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Shipping Optimization Tips for Online Stores

Optimization is all about getting more done quicker while investing fewer resources. In the context of an online store, money and packaging materials both count as resources, but so does the time of the employees. After all, the longer a worker has to spend on shipping products, the less time they can spend on marketing and customer support. This becomes an even bigger issue when an online store is run by a single person or a very small staff.

With that in mind, here are some tips to help online store managers optimize the shipping process of their operation.

1 - Compare prices

Constantly looking for better deals on courier services can be a hassle, but it can help online stores save a lot of money on shipping. These savings don’t just have to lead to bigger profit margins — savings can also be passed onto the consumer, which can have an impact on customer satisfaction.

There are plenty of platforms that allow businesses and individuals to compare courier quotes in a given country or region. Becoming familiar with these tools and checking competing prices once a month it’s all it takes for an online store to always be paying one of the best rates available. Comparing prices also gives you the leverage needed to contact your current provider and see if you can get them to price match an offer you found online, which will provide the benefit of lower costs without the hassle of switching providers.

2 - Shop for perks

Price isn’t the only thing to keep in mind when looking for a courier provider. Perks such as package pickup and API integrations for package tracking software can all help make the shipping process less labor-intensive on your end, and more user-friendly for your buyer. Keep an eye out for perks that are worth paying extra for.

3 - Limit your inventory

Warehouse management software has a variety of functions. One of them is to help you analyze consumer behavior to figure out how much of each item you should stock up. Stocking more items means more money spent on storage space, which can quickly become a major source of overheads, so professional warehouse management solutions are often worth their asking price. They help businesses save more money than what they cost.

4 - Mind what you sell

Some items are more trouble than they are worth. Businesses are often hesitant to stop selling underperforming items, given that demand for that item may suddenly increase. However, if a given underperforming item also happens to be bulky and hard to pack, it might legitimately not be worth selling. Not when you factor the time wasted dealing with the package and employee frustration, on top of the low demand for the product.

5 - Third-party insurance

Courier companies often offer their package insurance, and these are almost always not the best option in the market. A courier’s in-house package insurance service will often be more expensive than third-party options, and they may be slower to act on claims as well, given that a courier company has a lot on their plates on top of providing insurance. Working with a third-party company that specializes in this type of insurance will almost always be cheaper and more efficient.

 

 

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Amita Choudhary

Amita Choudhary

Marketing Manager

Princeton Growth Accelerator

Member since

07 Jun 2020

Location

Princeton

Blog posts

54

This post is from a series of posts in the group:

Financial Inclusion

The financial services industry has much to contribute to the UN and World Bank goal of full financial inclusion by 2020. This group will focus on industry contributions, ideas, barriers and enablers.


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