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Social media, content, ppc, referral marketing, email campaigns - these are all eCommerce marketing tactics you may be focusing on to increase traffic to your site and convert more customers. But have you considered how your shipping policy and the delivery options you offer can also be a marketing tool?
As boring as shipping sounds, it’s actually important that you have a variety of solutions in place in order to provide flexibility to your customers and leave a lasting, positive impression of your business.
In fact, eFulfillment Service reports that 28% of consumers believe sellers can improve the checkout experience by offering multiple shipping options.
In this post, we’ll talk about the benefits of working with multiple couriers, what you should be communicating to your customers about international shipping, and how to use the most popular shipping promotion responsibly. Here's how to use shipping policy and delivery options as part of your marketing mix:
Online retailers have fewer opportunities than brick and mortar stores to provide personal customer service. Since there isn’t a chance to greet every customer or ask if they need assistance, you can use delivery as one way to demonstrate customer service offline.
Flexibility and options make for a better customer service experience
One way to do this is by taking a customer-focused approach to shipping, rather than a seller-focused approach. By offering a variety of shipping solutions, you can exceed customer expectations to deliver real value and encourage customer loyalty.
Here’s why multiple shipping solutions are appealing to customers:
According to ECN, 55% of eCommerce customers declare they won’t reorder from a website that had troubles with their parcel delivery, so it’s worth exploring solutions that provide the best value for customers in service versus cost.
When deciding which couriers you should work with, consider the following:
Now, you may be thinking that the above makes sense, but is easier said than done. As a busy eCommerce seller, you don’t have the time to research multiple couriers and negotiate rates.
One way to get around this is to work with a logistics reseller. These companies can provide you access to their accounts at multiple couriers with rates already discounted.
For example, at Easyship, we understand the importance of offering options, which is why we offer 250+ shipping solutions on our platform.
If you’re new to shipping internationally, note that duties and taxes may apply to your shipment depending on what the item is and it’s value.
You can determine if your business will be affected by researching what the duty and tax rates are for the main destinations you plan on shipping to.
If duties and taxes apply, you’ll have to decide who will pay for them. If you are not willing to cover these additional costs, it’s best to tell your customers upfront that they will be responsible for handling payment.
Explicitly stating the policy can also reduce customer service queries
There are two ways to handle payment:
Choosing between DDP and DDU can definitely impact the delivery experience of your customer.
By working with a courier that offers a DDP service, you can collect the tax payment from the customer directly at your checkout. This results in a smoother delivery process, as the courier will handle the payment with customs on your behalf and the customer will not have to be contacted.
By choosing DDU, the customer’s delivery will be delayed as customs will not release the parcel until the tax payment has been received. In many instances, customers are unaware of this extra step, causing them to be surprised when they receive a call from customs asking for additional payment.
There is also additional risk, as some customs brokers charge additional fees for each day the parcel stays in customs. It’s impossible to estimate what the total cost will be, which is why it is advisable to use a solution with DDP services to limit costs.
According RJ Metrics, “60% of ecommerce companies cite ‘free shipping with conditions’ as their most successful marketing tool.”
And thanks to disruptors like Amazon, it’s gotten to the point where customers now expect this offering from every retailer.
Free shipping is hard to beat, but Amazon has weaknesses you can compete with
There are a lot of alluring statistics that claim free shipping will help increase sales. However, for many small and medium businesses, it’s simply not possible to pay for every customer’s shipping costs without it negatively impacting margins.
In our view, free shipping is good – but in moderation. Here are some tips on how to make it work for SMB’s:
As delivery will be one of the last touch points your customer will have of your business, it’s important that it leaves a good impression!
Ensure your shipping is helping your business by:
Michelle Mondonedo is a content marketer at Easyship, the all-in-one shipping tool that helps eCommerce sellers ship worldwide in minutes.
Raúl Galera is the Growth Lead at ReferralCandy, where they’ve helped 30,000+ eCommerce brands drive sales through referrals and word-of-mouth marketing. Over the past 8+ years, Raúl has worked hands-on with DTC merchants of all sizes (from scrappy Shopify startups to household names) helping them turn happy customers into revenue-driving advocates. Raúl’s been featured on dozens of top eCommerce podcasts, contributed to leading industry publications, and regularly speaks about customer acquisition, retention, and brand growth at industry events.
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