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5 Ways eCommerce Delivery Lowers Costs

When it comes to ecommerce, the customer experience goes way beyond the point when the customer places their order on the website. Customers expect more from the delivery process, such as control, visibility and communication. However, ensuring that businesses meet customer demands can also be expensive for them. We will look at some of the ways that ecommerce delivery can lower costs for businesses.

eCommerce delivery pertains to the delivery services that companies use to sell their products online. eCommerce delivery is essential as it can make or break a business. The delivery experience that customers receive will influence sales, and it will determine whether customers make a repeat purchase. Companies need to ensure that they can meet customer expectations while reducing the high costs associated with delivery. We will look at how ecommerce delivery assists businesses in lowering their costs.

  1. Finding the Right Carrier Service at Reduced Price
    Businesses always have thousands of carrier services that they can choose from, making it challenging to select the best option for their business. In a time when there is high-volume international distribution, shippers need to have access to an extensive carrier services network that enables them to meet their customers’ delivery expectations. Through ecommerce delivery solutions, businesses will have easier access to all their carrier options, allowing them to compare carriers and the services they offer instantly. Having access to these options allows them to choose the best service for all their shipments, which will enable them to meet their delivery objectives while ensuring that they pay the lowest cost for their shipments.
  2. Resolving Problems Through Tracking Shipments
    Through ecommerce delivery solutions, businesses will be able to gain end-to-end parcel tracking, which is beneficial as tracking these parcels from the distribution centre or warehouse until they reach the customer’s doorstep allows them to resolve any transportation or processing issues that might occur in real-time. Tracking packages is also beneficial as it provides customers with delivery updates as well as the option for them to personalize their delivery method, which improves the delivery experience that they have.
    The tracking information can also be collected, allowing customer service teams to troubleshoot delivery exception events and offer real-time customer updates. Through tracking, the business will reduce inefficiencies that can drive up costs in the delivery process and avoid failed deliveries which can be expensive.
  3. Streamlining Shipping Processes
    The goal for ecommerce businesses is to deliver products to their customers on time with minimal cost and without any damage occurring. eCommerce businesses also aim to provide customers with an efficient delivery experience. ECommerce delivery ensures that companies can meet their customers’ delivery expectations from their business system. eCommerce delivery ensures that businesses’ select the carrier that can provide the best rates that align with their business rules, ensuring that each shipment complies with each carrier’s communication and labelling standards.
    eCommerce businesses can also benefit from zone skipping that assists in meeting customer expectations while decreasing transportation costs. Zone skipping, also known as ‘hub induction’, is where multiple customers’ orders are consolidated in the first leg of the delivery process. Then for the last-mile delivery, they are inserted into a parcel carrier network. Zone skipping is also beneficial for cross-border shipping as it makes end-to-end logistics simpler.
  4. Negotiating Carrier Contracts and Accurate Invoices
    The numbers on invoices, like carriers might not always be perfect. When it comes to ecommerce businesses, most might be used to dealing with the inaccurate application of carrier surcharges and other fees. These surcharges and costs might be challenging to catch using manual invoice auditing. However, businesses can quickly uncover savings opportunities using ecommerce delivery through analytics tools and freight audits for their delivery operations. Analytics tools and freight audits streamline the financial management of delivery costs by automating carrier invoice matching, enabling businesses to identify any invoice discrepancies.
  5. Data-Driven Decisions
    Having access to delivery data is crucial for businesses as it assists them in understanding the impact of certain decisions and factors that affect how they perform and how much they spend. Factors such as delivery speed, distance, parcel size and density will affect how much is spent for their transportation carrier landscape. Businesses that do not have access to data will be unable to see how and where changes will occur, which puts them at a disadvantage in carrier negotiations. However, through harnessing data using business intelligence tools, businesses will see the effects of certain factors on their transportation spend. Data will also allow the company to quickly identify areas where negotiations can occur and empower them to make cost-saving supply chain decisions in line with their business strategy.

The benefits that ecommerce delivery offers when it comes to cost savings are clear. It is essential that businesses who are looking to reduce their expenses while meeting customer expectations consider it.