Ecommerce Shipping Solutions: The Ultimate Guide

If someone clicks on the "purchase" option on your site and they purchase something, you've crossed the finish line, right? Almost. Now you need a seamless electronic shipping system to make the sales and keep customers for life.

Use this guide to determine a strategy that delights shoppers throughout the sales funnel, starting from the moment they add the product they want to buy until it arrives on their doorstep.

Fulfillment options for shipping to your online store

Shipping fulfillment can get quite complex, so the first thing to decide when creating the strategy for shipping your products to customers on the internet is who will be responsible for fulfilling the orders. Do you handle them on your own? Do they come directly from the manufacturer or wholesaler? Or will you contract with a third-party logistics company (3PL) to handle every aspect of fulfillment for your online orders?

Let's review the options and walk through some of the 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 You may find it easier to send your products directly from your offices or storage facility. This can be more cost-effective in particular if you're keeping the inventory at your personal office or home. However, this requires more effort to handle.

There are pros and cons when it comes to handling order shipping for your online store yourself.

Advantages of sending your own orders:

• You have complete control over the shipping procedure for your ecommerce business and are able to customize it according for your requirements.
• Build connections with your customers by writing thank you notes or including small tokens of appreciation with their purchases.

Pros and cons of shipping yourself orders:

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

2. Dropship your orders to customers using dropshipping

Instead of ordering goods wholesale and then storing them at your warehouse until the orders to arrive, you could have the suppliers deliver them directly to the client. If the suppliers you currently have aren't able to offer this, you might shop around for other companies who offer similar or similar, products and contract with them to ship the orders directly.

Dropshipping can be a great method of fulfillment for shipping orders on ecommerce for big businesses, too. Wayfair began its start as a dropshipping-only business and expanded to using their own warehouses in addition to using the dropshipping model. Houzz which is a competitor to Wayfair, still uses the dropshipping model exclusively. In the year that ended in June, Houzz generated 500 million dollars in sales. It's not bad considering that the company does not design, make or even ship the products it sells.

Using a dropshipping service has its benefits, but there are some drawbacks. We'll go over the pros and cons of dropshipping to help you make the best decision for your company.

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.
• It is possible to be more flexible when it comes to the products you sell. It is easy to alter your product offering as needed You're not bound to an inventory. This can give you the capability to swiftly respond to changes in demand.

Cons of dropshipping:

• There is less control on the quality of your product. With Dropshipping you're depending on your supplier to deliver quality products. If they don't meet your requirements, they could reflect poorly on your business.
• A longer and more insecure time frames for shipping can prove frustrating for clients and result in lost sales. As you're dependent on an outside company to manage shipping, there's always the possibility of delays. If you're working with multiple dropshipping firms, the items in the order could arrive in different packages at different times, which can lead to customer confusion as well as increased customer support tickets.
• Shipping issues can require more time to address. If you are shipping your own products or through a 3PL company, you can respond to customer service issues more quickly. If you're working with several dropshipping companies, you might encounter delays in communications that extend the amount of time needed to settle a customer complaint.

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

If your company purchases multiple items from different producers, but you don't have enough time, money or the resources needed to manage the warehousing yourself, you might contract with the services of a third party logistics firm to manage all your e-commerce shipping.

This is a viable option if you do not have enough storage space or the capability of shipping yourself however, it could cost more for small businesses, based on your typical volume of transactions.

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

Benefits of using a 3PL services:

• Fulfillment services can manage the entire shipping process to you, from packing, tracking, and the delivery.
• They often have relationships with large carriers. This will save you money on cost of shipping.
• They are able to scale quickly to meet spikes in demand.
• There is no need to recruit your own staff to manage the fulfillment and shipping, which helps you cut down on time managing tasks.
• You don't have to keep the inventory at your office or home. This could reduce the cost of overhead and make your workplace clear of clutter.

Cons of making use of 3PL services: 3PL service:

• The shipping process will be less controlled on the process of shipping and you may not be able to tailor the process to meet your requirements.
• There may be a need to pay a monthly fee or per-order cost along with shipping charges.
• A few customers prefer to work directly with the store rather than a third party.

In the end, which option is suitable for your needs - self-sending, using a dropshipping service or using an 3PL - depends on many aspects that aren't listed in the previous paragraphs. You'll need to weigh the pros and cons of each choice. In the end you could even settle to combine a variety of fulfillment methods. You don't have to pick the only one!

Methods for shipping and the carriers that ship

No matter what fulfillment option you select, you'll require a thorough understanding of the many shipping options and techniques, since you'll need to add information about these into your store's delivery setting. Additionally, you'll need to offer details about your shipping carriers and the shipping options for your customers, especially when you offer them multiple alternatives during checkout.

A shipping serviceis the firm that physically delivers your products to your customers. Examples include USPS, FedEx, UPS, and DHL.

Shipping options are the options as well as the associated prices customers 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 cost and speed of delivery.

Consider dates, places, and the weights

Prior to deciding the method of shipping and shipping take a look at some of the most important factors to consider:

1. Places. What countries, states, or provinces do you want to send your cargo to?
2. Dates. When you think about where your customers reside what is the average time for delivery to be to a specific country, state, or region? Would you like to provide express shipping?
3. Weights. The weight and size of every item affects your overall shipping costs.

Locations: Determine which countries to send your parcels to

There are a few things to consider when you're looking to determine which countries your ecommerce store should serve. The first is to think about the countries your target market is in. If you're selling items that are popular with consumers in the United States, then it is sensible to send your products there. However, if you're selling items that are more specific or targeted towards a particular location, then you may prefer to restrict your delivery to just that region.

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

Consider whether you've got the capacity to handle shipping to different countries. It can be a lot of work managing various shipping rules, carriers choices, and prices So make sure that you're well-prepared before you make the commitment.

If you take all these factors into account then you'll be able to narrow the list of destinations to ship your goods to. Once you've narrowed it down, look into the particular laws and regulations of each country to ensure you're prepared to ship there successfully.

Pro Tip:Beyond extra expenses and logistics challenges, international shipping comes with legal and customs requirements that can vary dramatically by location and country. It is important to work in a shipping firm who can simplify as much of the process as is possible.

Shipping has joined forces with DHL and DHL, so you can manage international orders from directly within your dashboard. Additionally, you can save as much as 67% off labels, get free pickups as well as be able provide clients with complete tracking of their order, and enjoy automatic customs form creation.

Timelines: Establish delivery dates as well as the method of delivery, including carrier and dates.

Decide on delivery times and methods of shipping for your online store that best suit your business. It is essential to select the best shipping method to deliver your items to customers in a timely manner. If you're selling items that need to be delivered quickly, such as cosmetics or food items This is especially important.

Depending on where you're shipping to , and the time it takes for your goods to get there, you may offer one or multiple ecommerce shipping options like:

• Standard Shipping: UPS Ground, 1-5 business days
• Express 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.

Size and weight can influence shipping choices and costs.

When you begin shipping orders, you'll need to be aware of not just the weight and size of your items, but also their weight and size once wrapped. This will allow you to decide the best method for every product or purchase that's shipped.

If your company is based in the United States, the least expensive way to ship small items is typically USPS Priority Mail 3-Day Small Flat Rate Envelope , or Small Flat Rate Box. It comes with tracking and quick delivery time, and can be a great deal if you're shipping small but heavy items. It is possible to ship anything that weighs up to 70lbs, and get the same price at a flat rate. Also, you can avail the benefits of USPS providing you with the flat rate envelope or box.

If you're shipping large goods, oversized package fees may be unavoidable, but if you're shipping multiple items in an order it may be more cost effective to split these items over several parcels to avoid over-sized fees for packages.

The 3PL service will default to whatever method is cheapest for them and for your business. When you require that items arrive together in one package regardless of whether it's expensive, or split things into multiple boxes for some reason when it would be cheaper to put all of them into one large container, it is important to notify your 3PL to ensure they adhere to your policies. If you're shipping and packing things yourself, you can have greater control over the entire process and more precise control over this method.

If you're shipping internationally, you'll need to look at the options which are offered for each destination country and determine what is the most efficient depending on the dimensions and weight of your products. Although strategies such as splitting products to reduce the cost of shipping can be helpful for domestic shipping but the same method may not be effective for international deliveries. The best way to do this is to design the specific ecommerce shipping method for every country you're shipping to.

How to package orders for shipment

Size, destination and weight, the carrier and shipping techniques all impact your shipping expenses and procedures. However, equally important is determining the manner in which your orders are packaged. If you are a business manager, you need to ship items at the lowest cost way while also making sure that your products arrive in good condition.

If products are packed poorly it could result in with poor reviews, return as well as costly order reshipments. If you're shipping items your self, using the 3PL service or even dropshipping directly from your vendor Make sure all of the items you ship are properly and safely.

It is important to think about how many items can fit in a single packaging and whether various types of items should be packed together or sent in separate packages. You'll also want to make sure your products are protected from weather elements and harm caused by falling on them, stacking or the agitation that occurs during transportation.

Ask yourself the following questions about your products to figure out the most efficient way to pack them:

• Do you think it is weighty?
• Do you think it is fragile?
• Is it sharp?
• Do they contain fluids?
• Does it have a unique quality?
• Could it be damaged easily if it gets wet?
• Are they too big?
• Does it seem tiny?

If a customer orders two distinct items such as a set of champagne flutes made from crystal and free weights - you probably don't wish to put them all within the same container. However, even if a customer orders several of the same item, you may still want to split the order over several packages to prevent damage.

If, for instance, someone buys twenty 18" 24" canvas prints at your shop, it might not be wise to put them all in the same package. The weight of each item could create damage to the canvas below it. Plus, you may incur much higher shipping costs for using an oversized box.

Additionally, the bigger and bulkier the box is, the harder it is to get it picked up without getting lost. The size of the package can draw the attention of package thieves.

Small packages can be tricky also. Even if the item you want to send fit in a small envelope that is padded, you could need to add a stiff cardboard or hardboard insert in order to prevent bending, bubble wrap or any other padding material to ensure that your goods arrive in a safe manner at the destination of the buyer.

If you have a mix of small and large products in your order, it could be possible to combine them if the small items can be used as padding (like clothes or linens) or are lightweight and sturdy.

Picking the right the right packing material

Packaging materials that are suitable for large and small packages can increase your ecommerce shipping costs. You don't just have to spend the money to purchase these materials however, they can also add weight, which can make shipping more expensive.

There's a need to be sure that the boxes you use and other packaging materials are able to handle the weight and size 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 the e-commerce order, take into consideration the following:

• Item fragility
• Brand Experience
• Organic materials
• Cost for packaging

Fragile merchandise

If you're shipping items that are fragile it is necessary to utilize other packing materials than you're shipping non-fragile items. There may be additional packaging materials like bubble wrap or foam, or air cushions to ensure your items arrive safely. Other packing materials could add to the overall size of your package But ensuring the items arrive in good condition will save you money on returns in the long run.

Take into account the possibility that your products are susceptible to damage by water or other elements during shipping. Consider wrapping products that could get damaged by water, in shrinkwrap, plastic bags, or other waterproof packaging. If you're using a bubble mailer, you should choose a plastic one rather than one made of paper.

Brand experience

If you aren't bothered by costs it is possible to brand your packing materials. Companies such as Sticker Mule provide custom-branded packaging and tape could be used to give everything about your order shipments a branded experience.

When a container that has your company's logo arrives at someone's doorstep and they'll be able to tell it's from the company. Your brand's presence can bring some excitement an individual's day. Also, knowing that your business is willing to go the extra mile to package its products will help build confidence that you're making the same energy into your product.

Eco-friendly materials

If you want your business to utilize environmentally-friendly packaging products, there are plenty of alternatives available. You may even use eco-friendly packing materials as part of your marketing plan. If you're selling items that are nature-related, organic or simply prefer sustainable manufacturing practices, it might make sense to invest in eco-friendly packaging.

Businesses like Hero Packaging, Mushroom Packaging and Noissue provide sustainable packaging alternatives. Noissue even allows customized branding on your packing products. Eco-friendly packaging can be more expensive than other materials, so keep that in your mind when you're working on the tightest budget.

Cost for packaging

You'll want to ensure your goods are delivered securely and that your customer has a positive experience with the delivery. However, you also don't want to be spending too much money on packaging.

With these factors in mind, let's take a review of some of the most popular, cost-effective shipping materials and how they will benefit your online enterprise.

Cardboard boxes are among the most widely used packing products for online orders. They're strong and durable, which makes them ideal to protect fragile goods. They're also light, which means they don't add a lot of extra cost to shipping. Additionally, cardboard is recyclable so this is a good option for businesses that are environmentally conscious.

It's possible to purchase cardboard made of recycled materials in the beginning. Most packaging retailers like Uline sell environmentally-friendly cardboard boxes.

Bubble wrap is another choice as a packing material. It is great for protecting fragile items and preventing damage during the shipping process. Bubble wrap comes in different sizes, which means you are able to choose the right amount of protection to your products. And like cardboard boxes, bubble wrap is affordable and recyclable.

Packing peanuts are commonly employed to fill up empty spaces within packages. They also prevent packages from moving during transportation. They're constructed from various materials, including biodegradable options like cornstarch. The packing peanuts are reusable, so they're a good choice for firms looking to lower their carbon footprint.

Air cushions can be used as an alternative to packing peanuts. They're inflatable bags that can be used as filler within packages. Air cushions offer the same security as packing peanuts, but they are much easier to recycle and reuse.

paper is another eco-friendly packing material option. Paper can be used to protect fragile products and fill up empty space within packages. Paper is also recyclable (and you can even use it made from recycled material) This makes it a ideal option for those who seek to minimize the environmental footprint of their operations.

There are numerous packing materials on the market, therefore it's crucial to pick the appropriate one to suit your needs. Consider your products, shipping needs, and 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 the right impression on clients and having minimal effect on the planet.

Decide on your rates of shipping to customers

Now that you know where you're shipping, how you're packagingit, the method and carriers you're employing, and how weight and size impact the shipping options you have It's time to estimate two aspects: your costs for shipping and handling as well as the rates for shipping the company charges its customers.

You can also make use of a shipping calculator available at any of the top shipping sites, or even a multi-carrier shipping software for calculating the shipping cost for ecommerce based on method of shipping, the size, weight and the destination The calculators won't consider handling costs.

You can decide which works the best for your particular business but you'll need to add the handling expenses somewhere else to make sure they don't impact your profit margins.

What are handling costs?

Handling is everything but the cost of shipping which the shipping company charges you. Handling may include, but is not limited to:

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

One way to estimate your average handling cost per order is to calculate what you spend per month, on average, on the above costs and then divide by the average number of items you place per month. Add that handling fee to the cost of shipping every order.

If you'd prefer to include the handling costs to your pricing for your products, you could divide your average monthly handling cost by the amount of merchandise sold in a month. If you sell high-priced items as well as low-priced ones, you might want to distribute your charges for handling. Cheaper products will likely have lower handling costs associated with them than the more costly merchandise, though this may not be necessarily the case.

How can I best approach formulating shipping costs?

Live rates

Table rates

Flat rates

Flat rates simplify the shipping process because they take the guesswork out of calculating rates. You can charge the same price regardless of the weight or size of the purchase. This is an excellent option if your inventory is similar in dimensions and weight, or if a majority of your customers order similar quantities. With the default options you are able to offer a flat fee per item, or a percentage-based cost, or the minimum amount.

Free shipping

Free shipping makes customers happy - but lowers margins for your business. It is possible to include the cost of shipping in your product's price, but customers might be turned off by the higher dollar amount. Keep your prices low and shipping free, in the hope increased sales can make it profitable financially.

Shipping combined

Combined shipping options give you two options. If the one-size-fits-all method of shipping isn't in line with your needs as a business, you can always mix and combine. One approach is to offer free shipping for orders that exceed a certain amount to encourage customers to add more products to their carts.

Implement your ecommerce shipping strategy

When you've completed your study and weighed the options and made a choice that you're now ready to set your strategy in place and set up the shipping process for ecommerce.

1. Back up your shop

If your store is live and you want to make an entire backup. If any unanticipated issues arise, this ensures you don't lose valuable data and details about your orders. We highly recommend Jetpack VaultPress Backup to handle this.

After your backup is complete, make sure to update WordPress and your theme, and the plugins in order to guarantee compatibility with any updates to fulfillment and shipping extensions.

2. Configure the settings

Go to the settings tab and then Shipping on your dashboard. You can then create shipping zones that define prices depending on the locations of customers and shipping categories to set prices based on groups of similar products.

We'll begin by taking a look at shipping zones. Once you've set them up, you'll have the ability to set shipping rates based on the regions you are delivering to. You can be pretty generic here (like the definition of rates per countries) or hyper-specific (like setting rates according to zip code). No worries - 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 If you're not set to set an area yet then you'll get a message to do so.

Click Add shipping zone.

The new window that appears, you can name the zone however you'd like to. Select your zones of shipping that are comprised in the zone. There are numerous methods to set up zones. So, think about the best way to go about it for your particular business.

For example, a retail store located inside New York City might have zones that cater to areas like the East Coast, Midwest, and West Coast, with rates increasing in price based on distance from New York. A bakery could give free shipping to customers within their area or at a reduced rate for every other place.

Pick all of the places you'd like included in this shipping zone. If you'd like to limit the area based on zip code, click Limit to specific zip codes or postcodes. A new form will be displayed that allows you to enter an alphabetical list of zip codes.

In the next step, you'll need to determine the shipping costs that are available for the brand new zone. Simply click the "Add shipping rate" button. As a default, you'll be presented with three options: flat rate no-cost shipping and local pick-up.

If you choose Flat rate shipping,you'll have the option to set a specific cost for the area (e.g. $9.99 flat cost shipping). It is also possible to set the price depending on the type of shipping you use, which we'll discuss in a moment.

If you select Free shipping, you can set an amount for your minimum purchase for free shipping, regardless of whether you wish to combine free shipping with coupons, or further.

In the event that you select Local pickup,customers that reside within the set shipping zone will be able to pick up their order at your location.

Remember, you can include one or more of the items listed above to every zone. So, for example, you could give free shipping on a certain order total as well as flat-rate shipping for all other items that are less than this total.

What about shipping classes? Though they're not required but they can be a great method of setting rates for different types of products. As an example, you could sell unframed prints of your artwork, alongside frames. They will not only cost different amounts to ship according to their weight, framing options also need more packaging material.

Let's look at this scenario. In your dashboard, navigate to the Settings tab, then Shipping, then click the shipping classes tab. There, click "Add new shipping classes" on the right-hand part of the page.

After that, you can add a class name, Slug (URL) along with a description. Click to save the shipping class.

Now you'll want to assign the products to every class you've created. Go to Products and then All Productsand open the one you want to edit. Scroll down until the product data box and click the shippingtab.

The dropdown menu to select the shipping class,select the class that best matches your product. After that, save the changes. You can do this for every product within that category. Save your changes.

It allows you to be further granular in your shipping charges. This means, for instance when you're setting your flat rate shipping option and you want to specify an additional price for frames vs. unframed prints. You'll see in the screenshot below that you can now select a separate option just for the "framed" shipping type.

And that's it! You can see that there's plenty you can accomplish with default shipping settings.

3. Set up and activate the shipping extensions

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

Are you working with an 3PL service? They might have an extension on the market or directly on their site They may also design a custom integration for you.

4. Help customers to know where their orders are located

The ecommerce shipping process does not stop after you have dropped your package off. In fact, some of the most rewarding opportunities for good customer service occur after your order is in the post!

Customers must be able to quickly understand where their order is in all time and also know the time when it is expected to be delivered. This is particularly important when you sell items that often are purchased for gifts.

5. Take into consideration returning the shipment

Although nobody likes to consider returning items, they do occur. When you are able to exchange or returns, it's important to put a strategy that is in place.

Shipping - profit!

It's time to begin shipping! Make sure you adapt your strategy for shipping to your needs and implement changes as you learn about your customers, and you'll quickly discover the solutions which are beneficial to customer relations and your profit margins.

There are several options to manage e-commerce shipping. It is possible to do it yourself, partner with a logistics firm and drop ship items directly from a company. In order to make the right choices be sure to take into consideration the main factors that determine which companies are readily available to you and whether they are able to meet your needs.

Some ecommerce shipping carriers are restricted on what items they'll send, like specific regulations that apply to particular kinds of products. If you plan to deliver internationally, you'll need to find a partner that is able to reach the regions you'd like to focus on.

The option is to transfer the cost of shipping to your clients and pay for all or a part of the costs your own. There are pros and cons to each method and you may decide to test it over the course of the course of time. If you choose to choose to charge for shipping, you are able to calculate rates in a variety of methods ranging from flat rates to table rates and even real-time, live pricing generated by your shipping provider.

Now, no matter what you decide to do when setting up your ecommerce shipping strategy, has the tools to manage it all. Make use of extensions that allow you to deliver your products cost-effectively effectively, quickly and securely so your happy customers stay content and your shop runs efficiently. Are you looking for more information? Take a look at our online shipping documents.