How to Improve Speed of Delivery and While Saving Money
Success with online sales is all about faster service. It comes down to how fast you can get that product out to your customer. According to Australia Post, next-day deliveries has grown by 31.7%. This increases the week before Christmas when Australia’s peak week for express shipping, accounting for nearly 32% of all deliveries compared to an average of 19% across all other weeks. Ecommerce sellers are now faced with the dilemma of offering quicker fulfillment while trying to keep costs under control.
Speed of Service as a Competitive Marketing Tool
Speed is the competitive edge potentially helps retailers stand out and convert more sales. As an ecommerce seller you need to come to terms that consumers in Australia, and around the globe, consumers want their products the next, if not the same, day. You might be wondering how you will be able to keep up with next day delivery costs. You can use some creative marketing strategies, as most successful online sellers do. Here are some suggestions on how to offer expedited shipping:
- With a minimum price point purchase (for example, min. $40 purchase for free or reduced, next-day shipping).
- On specific products such as new products or overstock you want to get rid of.
- During slower sales seasons as almost any sale is better than no sale!
How a Third-Party Fulfillment Center Can Help
A third-party fulfillment provider can help in various ways. Third-party (3PL) order fulfillment services can warehouse products, pick and pack items as orders come in, and ship a merchant’s products to the customer on that merchant’s behalf. While these services are not free, can help an ecommerce business grow and save money. Here’s how:
- Using a fulfillment service can lower shipping costs with faster delivery times. This leads to improved operating efficiency which can help an ecommerce business grow.
- It costs much less to ship orders to your customers that are close to the 3PL. And equally important, it also takes less time for shipments to arrive to your customer when that location is nearby.
Consider for a moment that your current warehouse is in Sydney, but many of your customers are in Perth. You need to offer free shipping to remain competitive. But it costs you about $10 to ship a typical order to Perth, where many of your orders originate.
The solution might be to work with a fulfillment company that has a warehouse in Perth. When an order comes in from Perth, your fulfillment service can ship it for, say, $6. What’s more, the orders will arrive sooner. It might take five days for a ground shipment, but from your fulfillment partner’s facility, a ground shipment can be there within the next day, two days tops.
This may appear obvious to many ecommerce sellers, but surprisingly they are overlooked by some. It is of the most important benefits of using a third-party order fulfillment firm to warehouse products and ship orders.
In conclusion, in order to be competitive you need to deliver based on your customer’s demands. But that does not mean that you have to go bankrupt. By applying a few creative techniques, such as minimum purchase for free delivery, you can make more on many orders. You can also partner up with a 3PL. They can help you save money and offer other fulfillment suggestions and services to help you save money and continue to grow your ecommerce business. And these options can definitely offset some of the extra expense of fast delivery.