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You’ve probably already considered selling on Amazon but its way easier than you think.
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We live in a world where customers can order a product online and get it in just a few hours. Customers do not only want low prices and quality products, but they also want them delivered fast.
Shipping time is one of the biggest factors influencing conversion rates. This means that your shipping time can influence the overall success of your ecommerce business.
In this ePlaybooks guide, you will find out how fast shipping can increase conversion rates and how you can implement fast shipping in your action plan to increase sales in retail.
How fast does fast shipping get? At ePlaybooks, we tell business owners that the idea of fast shipping is to get your products into customers’ hands in the shortest possible time.
Many will argue that no single “fast shipping” standard can work for all ecommerce businesses. Some companies boast of 2-day deliveries or next-day deliveries, while other companies boast of express delivery in only a matter of hours. This depends on factors like location. For deliveries within the US, companies may offer same-day or two-day shipping. For deliveries outside the country, companies may offer delivery within one or two business days.
Research reveals that 41% of customers are willing to pay an extra fee for same-day delivery. About 24% say they are willing to pay more to get their order within one to two hours of ordering.
This expectation is not merely a preference. It has become a necessity driven by the convenience that fast shipping provides. Fast shipping caters to the human desire for immediate gratification, encouraging consumers to make purchases quickly without the delay of waiting for their items to arrive. Consumers are willing to pay more for products that promise quicker delivery times, indicating a direct connection between fast shipping and increased conversion rates.
So, what are the benefits of investing in fast shipping for your ecommerce business?
As an ecommerce seller, you want your products to be seen by potential customers. This can only happen when your product appears in search results. With fast shipping, you can climb up search result pages and retain higher rankings.
Most online marketplaces prioritize customer service, and fast shipping is a clear indicator of good customer service. By subscribing to fast shipping, you can attain higher search rankings, have your product seen by more potential customers, and increase your conversion rate.
To build a successful ecommerce business, you need to build a loyal customer base. Fast shipping subconsciously gives customers the impression that buying from you is better than buying from other sellers. With fast shipping, you can get repeat purchases and loyal customers who can spread the word about your business, ultimately increasing sales and revenue. This is why Amazon FBA has over 100 million Prime members.
One of the biggest reasons for cart abandonment is shipping costs and slow shipping. Customers may not make it to the checkout stage if they don't get their order as soon as possible.
Whether you are selling on Amazon, the Walmart marketplace, or any other platform, fast shipping can reduce cart abandonment and ultimately increase conversion rate and sales.
There are millions of ecommerce sellers that customers have to choose from. Having a fast shipping tag like the Amazon Prime tag on your listing gives customers a feeling of trust, making them more willing to buy from you.
Winning the Buy Box means that your product will appear within the product details under the “Add to Cart” button. This means that when customers click on Add to Cart, the sale will go to your product. Sellers who win the Buy Box get over 90% of sales. However, the winner of the Buy Box is not permanent but changes every 15 to 60 minutes.
Fast shipping is one of the factors most online marketplaces consider in choosing the Buy Box winner.
In a bid to stand out and attract customers, many sellers fall into the trap of going into price wars. This eventually ends up being a race to the bottom where nobody wins.
One easy way to stand out and attract customers is to offer incentives like fast and free shipping. By doing this, you can boost positive reviews and win over more customers.
Fast shipping contributes to a positive overall customer experience, which can enhance your brand's reputation. Happy, satisfied customers are more likely to leave positive reviews and testimonials about their experience, including the speed of delivery. These positive reviews can serve as social proof, attracting more customers to your store.
Fast shipping presents your brand as a reliable and customer-focused brand. It shows customers that you prioritize their convenience and satisfaction, which can strengthen your brand's image and trustworthiness among consumers.
Fast shipping comes with multiple benefits, both on the side of the seller and the buyer. But before incorporating fast shipping into your business, it is important to understand what comes with it and prepare to manage the challenges.
Different types of products, like electronics vs. clothing, and sizes like large vs. small, may require different shipping strategies. You want to consider the nature of your products and how they should be packaged and delivered.
Also, you want to ensure you understand what your customers value most in terms of shipping speed and cost. Tailor your shipping offerings to meet their expectations.
Customers prioritize fast and free shipping. However, how do you meet customer expectations while ensuring the shipping costs don't affect your profit? It is important to consider various shipping combinations, including speed and cost. Offer customers different delivery options, including delivery timeframes and delivery carriers.
You also want to consider what fulfillment methods will be the most cost-effective for your business. Should you outsource fulfillment or handle it yourself? Are you overspending, or are there cheaper options? You may consider using a fulfillment calculator to find out how much you're spending and figure out ways to cut down on costs.
It is one thing to offer fast shipping, and it is another thing to deliver on your promise. Most customers will not return to your store if their expectations are not met. Worse still, you may have to deal with some negative reviews in the review section. You want to ensure that you can fulfill your delivery promises. Consider a fulfillment provider with the right expertise to guarantee prompt delivery. Ensure your order processing and fulfillment operations are optimized to support fast shipping. This may involve investing in technology to automate certain processes or reorganizing your warehouse to improve efficiency.
In addition to offering accurate delivery, it is important to plan for increased order volume that comes with selling on multiple marketplaces. You may want to consider increasing staff or warehouse space if you are handling the fulfillment yourself. You may also work with a fulfillment service to automate the process and ensure timely delivery no matter what.
To streamline your shipping process, you want to find carriers that offer API integration with your ecommerce platform or shipping software. This will ensure seamless communication between your ecommerce platform and the shipping carrier, reducing errors and inefficiencies. You can also utilize ecommerce shipping management systems to efficiently process your customer orders. These systems can help you manage orders from multiple channels seamlessly.
Using fast shipping in your ecommerce business is a quick and easy way to increase your brand visibility, attract customers, and drive conversions. Here's how to increase company sales using fast shipping:
In-house fulfillment is a more hands-on option where the sourcing, storing, packaging, and shipping of products are done by the seller.
With in-house fulfillment, you stay in control and on top of everything, including receiving and storing inventory, monitoring inventory, picking and packing customer orders, and shipping products to customers. You will need to consider your capacity and scale.
This method can be effective if you have an efficient fulfillment network that can handle the process of order fulfillment effectively.
On the flip side, it can get increasingly difficult to manage if you are selling during peak periods or on multiple channels. However, you can work with a reliable partner like ePlaybooks to handle all your logistics needs.
There are various programs available on different online marketplaces.
For example, on Amazon, you can utilize Fulfillment by Amazon, a fulfillment service that gives you access to the Amazon Prime program. If you sell with Fulfillment by Amazon, you qualify to sell to millions of Amazon Prime members and offer free two-day shipping to customers.
If you are selling on Walmart, you can partner with Deliverr, Walmart's third-party fulfillment partner, and get access to Walmart's fast two-day shipping.
As an Amazon seller, the Prime program qualifies you to sell to millions of Prime members. This will help you double up sales and grow revenue with Amazon, as customers won't miss out on the chance to get free and fast shipping. The easiest way to qualify for Amazon Prime is through Fulfillment by Amazon. With the FBA service, your products are automatically qualified for Prime.
As a seller, this comes with multiple benefits. For one, you get a Prime badge on your listing to tell customers that your product is up for free and fast shipping.
Secondly, since Amazon is focused on customer satisfaction, your product will rank higher in search results.
Lastly, you have a higher chance of winning the Buy Box and increasing sales on Amazon.
The Walmart Marketplace offers customers free two-day shipping using a third-party fulfillment service, Deliverr. Walmart sellers get a fast shipping tag, a higher ranking in search results, and eligibility to win the buy box.
With eBay Guaranteed Delivery, customers can filter products and receive them within the space of one, two, or three days. For eBay sellers, they get fast shipping tags and higher placement on search results.
As an ecommerce business owner, you want to maintain the right balance between fast shipping and profitability.
To ensure your profit is not affected by your investment in fast shipping, you want to evaluate the costs of offering fast shipping against the potential benefits, such as increased customer satisfaction and loyalty. This analysis will help you find the optimal level of investment you should make in fast shipping. Also, you want to assess your average order volume and understand how many orders you're processing regularly to gauge the scale at which you operate and your shipping needs.
You want to focus on customers who bring the highest lifetime value to your business. Prioritizing fast shipping for these customers can be more profitable in the long run, as they are more likely to make repeat purchases. Experiment with different shipping strategies to improve customer loyalty and drive more sales.
Lastly, shipping costs and customer expectations evolve. You want to regularly review your shipping strategies and adjust them as necessary to maintain the right balance between fast shipping and profitability.
Shipping delays are quite a common experience in ecommerce. However, how you handle shipping delays can impact your business in more ways than you know. Here are a few simple ways to handle shipping delays and get back to offering fast and reliable shipping:
Once there is a delay in shipping, you want to inform customers as quickly as possible through SMS, email, or whatever their preferred mode of communication is. Provide real-time updates on order status to avoid any confusion.
Apologize for the inconvenience and explain the situation clearly. Customers appreciate honesty and understanding, which can help maintain their trust in your brand.
Depending on the severity and impact of the day on the customer, consider offering compensation such as discounts on future purchases or expedited shipping for their next order.
If the delay affects a specific product, you can offer alternative products that meet the customer's needs or interests. This can help maintain customer satisfaction despite the delay.
Choose shipping partners that are both reliable and efficient. During peak seasons or unforeseen circumstances, having a backup plan can help minimize delays.
Work closely with your shipping partners to agree on terms that allow for flexibility in case of delays. This can include options for rerouting your shipments or expediting deliveries.
After resolving the delay, you want to analyze the reason for the delay to understand what went wrong and how it could be prevented in the future. This can help improve your shipping processes for improved customer satisfaction.
Customers expect high-quality products delivered quickly. Prioritizing fast shipping offers numerous advantages, from higher conversion rates to improved customer loyalty and a competitive edge in the marketplace. To meet these expectations, it’s essential to look at your shipping options and choose the solution that best aligns with your ecommerce goals.
Are you ready to level up your logistics? Partner with ePlaybooks to streamline your order fulfillment and enhance your customer experience.
Your conversion rate is the percentage of visitors who complete a desired action (like making a purchase). To increase this, you want to:
Faster shipping costs more because it requires more resources including expensive logistics networks, increasing labor and operational costs, air transport for speed, and fewer packages which can increase the cost per item.
To get higher conversion rate, use clear, high-quality product images and descriptions, simplify your checkout process, offer fast and affordable shipping, make your site mobile-friendly and use reviews, secure payment badges, and clear return policies to increase customer trust.
Fast shipping is very important in ecommerce because:
It gives a competitive edge: With fast shipping sellers can stand out especially with major platforms like Amazon.
You’ve probably already considered selling on Amazon but its way easier than you think.
Call Us Now