Logistics - July 16, 2021

How Important Are Shipping and Returns To The Success Of Your E-commerce business?

Spoiler alert: They are monumentally important!

According to a survey by Mycustomer, 96% of respondents reported that the e-commerce delivery experience influenced repeat sales. These numbers prove that shipping and delivery have become an essential component of a successful e-commerce business.

Having a reliable shipping partner and a well-executed shipping plan hold tremendous importance to service delivery. Shipping guarantees when a customer places an order online can convince customers to choose you over competitors, boost sales, and encourage repeat sales. Let’s take an in-depth look at what this means for your business:

  1. Promotes trust and brand-loyalty: Walker Sands showed that 90% of consumers would shop online if they had options for free delivery. Your shipping policies need to be transparent and offer value to your customer, this guarantees that they will choose you over your competitors. 
  2. Boost sales and upsell: 3 out of 5 respondents in the Pitney Bowes Global study reported that they had increased their total spend to qualify for free shipping. Free-shipping drives more sales, but it may not always make sense to your business financially. Instead, you can offer free shipping over a threshold price. Upsell existing products in your store and promote business.
  3. Drive repeat sales: Offer incentives for your customers like a discount on shipping, or a code for free shipping on check-out to get them back to your store. 

Another very important component of a successful e-commerce business is a well-planned, clear, and simple returns policy. Data compiled by invesp showed that a whopping 92% of customers will buy more products from a company if their returns policy is easy to understand. When shoppers choose businesses with free returns, they’re looking for speed and minimal return costs. 

Problems associated with poor shipping and delivery account for a large percentage of returns. According to a 2020 survey by SaleCycle, 80.2% of returns were because of items being damaged or broken during shipping. 

From a retailer’s point of view, return rates are a nightmare. Statista projections show that in 2020 alone, product returns were a $550 billion problem for US sellers. However, charging a return fee can deter customers from shopping with your brand again. 

While you can’t stop shoppers from returning products, you can reduce the instances of return. Here are steps to take to reduce product returns:

  1. Provide clear product descriptions: Brick-and-mortar stores have the advantage of clients viewing products first hand before making a purchase. However, an online e-commerce business needs to depend on exceptional product descriptions. One of the biggest causes of returns in e-commerce delivery is inaccurate product descriptions. Provide shoppers with plenty of product descriptions and pictures to make their purchase as accurate as possible.
  2. Collect and publish reliable product reviews: 97% of customers rely on product reviews and ratings to make purchases. Reviews provide first-hand experience consumers have with products. The more detailed the reviews, the more likely your customer will find exactly what they’re looking for and won’t be making any returns.
  3. Conduct regular quality checks: Conduct regular quality checks to avoid the delivery of broken/damaged products. Guaranteeing the quality of the product delivered also reduces the likelihood of it being returned. 
  4. Identify trends in why items are returned: Pay attention to customer reviews, ratings, and frequency of return of a certain product. Determine why this product is being returned, and based on these insights, make decisions about improvements, fixes, or sales of the product.
  5. Switch to a more reliable logistics partner: Delays in delivery, loss of products, and damage of products are all instances that can be avoided altogether by associating with a reliable logistics aggregator. 83% of US shoppers expect regular updates about their shipment (Narvar). Find the right logistics partner who not only automates this process but also provides tracked delivery.

Choose to make hassle-free shipping and returns with Shyplite. Facilitate a seamless shipping experience with the most trusted carriers in the industry. Our flexible shipping options and pay for what you use’ subscription model guarantees a transparent, reliable, and easy-on-the-pocket shipping experience for you and your customers. Delight your customers and provide superior service delivery with customized, automated tracked delivery.

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