ECommerce continues to build on the rapid growth it experienced during the COVID-19 pandemic. The way people shop has changed how we do business forever. And consumer expectations have increased as well. With people expecting packages dropped off at their doorstep often within a day or two, postage shopping becomes a key concern for online retailers. Increasing shipping costs can quickly turn a thriving business upside-down.
Needless to say, postage shopping is a vital part of keeping costs down while keeping customers happy. Choosing the right parcel carrier to partner with isn’t just about time-to-home or cost savings. It’s also about ensuring the package is delivered in good condition. In other words, your parcel carrier plays an important role in providing good customer service.
In addition, the top reason people abandon carts is due to excessive extra costs. For example, they’re happy to pay for their purchase, but once they get to the cart, the shipping, taxes, and additional fees add up to too much. So, they decide to forgo the purchase to perhaps choose a different online retailer, shop in-store, or give up on the item altogether.
Another common reason people abandon carts is that the total cost or delivery time is kept hidden. Not knowing in advance how quickly they will receive a package and the real cost of their purchase can easily prevent customers from completing their transaction.
Key Considerations for Postage Optimization:
There are multiple shipping strategies to give your customers what they need to move forward with their purchase while keeping on top of your profit margins. For example, you can offer free shipping, charge exact shipping costs, or provide a simple flat fee for all shipping of any size order.
Before settling on a shipping strategy and carrier, though, it is important to consider the following: