When it comes to running e-commerce businesses, partnerships are key, and that includes selecting the right shipping and logistics company to handle your deliveries.
A reliable shipping carrier can be instrumental to the success of your e-commerce operations. From storing, packing, labelling and delivering your products to boosting your brand reputation and customer satisfaction and loyalty, their influence ripples throughout your business.
As such, when choosing a shipping company, you need to carefully evaluate your options and pick one that aligns with your overall goals. To give you a leg up in this process, here are seven factors to help you zero in on the best shipping partner for your online brand:
A freight forwarder is a logistics provider specializing in organizing shipments for businesses or individuals. They manage the transportation of goods from origin to destination, handling documentation, customs clearance, and coordinating with carriers. Freight forwarders ensure efficient and reliable delivery while navigating international regulations and logistics challenges.
1. Service Coverage
E-commerce shipping is all about getting your products to your customers in as little time as possible. That’s why it’s crucial to identify your desired shipping destinations based on where you sell your products and find a carrier with extensive coverage in those areas.
Suppose you operate both locally and globally. In that case, you’ll need to find a shipping partner that offers domestic and cross-border delivery options. For international deliveries, you’ll also need to ensure that the carrier has multiple modes of transportation, such as air and sea freight, to guarantee quick and efficient deliveries and is well-connected in terms of customs clearance and shipping regulations for the countries you intend to serve.
2. Delivery Speed
The nature of your products and your customers’ expectations will also dictate the delivery speed you’ll need from your shipping partner.
For instance, if you sell perishable goods like all types of food items, you’ll need a carrier that offers same-day and expedited delivery options to maintain the quality of your products.
If your products are not time-sensitive, you can choose a company with standard delivery options (so long as their timelines are still reasonable for your customers) to save on costs.
3. Warehousing Capabilities
As your business grows, so will your inventory. Therefore, you’ll need a shipping partner with sufficient warehousing capabilities to store your products before distribution.
Ideally, their warehousing facilities should have ample space, temperature-controlled zones for products that need specific storage conditions (like frozen goods) and top-notch security systems to prevent theft or damage.
Additionally, they should have a state-of-the-art inventory management system that allows for real-time tracking of your stock levels, seamless integration with your ERP or e-commerce platform and periodic reporting to keep you updated on inventory turnover rates.
4. E-Fulfilment Services
A shipping company with a full suite of e-fulfilment services is a huge bonus, especially if you’re just starting your online business and don’t have the resources to undertake the entire process in-house.
The following are some e-fulfilment services you might want to consider when looking for a shipping partner:
- Inbound logistics: receiving and inspecting your products for quality assurance before storing and organising them in their warehouses.
- Order management: packaging, labelling and shipping your orders according to customer specifications and in line with your brand standards.
- Reverse logistics: handling customer returns.
- Inventory control: providing live and monthly inventory management reports on stock levels and the condition of your products.
5. Tracking and Visibility
Giving your customers real-time visibility and updates on the whereabouts of their orders is just good (and nowadays expected) practice.
Therefore, a shipping partner that offers your customers tracking options using order numbers, mobile numbers, or other identifiers to monitor their packages’ progress from dispatch to delivery is ideal. They should also have a robust communication system that sends triggered notifications on order statuses via SMS, WhatsApp, or email.
6. Shipping Rates
Cost is often viewed as a determining factor for e-commerce businesses when selecting a specific carrier. If you sell low-value items with narrow profit margins, minimising shipping costs can have a significant impact on your overall profitability.
Alternatively, if you’re selling big-ticket items that require fast deliveries, you may not need to be as price-sensitive and opt for a carrier that offers those premium services.
At the end of the day, you’ll want to choose a shipping partner that not only charges prices that make sense to you but also delivers on such costs with fast and reliable services.
7. Company Reputation
A delayed shipment, lost package, or in-transit damages can severely dent your brand reputation and affect customer trust in your business. That’s why it’s crucial to do some digging into a potential shipping partner’s standing in the market before committing to them.
Check out their online reviews from customers and other businesses, research their customer service practices and ask for references from their existing clients. A reputable carrier with a proven track record of excellent service delivery will give you the peace of mind that your products are in safe hands.
Find the Right Shipping Partner for E-Commerce Success
E-commerce businesses, especially those just beginning their journey, need every advantage they can get to stand out from the millions of online stores competing for customers’ attention.
Partnering with an accomplished logistics company can be just the edge your business needs to deliver fast, reliable, cost-effective services that keep your customers happy.