Shipping is a crucial part of e-commerce. If done right, it can grow your business online and if not properly managed, it can impact your business negatively. Delivery logistics, which involves maintaining proper controls in freight, can be a powerful way of distinguishing your business. Therefore, it is important that your brand optimize an effective shipping strategy to make your customers happy. In this guide, we will introduce delivery logistics, how logistics work during dropshipping, and strategies on how you can improve your logistic service.
Delivery logistics in dropshipping is quite different from e-commerce. In e-commerce, the retailer stocks inventory and also think about shipping or order fulfillment. In delivery logistics in dropshipping, the supplier takes care of shipping and order fulfillment. However, the overall cost of shipping, when to offer free shipping, what logistic service to use, are some major concerns for online retailers. When you establish a concrete shipping strategy for your online store, you are not only differentiating your store from the competition but also growing your customer base.
How Does Logistics Work During Dropshipping
Product delivery is dependent on different factors including size, weight, distance, weather, and so on. Accurate logistics is expected to provide a better and faster experience for consumers, to a great extent, regardless of any unforeseen contingency. In the dropshipping business model, the retailer enjoys advantage delivery and logistics. In this case, the supplier handles logistics and delivery for every item sold. Logistics delivery service takes dynamic and proactive action on shipment and communication, leaving the retailer to focus on marketing and other aspects of the business.
What’s The Benefit Of Delivery Logistics Of Dropshipping?
Delivery logistics of dropshipping involves the use of business intelligence tools to deliver accurate, relevant, and useful data form about shipping and delivery. Infusing useful data such as active reporting, order tracking, demographics, customer contact information, etc. into shipping and logistics ensure fast, pleasant, and successful deliveries to consumers. In today’s world, customers are more eager to get their packages delivered almost immediately. One common thing about the best e-commerce platforms (Amazon, eBay, SaleYee, etc.) is that they ensure to satisfy customers through extra fast delivery. If you can deliver items to your customers at a much faster pace than your competitors, you can make their experience more enjoyable and you will win them over.
Some Considerations For Delivery Logistics
Poor shipping service and delivery logistics have made a lot of e-commerce businesses lose customers. When asked about their secrets, successful retailers would often mention that they offer the right shipping options and rates to their customers. For instance, you may end up losing a customer if your shipping fee is high. Conversely, if you charge too little, you might end up running at loss. So what do you do? Offer the lowest shipping rates possible but make sure it covers your cost. This way, you are sure to reduce cart abandonment and increase revenue. This is quite technical and requires some consideration. The most important factors to consider are the shipping destination, product parameter, and shipping options.
1. Shipping destinations
The destination to which you are shipping is an important factor to consider when dropshipping. The location of your consumers should determine the type of shipping you will adopt. For consumers living within the state or country, you can offer a flat-rate or free shipping option. However, shipment beyond your country (that is international shipping) will incur additional charges. In most cases, you will have to get a rate from reputable carriers like DHL, USPS, etc. The rate can even vary from country to country. The farther you consumers, the higher their shipping rate, and vice versa.
2. Product parameters
Size matters! While your customer’s destination will determine how much or less they will pay for shipping, product parameters i.e. size and weight can impact the shipping fee. This aspect can be a little complicating; however, utilizing the zone-based approach is recommended. In this case, the shipping price will not be determined by your customer’s product size or weight but by their location. Recall, we listed “use shipping as a promotional tool” in point e above. Typical shipping promotions may include:
· Free shipping for orders over $40
· $15 shipping per order
· $5 shipping per item
For heavy items that are going overseas, getting shipping rates directly from a courier will be ideal. Just ensure that you have an accurate dimension and weight of your products to get the best ROI.
3. Shipping options
It is necessary to consider a trustworthy logistics delivery company because there are many in every part of the world. Sometimes, you may not necessarily use DHL and USPS. Take the time to make research and you’ll be amazed to see carriers that can offer same-day delivery, tomorrow delivery, free in-store pick up, Amazon logistics delivery driver, Amazon logistics Saturday delivery, and other flexible options, at cost-effective rates. Nothing is appealing to a customer than to order for the desired product, not paying for shipping or paying a token for shipping, and getting the delivery almost immediately. For B2B shipments or retailers shipping large items, using the Less Than Truckload (LTL) freight carrier is a must!
While shipping seems like a simple topic, some retailers still don’t know how to make the best use of it. Here are a few tips on how you can make money with the right shipping strategy.
a. Work with the right logistic team
b. State what you want to achieve with your shipping strategy
c. Determine the axis you will sell in
d. Know whether or not your product is right for international shipment
e. Decide if shipping will be included in the cost of goods sold or marketing expense
f. Install a shipping solution
g. Watch out for restrictions
h. Surcharge your expedited rates
i. Use shipping as a promotional tool
j. Estimate how much shipping expenses would cost monthly
k. Only offer free shipping to certain regions
l. Display your delivery time so your customers will see easily
m. Offer free shipping only after conditions are met
Top 4 Shipping Options For Retailers
a. Free shipping
b. Flat rate and table rate shipping method
c. Live rates from a carrier
d. A combination of two or more shipping option
Which Logistics Service Is Right For Dropshipping?
Determining the best way to ship both locally and internationally comes with a lot of hassle. There are so many express max logistics delivery services out there but you need to research and test each one before settling on a decision. To help you out, we discovered the SaleYee dropshipping platform. SaleYee.com is a leading dropshipping wholesale supplier in China. SaleYee.com is rapidly expanding outside of Asia into Europe and the rest of the world with its local warehouses and outstanding logistics services. This company has years of experience in shipping both domestically and internationally. SaleYee’s advantage delivery logistics service offers several delivery time plans (including same-day delivery), low shipping costs, and tracking reports. These and much more have SaleYee.com put in place as it aims to make dropshipping easier for every online seller.
Conclusion
Offering the right shipping option for your customers will go a long way in the long-term success of your business. As an online retailer, you need to be flexible with your shipping options else you risk losing customers and shrinking sales. Take advantage of this delivery logistics guide to standout from the competition and increase your sales margin by far.
