E-commerce Delivery

In this guide, we’ll dive into the world of e-commerce delivery and cover everything from shipping options and carrier selection to package tracking and returns management. Whether you’re a new e-commerce entrepreneur or an established online retailer, understanding the intricacies of e-commerce delivery is essential to providing a seamless customer experience and growing your business. So, let’s explore the key aspects of e-commerce delivery and discover how you can optimize your operations and delight your customers with fast, reliable shipping.

What is E-commerce Delivery?

Delivery is an essential aspect of e-commerce and one of the most expensive processes involved in getting a product to the customer. An e-commerce parcel delivery is a critical part of e-commerce business and requires several steps that lead to successful delivery. It involves the process of shipping products to customers who have purchased them online. 

The importance of e-commerce delivery has been growing in the last few years. It is famous due to the convenience it provides to consumers. It is also great for retailers to increase their revenue and profit margins. When choosing an e-commerce delivery partner, you must ensure you go for a reliable carrier. There are multiple e-commerce delivery options to choose from when it comes to delivery. These are:-

• Same-day delivery: Normally, people want their items delivered on the same day they order them instead of waiting a few days.

• Next-day delivery: This type of delivery takes 24 hours instead of a few days.

• Two-day delivery: The two-day delivery is an extension of the next-day delivery. The shipment is delivered within 48 hours of their registration. 

• Overnight delivery: Overnight delivery is different from next-day delivery. It refers to the delivery service of sending shipments to the customer the next day at a particular time.

• International delivery: International e-commerce delivery ensures that your shipment crosses international borders to reach its desired location. It can include sea routes and air channels.

While these serve as important types of deliveries, the last mile is one of the most crucial challenges of any delivery. Choosing an e-commerce last-mile delivery solution can help resolve numerous issues.

How Does E-commerce Delivery Work?

• Process order 

The first stage of e-commerce delivery is order processing. The customer places a shipment on the company’s portal. Once the checkout process is complete, the warehouse receives the order for processing. 

The warehouse will also take care of sorting and picking ordered items together so they can be packaged in one box or envelope when shipped out to customers. E-commerce delivery partners have to go through this process in the first step of registering an order.

• Delivery and logistics 

The second stage of e-commerce delivery is logistics. The logistics process for e-commerce is more complicated than traditional retail because of the need to coordinate with multiple parties. The three main types of carrier-based deliveries are:

1) Air freight – commercial airlines and cargo aircraft;

2) Ocean freight – transfer goods;

3) Road freight – truck, train, or other land-based methods.

• Package order 

The customer receives the package in the third stage of e-commerce delivery. You can do so by courier or by post. The courier delivers packages to consumers in person, whereas,  postal services are delivered through the mail. 

With the post, you need to provide a mailing address and wait for the package to arrive, while with a courier, you can track your package and receive it at your convenience.

• Returns 

This is the fourth stage of the e-commerce delivery process. Usually, the customer initiates a return request. However, both the customer and the merchant can initiate the return process. It has four stages:

1) Receiving an order for return from a customer;

2) Verifying that the order matches the original shipment;

3) Returning the items to the warehouse;

4) Sending a refund to the customer.

Some E-commerce Delivery Models You Should Know

• Warehousing 

Warehousing is a type of delivery model that e-commerce retailers use. This model stores products in a central warehouse and delivers them to customers. The most common types of warehousing are:

1. In-store warehouse: Products are kept in the retailer’s stores. This type of warehousing is usually limited to small retailers with few locations or those who display the product while selling.

2. Pick-pack-ship warehouses: These warehouses carry out the order fulfillment process for e-commerce retailers. It includes picking and packing items and shipping them to customers’ homes or workplaces.

3. Third-party warehousing: These warehouses handle the storage of products on behalf of other companies. They do so for a consignment fee.

• Outsourcing 

The rapid growth has made it tricky for most retailers to manage their supply chain and logistics. Therefore, many retailers have outsourced their delivery process to third-party logistics providers. 

There are many benefits to outsourcing your delivery model, but it can come with a cost. The outsourcing cost may be higher in the long run due to increased shipping and distribution costs and shipping rates. Out of the many different models, three are worth mentioning – drop shipping, pick and pack, and fulfillment.

• Dropshipping 

Dropshipping is a business model where one does not need to carry any inventory. You need to find the right products to sell and place an order with the supplier. Dropshipping is a way for new entrepreneurs to start their own e-commerce business without investing much money in inventory or other costs associated with traditional retail businesses.

• Subscription 

The subscription delivery model is a prevalent model that many e-commerce companies are adopting. Customers sign up for a monthly or yearly subscription, and then they receive the product. This, in turn, saves money on deliveries, free shipping, and more perks.

How to Build an E-commerce Delivery Strategy

Step 1: Select your teammates

It would be best to assemble a team of marketing professionals, web developers, and web designers. As an online retailer, you must have a team well-versed in all business aspects.

The marketing team will create your brand, generate traffic, responsible for customer acquisition, conversion, and retention of the website. Web developers are responsible for creating a website that is user-friendly and easy to navigate. They are also responsible for optimizing to rank higher on search engine results pages (SERPs).

Step 2: Determine your objectives

The main objectives of an e-commerce delivery strategy are to set your goals, increase conversions, expand the market, decrease costs, and improve operational efficiency. You can set your objectives in three ways:

• Increasing the number of customers
• Increasing the average order value
• Increasing the conversion rate

Step 3: AOV calculation 

An e-commerce delivery strategy is vital to the company’s overall business strategy. Researching and finding the most cost-effective carrier for your company is essential. 

When searching for the best e-commerce delivery, it is advised to go through the delivery rates. Many factors determine how much it will cost to deliver a package, such as weight, size, and distance. You must calculate all these factors before you order any boxes. You also want to ensure that the shipping costs are affordable for your customers.

Step 4: Select between e-commerce delivery options and solutions 

Creating an e-commerce delivery management platform can help handle large orders.

To determine what type of e-commerce delivery strategy is best for your business, you need to consider:

• The size and location of your business and customer base
• Your product type 
• Your customer service 
• Your budget

Key Stages in Your Shipping and Delivery Strategy 

The following are some of the critical stages in your shipping and delivery strategy:

1. Planning and forecasting
2. Ordering
3. Shipping
4. Tracking and tracing
5. Warehousing
6. Returns management

Main Steps to Ship Products

• Tracking consignments and returns 

A key stage in shipping and delivery strategy is ensuring where your consignments are. You can know about this using a tracking service. 

Another important aspect of your shipping and delivery strategy is to make sure that you have a return policy. It is the best way to ensure customer satisfaction, loyalty and protect yourself from potential fraud or abuse.

• Using a fulfillment warehouse 

A fulfillment warehouse specializes in storing, packing, and shipping products. You can break the e-commerce fulfillment delivery process into five key stages:

1) Ordering: Product is with the fulfillment warehouse.

2) Packaging: The warehouse packs the product according to the customer’s specifications.

3) Shipping: The product gets shipped to the customer’s address.

4) Receiving: Customers receive their shipment from their door and inspect it for damage or defects.

5) Returns and exchanges: When customers are unsatisfied with their purchase, they can return or exchange it within a specific time frame.

• Have an e-commerce delivery strategy 

E-commerce companies should have a well-thought-out delivery strategy. It should consider the following key stages:

1) Order processing

2) Order shipping

3) Order tracking

4) Returns handling and customer service

How to Choose an Effective Delivery Partner for Your E-commerce Business?

1. Inspect their ability to deliver your packages 

When choosing a delivery partner, you should first look for the ability to deliver your packages. If there is a discrepancy in delivering packages, you can opt-out immediately. The next thing to consider is their capacity. You want to ensure that the carrier has enough resources and workforce to handle your orders.

2. Ensure that their service matches customer needs and expectations

It includes their fulfillment process, shipping rates, delivery time, and return policy. It is advised to inquire about any policies related to the seasonal rush. If you’re looking for a personalized experience, look for a company that offers customer service over the phone, email, and live chat. It will give customers more opportunities to get help with their orders and allow them to find out more about their shipments.

3. Check for courier tracking services

The courier tracking capability is an essential factor to consider when choosing a delivery partner. Many courier companies help you with the necessary tracking capabilities. They should provide you with regular updates on the location of your package every step of the way.

4. Compare the pricings for every courier service 

The pricing model is one of the most important factors when choosing a delivery partner. Pricing models vary from company to company, and some may offer a better value for your business. There are four pricing models that you should compare.

• Per-piece pricing: You pay for each item you ship, regardless of weight or size.

• Flat-rate pricing: You pay one flat fee per shipment, regardless of how many items are shipped.

• Weight-based pricing: In a weight-based pricing system, you pay based on the weight of your shipment.

• Zone-based pricing: You pay based on the location of your shipment.

5. Check for packaging and shipping supplies

Ideally, you must find a company that offers all the services you need for your business. They must also offer competitive rates on packaging and shipping supplies to provide a complete package for your business needs.

6. Check for other shipping services

Choosing the right delivery partner for your e-commerce business can be overwhelming. The most important thing you should ask about is any special shipping services that might be useful for your business. You can see if they offer a drop-off service or if they provide a home pickup service. For example, some companies offer same-day delivery, which is perfect for those who need their order as soon as possible. 

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