How to Increase Your Profits with Multi-Carrier Shipping
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If you are a online business owner, managing your day-to-day operations can feel like playing a never-ending game of “whack-a-mole.” Just when you put two fires out, three more pop up.
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With trying to manage employees, operations, order management, social media, and your budget, things can quickly get overwhelming.
With all that goes into running an e-commerce businesses, it's easy to simply rely on third-party shipping. The most popular of these third-party shipping companies are the big boys -- FedEx, UPS, USPS and DHL.
Some e-commerce businesses choose to stay loyal to one shipping company for all their domestic and international shipping needs. This is fantastic for the chosen shipping company. It gives them surefire cash each month from the same customer.
However, it doesn’t always give the owner the best delivery options. Let’s say you are only working with one shipping company and they’re one of the most expensive ones out there.
You could be losing thousands of dollars per month by not using multi-carrier shipping solutions.
With multi-carrier shipping solutions, instead of using one carrier, you use as many as you can to get your job done the most efficient, cost-effective way with the best customer service for your clients.
Lower Abandoned Shopping Carts with Multi-Carrier Shipping
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What is an abandoned shopping cart?
This is where an online shopper gets to the checkout page, totals up all the items, and then shockingly finds out that another $17.99 will be added to the total cost of shipping.
At that point, the customer doesn’t even bother removing the items from the cart, or canceling the halfway completed transaction.
Put off by the added cost, they simply scroll to the top right part of their screen and click the X button to close the browser. This gives the owner of the website an “abandoned cart” hit on their website analysis statistics.
More times than not, the sole reason the cart was abandoned was due to the price of shipping for the online customer. Customers like good products, but they LOVE free shipping more than anything. (See below)
As you can see, a study was done with Amazon customers that shows although price is important, 70% of their clients’ decisions were solely based on low shipping costs.
With 70% of people basing purchasing decisions off low shipping costs, it is imperative that e-commerce businesses not just use one shipping company, but instead, strategically leverage multi-shipping companies.
These companies can help business owners get low-cost shipping on their site, or even free shipping to pass along to their online clients.
Tricks of the Trade
Ever caught yourself watching a late-night infomercial, and while watching the TV, the sales guy is screaming "Free, Free, Free!" But you must order now?
We’ve all been up late, and accidentally got stuck on one of these infomercials. There is no such thing as a free lunch… If something is 100% free, that means somebody else is not getting paid for it.
Most businesspeople are in the business to make money. Nothing is free. A trick of the trade of the e-commerce business in the shipping world to get “free shipping” for online clients, is to pad the product price a tiny bit and include shipping inside the price.
In 2019, consumers are smart and do extensive research before they purchase anything. Thus, the customer may already know that the shipping cost is probably buried in the price...
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However, knowing the real price upfront, before adding it to their online shopping cart, avoids that off-putting feeling of another charge tacked on last minute.
By now, it's likely you agree that decreasing shipping costs is a no brainer for your e-commerce business. However, how do you avoid shipping costs cutting into your bottom line?
The Solution To Lower Shipping Costs
Use multi-carrier shipping on every online order and find a company with a system that allows you to manage your shipments from different carriers all on the same platform.
This will allow you to save significantly on shipping costs, making you and your customers happier.
Comparing the Benefits of Shipping Carriers
Another important factor to consider when trying to choose multi-carriers is which locations the different carriers serve.
Regional carriers are great for what they can do, as they know the landscape very well of the areas they are delivering your product to. This can help decrease delivery times.
However, global carriers, like DHL, USPS, FedEx, and UPS, are good at what they do and usually have superior service standards. It's beneficial to leverage both, depending on what and where you are sending.
Cabrella Makes Multi-Carrier Shipping Easy
As you can see, shipping price is the number one driver for many online decisions.
Additionally, e-commerce owners are very busy, as they usually have their hands in multiple parts of the operation to ensure their stamp is felt throughout the company.
With that said, where does one find the time to compare shipping prices and save money? That's where Cabrella comes in.
Cabrella supports multi-carrier systems and provides shipping software that integrates with local and global carriers. This allows business owners to manage their shipments with different carriers on the same platform.
Reach out to Cabrella and start saving today!
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