Running a small business, undoubtedly, isn’t an easy feat. More often than not, business owners need to wear multiple hats. There exist countless strategic tasks that require their attention every day, from creating products to promoting them. And no less critical is shipping products to the customers to ensure an exceptional customer experience.
From stem to stern, eCommerce is one of the essential aspects for large and small businesses alike. Over and above, the outbreak of the Covid-19 pandemic[ASS1] has acted as a catalyst for eCommerce. It’s pretty evident now that the shipment process and the quality of products are the only two things that separate you and potential customers.
Thus, it gives more reasons for small businesses to invest time and create an effective shipping program to streamline the supply chain and enhance profit margins. But this begs the question – what is the best shipping strategy for small businesses?
The truth is, there isn’t any one-size-might-fit-all approach when it comes to shipping. Nonetheless, there exist ways to improve operational efficiency to distinguish your business in a market crammed with online shopping carts. So, let’s flesh out a couple of tips that can help reduce costs and revamp the shipping freight:
Take the correct measurements
Shipping rates hinge on various factors, such as weight, distance, product type, and order volume. Therefore, it’s imperative to type in the correct dimensions and total weight when acquiring a shipping quotation to receive the same billed amount as the initial quotation.
For instance, if you have a shipment with a density of 50 pounds or more per cubic foot, in that case, it’s a freight class 50. This freight class number is primarily a code given by the National Motor Freight and Traffic Association that helps freight companies to recognize the type of shipment and facilitate logistics.
And while density is the determinant factor, three other factors also define the freight class. If you’re still confused, check out this blog content to class 50 to learn how to determine a freight class. Once you are familiar with the factors, you can avoid reclassification charges and costly delays.
Choose the right delivery timing
Did you know that 46% of online shoppers won’t buy a product if the delivery times for their order are too long or not mentioned? Also, 34% of shoppers stated that prolonged shipment times are one of the primary reasons to shop from physical stores rather than online. These stats depict the significance of fast delivery times for customers.
While you may want to expedite the deliveries for the customers, it’s also difficult to resist the temptation of maintaining profits. In addition, of course, same-day shipping can be pricey compared to standard shipping. Nevertheless, you can countervail this shipping cost by charging a delivery fee for customers to use this service. However, be sure not to charge too much, as it may drive your customers away.
All in all, the delivery time that suits your small business best should be your first choice. Just ensure that the customers receive their orders timely. Next time, they might not consider your brand if it gets late, even if you offer free shipping.
Use the proper packaging materials
Parcels received in poor or damaged packaging often leave customers unhappy and dissatisfied. They might likely demand a full refund or post negative reviews on online platforms, which, in turn, can tarnish the reputation of your business. To deal with these exasperated customers, you will probably need to squander a substantial amount of time and money to figure out a replacement, pay the money back, and contend with the repercussions of the negative reviews.
However, if you use proper materials and pack the shipments securely, you can prevent these situations. So, try to pack your goods in shipping containers, for instance, shipping envelopes, cardboard boxes, bags, or packing crates. This way, you can ensure the shipments remain in good condition and uphold a professional brand image.
And if you are shipping pallets, ensure that they aren’t flawed or broken. If they already are, even the proper palletization will be futile. Also, firmly pack the goods on the pallet to prevent the likelihood of damage or loss in transit.
Consider third-party insurance
Are you shipping ceramic, glass, or other fragile items? Of course, you will want to deliver these products securely without a scratch.
Damage and insurance are two shipping terms that most, if not all, shippers aren’t acquainted with; however, it’s essential to know what actions to take in the event of a damaged shipment. Every small business requires shipping insurance, but it’s also true that it isn’t the most economical option. Sure, the carriers ship the goods safely, but things might go south anytime, and accidents occur. In the circumstances like these, insurance can diminish the risk of damage or loss during transportation.
Therefore, if you wish to cut back on shipping costs, it’s wise to consider third-party insurers for peace of mind. That’s because third-party shipping insurance is a cost-effective option – charging less than the carrier’s insurance.
Leverage technology to automate the shipping process
In today’s fast-moving and digital realm, customers have grown impatient. The instant they place their orders, they wish to track the status. Thus, giving small businesses all the more reasons to provide them with complete tracking details.
So, if you wish to level up your customer service, in that case, leveraging cutting-edge technology is vital. Conventional order fulfillment and shipping procedures are time-intensive and deviate your attention from other crucial aspects of the business. However, modern technology allows small business owners to manage orders in real-time effectively, thereby making it possible for the owners to dedicate the better part of their day to other business operations.
Capitalizing on technology can help you automate the entire shipping process – from sealing the shipping boxes to obtaining the best-value couriers and shipping rates. Further, the shipping solutions can go a long way in keeping the customers stay abreast of the tracking details. Remember, shipping is the last point of communication with your customers. Therefore, ensure to do it right so you can retain them.
Final Words
Several crucial factors can sink or swim a successful small business. For instance, provision of top-notch quality products, excellent packaging, a powerful and successful marketing strategy – you name it. Likewise, it’s equally important, if not more, to figure out a way to ship products from one point to another while keeping the costs as low as possible.
Shipping and handling are two indispensable constituents and inevitable logistics costs of small business management. And when it comes to responsibility as critical and overwhelming as deciding the proper supply chain strategy, you can’t afford to take on an imprecise approach.
All that’s to say is – research all your choices and make an appropriate decision. One wrong move, and your profit might go south. However, the right decision can help overcome shipping costs and eventually prosper your business.