Every business owner’s delight is to make a sale. It is why you put so much effort into creating and marketing your products.
However, once the orders start trickling in, you have to busy yourself with ensuring that they reach the customer safely and secure.
If you are only starting your business, consider 10 year mortgages for a warehouse to operate your business efficiently. And as your company grows, you will pay off the loan comfortably due to its low-interest rates. This way, you can concentrate on improving shipment methods without storage worries.
When you have to fulfill twenty, fifty, or a hundred orders a day, you may soon start dreading this crucial aspect of running a business.
Fortunately, shipping and order fulfillment does not need to be a nightmarish experience. With proper strategies and adequate planning, you will become more efficient at delivering your products to your clients.
Here is all you need to know about the process.
Create a Strategy
There are three main shipping strategies: self-fulfillment, third party shipping, and dropshipping. Here is some more information about each method, as well as their pros and cons.
Self-Fulfillment
As the name suggests, this strategy entails you or your staff taking care of every aspect of the shipping process. This means that you buy the products you want to sell, fill out every order, package it, and then mail it or even deliver it yourself.
The best thing about self-fulfillment is the level of control you have over the shipping process. You can customize orders for each customer to their liking and package it in a way that makes them feel special. It provides for a unique unboxing experience, which is a beneficial marketing experience.
On the flip side, self-fulfillment is a slow and tedious process. It will eat up time you might have otherwise spent tending to other areas of your business. If you chose to deliver products yourself, your shipping costs could go up considerably.
Third-Party Logistics Shipping
Commonly known as 3PL, this strategy involves handing over part of the shipping process to a logistics company. Here, you deliver your products to a warehouse that doubles up as an orders’ fulfillment center. The warehouse keeps records of your orders and then fulfills them on your behalf.
This shipping strategy is a tad more cost-effective than self-fulfillment. Additionally, since you are essentially outsourcing your packaging and delivery department, you spend less time worrying about the shipping details.
The disadvantage of this strategy is that it reduces the control you have over the whole process.
Dropshipping
Dropshipping is arguably the most flexible product delivery strategy for the three main ones. With this method, you don’t even own any of the products in your online shop. Instead, you send the orders you get to a vendor, who then handles the shipping process.
The most significant advantage of dropshipping is that it allows anyone to own an online shop virtually. You don’t need capital since you won’t be buying any stock.
Unfortunately, drop shipping also has the lowest profit margins. You also have very little, if any, control over the shipping process. However, by using a reliable dropshipping service like https://www.shipnetwork.com, you can minimize the risks and ensure that your customers receive their orders in a timely and professional manner.
Shipping Methods
There are three main shipping methods you can implement with your business. These methods are according to the payment options you give your clients.
Flat Rate Shipping
With this method, you charge a standard fee for shipping. It doesn’t matter the weight of products, their number or location of the clients; everybody pays the same to receive their products.
This method works best where products are relatively alike since there won’t be any shipping costs variations.
When creating your flat rate shipping cost, be sure not to overcharge or undercharge your clients. It is essential for the survival of your business.
Free Shipping
You might also consider waving the shipping costs for your clients altogether. Alternatively, you may include the transportation fee in the product price so that customers pay for shipping.
You may also pay part of the shipping fee but increase the product price a bit, so clients also cover transportation costs.
Some things to consider before you settle on free shipping include:
Location: you can offer free shipping for people within a set radius to avoid running losses.
Bulk shopping: you could also offer customers free shipping if they spend a certain amount of money on your store. It encourages bulk shopping, and you can use some proceeds from the extra sales to offset the shipping costs.
Variable Shipping Costs
With this method, you calculate shipping costs depending on various factors. Some critical considerations when determining the value include:
Location: typically, shipping costs will increase the further a customer is from your shop.
Speed: clients who want goods delivered faster may have to pay extra than those willing to wait.
Weight: heavier items generally cost more to ship than lighter ones.
Order Fulfillment
Order fulfillment is an integral part of the shipping process. This is the part where you pick items off the shelf, package and label them, and then send them to your clients.
Some crucial steps and considerations for order fulfillment are:
Packaging
The packaging is critical because it determines the condition that goods will arrive in. If you package products correctly, your customers will receive them in a good state. If you don’t, they may receive broken, rotten, or otherwise damaged goods.
Go the extra mile and wrap fragile items in foam or other protective material. If you are sending perishables, pack them in dry ice. Do whatever it takes to build a good reputation for your business by delivering excellent products.
Labeling
Labeling is also vital in the order fulfillment process. It helps identify the goods in the package and provides critical information about the order at a glance. For instance, if your customer orders camping equipment, labeling can help them identify each package. Such can make it easier to correctly put the boxes in the back of a camper car.
Consider having your labels auto-filled and customized. It will save you a lot of time and repetitive work.
Status Reports
You should also keep your customers in the loop regarding shipping progress. For instance, you can send them notifications on picking up orders once on shipment and as soon as they arrive at the intended destination.
Status updates offer your customers peace of mind, and they will love you for it.
Conclusion
Now that you know about shipping methods and order fulfillment, you may think it is an extremely rigorous process. But by applying these methods in various types of shipments, you can improve business efficacy. If done correctly, you can reap the benefits within a short while where sales increment is a significant outcome. Ensure to serve your customers accordingly and attend to their needs, which can increase their loyalty.
