The Beginner’s Guide To E-Commerce Shipping

beginner guide to ecommerce shipping

In 2017, eCommerce generated approximately $2.3 trillion in sales, which experts project to double to $4.5 trillion by 2021. In the United States alone, eCommerce accounts for 10 percent of retail sales, and online purchases are expected to account for 95 percent of all purchases by 2040. With more and more consumers turning to online shopping, the growth of eCommerce is making it easier for prospective entrepreneurs to work as their own boss, set their schedule, and fuel their passion. 

With the help of shipping and fulfillment services and online marketing tools, entrepreneurs can start an eCommerce store with a limited budget and minimal resources. However, if you're not familiar with the world of eCommerce shipping and fulfillment, mapping out a defined shipping strategy can be challenging. With that in mind, here's an overview of everything you need to know to make the best choices for your business. 

Shipping Rates 

Before you can start selling, you'll need to decide your pricing strategy for shipping. Although there are several common pricing strategies, it's important to keep in mind that your choice should depend on the financial needs of your business. 

If you're willing to increase product prices to cover shipping costs, offering free shipping can help reduce shopping cart abandonment. If you're not willing to cut your profit margins to partially cover shipping costs, consider offering a discount code to certain customers for free shipping or offering free shipping on a minimum order amount. Other effective pricing strategies include charging real-time carrier rates and flat rates for shipping. 

Packaging & Marketing 

Fulfilling your orders also requires going above and beyond to impress customers and exceed their expectations. Today, many successful companies deliver packaging to deliver an exceptional experience that goes beyond the product. Consequently, the packaging and presentation of your products can set your business apart from competitors and enhance the overall customer experience. 

For example, Pacha Mama, a company that offers full-spectrum, THC-free broad- spectrum, and CBD isolate for both wholesale and individual sale, uses unique, artistic packaging that showcases the benefits and dosage of each product. Pacha Mama takes responsibility for the wellness of their consumers by conducting rigorous testing at harvest, after extraction, and on the final product. Because of the brand's authentic packaging and quality control procedures, consumers can feel confident knowing that what's going into their body is highly effective and extremely safe. 

When considering your product packaging, keep in mind that shipping couriers base rates off of multiple factors, including package size, weight, origin country, and destination country. When possible, opt for safe, lightweight, small packaging options, like poly mailers, to save on shipping costs. 

Dropshipping Fulfillment 

If you're working with a limited budget, dropshipping can help you automate your shipping processes and reduce the overhead costs of inventory space. In a dropshipping model, the seller doesn't own stock or inventory. Instead, the seller purchases inventory from a third-party supplier, such as a wholesaler or manufacturer, to fulfill orders. 

Because of its accessibility, dropshipping is ideal for aspiring entrepreneurs and first- time business owners. Dropshipping does not typically require product research, development, or manufacturing, which reduces your initial capital investment. Instead, you can quickly test multiple business ideas with limited risk, allowing you to learn more about in-demand products and different markets. 

Finding A Dropshipping Supplier 

If you're not sure how to find a reliable eCommerce drop shipping  supplier, check out Modalyst. Modalyst offers instant access to the best dropshipping suppliers across the United States and Europe, so you'll be able to turn your eCommerce store into a successful dropshipping business with high-quality dropship products. With the help of private label suppliers, you'll be able to include your business's branding on products and packaging. 

Ultimately, understanding your available shipping options and updating your shipping strategy as needed can promote the long-term success and growth of your eCommerce business.

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