one for your company. Think about your product, the shipping requirements, as well as your brand identity when choosing packing materials to ship your online orders. By choosing the appropriate materials, you can ensure that your goods arrive safe to their final destination, while creating a positive impact on clients and having minimal effect on the earth.

Find out your shipping costs for customers

If you're aware of where you're shipping, how you're packaging, what carriers and methods you're using as well as the impact of weight and size on your shipping options, you'll need to calculate two things: your cost for shipping and handling and the shipping rates you charge your customers.

Although you may make use of a shipping calculator available on one of the main carriers' websites or a multi-carrier shipping software to calculate ecommerce shipping costs based on method and size, weight and location These calculators do not consider cost of handling.

You can decide which works most effectively for your company, nevertheless, you'll need to put these handling costs to a place to make sure they don't impact your profit margins.

What are the costs for handling?

It's all about handling, but not the shipping cost that the carrier charges you. Handling may include, but is not limited to:

  • The cost of shipping materials includes packaging materials, boxes, backing boards and plastic sleeves and labels. and thermal printer.
  • Storage costs for inventory.
  • The time is spent packing orders and organizing carrier pickup.
  • Service to customers regarding lost or damaged packages and communicating with customers on the status of their packages.

An easy way to figure out your handling costs per order is to calculate how much you'll spend each month for the above costs and then divide by the number of items you place per month. Then, you can add the handling cost to the cost of shipping each order.

If you'd rather add the handling costs to your pricing for your products You could split your average monthly handling cost by the number of merchandise sold in a month. If you sell high-priced items and low-priced products it is possible to divide the handling costs. Products that are less expensive will probably come with lower costs for handling with them than more expensive merchandise, though this may not be always the case.

Which is the most effective method for calculating shipping rates?

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

Live rates

Table rates

Flat rates

Flat rates simplify the shipping process as they eliminate the hassle calculation of rates. Charge the same amount regardless of the amount or weight of your order. This is an excellent solution if you have inventory that is consistent in the size and weight or when most of your customers order similar quantities. With the default configurations, you can set a fixed price per item, a percentage-based cost, or the minimum amount.

Free shipping

Free shipping makes customers satisfied, but it also decreases the margins of your product. You could include the costs of shipping into your product's price, but buyers might be put off by the higher dollar amount. You can also keep the price low and shipping free, hoping that increased sales will make it financially worthwhile.

Shipping combined

Combining shipping options gives you two options. If a one-size-fits-all approach to shipping isn't in line with your business needs, you can always combine and combine. One option is offering complimentary shipping when orders have a minimum value to encourage customers to add more products to their carts.

Implement your ecommerce shipping strategy

After you've conducted your own research, weighed your options, and made a decision that you're now ready to put your plan in place and set up the ecommerce shipping process.

1. Backup your online store

If your store is live, start by taking an entire backup. In the event of any unexpected issues, this ensures you don't lose valuable data and details about your orders. We highly recommend Jetpack VaultPress Backup to handle this.

Once your backup is completed After your backup is complete, you should make sure to update WordPress, , your theme, as well as the plugins in order to guarantee compatibility with any extension to your fulfillment or shipping system.

2. Change settings

shipping zone options in

Navigate to the Settings tab - Navigate to Settings - Shipping within your account dashboard. There, you can create shipping zones to define rates based on customer locations, as well as shipping classes for defining rates based on the same products in a group.

Let's start by taking an overview of shipping zones. When you set these up, you can define shipping charges based upon the regions you are delivering to. It is possible to be pretty generic here (like defining rates by the country) or more specific (like defining rates by ZIP code). No worries - regardless of how complex you go, each individual customer is only able to view the prices applicable to their specific shipping address.

Click the Shipping zonestab and in the event that you're still not setting up a zone yet there will be a prompt to do so.

option to add a shipping zone

Click Add shipping zone.

setting shipping zone name

In the new window that appears, you can name the new zone whatever you'd like. Select your areas of operation that will be comprised in the zone. There are a variety of ways to configure zones. Take your time to think of the best way to do so for your business.

As an example, a shop that is located within New York City might have zones that cater to the East Coast, Midwest, and West Coast, with rates increasing in price based on distance from New York. Or a bakery might give free shipping to customers within their zip code, and paid rates to every other place.

Choose all locations that you'd like included in this shipping zone. If you wish to restrict your zone according to zip code, simply click Limit to specific zip codes or postcodes. Then, a new window will open that allows you to enter an alphabetical list of zip codes.

The next step is to determine the shipping costs that are available for the brand new zone. Simply click to click the "Add shipping rate" button. By default, you'll see three choices: flat rate, no-cost shipping and local pickup.

If you opt for Flat rate shippingyou'll have the option to choose a cost for the area (e.g. $9.99 flat rate shipping). You can also set this depending on the type of shipping you use, which we'll talk about shortly.

flat rate shipping settings

If you opt for free shipping then you are able to specify a minimum order total required for free shipping, whether or not you want to combine free shipping with coupon codes, and other.

free shipping settings

In the event that you select Local pickupcustomers that reside within the designated shipping area will be able to pick up their order at your place of business.

local pickup settings

Keep in mind that you could include one or more of these options to each zone. So, for example, you could offer free shipping above an amount specified in the order, or flat rate shipping on anything less than the total.

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 prints without frames of your work, as well as those that are framed. Not only will these cost different amounts to ship depending on the weight of your items, but framing options also need greater packaging material.

Let's take a look at the following example. Within your dashboard, navigate to - Settings - Shipping, then click for the shipping classes tab. Click Add new shipping class in the bottom right area of the page.

Then, add a class name, URL (URL) along with a description, and click Save the class.

Now you'll want to assign the products to every class you've created. Go to Products - All Productsand open the product you wish to modify. After that, go to the Product Data box, and select the shippingtab.

When you are in the dropdown list for Shipping classes,select the class that best fits the product. After that, save the changes. It is possible to do this for each product in that class.

This allows you to get much more precise with your shipping rates. This means, for instance, when you set the flat rate for shipping it is possible to set the price of framed as opposed to. non-framed prints. You'll see in the screenshot below that you can now select a separate option just for the "framed" shipping type.

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

3. Set up and activate the shipping extensions

For table rates as well as live rates, or to make use of a mix using an extension, you'll require an extension. It is also possible to use extensions to add features like shipping labels and warehouse syncing.

Are you working using the 3PL service? There may be an extension available in the marketplace or directly from their website They may also design an extension specifically for your needs.

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

The shipping process for e-commerce isn't over once you've dropped your package off. Actually, many of the most rewarding opportunities for great customer service are when your purchase is placed in the post!

Customers need to be able easily know where their purchase is in all time, and know when they can expect it to arrive. This is especially important if you offer items that often are purchased for gifts.

5. Consider return shipments

Although nobody likes to think about returns however, they can occur. And if you accept exchanges or returns It's crucial to have a plan to follow.

Shipping - profit!

You're ready to start shipping! Be sure to adjust your shipping strategy as you go and make changes as you learn about your customers. Eventually, you'll quickly discover the solutions that are good for customer relations and your profit margins.

There are several methods to deal with ecommerce shipping. You can do it yourself as a partner, work with a logistics business and drop ship items directly from a company. In order to make the right choices be sure to take into consideration whether carriers are available for each option and if they're able to handle the needs of your business.

Certain shipping companies on the internet have restrictions on the items they'll deliver, such as the use of special rules for certain kinds of materials. If you plan to ship internationally, you'll have locate a company that can reach the areas you wish to focus on.

You can pass along the cost of shipping to your clients as well as cover all or part of it yourself. There's pros and cons for every method, and you might want to experiment over time. If you decide to decide to charge for shipping, you are able to determine rates in almost unlimited ways - from flat rates to table rates and even real-time, live pricing generated by your shipping provider.

And, regardless of how you choose to set up your eCommerce shipping plan, has the tools to manage it all. Make use of extensions that allow you to deliver your products cost-effectively quickly, safely, and efficiently to ensure that your customers are happy and your store operates effortlessly. Want more details? Check out our ecommerce shipping documentation.