Perfecting Your E-Commerce Delivery Strategy for Growth
Jan 26, 2022 1:00 AM
Learn About Logistics
Did you know that the the number one factor that influences an online purchase decision is the mode of delivery and how fast the purchase can reach a customer? Research has shown that 61% of the consumers are happy to pay for a convenient experience that provides varying delivery options.
One of the key factors for success in an e-commerce business is an efficient product delivery strategy that can improve conversions and drive in-store traffic. Unlike leading retailers or marketplaces such as Shopee and Lazada who may have the capacity to build their own in-house fleet, most growing and small e-commerce companies in Singapore don’t enjoy total control over a logistics network. Offering free shipping will definitely improve the conversion rate, but it can also eat into your profit margins which explains why most small businesses may not be able to absorb the shipping cost.
However, more and more consumers are expecting retailers/e-commerce stores to absorb the delivery cost and provide free shipping for their purchases. Additional shipping fees often deters a customer from completing the checkout process and purchasing the item. In fact, according to a research study by Baymard Institute, 69.82% of online shoppers abandon their carts because of unexpected extra costs.
But of course, any e-commerce delivery strategy includes much more than just providing free shipping and fast delivery. One major reason many users don’t want to do online shopping is the delivery promise—whether it’s the lack of reliable delivery options, the shipping cost, or the inadequate payment methods. Creating a solid strategy would solve any issues that contribute to shopping cart abandonment, thereby increasing your online sales.
How Your Delivery Strategy Can Impact Growth
Read our guide below and apply these useful strategies to create a strong e-commerce delivery strategy for your business.
Brand Your Delivery Package to Customers
In an increasingly competitive online environment, e-commerce business owners should take advantage of any available opportunities to influence online shoppers, including branding their delivery package.
Your delivery package is a physical touchpoint for your customers. People will associate your brand image with how your items are packaged and delivered. Depending on the fragility of your products, the way you package your items have to be different too. Fragile items should be packed with packing materials that provide cushion during transportation, and protect areas that are especially susceptible to damage, such as glasswares, alcohol and even electronic devices. This will show your customers that you care about their items and thus building a good image for your brand.
The design of your packaging matters as well. Eye-catching design influences consumers' behaviour and triggers impulse purchases (which businesses love!). Also, many consumers today love to post exciting unboxing or attractive packaging videos on their social media platforms which indirectly helps to promote your business organically and thereby increasing brand awareness. Tip: Do add your brand logo on the packaging too!
It could be as simple as a sticker or a little surprise gift that communicates your brand. The package your product is delivered speaks 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!
Leverage on Automation
Automation helps to maintain transparency across different levels when customers place their orders. With API integration, you can track each step of the e-commerce delivery process in real-time. Any shortcomings and obstacles in the delivery system can be identified and solved. Frequent issues can also be addressed to streamline the sales funnel and ensure 100% order fulfilment.
Read more: Tracking your parcel at every stage
API integration is essentially one of the most important features for every e-commerce platform. Features such as bulk upload enables businesses with large delivery demands to quickly create delivery orders in minutes, reducing the time taken to manually sort out their deliveries.
In addition, marketing automation tools can also help online business owners to capture and transform user data into actionable intelligence. This helps entrepreneurs be visible to customers and send the right messages to the right audiences.
For instance, website popups can drive sales directly and it is a good marketing tactic to put your discounts and promotions front and center instead of having potential customers to navigate everywhere looking for a deal. In fact, 59% of shoppers tend to look for promo codes before making a purchase online.
No matter how tech-savvy you are, you need to understand how small touches like this can help you offer a better experience to your customers while streamlining the sales process.
Customer Experience & Expectation
Today, most shoppers rely on their customer experience before making a purchase. Even if you have the best product or the best price, it doesn’t guarantee you sales. With the rise of the internet, shoppers are able to do research, compare merchants, products, shipping options and most importantly, reviews, before they hit the ‘Check Out’ button.
A live chat tool is beneficial as it increases efficiency by allowing your customer support team to handle multiple chats simultaneously. More often than not, the questions asked are usually related to deliveries — whether it is about their package delivery status, the need to change delivery address, receiving wrong items or rescheduling their deliveries.
In fact, you can pre-set some common questions and answers, which allows consumers to self-serve themselves in the live chat without actually engaging your support team. This saves you time and cost!
Many e-commerce websites are now equipped with live chat support that helps to answer customers’ queries almost instantly. This is probably one of the most important features a website can offer. It not only boosts conversion but helps to build a positive consumer experience.
Flexibility to Choose Multiple Checkout Options & Delivery Services
Another crucial feature to enhance your e-commerce delivery strategy is to provide multiple checkout options for your consumers. Most e-commerce will try to integrate as many payment methods as possible on their website to minimise the chance of cart abandonment due to inadequate payment options.
Cash on delivery is no longer the preferred option, especially with the rise in cash on delivery scams. Consumers nowadays prefer to make their payment on the website directly and with the introduction of digital wallets, payment methods such as PayNow, PayLah and PayPal are getting the attention. As such, it is important that your website provides secured payment gateways to prevent any potential frauds.
The flexibility to choose varying delivery options provide an additional perk for your consumers too. For instance, Pickupp provides express, 4-hour, same day, next day and 1-3 days delivery services. Such variety allows your consumers to select their preferred delivery period and ensure that their purchases will arrive promptly based on their availability.
3PL or In-House Logistics
Whether you are a large wholesaler or a small online business, you can benefit from outsourcing logistics instead of managing it in-house. There are many 3PLs (third-party logistics providers) to consider, so finding the best delivery partner for e-commerce that meets your needs is crucial.
With in-house logistics management, you will be able to have total control over the distribution process. However, most e-commerce stores choose to outsource and engage a 3PL because of the logistics softwares that 3PL companies have access to.
3PL e-commerce delivery partners like Pickupp offer quick and on-time delivery with minimal cancellations. Timely delivery implies that the right product is delivered to the right customer and at the right time — this is the number one success factor that business owners look out for. Also, outsourcing your logistics to a 3PL company means you have more time to focus on other areas of the business.
Read more: Logistics Company in Singapore - Why Is It Important to Businesses?
The rise of the internet has indeed transformed the way people shop, making it less tedious and more convenient for consumers to purchase products. And in this e-commerce era, other than the products’ features itself, the best way to win customers is to provide a delivery strategy that does not fall short of your customers’ expectations. Whether it is a free shipping strategy or providing excellent e-commerce delivery services, these are small business touches that actually affect a consumer’s purchasing decision.