Perfecting Your eCommerce Delivery Strategy for Growth

The new year calls for a relook and review of existing practices to see how things can be improved and changed for the better. This 2020, don’t forget to also review your business’ existing delivery strategy! If you don’t already know, a company’s delivery strategy can be a powerful differentiation for the business. Crafting an effective delivery strategy and knowing which eCommerce shipping best practices to adopt can help you to stand out from competitors and break through the current sales bottleneck.

As such, whether it is to improve your customer’s shipping experience, decrease logistics cost, reduce delivery lead time or improve on-time delivery rate, it is important to set goals for the year and think about the improvements that can be made to your existing delivery strategy.

If you’re not already adopting them, here are 3 improvements that you may wish to consider implementing into your existing delivery strategy for 2020:  

1. Free Shipping

Free Shipping

Consumers want their deliveries to be free. Additional shipping cost often deters a customer from completing the checkout process and purchasing the item.

In fact, according to a research study by Baymard Institute, 53% of online shoppers abandon their carts because of unexpected extra costs.

On the other hand, when the cost of a product is parked under a single price tag, customers are more enticed to purchase a product. According to HubSpot, 24 percent of shoppers are ready to spend more to qualify for free shipping. This means that you could potentially increase the average order value on your site, just by offering free shipping alone!

While larger eCommerce retailers may have the capability to absorb free shippings into their margins, it may be difficult for small businesses to do likewise. However, you can account for shipping costs by:

1. Increasing the cost of your product and including the entire shipping cost within that price tag. In that way, shipping costs can be covered but it will not be perceived as an “extra” on top of the cost of the product.

2. Absorbing a part of the shipping cost into your margins and charging a part of it as shipping cost to the customer so that the costs are covered and paid by both the business and the customer.

Read more about how you can offer free shipping and still earn a profit here.

Free shipping is everywhere and a common strategy used by many eCommerce retailers. If you’ve had to try it out, it is something you can definitely consider this 2020!

2. A Variety of Delivery Options, including Same Day and Express Delivery Services

Flexible Delivery Options

When it comes to shipping, customers want affordable prices, flexible shipping options, and fast delivery.

More than half of holiday shoppers believe that their fast-tracked orders should arrive within two days of ordering, according to the Deloitte 2018 holiday survey.

While a few days of delivery time may be the norm just three years back, the percentage of consumers that consider delivery within three to four days as fast shipping has quickly plunged from 63% in 2015 to 25% in 2018.

Offering a range of delivery options, as well as shorter delivery times, is almost essential to help you maintain that competitive edge over other businesses.

Pickupp offers a range of delivery options from 4-hour on-demand to 1 – 3 days to suit your business’ needs and budget. Learn more about our offers and prices here.

3. Branding Your Delivery Package to Customers

Packaging Your Parcel

It could be as simple as a sticker or a little surprise gift that communicates your brand. The package your product is delivered in speak volumes about your brand’s product and service. It also helps your brand to stay in the mind of consumers and inculcates customer loyalty. We all know how important loyal customers are to a business!

The best delivery strategy would be made incomplete without a suitable delivery partner. With our API Integration capability, and position as a technology-driven logistics and delivery partner, we’re more than equipped to meet the delivery needs of eCommerce businesses like yourself. 

Shopify Delivery Plugin

If you do not have an e-commerce platform to host your store yet, Shopify is a good platform to consider. And with Pickupp’s plugin on Shopify, you can expect automated, simplified and efficient deliveries.

Check out our plugin on Shopify here!

Not sure if you should opt for our four-hour same day or next day delivery services? Read our in-depth breakdown of the two different plans and which you should use to optimise sales for your business here.

Ready to try our delivery services? Sign up for a free trial with us here!