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12 Essential Strategies to Maximize Profits on Black Friday Cyber Monday for E-commerce Businesses
As the calendar flips to November, the anticipation of the holiday shopping season begins to build. Retailers and consumers alike are gearing up for two of the most significant shopping events of the year: Black Friday and Cyber Monday. These annual events have become a beacon of hope for businesses and shoppers, especially in the face of economic challenges. Reflecting on the previous year's data, it's clear that these shopping holidays have a profound impact on the retail landscape. Despite the economic downturn in 2022, Black Friday and Cyber Monday continued to generate substantial profits, demonstrating their resilience and the unwavering consumer appetite for deals and discounts. In 2023, it’s not just consumers dealing with rising costs From rising supply chain costs, and shipping rates, to increasingly expensive COGS, it’s not just consumers that need to watch their spending this year. Ecommerce businesses are up against a ton of expenses that are threatening to chip away at their profits this upcoming BFCM. That’s why in this article, we’re sharing 12 key profit-optimization strategies for eCommerce managers to put into play this BFCM to maximize each and every profit opportunity and help increase your bottom line. What do Black Friday, Cyber Monday look like as the world heads into a third year of the recession? Economic downturns equal less spending and more saving, right? Not so fast. In 2022, people around the world spent more than $40 billion online on Black Friday. While 71% of consumers say they spent more or the same amount on Cyber Monday 2022 than they did the year before. In 2022, retail sales grew during the holiday season by 4.8% YoY and analysts predict a 4.5% growth in sales for 2023. Source That’s good news for online merchants as it tells us that shoppers shopped smarter, not less, a trend that’s set to continue in 2023. With people spending less throughout the year, many shoppers will be saving up to buy what they need when the Black Friday deals roll out. 12 proven profit-optimization strategies to level up your profitability this Black Friday, Cyber Monday You might see 8 figures in sales this BFCM and still not make a profit. It can be tempting to zero in on growing sales on Black Friday, Cyber Monday — funneling money into ads, sales sequences, and influencer marketing campaigns. But a huge spike in sales doesn’t always mean a healthier bottom line. While sales-focused strategies and overall revenue are important as you can’t have profit without sales, they can’t come without profitability-focused strategies that help make sure you stay in business survival and business health much after this Black Friday. That’s why these strategies should be a key part of your definitive success criteria for 2023. With more consumers and eCommerce businesses becoming conscious about how they can cut back their spending, optimizing your profitability should be the main focus of BFCM strategy for 2023. Let’s dive in. Offer popular profit-friendly discounts Focus on your VIPs — not just customer acquisition Focus sales efforts on your most profitable marketsDrive profit from enhancing LTV with your customer data-baseImprove your profit for Ad Spent (POAS) Ratio and CAC Hook new visitors with profitable loyalty-building discounts Drive sales with profitable product bundles Use BFCM to shift excess stockPromote your most profitable shipping methods as an incentive to push profit upSwerve losing money on product returns by predicting their likelihood Uncover and optimize your biggest expensesPromote the most profitable payment method that also cultivates loyalty 1. Offer popular profit-friendly discounts As any eCommerce store owner knows — BFCM is all about driving sales through discounts. But if you’re strategic about your approach to discounting and create them with profitability in mind then you should see more money in hand at the end of the BFCM sales. To discount strategically, you need to put focus less on profit margin metric and more on contribution profit, customer acquisition, and the number of orders generated. Check out your past discounts and look into the discounts that brought the highest contribution profit. You’ll also want to see how many new customers they brought and consider their lifetime value and AOV. Wise Advice: To bring in more sales and drive cash flow, pair your discount pricing strategies with less-margin-depleting hooks like free gifts or tiered discounts. 2. Focus on your VIPs — not just customer acquisition While many eCommerce companies focus on customer acquisition during BFCM, research shows that just 19% of first-timer BFCM customers stick around after shopping with a business during the sales. Now, we’re not saying it’s impossible to turn these new customers into repeat purchases, but that’s one for a different strategy. For a successful BFCM, your VIPs are where it’s at. VIPs spend 5x more and order 2x more during the holiday sales. While acquisition is key for growing your customer pool, you should put the first focus on your VIP customers to maximize your Black Friday, Cyber Monday profit. Your VIPs, the ones that spend the most and come to your store again and again, should be one of your biggest targets for BFCM because they’re already fans of your products. You know what they like and their purchasing patterns, and on top of that, you don’t need to work so hard to get them to buy. The success rate of selling to a customer is 60-70%, compared to 5-20% when it comes to selling to a new customer. And because you’re not spending more on advertising to reach new audiences, focusing on your VIPs is a smart way to leave you with more money in hand this BFCM. Putting the right strategies into play to make your VIPs feel valued and drive LTV So, how do you hook your VIPs this BFCM? First, build buzz with targeted SMS and email marketing campaigns that feature sneak previews of your upcoming BFCM sales. Personalize these campaigns based on their purchase behaviour. Show your VIPs some love by: Dropping added perks like private collection, double loyalty points on their BFCM shops, or special VIP gifts Giving them that extra small discounts that’ll make them feel special and will drive more orders Holding exclusive early-bird specials on their favorite products Remember: increasing customer retention by just 5% can increase your profits by 25-95%. Do this by sweetening up their perks beyond what you’re offering your other customers. Source: Really Good Emails 3. Focus sales efforts on your most profitable markets One way to max your profits this BFCM is by optimizing your marketing efforts for POAS (aka Profit on Ad Spend). Unlike ROAS (Return on Ad Spend), POAS factors in your profit margins for each product sale. To optimize your POAS, zero in on the countries that have the best contribution margins when it comes to shipping packages. Even if these countries have low order counts and there for brought in lower contribution profits, you can potentially drive more profit by upping your marketing efforts for these regions. Wise advice: for a double win on profitability — combine this strategy with bundling popular and profitable products (more on this later). 4. Drive profit from enhancing LTV with your customer database VIPs are one of your most important audiences to target on BFCM — but they’re not the only ones. You need to step up your customer marketing across BFCM. So, how do you improve CLTV to drive profitability? That's easy, you need to make customers feel special. One of the best ways to do that is by rewarding them for their loyalty. Research shows that unique offers can have a huge impact on positive brand associations in the long run. Customers who received a $10 voucher had a 38% spike in their oxytocin levels (that’s the feel-good bonding hormone) — helping them form stronger connections with a business and maximizing LTV. This year, ‘Black Friday creep’ is predicted to continue with many retailers planning to grab more of the market share by hosting pre-Black Friday sales as early as October. How do you capitalize on the early BFCM excitement and boost LTV? Get ready for the shopping season early by offering loyal customers a 24-hour flash sale a month early, giving them the opportunity to grab what they want before it sells out. Amp up the excitement for your flash sale using pop-ups and banners across your site, dedicated newsletters and SMS campaigns, and social media campaigns Then, maximize customers’ LTV by: Offering them customer-only vouchersGive your customers same-day shipping for freeOffer them exclusive deals on products that you won’t offer to new site visitors Offer loyalty-boosting early bird sales that combine personalization and exclusivity Make sure your VIPs are in on these benefits — along with the ones we covered above. Wise advice: to maximize your LTV and repurchase rates, tailor your BFCM offering to different customer segments with different psychographic profiles and shopping patterns. What you’ll offer shoppers who seek innovative trendy products, you can’t offer to bargain hunters. 5. Improve your Profit On Ad Spend (POAS) Ratio and CAC BFCM marketing tends to decrease Customer Lifetime Value because of the epic discounting and increase CAC because of the epic competition driving up ad costs. What’s an eCommerce business to do? To max profits, you need to optimize these factors. Increase new BFCM customers’ CLTV: Upsell them in your order confirmation emails. Encourage them to buy more from you by letting them know they can add more products to their cart without paying more for shipping.Leverage the shopping rush by sending them a discount on their next purchase that they need to use in the next 24 hours Customers love interactive content, they love it even more when it comes to them! Which doubles up as a sneaky way to find out more about them. Send your new customers a short and fun quiz to understand their product preferences, shopping habits, and lifestyle, and use the results to personalize your future offers.Send new customers product education emails showing them how to get the most out of your products. Shoppers want to connect to the people behind the brand. Are you big on sustainability, worker’s rights, or “clean products”? Share your values and become their preferred place to buy from.Make the buying experience flawless — make them remember you for their next purchase, by dropping in coveted free samples or cool freebies.Use UGC video ad solutions such as Uplifted to showcase real customer stories, adding a touch of authenticity to your campaigns. As at least most of your site offers strip discounts, you need to work hard on your upselling strategies. To manage CAC, bring in some tactics to help motivate consumers to fill up their carts. Increase BFCM cart size: Offer total look special BFCM dealsPersonalize your upsells by suggesting your most profitable products. Ones that, after deducting all expenses, give you the highest contribution margins or contribution profit in hand. Offering tiered discounts or applicable volume discounts is another winner hereUse steeply discounted products to hook customers and present them with full-priced items or items with less stip discountsDon’t forget to offer a minimum cart threshold higher than your AOV to unlock free shipping 6. Hook new visitors with profitable loyalty-building discounts To hook your BFCM visitors, optimize your homepage and special event landing page to showcase your most popular products and products your customers previously looked at, and match these items with the discount that shows the highest repurchase rate and LTV. Review the discounts you've offered throughout the year, with a focus on last year's Cyber Monday sale. Offer the discounts that led to high LTV and repurchase rates at relatively high-profit margins or AOV. 7. Drive sales with profitable product bundles Everyone pushes their best sellers on BFCM. Spoiler: these aren’t always your most profitable products. While you can hook consumers with your top-selling products, you need to choose the products that have the biggest positive impact on your bottom line. Bundles are psychologically enticing because they increase customers’ perceived value — they feel like they are getting more for less. “Save with sets”: Glossier You can optimize your profits and increase your sales by offering tiered spend rewards to customers who hit a certain spending threshold. Don’t just offer a 15% discount to consumers who spend $100. Offering a tiered discount should be strategic as well. As goes for everything in marketing strategies, personalization is where it’s at. To personalize your discounts, create smart segments of customers based on their average purchase spend and match your offering to their usual cart size and push them up. Balance their budget limitations with increased spending incentives but remember, check your discount rates’ impact on your bottom line so it won’t start to negatively impact profitability. 8. Use BFCM to shift excess stock Much of your BFCM profit-optimization strategy can be driven by shifting excess stock. An oversized inventory can weigh down your cash resources. From inventory space to insurance — these hidden costs can be unexpected drains on your company’s profitability. As Dany Couillard, Director of Business Restructuring at BDC, says: “This is little-known, but every dollar of inventory that a company holds over its ideal level generates 20% to 30% of additional costs.” Identify products that would perform better with a discount or sale, this includes products that have been on the site for over 90 days, have a higher days-to-finish inventory than the shop average, and don't yet have a discount. You can also use these products as a hook to increase your AOV by offering them as a free gift when customers hit a certain spending threshold. This strategy is also a great approach for optimizing your profitability in the long run by improving customer satisfaction—90% of customers say that a free gift increases brand loyalty. 9. Promote your most profitable shipping methods as an incentive to push profit up Free shipping had the biggest influence on buying decisions during Black Friday — holding 49% of the sway on consumers' buying decisions. While 32.7% of consumers say they plan to shop in-store to skirt shipping costs and delays — meaning free, fast shipping is more important than ever. How can you give consumers what they want and still increase your profits? Every online store knows to set a minimum cart threshold to increase AOV. Note: According to data, the perfect threshold for free shipping that’ll nudge your customers to spend more without putting them off is no more than 20% higher than your average AOV. But you aren’t everyone. You want that extra profit-maximizing edge. Then check the carrier’s highest contribution margin shipping method and offer it free in as many locations as possible Wise advice: Also consider your carrier's AOV, LTV, and repurchase rate. Promoting carriers with these metrics in mind will boost your profits. Metrics like High AOV, LTV and repurchase rates highlight which carriers your customers trust. By choosing the carriers that are a go-to option for customers, you’ll build a more loyal and trusting customer base, which means good things for your profitability. If you know this shipping data ahead of time, you’re already way ahead of your fellow store owners for the BFCM rush. 10. Swerve losing money on product returns by predicting their likelihood Many consumers go big on Black Friday and Cyber Monday — only to regret their impulse spends later, with 1 in 3 consumers returning what they buy during the sales. No matter how many sales you see during Cyber Week, product returns will have one of the biggest impacts on how much money you’re left with weeks after the sales end. One way you can deal with returns is by analyzing which products in your store have the highest return rates and avoid stipping discounting them as they come with added costs. As well as working out which products have the highest returns rate, see if you can spot trends in your product returns. For example, maybe there’s a connection between product returns and a specific location or shipping method. Optimize and adjust your BFCM strategy accordingly. Wise advice: Bringing buyers as close to the real buying experience as possible won’t just impact your return rates, but also increase sales and customer satisfaction. If a customer selects “didn’t match description,” as the reason for their return, there’s a 66% chance they won’t buy from you again. Don’t let that happen. 11. Uncover and optimize your biggest expenses What were your biggest expenses on last year’s BFCM? For this year to be a success, you need to understand which expenses were the biggest drain on your business and know how to optimize them for 2023. Review your most costly expenses and see where you can save. From utilities to processing gateway fees, there are many expenses to consider that could be impacting your profitability. Review your main expenses and see where you can make changes this year. 12. Promote the most profitable payment method that also cultivates loyalty As a profit-first focused business you want to foster loyalty by as many methods as possible. This strategy leverages your payment processors. See how many fees you’re really paying for each processor, and how much you pay Shopify. Wise Advice: make it easy to hit “pay.” Add as many payment methods as your customers use — think: Buy Now, Pay Later; split payments, and accelerated payment methods like Apple Pay, Google Pay, PayPal, or Shop Pay. How to effortlessly maximize on Black Friday Cyber Monday profits Black Friday and Cyber Monday are all about driving sales for many eCommerce businesses, but it’s easy to get caught up in zeroing in on customer acquisition and sales without taking the time to optimize profitability. Selling more on Black Friday, Cyber Monday is great — but not if you’re left with less money than you make. Put these strategies into play and go all in on maximizing profits on Black Friday Cyber Monday 2023. You can use your own profit analysis methods or use our ready-made reports to identify exactly what is hurting and what is contributing to your profitability without a hitch. Prepare your eCommerce site for potentially your biggest shopping season yet, get more control over where your money goes, and optimize your eCommerce site for profit first. Request a demo | Free Trial
MarketingThe 6 Best Plugins to Enhance Your WooCommerce StoreThere are hundreds of different plugins available for the WooCommerce e-commerce platform. This makes it attractive for developers and entrepreneurs alike. Aside from that, two of the main reasons many startups go with WooCommerce is that it's free and easy to use. To make WooCommerce even simpler than it already is, certain plugins help to automate a range of the platform’s different features. The thing is, some plugins are definitely worth your time while others should really be left on the shelf. To help you decide, we’ve listed the best paid and free WooCommerce extensions currently available. Why Plugins Are Beneficial for WooCommerce The best WooCommerce plugins are easy to integrate and use. They also improve the platform's functionality and make it easier for users to find and purchase products on your site. There are several benefits to adding a plugin to your WooCommerce store, and these include: Improving your online store.Integrating new features.Collecting customer data automatically.Automating product delivery to customers.Increasing revenue and profit.Giving customers a seamless, high-quality experience.Making it easy to add additional products to your WooCommerce store.Increasing customer satisfaction. Plugins are one of the main advantages of e-commerce. If you want to see a full breakdown of this, visit our post on the advantages and disadvantages of e-commerce. 3 Must-Have Free WooCommerce Plugins for WordPress 1. Affiliates Manager WP Affiliate Manager is the best WooCommerce affiliate plugin, helping users to manage affiliate marketing programs on their websites. It makes managing an affiliate program more streamlined and less time-consuming, enabling you to focus on other aspects of your business or on your customers instead. 2. Abandoned Cart Lite for WooCommerce The Abandoned Cart Lite for WooCommerce plugin is the best WooCommerce abandoned cart plugin. It is a great way to get more of your customers to check out and complete transactions in your store. Using automated messages and targeted promotional offers, this tool helps you identify customers with abandoned carts and entice them to complete their purchases. 3. WooCommerce Shipping The WooCommerce Shipping plugin is the best shipping plugin for a WooCommerce store. With this extension, you’ll be able to access discounted rates of your USPS account, allowing you to print shipping labels straight from WooCommerce’s dashboard. 3 Best Paid WooCommerce Plugins for WordPress 1. WooCommerce Subscriptions Pricing: $199/year WooCommerce Subscriptions is one of the best subscription plugins available. The extension enables you to manage your e-store more effectively by allowing users to create and manage products with recurring subscription-based payments. A great way to boost your subscriptions is by using email marketing. 2. All in One SEO Pricing: Basic Plan - $99/yearPlus Plan - 199/yearPro Plan - 399/yearElite Plan - 599/year All in One SEO Pack is the best WooCommerce search engine optimization (SEO) plugin you can get for your WooCommerce store. Boasting over 2 million+ WordPress installations, it is the most comprehensive SEO tool that will help even the most SEO-green users improve their search rankings without having to learn and understand the intricate and often confusing aspects of Search Engine Optimization. 3. Monster Insights Pricing: Plus Plan - 99/yearPro Plan - 399/yearAgency Plan - 799/year MonsterInsights is one of the top WooCommerce plugins currently available for WordPress-based stores. It offers detailed Google Analytics reporting to help you better understand your e-commerce data. You can easily view detailed product statistics, including best-selling products and those all-important customer cart details, all from inside your WordPress dashboard. This means you can carry out more hands-on analysis to make the best-informed business decisions for your store - boosting sales with ease! Can You Have Too Many Plugins for Your WooCommerce Store? The more plugins you use, the bigger the chance that you will experience issues. When you use too many plugins, you will probably see your site’s performance decrease. Additionally, you could find that you are having issues with conflicting plugins that can bog down your site and affect page loading speed. As a rule of thumb, aim to have no more than 20 plugins installed at one time. That way, you’ll avoid any potential issues that may arise, keeping your site running smooth and at lightning speeds. If you’re still tossing up whether to use WooCommerce or Shopify for your e-commerce website, why not check out our WooCommerce vs. Shopify post where we break down everything you need to know about choosing between the two platforms.
ShippingSmooth Sailing: 5 Best Shipping Methods for E-commerce SuccessThe e-commerce shipping process involves different steps, from placing an order to its eventual delivery. How quickly you complete all these steps is crucial. Only 15% of U.S. online shoppers are happy with shipping speed, while slow shipping is the third most common reason for shoppers to abandon their carts. So, you need to use the right shipping method to not only help you save on shipping costs, but also meet your customers' expectations. 5 Best Shipping Methods for Effective Shipping Postal or courier servicesFulfillment servicesIn-store pickups and local deliveryReal-time courier rate optionsHybrid shipping 1. Postal or Courier Services Postal and courier services are versatile and can help you offer your customers different options, including: Flat rate: Offering a flat rate shipping option simplifies the buying process for customers and can boost conversions. For example, an online clothing company may charge a flat rate of $5 for shipping, regardless of the number of items ordered.Free shipping: Providing free delivery for orders that meet specific thresholds encourages customers to spend more, thereby increasing sales and average order values. This method works particularly well with focused marketing initiatives. For example, an electronics company may offer free delivery for orders over $100, enticing buyers to add additional items to their carts.International deliveries: Collaborating with international postal and courier services allows e-commerce enterprises to expand their consumer base, tap into new markets, and reach global audiences. For example, a jewelry company could partner with an international courier service to distribute its products worldwide and serve foreign customers.Same-day or next-day delivery: Offering faster delivery alternatives like same-day or next-day shipment can boost customer satisfaction and competitiveness, especially for time-sensitive or last-minute purchases. For example, a flower store could partner with a local courier service to provide same-day delivery. While postal and courier services offer advantages, they also have drawbacks: Cost: Same-day and next-day shipments might cost you extra. Either you'll have to absorb this or pass it on to your customers.Logistics: You might struggle to manage several shipping options if you have big order quantities or international shipments. Tracking, customs, and courier coordination demand additional resources and expertise.Delays and difficulties: You can't control delays, misplaced packages, or other complications. These issues might cause customer dissatisfaction and require quick resolution. 2. Fulfillment Services Fulfillment services involve outsourcing various aspects of your order fulfillment process and delivery to specialized companies. For example, if you use fulfillment services to handle your inventory management, order fulfillment, packaging, and shipping, you can focus on your core business instead and leave logistics to the experts. In this case, outsourcing allows you to streamline operations more effectively and reduces the need for extensive in-house staff and resources. However, there are certain drawbacks to using fulfillment services: You don't have control over certain processes Ineffective communication and coordination with the service provider can lead to customer dissatisfaction. 3. In-Store Pickups and Local Delivery In-store pickup allows customers to buy your products online and collect them from your physical store, while local delivery means you deliver products directly to customers' homes or specific locations within a specific geographic area. Both methods contribute to your success by generating cost savings. In-store pickup eliminates shipping costs, encourages customers to visit your store, and may lead to additional purchases. Local delivery offers convenience and attracts customers who prefer doorstep delivery. For example, grocery stores can reduce shipping costs and increase foot traffic by offering in-store pickup for online grocery orders. Local restaurants may offer local delivery to reach customers who want to eat at home. However, you should also consider these limitations: These shipping methods have a narrower reach than national delivery. Local deliveries may require you to invest in vehicles and staff. » In-store pickups are just one way to slash shipping times: Try these additional tips 4. Real-Time Courier Rate Options Real-time courier rate options refer to dynamically calculating and displaying various courier services and associated costs at checkout. By integrating with a courier company's API or database, your customers can choose from different shipping options depending on their desired shipping speed and cost. Real-time courier rate options can benefit your business by: Increasing customer satisfaction: By providing transparency and flexibility in shipping choices, you enhance customer satisfaction. Customers can select the best option according to their urgency and budget.Optimizing shipping costs: You can choose low-cost courier services and streamline your shipping expenses.Reducing customer service burden: Automating the calculation and display of shipping costs relieves the stress on your customer service team. For example, an online retailer that sells electronics may offer a real-time courier rate option at checkout. Customers in urgent need of laptops can choose the more costly express shipping option, while less urgent customers can choose the lower-cost standard shipping option. However, there are also some disadvantages: You may have to integrate with multiple courier APIs, which can be technically complex and time-consuming. Addition factors like package dimensions and weight can result in discrepancies and unexpected charges to the quoted shipping cost. » What about shipping insurance costs? Explore your shipping insurance options 5. Hybrid Shipping Hybrid shipping is using more than one carrier or postal service to deliver a single package. So, you divide the delivery journey into different segments like domestic and international shipments. Each segment is handled by the best carrier based on factors like cost, speed, and reliability. This way, you can use the most cost-effective shipping options while leveraging the strengths and competitive advantages of different carriers and services. For example, an e-commerce company may partner with local couriers for last-mile deliveries in certain areas where they have a strong presence and credibility. At the same time, cooperating with major forwarders for long-distance transportation can shorten delivery times and improve cost efficiency. However, hybrid shipping has some limitations: Coordinating multiple carriers adds complexity and can cause delays.Managing tracking systems and handoffs between vendors is challenging.Limited resources make logistics coordination difficult.Careful trade-off consideration and clear communication are crucial for managing delivery expectations. » Need more context? Delve deeper into these shipping benchmarks and insights Sail to Success by Tracking Your Shipping Methods With BeProfit Efficient transportation is vital for increased profits and long-term business success. Keeping track of all your shipping expenses doesn't have to be difficult. BeProfit is an all-in-one dashboard tool that can help you comprehensively track and analyze your expenses and profits. Gain insights into the impact of shipping costs on your overall profitability. Customize your dashboard to accurately calculate shipping costs for different methods and destinations. Access your data via desktop, mobile, or email. » Not sure where to start tracking? Try these core shipping performance metrics
Shipping5 Essential Shipping Performance Metrics For E-commerce StoresShipping performance is the backbone of every e-commerce business. To succeed in this competitive market, it's crucial to track shipping data and grasp key shipping performance metrics. These metrics influence factors such as delivery times, shipping costs, and overall customer experience, which all directly affect your bottom line. Below, we delve into five fundamental shipping performance metrics for e-commerce stores, coupled with practical tips on enhancing your shipping operations to maintain customer satisfaction. 5 Essential Shipping Performance Metrics Shipping cost to sales ratioOrder cycle timeFulfillment accuracy ratePerfect order rateReturn rate » See the bigger picture by analyzing these shipping benchmarks 1. Shipping Cost to Sales Ratio Shipping Cost to Sales Ratio paints a picture of how much of your business's revenue is invested back into ensuring products reach your customers. This metric helps you assess the impact of shipping costs on your profitability. By managing it effectively, you can strike a balance between cost efficiency and customer satisfaction. Shipping Cost to Sales Ratio Formula Shipping Cost to Sales Ratio = Total Shipping Costs / Total Sales Revenue Expert Tips to Manage Shipping Cost to Sales Ratio Negotiate shipping rates with carriers to secure competitive pricing.Optimize your packaging to reduce dimensional weight and lower shipping costs.Implement shipping cost allocation strategies, such as passing on some shipping costs to customers or incorporating shipping costs into product pricing. » Total shipping costs too high? Follow these expert tips to reduce your shipping costs 2. Order Cycle Time Order Cycle Time measures the time it takes for an order to be fulfilled—from the moment it's placed to the moment it's delivered to the customer. Monitoring and minimizing the Order Cycle Time is crucial for meeting customer expectations of fast and reliable delivery. A shorter order cycle time enhances customer satisfaction, reduces the risk of lost sales, and allows you to maintain a competitive edge in the e-commerce market. Order Cycle Time Formula Order Cycle Time = Order Delivery Date - Order Placement Date Tips to Manage Order Cycle Time Track and analyze order cycle times to identify bottlenecks and streamline processes.Utilize automation tools to speed up order processing and reduce fulfillment time.Collaborate with shipping carriers to optimize transit times and improve overall delivery speed. 3. Fulfillment Accuracy Rate Fulfillment Accuracy Rate quantifies the percentage of orders that are shipped accurately and punctually. This metric is vital for ensuring customer satisfaction and preventing costly errors. A high fulfillment accuracy rate signifies operational excellence, reduces the likelihood of customer complaints and returns, and fosters loyalty and repeat business. Fulfillment Accuracy Rate Formula Fulfillment Accuracy Rate = (Number of Accurate and Timely Orders / Total Number of Orders) x 100 Tips to Manage Fulfillment Accuracy Rate Implement robust inventory management systems to ensure accurate stock levels and minimize errors.Provide regular staff training on order processing and quality control procedures.Conduct periodic audits and quality checks to maintain high fulfillment accuracy. » Finetune your e-commerce order fulfillment process with these steps 4. Perfect Order Rate Perfect Order Rate calculates the proportion of orders that are delivered flawlessly—meaning on time and with all required documentation. A high Perfect Order Rate indicates a high level of operational efficiency and customer satisfaction. It helps you build a strong reputation, gain positive word-of-mouth, and minimize costs associated with returns and re-shipments. Perfect Order Rate Formula Perfect Order Rate = (Number of Perfect Orders / Total Number of Orders) x 100 Tips to Manage Perfect Order Rate Establish rigorous quality control measures at each stage of order fulfillment.Enhance communication and collaboration with shipping carriers to ensure smooth and on-time delivery.Continuously monitor and refine your order fulfillment processes to maximize your perfect order rate. 5. Return Rate Return Rate measures the percentage of orders that are returned by customers. While returns can be costly, analyzing and managing your Return Rate is important to improve your shipping operations. By understanding the reasons for returns and addressing any underlying issues, you can minimize return rates, increase customer satisfaction, and build trust and loyalty. Return Rate Formula Return Rate = (Number of Returned Orders / Total Number of Orders) x 100 Tips to Manage Return Rate Focus on accurate product descriptions and clear communication to minimize returns due to wrong expectations.Simplify the return process and offer hassle-free returns to enhance customer satisfaction.Analyze return reasons to identify areas for improvement and take appropriate actions. » Explore product return rate and its effect on your e-commerce store in more detail Track Shipping Metrics to Help Boost Your Business Tracking these metrics provides insights into the efficiency and effectiveness of your shipping operations. This data can guide you in strategizing to optimize shipping processes, cut costs, and improve customer satisfaction. But you don't have to keep track of these metrics manually. Tracking and analysis tools like BeProfit can automate these processes for you. Track and analyze profit and shipping data from one dashboardIntegrate all of your stores and manage your shipping profiles from one interfaceMonitor a variety of profit and shipping metrics
Business metrics5 Easy Ways to Calculate Shipping Cost to Sales RatioShipping rates can have a significant impact on e-commerce sales and profits. Consider that online retailers often have to allocate around 70% of an average order value (AOV) just to cover the costs of fulfilling orders. So, understanding how to effectively manage shipping costs is crucial for e-commerce businesses to maintain a healthy bottom line and maximize profitability. One way to do this is to calculate your shipping cost to sales ratio. Shipping Costs and Sales: What to Know Shipping cost to sales ratio measures how much you're spending to get your products into your customers' hands relative to your revenue. This metric shows how much shipping costs impact your overall profitability.A high ratio means a significant portion of your sales goes toward covering shipping costs. As a result, your shipping options may be too expensive for your customers causing them to abandon carts and convert less.A low ratio means your current operations are cost-effective.You have more flexibility and can offer your customers cheaper or free shipping options, increasing their loyalty and encouraging repeat purchases. 5 Ways to Calculate Your Shipping Cost to Sales Ratio Simple formula methodOrder-based methodWeight-based methodCarrier-based methodOnline shipping calculators 1. Simple Formula Method Shipping Cost to Sales Ratio = Shipping Cost ÷ Total Sales This is the most straightforward way to calculate your shipping cost to sales ratio. For example, imagine your online store has total sales of $10,000 for the month and you've spent $1,000 on shipping. Using the formula, your shipping cost to sales ratio would be $1,000 ÷ $10,000 = 0.10 or 10%. This means for every dollar you make in sales, you're spending ten cents on shipping. 2. Order-Based Method Shipping Cost to Sales Ratio = Average Shipping Cost per Order ÷ Average Revenue per Order The order-based method is another way to crunch the numbers. Here, you calculate the average shipping cost for each order and contrast it with your average revenue per order. This approach shines when your shipping costs aren't consistent but fluctuate across orders. By monitoring these figures over time, you can spot patterns and sniff out any emerging problems. For example, you have 100 orders in a month with a total shipping cost of $1,500 and total revenue of $20,000. The average shipping cost per order would be $1,500 ÷ 100 = $15, and the average revenue per order would be $20,000 ÷ 100 = $200. Using the formula, your shipping cost to sales ratio would be $15 ÷ $200 = 0.075 or 7.5%. » Follow these tips to make sure your order fulfillment process is up to scratch 3. Weight-Based Method Shipping Cost to Sales Ratio = Total Shipping Cost for Weighted Products ÷ Total Sales The weight-based method is particularly suitable if your products have considerable weight differences. Here, shipping costs are calculated based on the weight of each product. It's like playing a balancing act: heavier items tip the scale toward higher shipping costs. However, this method does call for a bit more homework. You need to be well-versed with the weight of each of your products and the corresponding shipping rates. Once you've got that sorted, it becomes a straightforward multiplication: product weight x shipping rate per unit weight. For example, you sell two types of products: Product A weighing 1 pound and Product B weighing 5 pounds. In a month, you've sold 100 units of Product A and 50 units of Product B. The shipping cost for Product A is $1 per unit and $5 per unit for Product B. The total shipping cost for weighted products would be (100 * $1) + (50 * $5) = $300. If your total sales for the month are $5,000, then your shipping cost to sales ratio would be $300 ÷ $5,000 = 0.06 or 6%. 4. Carrier-Based Method Shipping Cost to Sales Ratio = Total Shipping Cost with Carrier ÷ Total Sales This approach focuses specifically on your chosen shipping carrier. Different carriers charge different rates for shipping, based on things like the weight, size, and destination of the package. So, you might use one carrier for local shipments and another for international shipments. By understanding the carrier-based method, you can choose the right carrier for each shipment to keep costs down and ensure that your package arrives in a timely manner. For example, you spend $800 on shipping with Carrier X and $500 with Carrier Y. Your total sales for the month are $10,000. Using the formula, your shipping cost to sales ratio for Carrier X would be $800 ÷ $10,000 = 0.08 or 8% and $500 ÷ $10,000 = 0.05 or 5% for Carrier Y. » Carriers also offer shipping insurance options: Here's how to choose the best one 5. Online Shipping Calculators Online shipping calculators are like your personal math helpers. You input your data, like shipping costs and sales, and they spit out your shipping cost to sales ratio. But these calculators don't stop at just that. They're designed to be versatile, offering a suite of additional features. They can trace the trajectory of your ratio over time, providing visual graphs that highlight trends and shifts. Plus, they can simulate different shipping scenarios, helping you anticipate costs and make informed decisions. Sync all expenses to one dashboardLink all your stores and shipping profiles to one platformCustomizable reports and interface » Not sure which shipping metrics to look at first? Here's a core list Optimize Your Shipping to Sales Ratios for Better Profits By understanding the different methods for calculating shipping costs and choosing the right carrier for each shipment, you can keep your shipping costs under control and ensure that your customers are happy with their purchases. Additionally, offering free or discounted shipping on larger orders can incentivize customers to spend more money and help increase your overall sales. In the dynamic world of e-commerce, staying flexible and adaptable is key. Don't shy away from experimenting with different shipping strategies and utilizing innovative tools at your disposal. By doing so, you can find what works best for your business, optimize your operations, and ultimately, achieve a more profitable bottom line.
Shipping6 Ways to Slash Shipping Times and Boost Dropshipping ProfitsOnline retailers who run e-commerce stores know that shipping inefficiencies can lead to frustrated customers. According to the 2023 State of Shipping & Returns Report by supply chain specialists Körber, 70% of consumers have experienced shipping delays in the past six months. And guess what? 40% of them said they'd think twice before making another purchase after facing shipping delays. For e-commerce sellers, these hiccups in dropshipping can cost you customers and profits! It's no secret that faster shipping translates to higher profits. A survey called "The New E-commerce Shopper" conducted in 2021 showed that 40% of shoppers now expect free shipping, and 42% expect their orders to arrive within just two days of making a purchase. To keep customers happy and keep them coming back, e-commerce sellers need to supercharge their shipping times. The faster your customers get their hands on their orders, the more profit you'll make. 6 Ways to Slash Your Shipping Times Find trustworthy suppliersEmbrace automation toolsBe strategic about inventoryOptimize packagingProvide shipping optionsBe transparent with customers 1. Find Trustworthy Suppliers Online stores using the dropshipping model should maintain a network of reliable suppliers. This network acts as a failsafe: when one supplier runs out of an item, you can turn to an alternative. Make sure to check the supplier’s record since you're entrusting the efficiency of your shipping model to them. Close collaboration with your suppliers also builds business relationships that will benefit your store in the long run. » Good supplier relationships can help you get better discount shipping rates 2. Embrace Automation Tools Embracing technology is necessary for businesses looking to decrease shipping times in their supply chain. According to the "2023 E-commerce Platforms Report" published in Digital Commerce 360 magazine, 61% of B2B retailers plan to invest in their e-commerce technology budgets in the coming months. Some tools that e-commerce retailers can start using to reduce shipping times and increase profits include: Real-time shipping calculatorsDropshipping management appsAutomated repetitive tasksDigitally managing inventory 3. Be Strategic About Inventory When setting up your dropshipping model, choose your inventory carefully. Ensure your dropshipping supplier can consistently provide inventory to meet increasing customer demands.Check that the inventory is stored in a location that's convenient for your third-party logistics (3PL) partner.Manage your inventory proactively on the front end of your online store. A backlog of orders due to limited stock can result in losing customers.Consider shipping from fulfillment centers close to the customers to ensure their packages arrive on time.Keep a standing stock of your most popular items. Staying up-to-date with your dropshipping supplier can prevent your customers from being disappointed with unavailable items. » Still struggling to balance stock and orders? Here's how to refine your order fulfillment process 4. Optimize Packaging Your packaging needs will depend on what products you sell. But regardless of the size or material, make sure to invest in effective and recognizable packaging. You'll get universal benefits including enhancing your brand's value and protecting your goods against any physical damage during shipping. 5. Provide Shipping Options Every customer has unique expectations when it comes to shipping—and multiple shipping options at checkout are a great way to serve them all. Some standard shipping options offered under dropshipping models include: Flat-rate shipping: Customers pay a fixed price for shipping, regardless of the package’s size and weight. Flat-rate shipping can take between two to seven business days.Expedited shipping: Customers can choose expedited shipping for an additional fee. This option is faster than standard shipping, usually taking one to three business days.Local delivery or pick-up: For businesses close to their customers, local delivery provides a superior customer experience with lower shipping rates and quicker fulfillment times.Multi-product shipping: If your online store’s customers tend to buy several products at once, multi-product shipping is a great option. This allows customers to pay a single shipping fee for multiple products sent in a single package. Timelines are similar to standard shipping, which is two to five business days. 6. Be Transparent With Customers The key to retaining customers is remaining honest. By being upfront, you can manage their expectations and ensure you fulfill their orders to the best of your ability. Shipping times: By providing a realistic estimate, customers won't be disappointed by delayed orders.Pricing: Let your customers know that they're getting their money’s worth, and they won’t hesitate to return for future purchases.Customer service: A good customer service platform allows your business to build lasting customer relationships. Track Your Dropshipping Cycle For Better Success With BeProfit While dropshipping has many advantages for e-commerce sellers, it's a complex model with many variables. That's why a profit-tracking dropshipping management app like BeProfit is essential. Track all sales, profit, and shipping metrics from one dashboardLink multiple stores and shipping profiles to manage from one platformAccess your data at anytime via desktop, mobile or email » Want to see the bigger picture? Explore the latest shipping benchmarks and insights
ShippingE-commerce Shipping Insurance In 2023: What Are Your Options?Running an online store in 2023 requires shipping insurance. There are various risks during the shipping process you need to think about: parcels can be lost, damaged, or stolen before your customers even lay a finger on them. According to the 2022 Package Theft Annual Report from Security.org, nearly one out of every six Americans (49 million people) experienced package theft in the last year. Shipping insurance provides coverage for your e-commerce business against these incidents, protecting you from potential losses. While it may seem like an additional expense, shipping insurance is worth its price. Let's explore the different types of shipping insurance available for e-commerce sellers in 2023. Different Types of Shipping Insurance Flat-rate shipping insuranceInternational shipping insuranceThird-party shipping insuranceCarrier liability insuranceReturn shipping insuranceAll-risk insurance 1. Flat-Rate Shipping Insurance Flat-rate shipping is when customers pay a fixed price for shipping, no matter the size and weight of the package. The insurance rates for flat-rate shipping depend on the value of the shipped goods. Best For If you frequently ship parcels of different sizes and weights at a fixed shipping rate or deal with a high volume of goods, you can consider flat-rate shipping insurance. For example, a subscription box company that ships boxes of different sizes and weights to customers every month. ProsCovers basic risks of shipping parcelsCost-effective solution for high volumes of goodsConsMay not cover international shipmentsHigh-value items may not be included in the coverage plan 2. International Shipping Insurance Since international orders cross oceans and borders, they have a high chance of being misplaced or damaged. Best For International shipping insurance is a good option if you engage in a lot of overseas business. For example, an online retailer that sells handmade jewelry worldwide may find international shipping insurance essential to protect their valuable products during international transit. ProsCustomizable coverage according to destination, value of goods, etc.Comprehensive insurance for international ordersWorks well for high-value shipmentsConsMore expensive than other types of insuranceMay not be valid in the country you're shipping goods to 3. Third-Party Shipping Insurance Third-party insurance is the most common type among e-commerce sellers because it provides an extra layer of protection for packages at a lower cost compared to major carriers. Best For If you ship a wide range of products in various sizes and weights, then third-party shipping insurance can give you more protection for different goods. For example, a small boutique selling clothing, accessories, and home goods could opt for third-party shipping insurance. ProsOffers broader coverage than carrier insuranceMore cost-effective because of lower pricesStraightforward claims processConsPossibility of fraud from unscrupulous third partiesLimited availability depending on types of goods being sold or area of operations » Follow these expert tips to reduce your shipping costs even more 4. Carrier Liability Insurance Every major carrier offers the option to purchase insurance while shipping packages. This transfers responsibility for the package’s delivery and safety from the seller to the carrier, providing an extra layer of protection. Best For Consider carrier liability insurance if you ship high volumes of standard-sized packages. For example, an online bookstore specializing in paperbacks could rely on carrier liability insurance for their regular shipments. ProsCovers basic risks of shipping parcelsOffered by most shipping servicesConsLimited coverage in cases of damage and lossMay not extend to providing coverage for high-value items 5. Return Shipping Insurance Speedily accepting returns and dispatching replacements is crucial in online retail. Return shipping insurance protects the buyer and seller from shipping costs if unsatisfactory products are returned. Best For Return shipping insurance can be particularly useful if you offer free returns. For example, an online electronics retailer with a generous return policy. ProsProven to improve customer satisfaction levelsAffords the seller peace of mind in case of unhappy customersConsCan be costly depending on the number of returnsLimited coverage based on each return claim’s eligibility » Need to slash your shipping times to speed up returns? Here's how 6. All-Risk Insurance This is the most comprehensive form of coverage available for e-commerce retailers. It protects goods against all risks that might be present at any stage of the supply chain, providing end-to-end coverage and peace of mind. Best For If you sell and ship expensive or designer items, all-risk insurance can give you peace of mind because your valuable products may be targets for theft. For example, a luxury goods retailer that sells high-end jewelry or watches can use all-risk insurance to protect their shipments. ProsCovers both domestic and international shipmentsHigh coverage limits protect even high-value itemsConsMore expensive than other types of insuranceA rigorous claims process might delay payouts » Worried insurance will make your shipping costs too expensive? Here's how to easily calculate your shipping costs Why Consider Shipping Insurance for Your E-commerce Business? Whether your e-commerce business is large or small, customer expectations for shipping are extremely high, making it a highly competitive market. According to a 2021 survey by UPS Capital, 81% of small and medium businesses experience lose time, money, and reputation when shipments go astray. You should consider shipping insurance as a safeguard for your business, especially if you ship goods frequently or deal in high-value items. The key benefits of having shipping insurance for your e-commerce business are: Customer satisfaction: 65% of consumers surveyed by UPS Capital would prefer purchasing insurance for online shopping orders.Protection from losses and damages: Your business will no longer be liable losses due to theft, damage, or misplacement of orders.Competitive advantage: Smaller online stores can compete more effectively with larger corporations by offering efficient shipping options with shipping insurance. Factors and Requirements That Can Impact E-commerce Insurance Rates Shipping destinationPackage type and sizeDeclared value of goodsShipping carrierTransportation typeType of coverage (stock damage, physical damage, customs rejection risks, and exhibition risks)Insurance typeDocuments required (airway bill, packing list, and invoice) Sail Your E-commerce Business to Success With Shipping Insurance Shipping insurance is an essential part of long-term success for every e-commerce business in 2023. With 96% of consumers expecting free shipping and 76% expecting free returns, it's more important than ever to insure your packages. To achieve success, find the type of shipping insurance that best suits your business. Another way to enhance your store's performance is by closely monitoring it with the right tools. BeProfit is an all-in-one e-commerce dashboard that integrates sales, advertising, and shipping platforms, providing up-to-date, customizable business performance data reports. With the peace of mind from shipping insurance, you can focus better on data analysis and get the most out of your e-commerce enterprise! » Stay up to date with the latest shipping benchmarks and insights
Shipping5 Expert Tips to Reduce Shipping Costs for Your E-commerce StoreShipping costs can make or break e-commerce stores, especially small businesses. For customers, shipping is an important aspect of the overall online shopping experience since fast and inexpensive delivery often drives customer retention and loyalty. According to a Baymard study, 48% of cart abandonment is due to high shipping costs, and 22% is because of slow delivery times. This can hurt profitability and make it difficult for businesses to compete with big online retailers, like Amazon. So, let's see how you can help lower shipping costs for your e-commerce store. » Find out how to keep track of your e-commerce business expenses 1. Negotiate with Shipping Carriers Negotiations with shipping service providers can help reduce shipping costs for your e-commerce store through payment options like volume discounts. To negotiate effectively, you can try these practical tips before you calculate shipping costs: Research carrier pricing to find the best shipping method for your business needsLeverage shipment volume for better discountsMake sure the carrier doesn't adjust other factors in exchange for discounts, such as extending delivery times or reducing service qualityBuild strong relationships with carrier account managers to try and get better dealsBe willing to switch carriers if better rates can be obtained elsewhereKeep up-to-date with carrier pricing and rates to ensure that negotiations are effective and relevant By implementing these tactics, you can reduce shipping costs and increase conversion rates and profitability by providing quality shipping services to your customers. Easily Track Profits and Shipping Expenses To help keep your business performance in shape, monitor your expenses and profits all from one convenient dashboard. Get up-to-date customizable data reports on shipping expenses and store profitsBuild shipping profiles and tailor them to your store's needsAccess your data from anywhere using a desktop or mobile device BeProfit allows you to keep an eye on all your e-commerce store's shipping and sales metrics, making it easier for you to maintain your budget and spot your most profitable products. 2. Optimize Your Packaging Factors such as package weight and dimensions may affect flat-rate shipping costs. This can, in turn, hamper conversions if the rate is higher than what most customers are willing to pay. To optimize packaging for lower shipping costs, you can try these steps: Choose the right box size to minimize extra space and weight in your package Use lightweight materials such as bubble wrap or air cushions to protect your items without adding unnecessary weightQualify for fixed flat-rate shipping by using carrier-provided packaging that meets specific size and weight requirementsReuse packaging whenever possible to save material costs and reduce wasteGet free packaging from select carriers such as USPS, UPS, and DHL 3. Use a Third-Party Shipping Platform Third-party platforms can streamline shipping operations, offering a wide range of carriers to better your chances of finding optimal shipping costs that match your needs. When selecting the best third-party shipping platform for you, here are some tips: Choose a platform that offers pre-negotiated discounted rates with shipping carriers to help reduce costsEnsure the platform provides access to multiple shipping carriers, granting flexibility and the ability to compare ratesLook for a solution that seamlessly integrates with your e-commerce store, simplifying the shipping processEvaluate the costs associated with using or subscribing to the platform, ensuring it aligns with your budget and offers value for money Let's look at an example. Shopify Shipping is a comprehensive shipping solution that can help you save money, improve your shipping efficiency, and provide a better shipping experience for your customers. Shopify Shipping can help reduce shipping costs and streamline your shipping operations in the following ways: Get the best Shopify discount shipping rates and multiple carrier options that can ship internationallyManage shipping from one dashboardEasily track packages and safeguard them with insuranceSave time and costs with seamless bulk shipmentsCut costs and delivery times with hand-delivery options » Check out our full Shopify Shipping review for more details 4. Offer Free Shipping Strategically Recent Statista research reveals that 68.2% of global consumers are more likely to buy online if they're offered free shipping. So, introducing free shipping can help add value to customers, encouraging more conversions and customer loyalty. However, you should carefully consider how this can increase your overall shipping costs. Here are some tips to balance this strategy with your shipping budget: Set a minimum order amount to encourage customers to increase their average order value (AOV)Limit free shipping to specific products or product categories to control costsInclude shipping in the item price to offset the costs associated with free shipping 5. Consider Alternative Shipping Methods Alternative shipping methods can be a creative way to lower your shipping costs, depending on your business's size and delivery reach. If done well, you can help boost sales with competitive and dynamic pricing, all while focusing on customer experience. Some methods you can try include: Offer in-store pickup to your local customers to eliminate the need for carriers or external transportation costsConsider doing your own local deliveries, especially for nearby customers. This can be a cost-effective way to process shipments, especially for small items or orders. It can also improve customer relationships and engagement. » Want to make changes? Learn how to improve your order fulfillment process Manage Your E-Commerce Shipping Costs Like a Pro Now that you have ideas to help trim your shipping costs for better profits and customer satisfaction, you should keep an eye on shipping analytics to take it one step further. Rates and carrier surcharges can fluctuate throughout the year, so using industry shipping analytics can help you adapt your own rates and costs accordingly. Plus, with BeProfit's intuitive platform, you can track your store's shipping expenses' efficiency and overall profitability in real time. This way, you can analyze problem areas and make informed shipping budget and strategy changes, all to help boost your revenue metrics.
ShippingTop 6 Software Solutions for Effortless E-Commerce ShippingE-commerce shipping is a crucial process for any e-commerce merchant who wants to optimize their business. It can make or break your customer satisfaction, retention, and loyalty. However, shipping isn't easy. Up to 45% of e-commerce merchants find it challenging to meet their customers' delivery expectations. This is because shipping involves many steps, including inventory management, order processing, packaging, labeling, tracking, and delivery. Each step can have its own challenges like delays, errors, damages, or losses. That’s why you need the right software solution to streamline your e-commerce shipping. A good software solution can help you automate and optimize your shipping processes, reduce costs and errors, and improve customer experience. Best Software Solutions for Effortless E-commerce Shipping We looked at each solution's key features, integrations, and unique selling points to help you choose the best one for your dropshipping business. Shopify Shipping: Best Overall.ShipStation: Best for Multi-Carrier Options.Shippo: Best for Complex Customizable Integration.ShipBob: Best for Fulfillment Optimization.EasyShip: Most Flexible Shipping Pricing.Shiphero: Best for Inventory Management. 1. Shopify Shipping: Best Overall ProsUser-friendly interface and dashboardDiscounted shipping rates with major carriersWide global network of fulfillment centersApp store with hundreds of easy integrationsConsOnly available for Shopify stores Shopify Shipping is a built-in feature that comes with every Shopify plan. It lets you manage your shipping process directly from your Shopify admin, eliminating the need for third-party apps or services. You can print shipping labels, track purchases, and get discounted prices from major carriers including USPS, UPS, DHL, and others. Shopify Shipping also links with the Shopify Fulfillment Network where you can manage your inventory, packing, and shipping, thereby providing fast and dependable delivery to your customers. Plus, the Shopify app store offers limitless integration possibilities with other solutions like dropshipping apps and order-tracking tools. Offering a seamless and hassle-free experience for both beginners and advanced users, Shopify Shipping is easy to use, has a wide global network, and offers discounted shipping rates. » Check out our full Shopify Shipping review for more details 2. ShipStation: Best for Multi-Carrier Options ProsRobust reporting and analytics toolsStreamlines your order management processCompare rates and delivery times of different carriersSupports over 40 carriers worldwideConsSome carriers may have limited features or integrations ShipStation is a cloud-based e-commerce shipping platform that allows you to manage and ship orders from multiple sales channels with ease. Whether you sell on Amazon, Shopify, eBay, or your own website, ShipStation can help you automate your shipping processes and save time and money. Because of ShipStation's multi-carrier support, you can compare rates and delivery times of over 40 carriers worldwide, including USPS, FedEx, UPS, DHL, and Canada Post. Finetune your shipping further with any of ShipStation's integrations for inventory management systems, payment gateways, marketing software, and accounting software. ShipStation is a comprehensive and customer-friendly e-commerce shipping solution that gives you access to the best carriers, putting you on equal footing with competitors. 3. Shippo: Best for Complex Customizable Integration ProsAccess to multiple carriers worldwideDiscounted shipping ratesAddress validation and trackingCustom branding and notificationsConsRequires technical skills to set up the API Shippo can help you streamline your shipping process regardless of your shipping volume or business model. You can integrate Shippo with your online store, marketplace, or ERP system and access all your orders in one place. Shippo also offers a developer-friendly API that lets you customize your shipping workflow and automate tasks like label printing, tracking, and returns. With Shippo, you can save time and money on shipping and focus on growing your business. Shippo lets you integrate with multiple carriers and platforms, choose the best rates and services for your needs, and personalize your customer experience. 4. ShipBob: Best for Fulfillment Optimization ProsWarehousing and fulfillment servicesIntegrates with all major e-commerce platformsUses machine learning to optimize shipping timesTransparent and real-time tracking and reportingConsLimited control over inventory and fulfillment ShipBob is a cloud-based platform that integrates with your online store to automate the entire shipping process from inventory management to order fulfillment. You can store your products in one or more of ShipBob's warehouses across the US and Canada, and ShipBob will pick, pack, and ship your orders to your customers using the best carrier and service level for each order. By using machine learning, ShipBob analyzes your shipping data and gives insights on how to optimize your shipping strategy and reduce shipping costs. ShipBob is a comprehensive and scalable fulfillment partner that automates your shipping process and tracks relevant data to help you improve logistics. 5. EasyShip: Most Flexible Shipping Pricing ProsAccess to over 250 shipping solutionsTransparent and competitive shipping ratesSave costs by showing you the best shipping optionsAutomates label generation and printing processConsMay charge extra for some features depending on your plan EasyShip is a web-based shipping platform that connects e-commerce sellers with global couriers. With EasyShip, you can easily compare and choose the best shipping option for your orders, based on price, delivery time, and features. You can also automate the total shipping process, from label generation to customs clearance, and send branded tracking emails to your customers. Plus, EasyShip helps you save money on shipping by offering exclusive discounts from over 250+ shipping partners, including USPS, FedEx, DHL, and UPS. EasyShip is suitable for businesses of all sizes and niches because it offers a wide range of shipping options and features, allowing you to choose options that easily fit your budget. » Follow these steps to calculate your shipping costs 6. Shiphero: Best for Inventory Management ProsFast and accurate picking and packingReal-time inventory managementLive tracking and notificationsAdvanced reporting and analyticsConsRequires compatible hardware Shiphero is an e-commerce platform that offers both a warehouse management system (WMS) and a fully outsourced fulfillment service. As an inventory management solution, Shiphero lets you control your stock levels, allocate orders, set replenishment levels, and perform cycle counting. You can also create kits and bundles, track expiration dates, and manage serial numbers. With Shiphero, you can streamline your warehouse operations and reduce errors and costs. Shiphero is a reliable and scalable e-commerce shipping software that can handle your inventory management needs. What to Look for When Choosing the Best Software Solution for E-commerce Shipping There's no software that can suit every e-commerce store perfectly. The best choice will depend on your store's specific needs, goals, and budget. Here are some factors to consider when comparing different software solutions for e-commerce shipping: Ease of use: How user-friendly is the software? Does it have a clear and intuitive interface? Can you easily set up and manage your shipping options, labels, and tracking?Customization options: How much control do you have over the look and feel of your shipping process? Can you customize your shipping rates, zones, and methods? Can you create branded labels and packing slips?Integrations: How well does the software integrate with your e-commerce platform and other tools you use? Can you sync your inventory, orders, and customer data? Can you automate your workflows and streamline your operations?Scalability and shipping volume: How does the software handle your current and future shipping volume? Does it offer discounts or incentives for high-volume shippers? Can it support multiple warehouses and fulfillment centers?Customer support: How responsive and helpful is the support team? Do they offer 24/7 assistance via phone, email, or chat? Do they provide training and resources to help you get started and troubleshoot issues?Cost: How much does the software cost per month or per year? Are there any hidden fees or charges? What are the benefits and drawbacks of each pricing plan? » Discover more shipping benchmarks and insights for your e-commerce store Optimize Your E-Commerce Shipping With BeProfit Partnering with the right e-commerce shipping solution can help you streamline the logistics side of shipping. But you need an effective way to measure shipping performance and how your current shipping process is influencing your profit. Profit analysis dashboards like BeProfit can help you to: Stay updated with shipping costs reportsIntegrate shipping data from different sourcesManage multiple shipping profiles from one dashboard
ShippingShopify Shipping: The Choice Shipping Platform For E-commerce MerchantsShipping seals the deal when it comes to e-commerce sales. After all, this is when customers receive their orders and form an opinion about the business. Unfortunately, according to Loqate research, a staggering 62% of consumers have experienced late or failed delivery. This is an alarming concern that can significantly impact customer satisfaction and shrink profits. For shop owners, shipping can be a major source of headaches—trying to figure out the best fulfillment solutions, juggling delivery times with cost-efficient fees, and tracking orders from start to finish. But with Shopify Shipping in their corner, online businesses can worry less about these operational hassles. This comprehensive tool provides fast real-time rates, label printing for purchases, and order monitoring—making order fulfillment smoother than ever. In this review post, let's dive into all the ways Shopify Shipping can boost your business's success. ProsEasy to use interfaceReal-time shipping ratesLabel purchasing and printingOrder trackingIntegration with Shopify storesConsOnly available with Shopify Best For Shopify Shipping caters to a wide range of businesses, offering valuable shipping solutions to meet various needs. It's particularly beneficial for: Small and medium-sized Shopify storesStreamlined order fulfillmentInternational market expansionIntegrationsCost savings and discounts » Find out where your store fits in with shipping benchmarks and insights Overview of Features Discounts Shopify Shipping works with carriers to offer discounted shipping rates to its users. This means you can save money on shipping costs and pass those savings on to your customers. Plus, Shopify Shipping makes it easy to generate shipping and packing labels and offer discount codes to your customers. » Try these insider tips to get the best Shopify shipping rates Help with Cost Calculations With third-party calculated shipping rates, you can accurately calculate shipping costs based on the weight and dimensions of your products. You can also set product pricing by market and manage duties and import taxes. » Need to reduce your shipping costs? Follow these expert tips Global Reach Shopify Shipping makes it easy to manage your international markets. You can translate your store into multiple languages, manage market domains and subfolders, and offer international shipping options. Streamlined Fulfillment Process With Shopify Shipping, you can create manual orders, automate tracking updates for customers, print labels at home or at the post office, and schedule pickups for certain carriers. This makes it easy to manage your business and save time. Plans & Pricing As a Shopify account holder, you have access to Shopify Shipping. However, shipping costs aren't taken care of automatically. These fees will vary depending on the merchant's own carrier options and chosen rate plans, such as flat-rate, weight-based, price-based, or general. With several account plans available—including a free 14-day trial—the choice is yours. Basic Plan $32/monthCreate your store, ship products, and process payments Basic reports Up to 1,000 inventory locations2 staff accounts Starter Plan $5/month for 2 months Sell products through social and messaging appsOne public storefront Add unlimited products to your store Shopify Plan $92/month Professional reports Up to 1,000 inventory locationsUp to 5 staff accounts Advanced Plan $399/month Custom report builder Up to 1,000 inventory locationsPp to 15 staff accounts Shopify Plus $2,000/month for 2 monthsIncludes everything in the Advanced Plan plus additional features like Hydrogen storefronts Commerce Components Commerce Components by Shopify is a modular pricing based on component usage. Contact sales for more information. Integrations With multiple integrations to third-party shipping services, you have the luxury of plenty of options, local and international. However, some integrations may have more restricted availability, so be sure to check that your chosen carrier delivers to all the territories you need it to. USPS: The United States Postal Service is the national mail carrier of the US. It offers customers both nationwide and international mailing services.DHL Express: Specializes in fast global deliveries across its operations network spanning over 220 countries and territories.FedEx: Another global courier service that offers a range of shipping options, from overnight to ground delivery. It also provides tracking and insurance for your shipments.Canada Post: The country's national mail carrier, providing domestic and international delivery services.Royal Mail: The national mail carrier of the UK. It offers domestic and international shipping services, as well as tracked and signed options.EasyShip: A shipping platform that connects you with over 250 couriers worldwide. It helps you find the best rates, calculate taxes and duties, and track your shipments.ShipStation: A shipping software that helps you manage your orders, print labels, and automate your workflows. It integrates with over 100 marketplaces, carriers, and fulfillment services.ShipBob: A fulfillment service that stores, packs, and ships your products for you. It has fulfillment centers across the US, Canada, Europe, and Australia. Usability It takes only a few minutes to set up Shopify Shipping and get started. The onboarding process is straightforward and includes a checklist to ensure that you have everything you need to get started. The user interface is simple, easy to navigate, and intuitive—no coding or technical know-how required. Support Shopify Shipping provides 24/7 English live chat support to help you with any questions or issues you may have. If you’re on the Shopify Plus plan, you’ll also get personalized migration, launch, and account management support at no extra cost. You’ll also have access to platform knowledge and industry insights through the merchant success program. Shopify Shipping offers a variety of resources to help you get the most out of your shipping experience. These resources include blogs, how-to guides, and business courses. You can also check out their YouTube channel for more information. Make Shipping a Breeze With Shopify Shipping Shopify Shipping is an excellent tool to make your life a whole lot easier. From its inclusive and intuitive platform to streamlining your fulfillment process and automating multiple shipping tasks, this no-fuss solution will help you save time and money—despite being only available with Shopify. By using Shopify Shipping in combination with BeProfit’s platform for easy sales and profit tracking, you can turbocharge your Shopify store. Fully customizable dashboardManage all your shipping profiles from one platformOne-time integration to track all of your shipping costs » Not sure which shipping metrics to track? Start with this core list