E-Commerce Shipping Best Practices for Retailers & CPG Companies

E-Commerce Shipping Best Practices for Retailers & CPG Companies

e-commerce shipping

The world of e-commerce shipping and parcel delivery fulfillment is vast and complex. It becomes easy to get lost in all the options and information for retailers and consumer packaged goods (CPG) manufacturers. However, some critical best practices can make the entire process easier and more successful from start to finish.

Recognize the Importance of Route Optimization to Lower Total E-Commerce Shipping Costs

Optimizing the routes traveled during shipping remains one of the most important facets of any shipping plan. Finding the fastest and safest way means shorter delivery times for consumers. It also allows for more straightforward predictions for delivery times and helps reduce fuel and resource waste by optimizing routes and travel time for every truck in the fleet. E-commerce shipping and supply chain data integration have become the norm, and shippers must embrace the new trends and options for optimization and tracking.

Know When to Offer Tiered Vs. Flat Shipping Rates

While most customers have come to expect free shipping to be an included option, the truth remains that shipping is never free. The cost of e-commerce shipping can be high and requires careful consideration of what shipping options, pricing, and availability will work best. Whether flat rates, shipping rates based on size or weight, reduced prices for loyal customers, or some other combination of shippers and parcel carrier services, knowing what shipping rate to offer is vital for continued growth and success. 

Remember the Costs of Accessorials and How to Avoid Them

Shippers must continually monitor profit margins to be successful with e-commerce shipping. As stated by Forbes, because shipping takes up a large percentage of the budget for e-commerce merchants, accessorials can quickly add up and eat into profits. Everything from packaging materials and products, fuel costs, driver salaries, fees, duty charges, and any other accessorial costs associated with shipments must be carefully recorded, calculated, and considered. 

Consider Your Packaging and Its Possible Impact on DIM Pricing

Many e-commerce entrepreneurs are caught off guard by the cost of shipping packages of unusual size, dimension or weight. Understanding how packaging can impact dimensional-based pricing (DIM pricing) is vital. It is important to carefully consider all expenses when determining shipping rates and fees. While a difference of a few pennies might not seem like much, with the sheer volume of most e-commerce shipping, those pennies can quickly add up and result in significant savings.

Ensure Labels Are Accurate, Using Automated Anomaly Detection to Correct Problems Before Shipping

In a world of digital devices and automated processes, it becomes more vital than ever to take advantage of the available tools. Using automated analysis processes can help reduce labeling errors and issues. Catching mistakes before executing an order reduces delays and ensures timely delivery to a satisfied customer. Automatic anomaly detection can do wonders for improving e-commerce shipping success rates throughout the network, correcting issues as they occur, and helping to reduce mismatching within labeling and routing.

Remember to Audit E-Commerce Shipping Invoices to Ensure Billed Rates Are Accurate

While the e-commerce business model is all about automation, streamlined processes, and convenience, mistakes can and do occur. Routine auditing can help catch issues and deviations before they cause significant problems. Invoice auditing of shipping rates is a critical step to ensuring the correct shipping charges are applied and avoiding profit losses due to poor billing and audit practices.

Assemble the Right Team, Working With an Embedded Account Manager When Necessary

Successful shipping and logistics management within the modern e-commerce business relies heavily on the quality of the transportation network that supports the shipments. Partnering with third-party service providers, including dedicated account managers and other support teams, is critical for success. Their focused and tailored service provides the quality and assurance that e-commerce shippers and consumers both want and need. 

Put These Best Practices to Work by Partnering With the Right Shipment Invoicing Partner

E-commerce shipping is a vital part of any business that has an internet and digital component. This is the part of the shipping strategy that can have the most significant impact on customer experience and brand recognition. It is critical to map out a defined shipping strategy for any e-commerce business. So, find the right shipping partner and embrace these best practices today to help grow a business and maximize profits. Connect with Intelligent Audit to get started today.

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