E-COMMERCE SHIPPING OUTLOOK: EFFICIENCY, EFFECTIVENESS, CONSISTENCY
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By Gaston Curk
he twists and turns on the consumer’s road from purchase to parcel can influence e-commerce retailers’ bottom lines in a direct relationship to customer experience (CX), and last-mile delivery is a huge component. In one survey of shoppers, 76% of respondents said that an unacceptable delivery experience would strongly or somewhat affect their decision to order from that brand again, which makes shipper and carrier satisfaction a sizable component of overall CX. With the risks and rewards top of mind, e-commerce brands are challenged to evaluate the myriad of obstacles in front of them and narrow in on a few key areas to shore up a parcel shipping strategy that’s prepared to tackle anything that comes their way in 2023 and beyond. As e-commerce brand decision makers look to allocate and maximize shipping budgets and resources, parcel professionals should advise their clients to focus on three elements essential to shaping a successful delivery experience: Efficiency, effectiveness, and consistency. Create Efficiencies Efficiency in shipping and delivery can be interpreted in multiple ways, including things like access, packaging optimization, and reducing “touches” from pickup to drop-off. In almost every case, working with the proper carrier partner will ensure these and others can be realized by shippers. In terms of experience and network size, the US Postal Service is the industry leader for last-mile delivery, and car-
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riers who partner with the USPS make for optimal efficiency advocates on behalf of shippers. Considering access, USPS reaches every home and business in the US — approximately 160 million physical mail and PO boxes — as frequently as seven days a week, whether “dense urban” or “sparse rural.” Let’s look at that last part, where an extra stop on a delivery route can add miles, not blocks. One major carrier announced an additional $13.25 surcharge per package for shipments to several designated rural ZIP codes, affecting some three million destinations. In total, 24,000 of the country’s 42,000 ZIP Codes represent rural areas, so it’s critical to deliver to these customers efficiently. Further, if an e-commerce brand ships hundreds of packages every day, it’s essential that its last-mile partner has the bandwidth to keep up with this kind of volume. Not every carrier does, but this is an area where USPS excels. No matter how quickly a brand’s business scales, there’d be no need to worry: Carriers working with USPS can help ship faster, more efficiently, and at a lower total cost. Prioritize Cost-Effectiveness The cost of shipping for e-commerce brands — especially small businesses — can have a significant impact on conversion rates and overall profitability. It’s often the top reason for cart abandonment and can impact customer loyalty and repeat business. As such, minimizing such costs needs to be a large area of focus for e-commerce brands.