Choosing the right tools is crucial when running an e-commerce business; your shipping management solution is no exception.
With the variety of shipping management platforms available, finding the one that perfectly fits your business needs might feel like looking for a needle in a haystack.
But don’t fret! We’re here to demystify this process. In this blog post, we’ll walk you through a step-by-step guide to selecting the most suitable shipping management solution for your e-commerce business.
Whether you’re a small business owner or manage a large online store, we’ll help you understand what to consider, what to avoid, and how to make an informed decision.
Get ready to supercharge your e-commerce operations and elevate customer satisfaction!
Table of Contents
What is Shipping Management?
In e-commerce, shipping management organises and coordinates goods’ transportation to customers. This includes the planning, execution, and monitoring of all shipping activities to ensure that goods are delivered on time and in good condition.
Key Components of Shipping Management
1. Carrier Selection
Choosing the right carrier for your shipments is essential to shipping management. Factors to consider when selecting a carrier include shipping rates, delivery times, reliability, and the availability of tracking and insurance options. E-commerce businesses often work with multiple carriers to ensure they can offer the best shipping options to their customers.
2. Shipping Rate Calculation
Shipping rates vary based on package weight, dimensions, destination, and delivery speed. Shipping management involves calculating accurate shipping rates for each order and selecting the most cost-effective option that meets the customer’s delivery expectations.
3. Order Fulfillment
Order fulfilment includes picking, packing, and preparing orders for shipment. Efficient order fulfilment is crucial for the timely and accurate delivery of goods to customers. Shipping management involves coordinating with warehouses or fulfilment centres to ensure that orders are processed and shipped promptly.
4. Shipment Tracking
Providing customers with accurate and timely tracking information is essential to shipping management. This helps customers stay informed about the status of their orders and builds trust in your brand. Shipping management systems often integrate with carrier tracking systems to provide real-time updates on shipment status.
5. Returns Management
Handling returns is an inevitable part of e-commerce shipping management. A well-organized returns process can minimize the impact of returns on your business and improve customer satisfaction. Shipping management involves creating clear return policies, providing customers with return labels, and processing refunds or exchanges efficiently.
6. Shipping Analytics and Reporting
Monitoring shipping performance and analyzing data can help e-commerce businesses identify areas for improvement and optimize their shipping processes.
Shipping management includes tracking key performance indicators (KPIs) such as shipping costs, delivery times, and carrier performance to make data-driven decisions and reduce shipping-related expenses.
e.g. the table on delivery times is given below:
| Month | Total Shipments | On-Time Deliveries | On-Time Delivery Rate (%) |
|---|---|---|---|
| Jan’23 | 100 | 95 | 95 |
| Feb’23 | 120 | 110 | 91.7 |
| Mar’23 | 90 | 84 | 93.3 |
| Apr’23 | 130 | 120 | 92.3 |
| May’23 | 110 | 105 | 95.5 |
By monitoring on-time delivery performance, businesses can identify areas for improvement. For example, suppose there is a consistent decline in the on-time delivery rate. In that case, it may indicate the need to optimize processes, enhance logistics, or address specific carrier or route issues.
| Shipping Management Aspect | Description |
|---|---|
| Carrier Selection | Choosing the right carrier based on factors like cost, reliability, and speed. |
| Shipping Rate Calculation | Determining accurate shipping rates based on package weight, dimensions, and destination. |
| Order Fulfillment | Picking, packing, and preparing orders for shipment. |
| Shipment Tracking | Providing customers with accurate and timely tracking information. |
| Returns Management | Handling returns efficiently and minimizing their impact on the business. |
| Shipping Analytics and Reporting | Monitoring shipping performance and analyzing data to optimize shipping processes. |
Why Is It Important for E-commerce Businesses?
E-commerce businesses rely on shipping management to get their products to customers. Shipping management is the process of organizing and tracking shipments. It includes planning the route, booking transport, and ensuring the products arrive safely and on time.
Shipping management is important for e-commerce businesses because it helps them save time and money. By planning shipments, businesses can avoid delays and unexpected costs.
Shipping management also allows businesses to track their shipments and monitor their inventory. This information can be used to improve customer service and make sure that products are always in stock.
Factors To Consider When Developing a Shipping Strategy
Several factors must be considered when developing a shipping strategy for an e-commerce business to ensure efficient and cost-effective shipping. Some of the key factors to consider include:
- The type of products being shipped (i.e. size, weight, fragility)
- The number of products being shipped -The frequency of shipments
- The destination(s) of the shipments
- The shipping method (i.e. ground, air, ocean)
These factors will play a role in determining the most suitable shipping option for your business. For example, ground shipping may not be practical or cost-effective if you ship large or heavy items. Similarly, if you are shipping internationally, ocean freight may be the best option in terms of cost, but it will take longer for the shipment to reach its destination.
Order fulfilment, warehousing, and logistics are all integral parts of shipping management for an e-commerce business. Shipments can get backed up without a well-oiled system, and customers can become frustrated.
An efficient order fulfilment process is key to keeping customers happy. This process includes receiving orders from customers, picking and packing the products, and shipping them out promptly.
Warehousing plays a role in order fulfilment by providing a space to store products until they are ready to be shipped. Logistics is important for getting products to customers quickly and efficiently.
A good shipping management system will consider all these factors to ensure that orders are fulfilled quickly and correctly. By streamlining the process, businesses can keep their customers happy and avoid delays or disruptions in service.
What are the steps involved in shipping management?
Assuming you are shipping products to customers:
The first step is to receive the products from your supplier. Once you have received the product, you must inspect it to ensure it meets your standards. If it does, then you can proceed to package the product.
You must choose an appropriate shipping method based on the product, destination, and time frame. You will need to generate a shipping label after selecting a shipping method.
The label should include the recipient’s address and your return address. You will also need to calculate the shipping cost and add it to the total cost of the order.
Once the label is generated, you can attach it to the package and drop it off at the post office or other shipping location.
What are the best software options for managing to ship?
E-commerce businesses have a few different software options for shipping management. Some popular software programs include Shipstation, Endicia, and ShippingEasy.
Each software program offers different features, so evaluating your business needs is important before choosing one. For example, if you sell primarily on Amazon, then you might want to choose software that integrates with Amazon’s shipping system.
Shipstation is popular for e-commerce businesses because it offers robust features and integrations with major marketplaces and carriers. Endicia is another option that offers similar features. ShippingEasy is a good choice for small businesses because it’s affordable and easy to use.
| Shipping Management Software | Key Features | Website Link |
|---|---|---|
| ShipStation: Comprehensive shipping solution for businesses of all sizes | – E-commerce platform and marketplace integrations – Carrier integrations – Automation rules – Batch shipping – Custom branding – Mobile app – Reporting and analytics | Visit ShipStation |
| Shippo: Developer-friendly API and easy-to-use interface | – Multi-carrier shipping – API integration – Shipping label generation – Shipping rate comparison – Address validation – Tracking and notifications | Visit Shippo |
| ShippingEasy: Integrated customer marketing tools | – E-commerce platform integrations – Carrier integrations – Shipping automation – Inventory management – Customer marketing tools – Reporting and analytics | Visit ShippingEasy |
| Ordoro: Strong focus on inventory and dropshipping management | – E-commerce platform integrations – Multi-carrier shipping – Shipping label generation – Inventory management – Dropshipping management – Reporting and analytics | Visit Ordoro |
| ShipBob: End-to-end order fulfillment service | – Order fulfillment service – E-commerce platform integrations – Inventory management – Distributed inventory – Returns management – Reporting and analytics | Visit ShipBob |
| Endicia: Specialized in USPS shipping services | – USPS shipping label generation – Postage rate discounts – Address validation – International shipping support – Stealth postage – Batch label processing | Visit Endicia |
After implementing shipping management software, businesses can save time, reduce errors, and improve their shipping efficiency.
Which carriers should you use for your e-commerce business?
There are a lot of different shipping carriers available to e-commerce businesses, and it can be tough to decide which one to use. Here are a few things to consider when choosing a shipping carrier for your business:
- How fast do you need your products to be delivered?
- What kind of products are you shipping? (e.g. fragile, large, heavy, etc.).
- How much are you willing to spend on shipping?
Based on these factors, here are a few recommended shipping carriers for e-commerce businesses:
- For fast delivery times, try UPS or FedEx.
- For less expensive shipping rates, try USPS.
- For larger or heavier items, try UPS or FedEx.
How can you improve your shipping process?
There are a few key things you can do to improve your shipping process:
Look at your current shipping process and see where there may be improvement. Are there any bottlenecks or areas that are taking longer than they should? Identifying these areas will be the first step in improving your shipping process.
Streamline your packing and shipping process as much as possible. This may mean investing in new packaging materials or equipment, but it will be worth it in the long run.
Finally, ensure you use your business’s most efficient shipping methods. This may mean using multiple carriers or different shipping methods for different products. Researching and finding the best shipping options for your business can make a big difference in your bottom line.
These resources can help e-commerce businesses better understand and optimize their shipping management processes.
Conclusion
An e-commerce business cannot survive without shipping management. By definition, shipping management is organizing the storage and transportation of goods. This process is critical for businesses that sell and ship physical products.
Shipping management has many aspects, including order fulfilment, warehousing, and logistics. Each aspect must be carefully managed to ensure products are shipped correctly and on time.
Ecommerce businesses must also consider the cost of shipping when making decisions about shipping management. Shipping costs can eat into profits if they are not managed carefully. For this reason, businesses need to optimize their shipping processes to minimize costs.
Shipping management is a complex but essential part of an e-commerce business. Without proper shipping management, businesses struggle to fulfil orders and may even lose customers.
