Ecommerce Shipping Solutions: The Ultimate Guide

Jan 9, 2023

When someone clicks the "purchase" option on your site and they purchase something, you've crossed the finish line, right? Almost. It's time to streamline your ecommerce shipping process to keep the sale and win new customers to stay.

Utilize this guide to find the best strategy to delight shoppers all the way through the sales funnel from when they put your product to their cart to its arrival on their doorstep.

Options for fulfillment of your shipping orders for your store

The process of shipping fulfillment is very complicated. The first thing you'll want to consider when establishing the strategy for shipping your products to customers on the internet is who will be accountable to fulfill your order. Do you handle them on your own? Will they ship direct from the wholesaler or manufacturer? Or will you contract with a third-party logistics company (3PL) for all your ecommerce order fulfillment?

Let's take a look at the options and walk through some advantages and disadvantages of each.

1. Ship orders yourself

If you're part of a small-scale business which produces products on-site You may find it easiest to ship directly from your own offices or warehouse. This can be more cost-effective particularly if you keep your inventory in your own office or home. However, it does require more work to manage.

There are advantages and disadvantages to managing order shipments on behalf of your own online store.

The advantages of sending orders yourself:

  • The control is yours over the ecommerce shipping process and are able to customize it according to your needs.
  • You can build connections with your customers by writing thank-you notes or putting small tokens of appreciation with their purchases.

The disadvantages of shipping your own orders:

  • The process of shipping can be lengthy especially if you are dealing with many order.
  • It is possible to purchase shipping supplies and equipment, including boxes, labels and tape.

2. Ship orders using Dropshipping services

Instead of buying wholesale items and then storing them in your own warehouse while you wait for orders to arrive it is possible to have your suppliers ship them directly to your customer. If they aren't able to offer this You could look to find companies who make similar or similar items and work with them to ship the orders directly.

illustration of the dropshipping process

Dropshipping can be a great option for e-commerce shipping fulfillment strategies for large companies, too. Wayfair began its start as a dropshipping-only company, but later expanded its operations to include their own warehouses in addition to still using the dropshipping method. Houzz, a competitor of Wayfair, still uses the dropshipping method exclusively. Last year Houzz made $500,000 in revenues. Not too shabby considering that the company does not design, make or even ship the products it sells.

Using a dropshipping service is beneficial, but it also has some downsides. We'll go over the advantages and disadvantages of dropshipping to help you make the best decision for your business.

Benefits of dropshipping

  • It's low-cost. It's not necessary to invest in stocks in the beginning as well as you won't have to employ staff to run your own shipping operation.
  • It is possible to be more flexible in the items you offer. You are able to easily alter your product offering as needed, and you're not tied to any specific stock. This will give you the capability to swiftly react to any changes in demand.

Cons of dropshipping:

  • It is harder to control the quality of your products. When you're Dropshipping, you're relying on the supplier to supply quality goods. If they do not meet your requirements, they could negatively affect your business.
  • A longer and more insecure delivery times can be troublesome for clients and result in reduced sales. Because you're relying on an outside company to manage shipping, you're always at risk of possibility of delays. If you're working with multiple dropshipping companies, products in an order may be delivered in different boxes on different dates, leading to confusion for customers and an increase in customer support tickets.
  • Shipping issues can be more difficult to solve. When you ship products yourself or work with a 3PL firm, you are able to resolve customer-related issues faster. If you're using multiple dropshipping firms, you could encounter delays in communications that increase the length of time it takes to resolve a customer complaint.

3. Send orders using a third-party logistic (3PL) service

If your company orders multiple products from manufacturers, but don't have enough time, money or funds to conduct the warehousing yourself it is possible to contract the services of a third party logistics firm for all of your online shipping.

This is a viable alternative if you don't have enough storage space or ability to transport your own goods, but it can cost more for small businesses, based on your typical volume of sales.

A few pros and cons of making use of a 3PL fulfillment provider comprise:

Pros of making use of 3PL services: 3PL service:

  • A fulfillment company can take care of the entire shipping process for you, which includes packing, tracking, as well as delivery.
  • Many of them have partnerships with major carriers, which will save you money on cost of shipping.
  • They can scale up quickly to meet spikes in demand.
  • You don't have to hire employees to handle shipping and fulfillment, which helps you cut down on time managing tasks.
  • It is not necessary to store your inventory in your own workplace or at home, which will reduce your overheads and make your workplace free of clutter.

The cons of using a 3PL services:

  • You will have less control on the process of shipping and you may not be able to customize the process to meet your requirements.
  • It is possible that you will have to pay a monthly or per-order fee in addition to shipping costs.
  • A few customers prefer to work directly with the shop instead of dealing with a third party.

In the end, which option is right for you - whether you're shipping your own or using a dropshipping company or using an 3PL is contingent on several aspects that aren't listed in the previous paragraphs. You'll need to weigh the advantages and disadvantages of each choice. In the end it's possible to decide to combine a variety of fulfillment methods. You don't have to pick just one!

Methods for shipping and the carriers that ship

No matter what fulfillment option you choose, you'll still require a thorough understanding of the many shipping options and methods as you'll need to add information about the different shipping methods into your store's shipping settings. You'll also need to provide specific information regarding your carrier and the shipping options for your customers, especially in the event that you're offering them several alternatives during checkout.

A shipping carrieris the firm which physically delivers your items to clients, such as USPS, FedEx, UPS, and DHL.

Shipping options include the various options as well as the associated prices customers can choose at the time of checkout, including free shipping on ground, $5.00 three-day shipping, or $15.00 next-day delivery. These methods are usually determined by the carriers they work with and can affect the price and speed of delivery.

Places, dates and the weights

Before you choose the method of shipping and shipping consider a few key variables:

  1. Places. What states, countries or provinces can you send your cargo to?
  2. Dates. If you consider where your clients live what is the average time for delivery to take to a given nation, state or region? Would you like to provide expedited shipping?
  3. Weights. The dimensions and weight of each product impacts your total shipping cost.

Places: Decide which countries you will ship your items to.

There are several aspects to think about when looking to determine which countries your ecommerce store should serve. First, think about which nations your market you want to target in. If you're selling items that would be well-known in the United States, then it makes sense to ship there. If you're selling goods which are niche or specifically targeted at a certain region, then you might want to limit your shipping only to that specific region.

The other thing you should consider is the price of shipping. International shipping can be expensive, so you'll need to consider that in your selection. It is possible that you will need to deal with customs and other regulations that can create the complexity and costs.

Consider whether you have the resources to manage shipping for different countries. It can be a lot of work to deal with the various regulations for shipping, shipping carriers, choices, and prices So make sure that you're well-prepared prior to signing the contract.

When you consider all these elements into consideration, you should be able to narrow down the list of destinations to ship your goods to. From there, you can begin researching the guidelines and rules for every country, to ensure you're able to send your package with ease.

Pro Tip:Beyond extra expenses and logistical issues International shipping is a challenge because it has laws and requirements for customs and legal that vary greatly depending on location and country. Be sure to partner with an international shipping business which can streamline all of the processes as is possible.

purchasing a DHL shipping label

Shipping has joined forces with DHL and DHL, so you are able to manage international deliveries from directly within your dashboard. You'll also save up to 67% on labels, receive free pickups as well as be able provide your customers with complete traceability as well as automatic customs form creation.

Timelines: Establish delivery dates, carrier, and methods

Determine the best delivery dates and methods of shipping for your ecommerce store that best suit your business. You'll need to choose a shipping method that can deliver your items to your clients in a timely fashion. If you're selling products that need to be delivered quickly, such as cosmetics or food it is more vital.

Based on the location you're shipping your products and the time it takes for your goods to arrive you can offer several shipping options , such as:

  • Standard Shipping: UPS Ground, 1-5 business days
  • Expedited Shipping: USPS Priority Mail 3 to 5 business days
  • For Overnight Delivery: FedEx Priority Overnight 1 Business Day

By offering fast and reliable shippingservices, you can guarantee that your clients will be satisfied with the service they receive.

The size of the package and weight may impact shipping costs and shipping options.

When you begin shipping products, it's important to know not only the dimensions and weights of your goods, but their weight and size after they've been packaged. This can help you determine what method will work best for each product or order to be shipped.

If your company is based in within the United States, the least cost method to send small items is typically USPS Priority Mail 3 Day Small Flat Rate envelope or Small Flat Rate Box. It provides tracking and fast delivery time, and it's a particularly good deal if you're shipping small however heavy goods. The shipping cost is that weighs up to 70lbs, and be charged the same flat fee. You also get the benefit of USPS providing you with a free flat rate envelope or box.

In the case of shipping bulk items over the top, fees for oversized packaging may be unavoidable, but if you're shipping multiple items , it might be more economical to break them up over multiple packages to avoid oversized fees for packages.

A 3PL service is able to default to any method that's most economical both for them and your company. When you require that items be delivered in the same box regardless of whether it's expensive, or if you want to divide things into multiple boxes for reasons that make it be cheaper to put them in one larger box, you'll need to inform your 3PL to ensure they follow your procedures. If you're packaging and shipping things yourself, you have more complete and granular control over the procedure.

For international shipping, you'll need to look at the options that are available to each destination country and determine which will work the best based on the size and weight of your products. Although strategies such as splitting items to avoid oversized-package charges may be beneficial domestically but the same method may not be effective for international deliveries. You'll need to map out the specific ecommerce shipping method for every country you're shipping to.

How do you package orders to ensure shipment

Size, destination of the container, weight, and the shipping method all affect your shipping costs and practices. It is equally crucial to consider the way the items are shipped. Being a company proprietor, you must send products efficiently and in a cost-effective manner while making sure that your items arrive in good shape.

If the packaging is not good and not properly, you could end up having bad reviews, returned items as well as costly order reshipments. When you ship products by yourself, employing an 3PL service or even dropshipping direct from your supplier Make sure all of your items are packaged properly and safely.

Consider how many items will fit in one package , and whether the different kinds of products should be shipped together or in separate packages. It is also important to make sure that the products you purchase are secured against the elements as well as harm caused by falling, stacking, and an agitation in transport.

You can ask yourself these concerns about your product for the best way to package them:

  • Is it too heavy?
  • Do you think it is fragile?
  • Is it sharp?
  • Do they contain fluids?
  • Is it one-of-a-kind?
  • It could be easily damaged when it's wet?
  • Do you think it's too large?
  • Does it seem tiny?

If the customer purchases two different items for example, a pair of champagne flutes in crystal or an assortment of weights for free You probably won't wish to put them all within the same container. Even if someone orders multiples of the same thing it is possible to divide the order over several packages to prevent the risk of damage.

If, for instance, someone buys twenty 18" 24" canvas prints at your store, it wouldn't be wise to pack them all into the same package. The weight of each piece may result in damage to the canvas below it. In addition, you might pay more shipping charges by using a box that is too large.

Additionally, the bigger and more unwieldy the package is, the harder it can be to have the package delivered and not be dropped. A package's size that is notable could attract the attention of package thieves.

The small size of packages can pose a challenge also. Even if your item could fit in a small padded envelope, you may have to include a strong cardboard or hardboard insert in order to stop the bending of your item, bubble wrap or any other padding material to ensure the items are delivered safely to the customer.

If you've got a mix of small and large things in an order you might ship them together if the small items can serve as padding (like clothing or linens) or are lightweight and sturdy.

Picking the right packing material

Packaging materials that are suitable for large and small packages can make shipping more expensive for e-commerce. Not only do you have invest the cash for these supplies and increase the weight of your package, which could raise shipping costs.

There's a need to be sure that your containers and packaging materials are able to handle the size and weight of the goods you're sending, but that's not all you'll need to take into consideration.

When choosing packing materials for your ecommerce orders, consider these:

  • The fragility of the item
  • Experience with brands
  • Materials that are eco-friendly
  • Cost for packaging

Fragile merchandise

If you're shipping fragile items, you'll need to use different packaging materials than when you're sending non-fragile goods. You may need extra bags of bubble wrap or air cushions to ensure that your goods arrive in a safe manner. Other packing materials could make your package larger, but making sure your products arrive safely will help you save money on return costs in the long run.

Take into account the possibility that your products are susceptible to damage by water or other elements during shipping. Take into consideration wrapping goods that might be damaged by water using the form of shrinkwrap, an overbag made from plastic, or other waterproof packaging. If you're using a balloon mailer, you should choose a plastic one rather than one made of paper.

Brand experience

If you don't mind costs and hassle, consider branding the packing materials. Organizations such as Mule Sticker Mule can provide customized packaging and tape that will allow you to customize everything about your order shipments a branded experience.

If a package with your logo on it arrives at someone's doorstep the recipient will know that it's coming from the company. Your brand's presence can bring a little more excitement to a customer's day. Also, knowing that your business is willing to go the extra mile to package its products is a sign of trust in investing the same amount of energy into your product.

packing items for shipping, including branded materials

Materials that are eco-friendly

If your company wants to use environmentally sustainable packaging materials, you'll find plenty of alternatives available. It is possible to use environmentally friendly packaging materials in your marketing plan. If your products are organic or natural or just want to promote the use of sustainable production methods is it logical to consider investing in environmentally friendly packaging.

Companies like Hero Packaging, Mushroom Packaging and Noissue have sustainable packaging options. Noissue even allows custom branding options for packaging materials. Eco-friendly packaging can be costlier than other packaging So keep this to your heart if you're operating on a the tightest budget.

Cost for packaging

It is important to ensure that your products arrive at their destination securely and that your customer is satisfied with their delivery, but you don't want to overspend on packaging.

With these factors in mind With these considerations in mind, let's take a closer look at some of most well-known, affordable shipping materials and how they can benefit your ecommerce enterprise.

cardboard boxes are one of the most commonly used packing products for online orders. They're strong and durable and are perfect for packaging fragile products. Cardboard boxes are also relatively light, which means they don't make a huge difference in weight to the shipping cost. And best of all, cardboard is recyclable so this is a good option for businesses that are environmentally conscious.

You can even get cardboard made of recycled materials from the very initial place. Most packaging retailers like Uline sell environmentally-friendly cardboard boxes.

The bubble wrap is another choice for packing material. It's ideal for protecting delicate items and preventing damage during transportation. Bubble wrap is available in a variety of thicknesses, so you can select the appropriate degree of protection for your goods. And like cardboard boxes, bubble wrap is cheap and recyclable.

Packing peanuts can be used to fill empty space inside packages, and to prevent the items from shifting in shipping. They're made from different materials, including biodegradable options such as cornstarch. Peanuts used for packing can be recycled, so they're a good alternative for companies looking to minimize their impact on the environment.

Air cushions are an alternative for packing peanuts. They're inflatable bags which can be used to fill empty space within packaging. Air cushions give the same protection as packing peanuts, but they are much easier to reuse and recycle.

Paper is yet another environmentally friendly packing material option. You can use paper for cushioning fragile objects or to fill in empty spaces within packaging. Paper is also recyclable (and you can use paper made from recycled material) This makes it a great option for businesses that want to reduce the environmental footprint of their operations.

There are many different packaging materials to choose from, and it's crucial to pick the appropriate one for your business. Consider your products, shipping needs, and brand branding when picking the right packing material for eCommerce purchases. By choosing the appropriate materials, you can ensure that your goods arrive safe at their destination while making a positive impact on customers and a minimal impact on the planet.

Find out your shipping costs for customers

Once you've identified the location you're shipping to, what you're packaging, what techniques and shipping methods you're using as well as the impact of weight and size on the options for shipping, you'll need to calculate two aspects: your costs for handling and shipping, and the cost of shipping that the company charges its customers.

You can also use a shipping calculator at any of the top shipping sites, or even an application that can multi-carrier ship to estimate the cost of shipping e-commerce according to the type of shipping method of shipping, the size, weight and destination The calculators won't take into account your handling costs.

There are a variety of options to choose from that work best for your business, nevertheless, you'll need to put these handling costs to a place to make sure they don't impact the margins of your profits.

How much are the handling expenses?

Handling is everything but the actual shipping fee which the shipping company charges you. Handling can include however, it isn't limited to:

  • Cost of supplies for shipping like boxes, padding materials, the backing board and sleeves made of plastic Labels, tape as well as a thermal printer.
  • Cost of storing inventory.
  • The time is spent packing orders and organizing carrier pickup.
  • Customer service regarding damaged or missing packages as well as updating customers about the progress of their deliveries.

A quick way to determine the cost of handling for each order is to determine what you spend per month on average on the above costs and then divide that by the amount of items you place per month. Then, you can add the handling cost to the shipping price of every single order.

If you'd rather add the handling cost to your pricing for your products then you can divide your handling costs for the month by the amount of merchandise sold in a month. If you sell high-priced items and low-priced products, you might want to distribute your handling costs. Products that are less expensive will probably be less expensive to handle to them than higher-priced merchandise, though this may not be often the case.

How can I best approach the calculation of shipping prices?

shipping calculator in checkout
Photo (c) https://xeroshoes.com/

Live rates

Table rates

Flat rates

Flat rates make it easier to implement the shipping process because they take the guesswork out calculation of rates. The same rate is charged regardless of the size or weight of your order. This is a great solution if you have inventory that is consistent in dimensions and weight, or when most of your customers purchase similar quantity. With the default configurations, you can charge a flat rate per item, or a per-centage cost, or even the minimum amount.

Free shipping

Free shipping makes customers happy - but lowers margins for your business. It is possible to include the shipping cost in the price of your product, however customers might be turned off because of the price. Or keep your pricing affordable and free shipping, with the hopes that sales growth could make it more financially viable.

Combined shipping

The combination of shipping options offers the most benefits of both. If one size-fits-all approaches to shipping doesn't align with your needs as a business, you can always combine and combine. One option is offering free shipping for orders that meet a minimum total to encourage customers to add more products to their carts.

Implement your ecommerce shipping strategy

After you've conducted your own research, weighed your options, and finally made your choice that you're now ready to put your plan in position and begin setting up the shipping process for ecommerce.

1. Back up your shop

If your shop is currently live and you want to make a full backup. In the event of any unexpected issues the backup will help you not be able to recover important data or order information. We recommend Jetpack VaultPress Backup for this.

After your backup is complete After your backup is complete, you should update WordPress and your theme, as well as every plugin to ensure compatibility with any updates to fulfillment and shipping extensions.

2. Change the settings

shipping zone options in

Go to the settings tab and then Shipping in your dashboard. In this section, you can define shipping zones for defining rates according to the location of your customers, and shipping categories to define charges based upon the same products in a group.

Let's take a look at shipping zones. Once you've set them up, you'll be able to define shipping charges based upon the specific areas you deliver to. It is possible to be pretty generic here (like the definition of rates per countries) or more specific (like the definition of rates by zip code). Do not worry about it - regardless of how complicated you get, each individual customer will only see the rates which apply to their particular shipping address.

Click on the shipping zonestab and If you're not set to set an area yet then you'll get a message to do so.

option to add a shipping zone

Click Add shipping zone.

setting shipping zone name

The new window that opens, name the new zone whatever you'd like. Then, select your zones of shipping that are part of this zone. There are many ways to configure zones, so think through what is the best method to do so for your particular business.

A retail store located inside New York City might have areas for three areas: the East Coast, Midwest, and West Coast, with rates rising based on the distance to New York. A bakery could offer free shipping just within their area, and paid rates to any other location.

Pick all of the places you'd like to be included in this zone of shipping. If you'd like to limit the zone based on zip code, click limit to specific zip codes/postcodes. Then, a new window will open that allows you to enter the zip code in a list.

The next step is to establish the rates for shipping that are available for the new zone. Click to click the "Add shipping rates" button. In default, there are three options: flat rate no-cost shipping and local pick-up.

If you select flat rate shipping,you'll have the ability to specify a particular cost for the area (e.g. $9.99 flat rate shipping). The option to change this is based on shipping class, which we'll talk about shortly.

flat rate shipping settings

If you select Free shipping then you are able to specify a minimum order total required in order to receive free shipping. This includes the possibility to combine free shipping with a coupon code, and further.

free shipping settings

In the event that you select local pickup,customers who live inside of the set shipping zone will be able to take their orders to your location.

local pickup settings

Remember, you can add one or more of the items listed above to every zone. Thus, for instance it is possible to offer free shipping above a certain order total and flat rate shipping for everything less than that total.

What about shipping classes? Although they aren't mandatory however they're a fantastic option to determine the price for various types of merchandise. For example, you may sell unframed prints of your work, as well as frames. Not only will these cost different amounts to ship depending on the weight of your items, but frames will require additional packaging material.

Let's take a look at the following example. On your dashboard, you would go to the Settings tab, then Shipping and then select the Shipping Classes tab. Click Add new shipping class on the right-hand corner of the page.

After that, you can add the class's name, name, Slug (URL) along with a description. Finally, click to save the shipping class.

You'll need to assign products to each class that you create. Go to Products and then All Productsand open the that you'd like to change. After that, go to the product data box and select the Shippingtab.

In the dropdown to select the Shipping classes,select the class that most closely matches the item. Save your adjustments. This can be done for each product in that class.

This allows you to get much more precise with your shipping charges. So, for example in the event that you choose to set your flat rate shipping option and you want to specify a different price for framed as opposed to. non-framed prints. You'll see in the screenshot below that there's an option that is specific to"framed" shipping classes "framed" shipping type.

This is it! As you can see, there's a lot you can do with the default settings for shipping.

3. Instability and activation of shipping extensions

To implement table rates live rates or to use a combination with live rates, you'll need an extension. You can also use extensions to add features like warehouse syncing and shipping labels.

Are you working using the 3PL service? There may be an extension available in the marketplace or directly on their site They may also design an integration that is custom-built for you.

4. It should be easy for the customer to understand their order's location

The ecommerce shipping process doesn't stop once you drop the parcel off. In fact, some of the best opportunities for great customer service are after your order is in the mail!

Customers must be able to quickly understand where their order is always at hand and also know what time it will take to arrive. This is especially important if your products often are purchased for gifts.

5. Take into consideration returning the shipment

Though nobody wants to consider returning items however, they can occur. When you are able to exchange or returns It's crucial to put a strategy in place.

Profit and Ship!

It's time to begin shipping! Be sure to adjust your strategy for shipping to your needs and implement adjustments as you gain knowledge about your customers. Eventually, you'll be able to identify the best options that will benefit the relationship with your customers and also for the bottom line.

There are several ways to handle ecommerce shipping. You can do it yourself as a partner, work with a logistics business or even drop-ship products directly from a company. In order to make the right choices it is important to think about, in part, which shipping options are offered for each option and if they're able to handle the needs of your business.

Some ecommerce shipping carriers are restricted on what items they'll send, like the use of special rules for particular kinds of products. In addition, if you wish to ship internationally, it's important choose a shipping partner who is able to reach the regions you'd like to focus on.

It is possible to pass on the cost of shipping to your clients, or take care of all or a portion of the costs you. There's pros as well as cons with each method and you may want to experiment over time. If you decide to opt to charge shipping, you can calculate rates in a variety of ways - from flat rates to tables rates, and even live, real-time pricing that is sourced from the shipping company.

Finally, now matter what you decide to do when setting up your ecommerce shipping strategy It has the right tools to manage everything. Utilize extensions to deliver your products cost-effectively, efficiently, and safely and ensure your satisfied customers remain happy and your store runs efficiently. Want more details? Check out our ecommerce shipping documents.