The Internet has marked a great boom in the rise of online retailing. The success of flagship stores, such as Amazon and eBay, is a notable example of this trend, although numerous other online shops have found success by utilizing the convenience of clicking on an item and having it arrive a few days later.
However, in response to this, several physical retailers have upped their strategies to get shoppers to go to (and stay in) stores. These include extended operating hours both in the morning and in the evening, intensive sales on all sorts of products, and personal service by knowledgeable clerks. This resulted in an overall more enjoyable and productive shopping experience for customers. Other established retailers, such as Wal-Mart, Best Buy, and Target, also have online counterparts that match most, if not all, of the guarantees that one would enjoy if shopping at their physical stores.
With all of this competition by traditional retailers, it's easy to see why shipping is facing several challenges in 2013. This article will highlight different ways to stand out as a premier shipping service.
Modern customers expect shipping to be both fast and free. Online retailers can work out deals with postal or logistics services to see how free shipping can be provided. Luckily, the Holy Grail of shipping times-same-day or overnight is still considered a luxury and a privilege.
Two or three day turnover remains the ideal free shipping target. An effective way to help lessen the costs associated with free shipping is by providing it only when the customer exceeds a minimum order, much like Amazon's free shipping options for orders above USD 20.
A lack of choice has been found to be limiting to sales, and the same philosophy applies to shipping as well. If the priority shipping costs are too high, and the free shipping option is too slow, then that can result in a missed sale. If a middle ground is included, but with the same logistics service provider, customers may still shy away because of their opinion of the service. They may have had unfortunate experiences with, say, FedEx or UPS in the past. Have tiers of shipping times with different companies, and customers are more likely to follow through with their purchases.
The perceived unreliability of shipping is part of the barrier to entry for many customers who are considering online shopping for the first time. To alleviate this concern, an active tracking system for shipments should be made available to customers. If a partnership with logistics services and couriers has been established, then customers can be redirected to the couriers' websites, which provide ways to follow the package as it moves between distribution centers.
It's always possible that a customer will not be fully pleased with a product. Convenience is the main reason that people use online shopping, and if this tenet does not extend to all aspects of the transaction, then buyers will be dissatisfied. This concern can be addressed by providing an exchange policy, which can help the company's reputation.
In addition to providing an online tracking service, providing SMS and email notifications about the status of the delivery is a great way to promote the value of the shipping service. Often, customers are out of the house, unable to receive the package. Giving them a heads-up that the package will arrive shortly will limit delays in delivery. However, the notification option should be an opt-in one customers are rarely appreciative of spam, especially on their mobile phones.
These tips are among those followed by some of the world's top online retailers. Emulating the practices used by the best of the best will allow smaller business owners to remain competitive as the online shopping world continues to improve its services for customers. In addition to remaining profitable, a good customer experience is the ultimate goal, and satisfying the needs of the customers should be at the forefront of any business.
However, in response to this, several physical retailers have upped their strategies to get shoppers to go to (and stay in) stores. These include extended operating hours both in the morning and in the evening, intensive sales on all sorts of products, and personal service by knowledgeable clerks. This resulted in an overall more enjoyable and productive shopping experience for customers. Other established retailers, such as Wal-Mart, Best Buy, and Target, also have online counterparts that match most, if not all, of the guarantees that one would enjoy if shopping at their physical stores.
With all of this competition by traditional retailers, it's easy to see why shipping is facing several challenges in 2013. This article will highlight different ways to stand out as a premier shipping service.
- 1. Online shoppers love fast and free shipping.
Modern customers expect shipping to be both fast and free. Online retailers can work out deals with postal or logistics services to see how free shipping can be provided. Luckily, the Holy Grail of shipping times-same-day or overnight is still considered a luxury and a privilege.
Two or three day turnover remains the ideal free shipping target. An effective way to help lessen the costs associated with free shipping is by providing it only when the customer exceeds a minimum order, much like Amazon's free shipping options for orders above USD 20.
- 2. Online shoppers prefer various shipping options via different providers.
A lack of choice has been found to be limiting to sales, and the same philosophy applies to shipping as well. If the priority shipping costs are too high, and the free shipping option is too slow, then that can result in a missed sale. If a middle ground is included, but with the same logistics service provider, customers may still shy away because of their opinion of the service. They may have had unfortunate experiences with, say, FedEx or UPS in the past. Have tiers of shipping times with different companies, and customers are more likely to follow through with their purchases.
- 3. Online shoppers appreciate a chance to track their shipping.
The perceived unreliability of shipping is part of the barrier to entry for many customers who are considering online shopping for the first time. To alleviate this concern, an active tracking system for shipments should be made available to customers. If a partnership with logistics services and couriers has been established, then customers can be redirected to the couriers' websites, which provide ways to follow the package as it moves between distribution centers.
- 4. Online shoppers go for retailers that allow convenient returns.
It's always possible that a customer will not be fully pleased with a product. Convenience is the main reason that people use online shopping, and if this tenet does not extend to all aspects of the transaction, then buyers will be dissatisfied. This concern can be addressed by providing an exchange policy, which can help the company's reputation.
- 5. Online shoppers like being told when their package has arrived.
In addition to providing an online tracking service, providing SMS and email notifications about the status of the delivery is a great way to promote the value of the shipping service. Often, customers are out of the house, unable to receive the package. Giving them a heads-up that the package will arrive shortly will limit delays in delivery. However, the notification option should be an opt-in one customers are rarely appreciative of spam, especially on their mobile phones.
These tips are among those followed by some of the world's top online retailers. Emulating the practices used by the best of the best will allow smaller business owners to remain competitive as the online shopping world continues to improve its services for customers. In addition to remaining profitable, a good customer experience is the ultimate goal, and satisfying the needs of the customers should be at the forefront of any business.