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Step-by-Step Guide to Shipping Profitability

Updated On:07-September-2016

Putting an effective ecommerce shipping strategy in place is one of the most impactful steps you can take to grow your business online. While many brands start out in ecommerce by taking a simplistic approach to shipping like offering free shipping across the board or showing unmodified UPS or USPS rates, the most successful merchants use strategic shipping options to differentiate themselves from their competition and increase margins.

Assemble the Team

Identifying the right people to help make this decision for your business is the first step. This requires that you bring into the conversation the right stakeholders within your organization.

Define The Goals for Your Shipping Strategy

Once you’ve identified the key teams in your company who will need to be involved in establishing your strategy, you need to define what you want to accomplish with your ecommerce shipping strategy.

There are many areas of focus here, but the most typical are these.

*Increase Conversions

*Increase Average Order Value (AOV)

*Expand Market or target Audience.

*Decrease Cost

*Improve operational Efficiency

Your Ecommerce Shipping Solutions and Options

Once you’ve identified the right team and goals for your business it’s time to get down to the work of choosing a strategy that is going to work for your team to accomplish the goals you’ve set.

The Holy Grail of a Profitable Ecommerce Shipping Strategy

There is no doubt about it, free shipping is the holy grail of online commerce. The Truth About Free Shipping , Consider the Space in Which You Work, Decide if Shipping is a Marketing Expense or COGS, Offer Free Shipping to Limited Regions, Surcharge Your Expedited Rates, Take a Monthly View, Show Delivery Time, Offer Free Shipping after Conditions Met these are all the best holy grails for the profitable shipping.

A 4-Step Outline to an International Shipping Strategy

A third of online shoppers have purchased goods from another country. Those living in Australia, Canada and Russia are the most likely to buy internationally. In Asia and India are two of the fastest growing markets for ecommerce, with YoY growth in the 30 or more percentile marketplaces similar to Amazon and eBay make it easy for international companies to test product market fit.

Implementation & Analysis

With the right team in place, your goals clearly defined, and your approach or approaches chosen, it’s time to implement your ecommerce shipping strategy. Each team member or team leader should be clear on their responsibilities. You don’t have to do everything all at once but everyone should be clear on their responsibilities each step of the way.

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