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Shipping and delivery: how to do it the right way

Research shows that 37% of consumers who have a bad shipping experience will never buy from that merchant again. On the positive side, 87% of consumers report that a positive delivery experience makes them more likely to buy from a merchant again.

Wednesday, October 10, 2018

Thanks to the rise of e-commerce and the increase in customer expectations, shipping and delivery have become key factors in the overall satisfaction of the customer. The ability of an e-commerce company to meet customer expectations can be a source to create a competitive advantage.

Executing with an incorrect strategy, or not having a strategy at all, is a recipe for higher costs and lower levels of customer satisfaction. Research shows that 37% of consumers who have a bad shipping experience will never buy from that merchant again. On the positive side, 87% of consumers report that a positive delivery experience makes them more likely to buy from a merchant again.

Here is what you should do to get the e-commerce correctly:

You have to know the limitations. Take Amazon as a model, but you do not have to beat it, just get close enough to provide a good level of service to customers.

Know where you are standing. What services are you using? How much are they costing you? What are the actual service levels that are delivered to your customers by service, mode and key markets?

Know the market and customer base. What is the level of service you need to provide to your customers? You have to make difficult decisions about what will be done and not by the customers. What is the cost / delivery time commitment that will maximize the levels of customer satisfaction? This can vary by product and by market.

Know restrictions on shipping costs. How much can be spent while maintaining margins in an acceptable range?

Ask critical questions about what happens if … Detailed modeling of the “what if” alternatives helps you examine where it is possible best. How much would it cost to accelerate delivery in a key market in a day? Are there markets or products in which you can exchange a slower delivery time for lower costs? Do you need to open a new distribution center to better serve a rapidly growing market? Do you have the right combination of providers and services to achieve cost and service objectives?

Know sources of power with carriers. The volume of shipment, the combination of services and the concentration of the market can provide preferential treatment.

Invest in yourself and in your business. Implementing the correct shipping and fulfillment capabilities may require an initial investment, but you will be rewarded with higher shopping cart conversion rates and more efficient operations.

Do not fall asleep at the wheel. Constantly monitor what is happening in the shipping network so that the course can be corrected as necessary.

And most importantly, focus on your customers’ experience. Providing an ideal shipping and delivery experience will increase customer satisfaction and the return business, as well as help differentiate your company from its competitors.

In DICEX we know that the main focus of the companies must always be the client, since by increasing loyalty and good opinion, word of mouth will also increase the profit margins of the companies, since they will retain current clients and generate new clients according to the purchase / service experience that they have perceived through other people.

 

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