Many new eCommerce businesses start off as home based businesses. With the initial cost savings, they do see some success and good profits. But more often than not, the profits taper off after some time. To maintain profitability, shipping is a key factor.

Here are 3 shipping tips that can help you maintain the initial growth and set you on the path to being a lot more successful.

 

1. You must have a reliable shipping partner

When you are just starting out with your new eCommerce business, you may be able to ship from home and get some extra savings. But after a little while, especially if your business takes off, you will be better off working with a fulfillment and shipping partner. Instead of spending all of your fresh profits into getting storage space, hiring employees and buying shipping supplies, you should shop around for a shipping partner that provides order fulfillment services. You will save money on shipping as well as shipping supplies when you outsource order fulfillment.

Use your fresh profits to increase or improve your product line or spend it on more marketing and advertising instead.

Related: 3 Tips for a More Streamlined and Pleasant Shipping Experience

 

2. Don’t make customers pay for all of the shipping charges

With most big online stores offering Free Shipping, you need to think hard about your shipping policies. Do you want your customer to pay for the full shipping price or should you share some of that cost? The best thing to do is to offer different levels of shipping rates that appeal to a broader base of consumers. Some consumers want free shipping, and some want fast shipping. Offer free shipping outright if your product pricing allows it. If not, offer it above a certain cart amount. Offer fast shipping for those who can’t wait and will gladly pay for expedited shipping.

One of the best shipping tips is to offer free shipping. If you can’t, then offer as many options as you can so that your customers can choose what fits them the best. Pay for part of the shipping cost instead of making your customer pay all of it.

Related: 5 Major Shipping Problems Resolved.

 

3. Don’t make customers pay for return shipping

If you charge customers for returning products, you will not have very loyal customers. Paying all or some of the shipping charges will help keep your customers happy and they will keep shopping with you. Customers already hate the return process, don’t make it worse. Never ever charge your customer for returning or exchanging defective products. They will never come back to you!

Try your best to include the return cost into your product pricing, especially for defective products. In some cases, if product pricing allows it, it is better to just let the customer keep the defective product and send a new one in exchange. That way you don’t end up paying more shipping charges. For exchanges because of a change of mind, again, it’s best not to charge for shipping, but it’s alright if you charge your customer a minimal fee for restocking.

Related: Shipping and Reverse Logistics

 

Reverse Logistics Managed by Elite OPS

Product Returns and Exchanges are a big part of online retail. At Elite OPS, Reverse Logistics is not simply processing returned products. Our end-to-end reverse logistics services include recall management, testing and warranty, and re-stocking after repair and/or re-manufacturing. Also, we continually analyze returns data to help you identify areas of improvement that lead to a shorter and smoother returns process. That helps to retain customers and saves you time and money.

Our Reverse Logistics Services include:

  • Comprehensive Reverse Logistics & Returns Software
  • Real-Time, Web-Based Visibility in Your Online Portal
  • A Wide Range of Reporting Capabilities
  • Automatic Disposition of Products

 

With over two decades of experience in the reverse-product life cycle, we improved our best practices that reverse the loss cycle and uncover hidden value for our clients.

Our Clients have experienced these advantages:

  • Improved Cash Flow with comprehensive return stream management
  • Reduced Costs through scalable technology
  • Reduced Cycle Times though a more fully integrated system
  • Improved Business Controls via a consistent reverse logistics process
  • Increased Liquidation Values with diverse re-marketing/re-manufacturing processes
  • Improved Transportation Effectiveness through greater adaptability

 

Bottom line

For an eCommerce business, customer loyalty is key. You must keep your customers happy so that they keep coming back to you. That is true even if it costs you a little of your profits. Your customers are generating your profits for you. You don’t want to lose them.

 

Elite OPS has been a leader in Shipping and Logistics for over 20 years. Contact Us to find out how we can help you Save Time and Money on Procurement as a Service, eCommerce Order Fulfillment, and Kitting and Assembly.

Call 855-553-5490 or Click Here to Request a Quote!