As a business owner who ships products to customers, you know firsthand how complex and challenging it can be to get your item from point A to point B. From unexpected costs and oversized fees to insurance claims, lost packages, and more, the potential for trouble is high.
That’s why a clear, well-designed shipping strategy is key. It can help reduce costs, improve customer satisfaction, increase efficiency, and even boost profitability.
Online stores that offer convenient shipping options can help reduce cart abandonment and increase profits. Simplify shipping tasks and implement these proven tips to create a strategy that works best for your operation.
The customer experience doesn’t stop once you process an order and ship the product. The post-purchase phase can be just as critical in your quest to create loyal shoppers. Think of it as a great opportunity to drum up excitement and create lasting relationships.
Keeping customers up-to-date on their order’s progress is a simple way to show you’re engaged in their purchase. You can do this by using a shipping service that provides online tracking. Keep in mind that standard shipping receipts only show that an item was shipped, while online tracking services indicate where an item is every step of the way, including upon delivery.
You can use PayPal for shipping and tracking your products. Remember:
Learn more about PayPal’s shipping carriers.
Shipping insurance can deliver significant benefits to businesses. Not only does it include tracking and delivery information, so the customer can see the order is en route and delivered, but it also insures the item in the event it is lost, stolen, or damaged.
Some of the biggest shipping insurance benefits include:
There are various shipping insurance types, so you’ll want to pick the one that works best for your business and its products. Other factors to consider include the risk involved in shipping the item as well as the item’s value.
Here’s a rundown of common shipping insurance options:
Drop shipping can be a great way for businesses to expand their product offerings and reach new customers without investing in inventory or handling shipping themselves. Reason being is the seller (like you) does not keep goods in stock when drop shipping. Instead, they transfer orders and shipment details to either the manufacturer, another retailer, or a wholesaler, who then ships the goods directly to the customer.
However, you’re still responsible for delivering what the customer orders, so it’s critical to choose a reputable drop shipper to help avoid losses. Be wary of drop-shipping companies located in high-risk countries. If you’re a drop shipper, have a vetting process in place for all suppliers. This should include inventory management and product guarantees (to ensure that items are in stock and you’re delivering high-quality merchandise).
Popular drop shipping suppliers include:
As its name suggests, a stockout — also known as a stock shortage — occurs when a product is not available for sale because it’s out of stock. This can happen when a business is unable to meet the demand for a product due to a lack of inventory or supply chain shortages.
Stockouts can happen for several reasons, including:
With any stockout, there are hidden costs associated with an item running out of inventory, such as:
To prevent stockouts, businesses can use forecasting, inventory management, and sales data to predict demand and plan accordingly. Furthermore, businesses can review their supply chain to minimize lead time and reduce production delays.
Learn more about shipping with PayPal and get helpful tips for creating a shipping strategy.
In partnership with three expert business owners, the PayPal Bootcamp includes practical checklists and a short video loaded with tips to help take your business to the next level.