How to choose the best e-commerce shipping solutions for a new online business
Are you an online seller struggling with slow growth rate? Or maybe you had experienced exponential growth in the past and are now struggling with low sales rate? Either way – maybe it is time you look at the efficiency of your e-commerce shipping solution. Even with an attractive user-friendly website and superior quality products, online sellers often must face unsatisfied customers and negative feedback. This may be a result of poor logistics and delivery service. That is why, for a successful e-commerce business, it is important to ensure a great experience for the entire customer journey. This means from the moment the customers reach the first landing page until they receive the end product in their hand.
Efficiently maintaining a logistics team within the company is time-consuming and will take up a large portion of your resources. That is why it is important to rely on a third-party e-commerce courier service for your e-commerce business. It will save time and money for you and will let you give more attention to your core business. However, handing over the shipping of your business to another company is a major decision that will affect your business. There is a lot to be taken into consideration before you decide on the third-party company. Efficient logistics and supply chain management requires careful planning, cost analysis, and rich experience.
To ensure that your online business succeeds, you have to rely on an e-commerce courier service that provides you with a good balance between your requirements and your budget. That is why it requires in-depth analysis and research to find the right logistics partner for you and your business. To help you out, we have created a checklist for you that includes some questions that you need to ask yourself before making the final call on the logistics service provider for your business.
- Will the proposed logistics company offer multiple in-house services? This can be a huge saving for you.
- Is the proposed e-commerce shipping solution a logistics aggregator or a single courier service? An aggregator is a platform that provides the services of different courier services on a single space. This feature can give you access to different shipping choices and couriers.
- Does the company offer technologically advanced logistics services? In order to handle the increase in the number of orders, you will have to ensure automated label generation and real-time tracking for all your shipments.
- Does the logistics service provider give access to national and local e-commerce courier services? If you plan on running a pan-India e-commerce business, then a courier service with a wider coverage is a must-have.
- Does the proposed logistics company provide automation of logistics processes? Automated logistics management can minimize manual errors and improve the efficiency of deliveries.
- Does the company provide any reputed reference testimonials? A reliable shipping company will be in partnership with leading brands.
- What is the coverage area of the proposed shipping company? A wider number of delivery locations can help you expand your customer base.
- How advanced are the pick-up and delivery service of the proposed e-commerce shipping solution? With some technology-based logistics platforms, it is extremely easy to schedule and manage deliveries and pick-ups.
- What are the e-commerce industry verticals that the company has experience handling? If they have prior experience with your products and your industry type, then it will be an added advantage for your business.
- Does the proposed shipping company provide you COD cycle support? For Indian e-commerce businesses’ cash on delivery payment mode is a necessary option to attract customers. According to studies, cash on delivery is the most preferred payment method accumulating 75% of the e-retail activities.
- How up to date is the proposed e-commerce courier service with the latest technology? It is necessary to have a scalable logistics company that will grow along with your business and help you expand.
- What are the prices offered by the company to do business with them? If they provide minimal upfront cost and discounted shipping rates, then it will be additional savings for you.
These are some generic questions that you should definitely be asking before choosing your logistics partner. Additionally, you should also have questions that are related specifically to your business type and find out whether your e-commerce shipping solution fulfills those specific requirements. In order to do so, you have to first understand your customer base and your business model. This understanding will help you get an idea about the requirements of your consumers.
Logistics is the backbone of any e-commerce business. By investing in a third-party logistics service provider, you are handing over a crucial part of your business to another company. This decision can affect your brand reputation and customer satisfaction. Therefore, in-depth analysis and careful planning are required before investing in any third-party e-commerce courier service.
An efficient and reliable logistics partner comes with a team of qualified professionals who can help you streamline your entire business. With such a third-party service provider for your e-commerce shipping, you can just sit back, relax and let the experts handle your logistics operations. This not only gives you time to focus on your core business but also ensures higher efficiency in your shipping. A company that is solely focussed on logistics can use their knowledge in the field and help you improve the competence of your deliveries and supply chain management.
Most e-commerce companies are now dependent on the services of logistics aggregator platforms as their e-commerce shipping solution. This is primarily because, unlike traditional shipping solutions, a logistics aggregator platform provides the benefits of multiple shipping partners from one single platform. This not only makes the whole process easier but also saves your time and money. Thus, letting you focus more on improving your business. Here are a few other benefits of using a logistics aggregator for your shipping needs:
- In order to train, run and manage a fully functioning logistics team, you will have to spend a lot of time and money. Instead, using the expertise of a company of logistics professionals and multiple e-commerce courier services will greatly reduce your logistics expenditure.
- A logistics aggregator can provide you with better choices to find the most affordable shipping carriers for your individual orders. You can compare delivery time and prices to make sure that you offer the best shopping experience for the customer.
- Maintaining a logistics software for your business is expensive and needs extra resources. With a logistics aggregator platform, you get a comprehensive software that covers every detail that is required to run an online store effectively. Moreover, a reliable e-commerce shipping solution will also constantly update the technology to help you stay ahead always.
- Another major advantage of choosing a logistics aggregator platform is leveraging their rich experience in handling risk management, carrier contracts, and other safety regulations.
We hope that we have given you a brief idea on how to choose the best logistics service provider for your online store. Remember, finding the ideal shipping partner may take time. However, the right partner can make it worthwhile by helping your business grow and prosper.
Snehal Menon is an e-commerce specialist with 5+ years of experience. She writes extensively to share her insights and the latest trends about the latest e-commerce shipping and logistics. Her articles regarding logistics and eCommerce shipping solutions have helped many businesses optimize their costs and get a more streamlined supply chain with higher ROI.