Ecommerce Shipping Solutions: The Ultimate Guide

Jan 9, 2023

When someone clicks"purchase," or the "purchase" button on your site You've reached the finish line, right? Almost. Now you need a seamless electronic shipping system to make the sales and keep clients for the rest of their lives.

Utilize this guide to find the best strategy to delight shoppers all the way through the sales funnel, from the moment they add your product to their cart up to the moment it is delivered to their doorstep.

Options for fulfillment of your shipping orders for your online store

Fulfilling orders for shipping can be complicated, and the first thing you'll want to determine when developing your ecommerce shipping strategy is who will be responsible to fulfill your orders. Do you handle them on your own? Will they ship direct from the manufacturer or wholesaler? Will you choose to contract with a third-party logistics company (3PL) to manage the fulfillment of all orders placed on your eCommerce?

Let's take a look at the options and walk through some of the benefits and drawbacks of the various options.

1. Ship orders yourself

If you're a small business who produces its own products You may find it easier to send your products directly from your offices or warehouse. This can be more cost-effective, especially if you're keeping the inventory at your personal office or home. However, it will require more work to manage.

There are advantages and disadvantages in managing the shipping of orders on behalf of your own online store.

Advantages of sending your own orders:

  • You are in complete control of your shipping method for e-commerce and can customize it to meet your specific needs.
  • Build connections with your customers by writing thank you notes or including small gifts in their orders.

Pros and cons of shipping yourself orders:

  • The process of shipping can be lengthy, particularly if you have many customers.
  • There is a chance that you will need to buy shipping materials and equipment, including boxes, labels, and tape.

2. Ship orders using a dropshipping service

Instead of ordering goods wholesale and storing them at your warehouse until the orders to arrive, you could have your suppliers directly ship the items to the client. If they don't offer this option then you can look for other companies who offer similar or similar items and work with them to ship your orders direct.

illustration of the dropshipping process

Dropshipping could be an excellent option for e-commerce shipping fulfillment strategies for large companies, too. Wayfair got its start as a dropshipping-only business and expanded to using its own warehouses, in addition to using dropshipping as their primary model. Houzz, a competitor of Wayfair is still using the dropshipping model solely. The year before, Houzz made $500 million in revenue. This isn't bad for a company that doesn't create, produce and ship any product it sells.

Using a dropshipping service offers advantages, however it does have its drawbacks. Let us discuss the advantages and disadvantages of dropshipping in order to make the best decision for your company.

Pros of dropshipping:

  • It's low-cost. It's not necessary to invest in inventory upfront, and you don't need to hire staff for the shipping department on your own.
  • You can be more flexible with the products you sell. It is easy to alter your product offering as needed as well as not be tied to a specific inventory. This gives you the ability to quickly adapt to fluctuations in customer demand.

Cons of dropshipping:

  • There is less control on the product's quality. When you're Dropshipping, you're relying on the supplier to provide quality products. If the products don't conform to the standards you set, it could reflect poorly on your business.
  • More lengthy and unreliable shipping times might be frustrating for clients and result in lost sales. Since you're using a third party to handle shipping, you're always at risk of chance of delays. If you're using several 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 the number of customer support calls.
  • The shipping issues may be more difficult to solve. If you handle shipping yourself or use one 3PL company, you can handle customer service concerns faster. If you're using multiple dropshipping firms, you could be experiencing delays in communication which prolong the time required to address any customer complaints.

3. Orders can be shipped using a third party logistics (3PL) service

If you're a company that requires multiple goods from various suppliers, but lack the money, time, or funds to conduct your own warehouse management, you might contract with a third-party logistics provider for all of your online shipping.

This is a viable option if you do not possess the space for storage or capability to ship yourself However, this can be costly for smaller companies, based on your typical volume of sales.

Some pros and cons of making use of a 3PL services for fulfillment are:

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

  • Fulfillment services can manage the entire process of shipping for you, which includes packing, tracking, and delivery.
  • These companies often have connections with the major shipping companies, which will help you save money on shipping costs.
  • They are able to scale quickly to meet demands that are rising.
  • It is not necessary to employ employees to handle delivery and fulfillment. This helps you cut down on time management duties.
  • It is not necessary to store all your items in your workplace or at home, which can reduce overhead costs and keep your work environment clear of clutter.

Cons of using the 3PL serviceare:

  • The shipping process will be less controlled over the shipping process and might not be able to customize it according to your preferences.
  • There may be a need to pay a monthly fee or a per-order charge in addition to shipping costs.
  • Some customers may prefer dealing directly with the retailer instead of a third-party.

Ultimately, the option that's best for you - you're shipping your own via dropshipping, using a dropshipping provider, or working with an 3PL will depend on a number of variables that go beyond the ones we've mentioned previously. There's a need to weigh the pros and cons of each alternative. Then, you may even decide for a combination of solutions. It's not necessary to select just one!

Methods and shipping carriers

Whatever fulfillment method you choose, you'll still need to familiarize yourself with the various shipping carriers and techniques, since you'll need to add information about these into your store's delivery setting. You'll also need to provide details about your shipping carriers and the shipping options to customers, particularly in the event that you're offering them several choices during the checkout.

A shipping serviceis the firm which physically delivers your items to customers, like USPS, FedEx, UPS as well as DHL.

Shipping methods include the various options as well as the associated prices customers can choose at the time of checkout, such as free ground shipping, $5.00 three-day shipping, or $15.00 next-day delivery. These options are generally set by the shipping companies you work with and impact the price and delivery time.

Consider dates, places as well as weights

Prior to deciding your shipping carriers and methods consider some of the most important factors to consider:

  1. Places. What countries, states, or provinces can you deliver to?
  2. Dates. Considering where your customers live what is the average time for delivery to take to a given country, state, or even a province? Are you interested in offering expedited shipping?
  3. Weights. The size and weight of every item affects your total shipping cost.

Countries: Choose which to send your parcels to

There are a few aspects to think about when considering which country your ecommerce store should serve. First, think about which nations your market you want to target in. If you're selling items that are popular within the United States, then it makes sense to ship there. However, if you're selling items which are niche or targeted to a specific area, you may want to limit your shipping exclusively to the region in question.

Another thing to consider is the expense of shipping. Shipping internationally can be costly and you'll have to factor that into your decision. It is possible that you will need to deal with customs as well as other rules that can create additional complexity and expense.

Finally, think about your ability for shipping across several nations. It's a lot of work to manage the various regulations for shipping, shipping carriers, choices, and prices, so make sure you're prepared for that prior to making the decision.

If you take all these factors into account and take into account all of these factors, you'll be able narrow your options of possible destinations to ship your goods to. Then, you'll be able to begin researching the laws and regulations of each country to make sure that you're ready to move there with ease.

Pro tip:Beyond extra expenses and logistical challenges, international shipping comes with laws and requirements for customs and legal that can vary dramatically by country and region. Make sure that you partner with an international shipping business that can automate every step of the process as possible.

purchasing a DHL shipping label

Shipping has partnered with DHL - so now you are able to manage international deliveries from directly within your dashboard. Additionally, you can save as much as 67% on labels, receive free pickups, be able to provide your customers with complete traceability, and enjoy automated customs forms creation.

Timelines: Establish delivery dates, carrier, and methods

Decide on delivery times and shipping methods for your online store that most suit your needs. It is essential to select the best shipping method to deliver your items to your clients in a timely fashion. If your products are time-sensitive, such as food or cosmetics it is more important.

Based on the location you're shipping to , and the speed at which your items need to get there You may provide several delivery options such as

  • Standard Shipping: UPS Ground, 1-5 business days
  • Express Shipping: USPS Priority Mail 3 to 5 business days
  • Overnight Shipping: FedEx Priority Overnight, 1 business day

If you can provide fast and secure shippingservices, you can guarantee that your clients will be satisfied with the service they receive.

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

When you begin shipping orders, you'll need to know not only the size and weight of your items, but also the size and weight of your products after they've been packaged. This can help you determine the best method for every product or purchase that's shipped.

If you're a business that ships to the United States, the least expensive way to ship small packages is often USPS Priority Mail 3 Day Small Flat Rate envelope or Small Flat Rate Box. It comes with tracking and quick delivery times and it's a particularly good deal if you're shipping small but heavy items. It is possible to ship anything as heavy as 70lbs and be charged the same flat fee. Also, you can avail the benefits of USPS supplying you with an envelope with a flat rate or box.

If you're shipping large items the cost of oversized packages may be unavoidable, but If you're shipping multiple items , it may be more cost effective to split the items into multiple packages in order to avoid excessive costs for packaging.

A 3PL service will use the method that is most cost-effective to them as well as for your business. If your items must be delivered in the same box regardless of whether it's costly, or to split items in multiple packages due to an reason that it might better to place them in one larger box, you'll need to inform your 3PL that they should adhere to your policies. If you're packaging and shipping your own items, you'll be able to can have greater control over the entire process and more precise control over the process.

For international shipping, you'll need examine the different options that are available for each destination country and determine what is the most efficient depending on the dimensions and weight of the items. While strategies like splitting up items to avoid oversized-package charges can be helpful for domestic shipping but the same method may not be effective for international deliveries. It is necessary to create an e-commerce system that is unique for each country you ship to.

How to package orders for shipping

Dimension, size and weight, the carrier and shipping methods all influence the shipping cost and methods you use. It is equally crucial to consider the manner in which your packages are packed. As a business owner, you want to deliver your products at the lowest cost way while also making sure that your products arrive in good shape.

If the packaging is not good it could result in having bad reviews, returned items or costly reshipping of orders. Whether you are shipping products by yourself, employing a 3PL service, or dropshipping directly from your vendor, ensure that all your items are packaged safely and securely.

It is important to think about how many of each product will fit in one packaging and whether various types of items should be packed together or sent separately. You'll also want to make sure your products are protected against the elements as well as damage due to dropping or stacking them, as well as agitation during transport.

You can ask yourself these questions about your products to figure out the most efficient way to pack them:

  • Do you think it is weighty?
  • Does it have a fragile structure?
  • Is it sharp?
  • Does it contain fluids?
  • Is it one-of-a-kind?
  • Could it be damaged easily If it is wet?
  • Do you think it's too large?
  • Does it seem small?

If the customer purchases two different items such as a set of champagne flutes in crystal or a set of free weights You probably won't wish to put them all together in the same package. Even if someone orders multiples of the same thing, you may still want to divide the order into several boxes to avoid the risk of damage.

If, for instance, someone purchases twenty 18" 24" canvas prints from your shop, it might not be prudent to ship them all in the same package. The weight of every item can result in destruction to the canvas underneath it. In addition, you might pay more shipping charges for using an oversized box.

Additionally, the bigger and more unwieldy the box is, the more challenging it is to get it delivered without being dropped. The size of the package can catch the eye of thieves who steal packages.

Small packages can be tricky too. If your product can be placed in a compact padded envelope, you may require a rigid cardboard or hardboard insert to keep it from bending or bending. You can also use bubble wrap, or another padding to ensure your items arrive safely to the recipient.

If you've got a mix of big and smaller items in an order, it is possible to ship them all together if the small items can be used as padding (like linens or clothing) or are light and durable.

Choosing packaging materials

Packing materials for both large and small packages can increase your ecommerce shipping costs. In addition, you will need to spend the money to buy these items however, they can also make the package heavier, which will increase shipping costs.

It is important to ensure that your boxes and packing supplies can handle the size and weight of the things you're shipping However, that's not really all you need to think about.

In selecting the materials you will use to pack the e-commerce order, take into consideration these aspects:

  • Fragility of item
  • Experience with brands
  • Organic materials
  • Packaging cost

Fragile merchandise

If you're sending fragile goods then you'll require different packaging materials than when the items are not fragile. There may be additional bubble wrap, foam or air cushions to ensure the items are delivered safely. The addition of packing materials can make your package larger However, ensuring that your products arrive safely will help you save money on return costs in the long run.

Take into account whether or not your items will be damaged by water or other elements during shipping. Think about wrapping items that may be damaged by water using the form of shrinkwrap, an overbag made from plastic or another waterproof container. If you're using bubble mailer, you should choose the one made of plastic rather than one made of paper.

Brand Experience

If you don't mind costs it is possible to brand your packing materials. Businesses like Sticker Mule provide custom-branded packaging and tape will allow you to customize everything about your order shipments an experience that is branded.

When a box featuring your brand's image will arrive at the doorstep of someone the recipient will know that it's coming from the company. Seeing your brand can add a little more excitement to an individual's day. Plus, seeing that your business is willing to go the extra mile to package its products is a sign of trust in also putting just as much time and effort into the products you offer.

packing items for shipping, including branded materials

Materials that are eco-friendly

If your company wants to utilize environmentally-friendly packaging materials, you'll find plenty of solutions available. You may even use eco-friendly packaging materials in your marketing plan. If you're selling products that have a connection to nature, organic, or you simply value the use of sustainable production methods It could be beneficial to consider investing in environmentally friendly packaging.

Businesses like Hero Packaging, Mushroom Packaging as well as Noissue offer sustainable packaging options. Noissue even allows personalized branding for your packaging 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.

Packaging cost

You want to make sure your goods arrive at their destination securely and that your customer has a positive experience with your delivery. But you don't want to be spending too much money on packaging.

In light of these points Let's review of some of the most well-known, affordable shipping supplies and see how they could benefit your company.

cardboard boxes are among the most commonly used packing materials for ecommerce orders. They're durable and strong, which makes them ideal for packaging fragile products. The cardboard boxes are light, which means they don't add a lot of extra weight to the shipping cost. The best part is that cardboard can be recycled, which means it's an ideal choice for businesses that are environmentally conscious.

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

Wrapping in bubbles is another popular choice to pack materials. It's great for protecting delicate objects and also preventing damages during the shipping process. Bubble wrap comes in different dimensions, so that you can pick the best level of protection for your goods. And 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 that include biodegradable alternatives like cornstarch. Packing peanuts can be reused, so they're a good option for businesses that want to minimize their impact on the environment.

The air cushions can be used as an alternative for packing peanuts. They're inflatable bags which can be used to fill empty space inside packages. Air cushions give the same security as packing peanuts however are more convenient to recycle and reuse.

Paper is yet another environmentally friendly packing product. You can use paper to protect fragile products or to fill in empty spaces within packaging. Paper can also be recycled (and you can use paper that is made of recycled materials) It's 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 right option for your company. Consider your products, the shipping requirements, as well as your brand branding when picking the right packing material to ship your online orders. With the right packaging materials, you can be sure that your products arrive safely at their destination while making an impact on your the customers, and having a low impact on the earth.

Determine your shipping rates for your customers

Now that you know which location you're shipping from, how you're packing it, which carriers and methods you're using, and the effect of size and weight on the options for shipping It's time to estimate two things: your cost for shipping and handling and the cost of shipping that the company charges its customers.

While you can use a shipping calculator on any of the major shipping sites, or even the multi-carrier shipping program to calculate ecommerce shipping costs according to the type of shipping method, size, weight, and the destination These calculators do not take into account your shipping costs for handling.

You can decide which works most effectively for your company, nevertheless, you'll need to put those handling costs somewhere to ensure they do not eat away at the profit margins.

How much are the handling expenses?

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

  • The cost of shipping materials includes boxes, padding materials, backing boards and plastic sleeves and labels. and thermal printer.
  • Storage costs for inventory.
  • The time is spent packing orders as well as arranging for the pickup of carriers.
  • Customer service regarding lost or damaged packages and updating customers about the status of their packages.

A quick way to determine your handling costs per order is to determine what you spend per month, on average, on these costs, and divide it by the amount of orders placed per month. Then, you can add the handling fee on top of the shipping cost for every single order.

If you'd like to incorporate the handling costs into your product prices, you could divide your average monthly handling cost by the average number of merchandise sold in a month. If you have high-priced products and products that are priced low, you might want to proportionally distribute the handling costs. The cheaper products are likely to come with lower costs for handling with them than more expensive merchandise, though this may not be necessarily the case.

How can I best approach the calculation of shipping prices?

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

Live rates

Table rates

Flat rates

Flat rates simplify the shipping process because they take the guesswork out of the process of calculating prices. You can charge the same price regardless of the amount or weight of your order. This can be a good alternative if your inventory is similar in size and weight, or if a majority of your customers order similar quantity. With the default options it is possible to offer a flat fee per item, or a percentage-based cost, or an amount that is a minimum.

Free shipping

Shipping is free and makes buyers happy - but decreases the margins of your product. It is possible to include the shipping cost in your product's price, but customers might be turned off by the higher dollar amount. Or keep your pricing low and shipping free, in the hope increased sales could make it more financially viable.

Combination shipping

Combined shipping options give you the best of both worlds. If the one-size-fits-all method of shipping doesn't meet your business needs You can mix and combine. Another option is to provide complimentary shipping when orders have a minimum value to encourage customers to add additional items to their shopping carts.

Implement your ecommerce shipping strategy

After you've conducted your own research and weighed the options and finally made your choice, you're ready to put your plan in place and set up your e-commerce shipping procedure.

1. Backup your online store

If your shop is currently live and you want to make a full backup. In the event of any unexpected issues, this ensures you don't loss important information and the information about orders. We recommend Jetpack VaultPress Backup in order to prevent this.

After your backup is complete After your backup is complete, you should update WordPress and your theme, as well as all plugins to ensure full compatibility with any updates to fulfillment and shipping extensions.

2. Configure settings

shipping zone options in

Click on - Settings - Navigate to Settings - Shipping within the dashboard. There, you can create shipping zones that define prices depending on the locations of customers and shipping classes to set rates based on the same products in a group.

Let's start by taking into consideration shipping zones. By setting these up, you can define shipping costs based on specific areas you deliver to. You can be pretty generic here (like the definition of rates per the country) or more specific (like setting rates according to ZIP code). Do not worry about it - regardless of how complicated you get the individual customers will only be able to see rates applicable to their specific shipping address.

Click on the Shipping zonestab and, if you haven't set the zone there will be a prompt to create one.

option to add a shipping zone

Click Add shipping zone.

setting shipping zone name

When the new window appears, you can name the zone however you'd like to. Then, select your zones of shipping that are included in this zone. There are a variety of options to create zones. So, think about which is the most effective way to go about it for your particular business.

A retail shop situated in New York City might have zones that cater to the East Coast, Midwest, and West Coast, with rates increase based upon the distance to New York. A bakery could provide free shipping within the zip code of their location or at a reduced rate for every other place.

Pick all of the places you'd like to include in the shipping zone. If you wish to restrict the area based on zip code, simply click Limit to specific zip/postcodes. A new box will appear where you can enter a list of zip codes.

Next, you'll want to determine the shipping costs that are available for the new zone. Select the "Add shipping rates" button. By default, you'll see three options: flat rate free shipping, or local pick-up.

If you select flat rate shipping,you'll have the option to set a specific rate for this zone (e.g. $9.99 flat price shipping). It is also possible to set the price based on shipping class, which we'll discuss later.

flat rate shipping settings

If you opt for free shipping then you are able to specify an amount for your minimum purchase in order to receive free shipping. This includes regardless of whether you wish to include free shipping in coupons, or more.

free shipping settings

If you choose to go with Local pickupcustomers that reside within the set shipping zone are 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 the items listed above to every zone. For instance, you could give free shipping on a certain order total as well as flat-rate shipping for everything less than that total.

However, what are shipping classes? Although they aren't mandatory but they can be a great option to determine the price for different types of products. You could, for instance, sell unframed prints of your art, in addition to frames. These will be priced differently to ship based on their weight, framed options will also require additional packaging material.

Let's run with this example. On your dashboard, you would go to the Settings tab, then Shipping and then select to open the Shipping Classes tab. There, click Add new shipping class at the bottom left corner of the page.

Add the name of your class, the Slug (URL) as well as a description. Click Save shipping classes.

The next step is create a product list for each category you've made. Go to Products - All Productsand open the product you wish to modify. Scroll down until the box for product information and choose the shippingtab.

When you are in the dropdown list to select the Shipping class,select the class that most closely matches the item. Then, save your changes. It is possible to do this with each item in the class.

This allows you to get further granular in your shipping rates. This means, for instance when you're setting up flat rate shipping it is possible to set the price of framed vs. frames that are not. In the image below that there's a separate option just for"framed" printing "framed" shipping class.

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

3. Install and activate shipping extensions

To implement table rates live rates or to combine the two with live rates, you'll need an extension. It is also possible to use extensions to incorporate features such as warehouse syncing and shipping labels.

Do you work using an 3PL service? There may be an extension on the market or directly on their site and they can also set up a custom integration for you.

4. It should be easy for the customer to understand their order's location

The ecommerce shipping process isn't over once you've dropped the package off. Indeed, many most effective opportunities to provide great customer service are once your package is delivered to the mail!

Customers should be able to quickly know where their order is always at hand and when they can expect it to arrive. This is particularly important when you offer items that typically are bought as gifts.

5. Take into consideration returning the shipment

Though nobody wants thinking about returning but they happen. If you're willing to accept exchanges or returns, it's important to put a strategy that is in place.

Profit and Ship!

You're ready to start shipping! Be sure to adjust the strategy of shipping you use in the course of time and make adjustments as you gain knowledge about your customers, and you'll be able to identify the best options that are good for the relationship with your customers and also for your profit margins.

There are many options to manage e-commerce shipping. You could do it on your own, partner with a logistics company and drop ship items directly from the manufacturer. In order to make the right choices, you'll need to consider whether shipping options are offered to you and whether they can take care of your needs.

Certain shipping companies on the internet have restrictions on the items they'll send, like specific regulations that apply to particular kinds of products. In addition, if you wish to ship internationally, you'll have to find a partner that reaches the locations you want to focus on.

The option is to transfer the cost of shipping to your clients and take care of all or a portion of the cost your own. There's pros and cons for every method, and you might decide to test it over the course of the course of time. If you do opt to charge shipping, you could calculate rates in a variety of options ranging from flat rates to tables rates, and even real-time, live pricing fed from your shipping carrier.

Now, no matter what you decide to do when setting the e-commerce shipping system It has the right tools to manage it all. Utilize extensions for shipping products cheaply, efficiently, and safely so your happy customers stay happy and your store is running effortlessly. Need more information? Check out our ecommerce shipping documentation.