Ways To Reduce Your E-Commerce Shipping And Fulfillment Costs

Introduction

The significant challenge that every e-commerce platform faces today is the delivery cost. The fulfillment cost is the real barrier to the growth of any e-commerce software. You need to have real administrative skills to manage the cost and optimize the fulfillment operations. Most of the entrepreneurs fail in this area and still struggle to survive in the market.  All you need is to have a perfect e-commerce fulfillment strategy that can reduce the shipping expenses

Understanding e-commerce fulfillment

When we need to fix a strategy for e-commerce fulfillment, first we need to know what is it about. E-commerce fulfillment is the complete process that happens in the process that starts from order placement to the delivery of the products to the customers’ doorstep. It includes inventory management, picking, packing, and shipping. How far efficiently you handle these processes will determine the retention of your customers.

The challenges of e-commerce fulfillment

We can easily define what e-commerce fulfillment is but it is very difficult to carry out the process in your e-commerce platform. Let us analyze the challenges that e-commerce fulfillment face in the shopping cart software.

The cost

One needs to analyze the cost for fulfillment. Before setting up with the logistics you need to work on the cost and if you find it comfortable then you can proceed further with the delivery logistics. The cost should not exceed the budget that you have already planned for order delivery.

Hassles in integration

Every e-commerce platform needs to integrate the whole delivery process with the technologies. This is very difficult to make it a hassle-free process. So more attention is needed while integrating things within the ecommerce shopping cart software.

Consistent shipping experience

You will find it difficult in providing a consistent shipping experience to your customers. Sometimes you may face some delays in delivering the products to the customers and you may lose their trust in your e-commerce platform.

Weight disputes

The main roadblock for e-commerce fulfillment is the discrepancies caused by the weight of the products. The value varies proportionately to the weight of the product.

Restriction in storage space

Once you start getting more customers for your e-commerce platform, you find it difficult to deliver all products in a single shot due to restrictions in storage space. This will cost you high to manage.

How to reduce e-commerce fulfillment cost?

Reducing the expenses is the need of the hour for any e-commerce platform. But we may not how to simplify things and cut short the expenses. Here we can guide you to reduce the cost effectively without affecting the process.

Optimize slotting

You need to optimize your warehouse slotting so that you can reduce the waiting time during the pickup process. When you organize your inventory you can reduce the time of packing and dispatching the products to transport.

Similar group orders

Similar products can be grouped that will help the dispatch section to find out the products easily and can deliver them on time without taking much time searching the product.

Rely on automation

When you are getting more orders in your e-commerce platform then it is the right time to invest in inventory and order management software. Most of the processes are done through automation that reduces human errors and also very time-saving.

Plan on smart packing

Once you get orders from your e-commerce platform you need to start packing the products with apt packing materials. When you use the right packing material you can easily reduce the weight discrepancies. You can help in the shipping process with the right solution so that you can easily run your e-commerce platform.

Reuse the packing materials

You may need some packing materials like bubble wrappers to pack some delicate products that are needed to handle with care. So you need to have more bubble wrappers. In this case, you can use the bubble wrappers that you receive in your office when you purchase something outside for office use. This can reduce the purchase expenses effectively.

Educate your staff

Although we have many automation devices in shipping and delivering still we need to depend on the manpower to handle the products. Educate your staff on packing and shipping. They should be well-versed with all products and should know how to pack effectively. This will help to reduce the timing to shift materials from the warehouse to the transport.

Train your customers

You need to educate your customers who place orders on your e-commerce platform. One day they will order car wash detergent and on the next day they will order for washing cloth and on the next day, they will order car perfume. They may not feel the importance of ordering everything on a single go. But it will affect the retailer and will increase the cost. If you see Amazon prime they will educate the customers to order more for free delivery. This type of tactic is needed in your e-commerce platform.

Include shipping price with the cost of the product

Shipping expenses need to be paid either by the buyer or by the seller. If you ask the buyer to pay they always prefer an e-commerce platform that gives them free shipping. In this case, you need to work out the cost of the product and should include the shipping price within the cost of the product so that you can mention free shipping to the customer and at the same time you may face any loss.

Monitor your expenses

Regular monitoring is essential to cut short the expenses. Once you complete the order processing you need to get a statistical report from the automation software and should analyze where things have messed up and where things have worked well. You need to focus more on the expense part and should reduce the spending on the e-commerce platform.

Conclusion

Always think about reducing the expense of e-commerce fulfillment. This will help to leverage the performance of your e-commerce platform and you can also get a good profit out of it. Build ecommerce website and make use of all the above-mentioned tips and have perfect shipping and delivery and delight your customers

 

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top