At Sooqr Search we care about our customers’ web-shops as if they are our own. It is great to have an excellent site search tool, however there are more pieces to the puzzle. We have quite some friends that we like to introduce to our customers because they offer another complementary service to Sooqr.
In this edition we’d like to tell you more about SendCloud, one of our great friends. SendCloud is the number one smart shipping tool for e-commerce! Continue reading to find out more on how to optimise your web shop by utilising this Top 10 European Start-up 2016-nominee’s smart shipping tool.
The web shop owner’s creed: too much tasks, too little time. Taking care of product packaging and shipping is one of these tasks. You’ve closed the sale anyway, but now you have to adhere to what you promised to your customer. For a lot of web-shops the logistical part of a sale is complicated and very time-consuming. After all, who’s got the time to package, label, and hand off deliveries at the post office when you actually want to continue improving the web-shop to increase sales. Where larger players have the luxury of offering free delivery and returns, smaller businesses have to be extra careful with every penny they spend. So it looks like an impossible task to get your logistics process up and running. Luckily this is exactly in which SendCloud can help you as a web-shop owner!
SendCloud helps your business grow by optimising the logistical process of the sales in your web-shop. Initially founded by previous web-shop owners, they know exactly what you’re going through. Like every other web-shop owner they thought this process was more complicated than necessary and took too much time. However, logistics are a crucial part of the buying process and customer demands are continuously increasing. Not only do they expect delivery as quick as possible; they also want to be able to choose when and where they receive their order. Research points out that 83% of online shoppers wants to see different delivery options on the product pages and 80% demands clarity over delivery times. Return policies are also important because this makes them more inclined to purchase products in different sizes or colours and return the ones they don’t like with ease.
An efficient and smart shipping strategy can help make this one of your Unique Selling Points.
Making your web-shop logistics commercially viable
To increase conversion rates with logistics and utilise it as efficient as possible, SendCloud has provided us several unique insights that we’d love to share with you! We’ve listed them below and are convinced that when applied appropriately you will definitely see the benefits. In any case, we hope to have given you new insights and inspiration to continue innovating your web shop on a functional and strategic basis.
- Variety in delivery options
Shoppers want to have influence in how delivery takes place. If you want to beat the competition, you’ll need to offer different delivery optionsat least. Think of combining delivery at a collection point with night time, next-day, or weekend deliveries. Same-day delivery is gaining momentum, and oftentimes consumers are prepared to pay an extra fee.
- Doubting about offering free delivery?
If you’re selling products at a low price with a low margin you shouldn’t offer free delivery. Repeated purchases are likely to increase then, but so will your transport costs. Eventually the benefits won’t weigh up against the costs.
However, instead of offering unlimited free delivery you might want to consider free delivery over a certain order size. This way you’ll avoid wasting your margins and you actually increase the likelihood of extra sales.
“What does it matter if I spend €40 and a €5 shipping fee, or spend only €5 extra on an extra product and enjoy free delivery?”
- Charge full shipping costs?
Charging full shipping costs to customers will be a reason for a customer to not place his order with your web shop. Instead, it should be your goal to charge as little as possible without it costing you too much. Some even tend to raise the price for the products to compensate for a lower shipping fee. No wonder that high transportation fees are the primary reason for customers to empty their basket and leave the check-out page. As a rule of thumb you should keep in mind that transportation fees should not be more than 10% of the purchasing price. This will increase your chances of catching an order.
- Smart return policies
Free returns increase conversion rates because when in doubt it the customer is more inclined to just purchase and see how they will eventually like the product. Humans being humans it is easy to neglect returning a product that’s nice to have and it’s already paid for anyway. It also increases impulse-buys because of the ease of mind that no risk is taken in case they wish to return products. This is actually the way Zalando stormed the e-commerce industry several years ago. The downside for businesses is that a free return policy will have an impact on profit, especially when delivery is also free. Yet, consumers are demanding. They also demand a smooth and easy return policy. The best to to meet this demand is making the return process as efficient as possible. This includes providing a return-label that can be pasted on the same box it was delivered on. You could also add an info sheet to find out as to why they are returning products. This way you can collect valuable data that you can use in your web shop. Providing return-labels ready to be paste on the box also decreases errors in returning, after all, typos and other errors are left out and the chances that the returned pieces will arrive at the wrong destination decrease.
- Keep your customers up to date.
One important aspect of logistics optimisation on your web shop entails communication. Transparency in communication is usually highly appreciated by consumers, because then they know exactly what is going on with regard to their purchase. Showing delivery options on each product page is an example of how this can be done. Always show transportation fees well in advance. Remember, finding out about high transportation fees only at the final stage of checking out is highly likely to prompt the visitor to leave your shop. Next to communicating transportation fees it also helps if they know in advance about the return policy and how and where their products can be delivered. For example, telling the customer that this product can be picked up at the nearest collection point (given you have their location). If your return policy is generous, i.e. free delivery and returns, this should always be well advertised as it can serve as a dealmaker in case of doubts.
Finally, the best way to keep your customer up to date, though, is providing customers with a track-and-trace code with their orders. Sending an text message or e-mail whenever their package passes through to the next step in the processes and finally including an track-and-trace code will give your customers ease of mind.
Our friends at SendCloud are experts when it comes to the logistical processes for your web shop, and we hope these tips will give you a good start. The best way to put these to the test is to experiment with them. Apply A/B-testing to find out what works best for your target audience. This can be done for different countries or different product groups. See what happens to the conversion rates to find out what best suits your needs and those of your target audience.
Try is out!
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