Ecommerce Shipping Solutions: The Ultimate Guide

Jan 9, 2023

When someone clicks the "purchase" link on your site You've reached the finish line, right? Almost. It's time to streamline your online shipping procedure to maintain the sale and win clients for the rest of their lives.

Use this guide to determine a strategy that delights shoppers throughout the sales funnel, from the time they add the item to their cart up to the moment it is delivered to their doorstep.

Options for fulfillment of your shipping orders for your store

Shipping fulfillment can get complicated, and the initial thing you need to consider when establishing your ecommerce shipping strategy is who will be responsible for fulfilling your order. Are you able to fulfill them yourself? Are they shipped directly from the wholesaler or manufacturer? If not, will you work with a third party logistics service (3PL) for the fulfillment of all orders placed on your eCommerce?

Let's look over the various options, and then go over the benefits and drawbacks of each.

1. Ship orders yourself

If you're running a small company that makes products in-house You may find it easiest to ship directly from your own offices or storage facility. It's more economical in particular if you're keeping all your inventory within your own home or office, but it will require more work to manage.

There are benefits and drawbacks to managing order shipments for your online store yourself.

The advantages of sending orders yourself:

  • You are in complete control of the shipping procedure for your ecommerce business and you can tailor it to meet your specific needs.
  • You can build connections with your customers by writing thank-you notes, or by including small items in the order.

Cons of shipping orders yourself:

  • Shipping can be time-consuming in particular if you're dealing with many order.
  • You may need to purchase shipping supplies and equipment, such as boxes, labels and tape.

2. Dropship your orders to customers using Dropshipping services

Instead of buying wholesale items and then storing the items in your own warehouse until orders to come in, you could have your suppliers ship them directly to the client. If your current suppliers do not offer this service You could look for other companies who offer the same, or comparable, products and contract with them to send your orders direct.

illustration of the dropshipping process

Dropshipping could be an excellent method of fulfillment for shipping orders on ecommerce for large companies, too. Wayfair started its start as a dropshipping-only company, but later expanded its operations to include its own warehouses, in addition to still using the dropshipping model. Houzz, a competitor of Wayfair, still uses the dropshipping model exclusively. The year before, Houzz generated 500 million dollars in sales. It's not bad for a company that doesn't design, manufacture and ship any product that it sells.

Using a dropshipping service has its benefits, but it does have its drawbacks. This article will discuss the pros and cons of dropshipping to help you take the best choice for your business.

Benefits of dropshipping

  • It's low-cost. There is no need to put money in stock up front, and you don't need to hire staff for your own logistics department.
  • There is more flexibility in the items you offer. You are able to easily alter the products you sell You're not bound to any specific stock. This can give you the ability to quickly respond to changes in demand.

Cons of dropshipping:

  • It is harder to control the quality of your products. With Dropshipping you're relying on the supplier to supply quality goods. If they don't meet your standards, it can negatively affect your business.
  • Longer and less reliable shipping times might be frustrating for clients and result in loss of sales. Because you're relying on an external third party for delivery, there's always the chance of delays. If you're working with multiple dropshipping companies, products in the order could arrive in separate packages at different times, which can lead to customer confusion as well as increased ticketing for customer service.
  • The shipping issues may take longer to resolve. If you are shipping your own products or through a 3PL firm, you are able to handle customer service concerns more quickly. If you're working with multiple dropshipping companies, you might have delays in communication that extend the amount of time required to address a customer complaint.

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

If your company purchases multiple items from different manufacturers, but don't have the time, money, or the resources needed to manage your own warehouse management You could contract 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, it could cost more for small businesses, based on the volume you average for sales.

There are pros and cons to making use of 3PL fulfillment services include: 3PL fulfillment provider are:

The advantages of using the 3PL serviceare:

  • A fulfillment service can handle the entire process of shipping for you, including packing, tracking, and delivery.
  • They often have relationships with large carriers. This will save you money on transportation costs.
  • They can scale up quickly to accommodate demands that are rising.
  • You don't have to hire your own staff to manage shipping and fulfillment, which reduces your time spent on managing tasks.
  • You don't have to keep all your items in your workplace or at home, which can reduce overhead costs and keep your work environment less cluttered.

Cons of using the 3PL service:

  • There is less control in the delivery process and might not be able to customize it according to your preferences.
  • You may need to pay a monthly or per-order fee in addition to shipping costs.
  • Some customers may prefer dealing directly with the retailer rather than a third party.

In the end, which option is best for you - you're shipping your own or using a dropshipping company or using an 3PL - depends on a number of factors beyond what we've listed previously. You'll need to weigh the advantages and disadvantages of each choice. Then, you may even decide for a combination of options. There is no need to choose just one!

Methods for shipping and the carriers that ship

Whatever fulfillment method you select, you'll have to be familiar with the various shipping carriers and methods as you'll need to incorporate information regarding these into your store's delivery settings. It is also necessary to give specific information regarding your carrier and the shipping options for your customers, especially when you offer them multiple choices during the checkout.

A shipping serviceis the business who physically transports your goods to customers, like USPS, FedEx, UPS, and DHL.

Shipping options are the choices and prices that buyers choose from at checkout - like free ground shipping, $5.00 three-day shipping, or $15.00 next-day delivery. The methods you choose to use are typically chosen by the companies that you deal with, and affect both the cost as well as the speed of delivery.

Places, dates and weights

Before you choose the shipping method and carriers take a look at the following key factors:

  1. Places. What states, countries or provinces will you send your cargo to?
  2. Dates. If you consider where your clients live, how long will delivery be to a specific country, state, or province? Would you like to provide expedited shipping?
  3. Weights. The dimensions and weight of each product impacts your overall shipping costs.

Places: Decide which countries to ship to

There are several aspects to think about when considering which country the e-commerce site you're running should be serving. First, think about which countries your target market is within. If your products will be popular in the United States, then it makes sense to ship there. However, if you're selling items that are more niche or targeted towards a particular region, then you might want to limit your shipping to just that region.

The other thing you should consider is the price of shipping. International shipping can be expensive and you'll have to factor that into your decision. It is possible that you will need to deal with customs and other laws that can create additional complexity and expense.

Also, consider whether you've got the capacity to manage shipping for several countries. It's a lot of work managing different shipping regulations, carrier options, and rates and so be ready for this prior to making the decision.

If you take all these factors into account then you'll be able narrow the list of destinations to ship your goods to. Then, you'll be able to start researching the specific laws and regulations of each country to make sure you're prepared to ship there efficiently.

Pro-tip:Beyond extra expenses and logistical challenges International shipping is a challenge because it has laws and requirements for customs and legal which can differ greatly by location and country. It is important to work with an international shipping firm who can simplify all of the processes as possible.

purchasing a DHL shipping label

Shipping has joined forces with DHL and DHL, so it is possible to handle international orders right from your own dashboard. You'll also save up to 67% off labels, receive free pickups and be able to offer your customers with complete traceability, and enjoy the automated creation of custom forms.

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

Determine the best delivery dates and delivery methods for your ecommerce store that best suit your business. Choose a shipping method that can bring your goods to your clients in a timely fashion. If you're selling items that require a certain amount of time, like food or cosmetics, this is even more important.

Depending on where you're shipping to and the speed at which your items need to be delivered You may provide several delivery options such as

  • Standard Shipping: UPS Ground, 1-5 business days
  • Express Shipping: USPS Priority Mail within 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 will be content with the experience.

Size and weight could influence shipping choices and costs.

When you begin shipping orders, it is important to be aware of not just the weight and size of your goods, but their size and weight when they're wrapped. This will allow you to decide the best method for every product or purchase to be shipped.

If you're a business that ships to within 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 provides tracking and fast delivery time, and can be a great bargain if you're shipping tiny however heavy goods. You can ship something that weighs up to 70lbs, and pay the same flat rate. You also get the benefit of USPS supplying you with an envelope with a flat rate or box.

In the case of shipping bulk goods over the top, fees for oversized packaging are not a must, however, If you're shipping multiple items , it could be economical to break the items into multiple packages to avoid oversized costs for packaging.

A 3PL service is able to default to whatever method is cheapest for them and for your business. If your items must arrive together in one package even though it's more costly, or to split items in multiple packages due to reasons that make it better to place all of them into one large box, then you'll have to inform your 3PL so they can 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.

When shipping international You'll have take a look at the choices which are offered for the different countries and figure out which will work the best based on the size and weight of your products. Though strategies like separating items to avoid oversized-package charges can be helpful for domestic shipping, the same strategy might not be effective for international deliveries. You'll need to map out the specific ecommerce shipping method for every country you're shipping to.

How do you package orders to ensure shipment

Size, destination, weight, carrier, and shipping methods all influence your shipping costs and practices. However, equally important is determining how your packages are packed. If you are a business proprietor, you must send orders efficiently and in a cost-effective method while also ensuring that your items arrive in good shape.

If products are packed poorly it could result in having bad reviews, returned items as well as costly order reshipments. When you ship products yourself, using an 3PL service, or dropshipping direct from your supplier Make sure all of products are packed properly and safely.

It is important to think about the quantity of each item that can fit in a single packaging and whether various types of items should be packed within the same box or separately. It is also important to make sure your products are protected from the elements and from the damage caused by dropping on them, stacking or an agitation in transport.

Consider asking yourself the following questions about your products to figure out the most efficient way to store them

  • Are they weighty?
  • Does it have a fragile structure?
  • Does it have a sharp edge?
  • Do they contain fluids?
  • Are you sure it's unique?
  • It could be easily damaged when it's wet?
  • Do you think it's too large?
  • Is it very small?

When a client orders two very different products for example, a pair of champagne flutes in crystal or an assortment of weights for free You probably won't wish to put them all within the same container. If someone is ordering multiples of the same product You may want to split the order in several packages to minimize harm.

If, for instance, someone purchases twenty 18" 24" canvas prints from your store, it wouldn't be prudent to put them all in the same box. The weight of every item can result in damages to the canvas beneath it. Plus, you may incur much higher shipping costs when you use a larger box.

Also, the larger and bulkier the package is, the harder it can be to have it delivered without being dropped. A package's size that is notable could draw the attention of package thieves.

Small packages can be tricky as well. If your product can fit in a small padded envelope, you may have to include a strong cardboard or hardboard insert to prevent bending, bubble wrap, or another padding materials to make sure that your goods arrive in a safe manner to the recipient.

If you've got a mix of large and small products in your order, it is possible to ship them all together if the small items can actually function as padding (like clothes or linens) or are light and long-lasting.

The choice of packaging material

Packing materials for both small and large packages could make shipping more expensive for e-commerce. In addition, you will need pay for the cost to purchase these materials, but they also increase the weight of your package, which could increase shipping costs.

You'll need to make sure that your containers and packing supplies can handle the weight and size of the items you're sending However, that's not really the only thing you'll want to consider.

When choosing packing materials for the e-commerce order, take into consideration these:

  • Fragility of item
  • Brand experience
  • Eco-friendly materials
  • Cost of packaging

Fragile merchandise

If you're shipping fragile items then you'll require different packing materials than if you're sending non-fragile goods. It is possible that you will require additional bags of bubble wrap, or air cushions in order to make sure that your goods arrive in a safe manner. Other packing materials could increase your overall package size However, ensuring that your products arrive safely will save you money on returns in the long run.

Be aware of the possibility that your products are susceptible to damage by water or any other element during the shipping process. Take into consideration wrapping goods that might be damaged by water in shrinkwrap, plastic bags or another waterproof container. If you're using bubble mailer, you should choose using a plastic option rather than one made of paper.

Brand Experience

If you're not concerned about costs it is possible to brand the packing materials. Companies such as Mule Sticker Mule offer custom branded packaging and tape that will allow you to customize all of the shipments you receive from your orders to be branded.

When a box that has your company's logo is delivered to someone's door, they'll know it's from your company. Your brand's presence can bring some excitement a customer's day. Additionally, the fact the fact that you're going the extra mile for packaging will help build confidence that you're also putting just as much effort into your products.

packing items for shipping, including branded materials

Eco-friendly materials

If your company wants to utilize environmentally-friendly packaging materials, you'll find plenty of alternatives available. It is possible to use environmentally friendly packing materials as part of your marketing strategy. If your products are nature-related, organic or simply prefer environmentally-friendly manufacturing methods is it logical to consider investing in environmentally friendly packaging.

The companies such as Hero Packaging, Mushroom Packaging and Noissue provide sustainable packaging alternatives. Noissue even provides personalized branding for your packaging products. The packaging that is environmentally friendly can be costlier than other packaging and should be kept in mind if you're on a tight budget.

Packaging cost

You'll want to ensure your products get to their destinations in a safe manner and the recipient is satisfied with their delivery, but you don't want to be spending too much money on packaging.

With these factors in mind With these considerations in mind, let's take a closer review of some of the most popularand cost-effective packaging materials and the ways they could benefit your business.

Cardboard boxes are one of the most frequently used packaging products for online orders. They're sturdy and long-lasting and are perfect for protecting fragile items. The cardboard boxes are thin, meaning they will not make a huge difference in weight to the shipping cost. The best part is that cardboard can be recycled, which means it's an ideal choice for eco-conscious businesses.

You can even get cardboard that's made from recycled materials in the initial place. Most packaging retailers like Uline sell environmentally-friendly cardboard boxes.

The bubble wrap is yet another option as a packing material. It is great for protecting fragile products and to prevent damage from the shipping process. Bubble wrap comes in different dimensions, so that you can choose the right amount of protection to your items. Similar to cardboard boxes bubble wrap is affordable and recyclable.

Peanuts for packing are often utilized to fill in the empty spaces inside packages, and to prevent the items from moving during transportation. They're made from different materials which include biodegradable ones like cornstarch. Packing peanuts can be reused which makes them a viable choice for firms looking to lower their carbon footprint.

air cushions can be used as an alternative for packing peanuts. They're inflatable bags which are able to be utilized to fill the empty spaces within packages. Air cushions provide the same protection as packing peanuts, but they are much easier to recycle and reuse.

paper is a different eco-friendly packaging material option. You can use paper to protect fragile products or to fill in empty spaces within the packaging. Paper can also be recycled (and you can use paper that is made of recycled materials) This makes it a excellent option for companies that are looking to limit the impact they have on the environment.

There are numerous packaging materials to choose from, and it's important to choose the best option for your company. Consider your products, the shipping requirements, as well as your brand image when selecting packing materials to ship your online orders. By choosing the appropriate packaging materials, you can be sure that your items arrive in a safe manner to their final destination, while creating an impact on your customers and a minimal impact on the environment.

Decide on your rates of shipping to customers

Once you've identified the location you're shipping to, what you're packaging, what method and carriers you're employing, and how weight and size impact the shipping options you have, you'll need to calculate two things: your cost for handling and shipping, and the shipping rates you're charging your clients.

Although you may use a shipping calculator at any of the top carriers' sites or the multi-carrier shipping program to calculate ecommerce shipping costs based on method and size, weight and location The calculators won't take into account your cost of handling.

There are a variety of options to choose from that work most effectively for your company, nevertheless, you'll need to put these handling costs to a place to make sure they don't impact the margins of your profits.

What are the costs for handling?

The handling is all that matters, not the shipping cost that the carrier charges you. Handling can include and is not restricted to:

  • The cost of shipping materials includes boxes, padding materials the backing board and sleeves made of plastic, tape, labels, as well as a thermal printer.
  • Cost of storing inventory.
  • The time is spent packing orders and arranging carrier pickup.
  • Service to customers regarding lost or damaged packages and providing customers with information on the status of their packages.

One way to estimate your handling costs per purchase is to figure out how much you'll spend each month, on average, on the above costs and then divide that by the amount of items you place per month. You can then add that handling cost to the shipping price of every purchase.

If you'd rather add the handling cost to your pricing for your products You could split your average monthly handling cost by the number of merchandise sold in a month. If you're selling high-priced as well as low-priced ones, you might want to distribute your handling costs. Products that are less expensive will probably 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 rate

Flat rates make it easier to implement your shipping plan because they take the guesswork out calculation of rates. Charge the same amount regardless of the size or weight of your order. This is an excellent solution if you have inventory that is similar in size and weight, or if most of your clients order the same quantities. With the default configurations you are able to charge a flat rate per item, or a percentage-based cost, or an amount that is a minimum.

Free shipping

Customers who receive free shipping are happy - but reduces your margins. It is possible to include the costs of shipping into the cost of your item, but buyers might be put off by the higher dollar amount. Keep your prices minimal and offer free shipping with the hopes that sales growth could make it more financially viable.

Combined shipping

The combination of shipping options offers two options. If one size-fits-all approaches to shipping doesn't align with the needs of your company it is possible to mix and combine. One option is offering free shipping on orders that meet a minimum total in order to convince customers to purchase additional items to their shopping carts.

Implement your ecommerce shipping strategy

Once you've done your research, weighed your options, and made a choice now is the time to set your strategy in order and establish your e-commerce shipping procedure.

1. Make sure you back up your online store

If your store is live, start by taking an all-encompassing backup. In the event of any unexpected issues it will ensure that you do not lose valuable data and order information. We suggest Jetpack VaultPress Backup for this.

After your backup is complete After your backup is complete, you should 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 settings

shipping zone options in

Go to the Settings tab - Navigate to Settings - Shipping in your account dashboard. You can then create shipping zones for defining rates according to the location of your customers, and shipping classes for defining charges based upon groups of similar products.

Let's take into consideration shipping zones. Once you've set them up, you'll be able to define shipping rates based on the specific areas you deliver to. You can just be a bit generic (like the definition of rates per the country) or more specific (like setting rates according to zip code). No worries - regardless of how complicated you get, each individual customer will only be able to see rates applicable to their specific shipping address.

Select the Shipping zonestab and, if you haven't set up a zone yet, you'll see a prompt to do so.

option to add a shipping zone

Click Add shipping zone.

setting shipping zone name

In the new window that appears, you can name the zone you're creating whatever you'd like. Then, select your zones of shipping that are comprised in the zone. There are many ways to configure zones. So, think about which is the most effective way to accomplish this for your business.

For example, a retail store situated within New York City might have zones for three areas: the East Coast, Midwest, and West Coast, with rates increasing in price based on distance from New York. Or a bakery might provide free shipping within the zip code of their location or at a reduced rate for any other location.

Pick all of the places you'd like to include in the zone of shipping. If you want to limit your zone according to zip code, click Limit to specific zip/postcodes. Then, a new window will open where you can enter an alphabetical list of zip codes.

Next, you'll want to establish the rates for shipping in the new zone. Select on the "Add shipping rates" button. As a default, you'll be presented with three options: flat rate, no-cost shipping and local pickup.

If you opt for Flat rate shippingyou'll be able to specify a particular price for that area (e.g. $9.99 flat cost shipping). You can also set this according to the shipping class which we'll talk about in a moment.

flat rate shipping settings

If you select free shipping You can choose to set the minimum amount of your order in order to receive free shipping. This includes whether or not you want to associate free shipping with coupon codes, and more.

free shipping settings

And if you go with Local pickup,customers who reside in the set shipping zone will be able to take their orders to your place of business.

local pickup settings

Remember, you can include one or more of these items to each zone. For instance, you could offer free shipping above the amount of your order or flat rate shipping on all other items that are less than this total.

What about shipping classes? While these aren't 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 those that are framed. These will cost different amounts to ship depending on the weight of your items, but frames will require greater packing materials.

Let's look at this scenario. On your dashboard, navigate to - Settings - Shipping, then click to open the Shipping Class tab. Click "Add new shipping classes" at the bottom left corner of the page.

Add the class's name, name, Slug (URL) along with a description, and click to save the shipping class.

Now you'll want to assign the products to every class that you create. Navigate to Products - All Productsand open the that you'd like to change. After that, go to the product data box and click the Shippingtab.

In the dropdown for shipping class,select the class that best fits the product. Then, save your modifications. You can do this for each product in that class.

It allows you to be much more precise with the shipping costs. This means, for instance in the event that you choose to set your flat rate shipping option and you want to specify an additional price for frames vs. unframed prints. In the image below that you can now select an option that is specific to"framed" printing "framed" shipping class.

And that's it! As you can see, there's lots that you can do with default shipping settings.

3. Set up and activate the shipping extensions

In order to implement table rate as well as live rates, or to make use of a mix using an extension, you'll require an extension. You can also use extensions to incorporate features such as warehouse syncing and shipping labels.

Do you work with an 3PL service? They may have a extension that is available on the market or directly on their site They may also design an integration that is custom-built for you.

4. Make it easy for customers to comprehend where they placed their order

The process of shipping your order online does not stop after you have dropped the package off. In fact, some of the best opportunities for excellent customer service happen once your package is delivered to the post!

Customers should be able to quickly know where their order is in all time, and know what time it will take to arrive. This is crucial if your products often are purchased for gifts.

5. Consider return shipments

Though nobody wants thinking about returning, they do happen. And if you accept exchanges or return shipments It's crucial to have a plan that is in place.

Profit and Ship!

Now is the time to begin shipping! Be sure to adjust your strategy for shipping to your needs and implement modifications as you discover more about your clients, and you'll quickly discover the solutions that will benefit relationships with customers as well as the bottom line.

There are a variety of methods to deal with ecommerce shipping. You could do it on your own, partner with a logistics firm and drop ship items directly from the manufacturer. To make these decisions, you'll need to consider the main factors that determine which shipping options are offered for each option and if they're able to handle the requirements of your company.

Some ecommerce shipping carriers limit the products they'll deliver, such as the use of special rules for specific kinds of material. If you plan to deliver internationally, it's important locate a company that reaches the locations you want to focus on.

The option is to transfer charges for shipping to customers, or cover all or part of it you. There's pros and cons to any method and you could decide to test it over the course of the course of time. If you choose to decide to charge for shipping, you are able to set rates in an array of ways - starting with flat rates, table rates to even live, real-time pricing generated by your shipping provider.

Finally, now matter how you choose to set up your eCommerce shipping plan It has the right tools to manage everything. Make use of extensions that allow you to deliver your products cost-effectively, efficiently, and safely to ensure that your customers are happy and your store is running effortlessly. Need more information? Take a look at our online shipping instructions.