The challenges of fulfillment, transportation, and supply chain are increasing. Customer expectations are similar.
Customers like quick, free shipping options: 75% of respondents in a recent study indicate that the availability of free shipping significantly or very significantly influenced their choice to make a purchase. According to this study, shoppers value dependability and transparency while shopping online even more than price and quickness. For you, that is establishing trust through frequent, unambiguous communication.
The Future of Commerce Report, a comprehensive roadmap based on in-depth research, information from millions of Shopify merchants, and expert interviews, was just published. The knowledge you get from this study will assist you in overcoming shipping obstacles, exceeding consumer expectations, and developing strong shipping strategies and procedures as you adjust to the ever-changing environment of e-commerce.
At Siam Shipping, thanks to our extensive experience in logistics, we're going to analyze this study to help you understand how to satisfy your customers and meet their expectations.
Table of Contents
Increase openness regarding shipping deadlines and prices
In the survey, it is stated that 68% of consumers would prefer free returns and estimated delivery times, and 74% of consumers want to see shipping prices up front when making purchasing selections.
Shoppers are curious about:
- What will the shipping cost be?
- What are the shipping delays?
- Do I need to pay to return something?
- If my order is delayed, will you keep me informed?
These are the adjustments you can make to increase shipping process transparency.
Create a strong shipment information page
The longer you are open and honest with customers regarding your shipping practices, the more trust you will earn from them. Furthermore, if expectations are established upfront, later assistance requests can be handled more quickly.
Create a shipping-focused page for your website. The fundamental components of this page are as follows:
- Every shipping choice you provide. Indicate the prices and speeds of each option.
- Processing time for orders. How soon after placing an order can a buyer anticipate receiving it? Exist any exclusions?
- Alternatives for both domestic and international shipping. Customers from all over the world want to know if you ship there, how quickly, and how much.
- A complete return policy. Indicated if you offer free returns, in-store or by delivery.
- Shipping delays. Provide an accurate estimate of delivery times.
- Cancellation conditions. Indicate if it is possible to cancel an order and how much time customers have to do so.
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Enlist shipping costs before proceeding with checkout
Have you ever discovered the ideal product, put it in your cart, and then scoffed at the shipping cost to your home? You probably immediately closed the browser and shifted to another company where you could order a comparable item for less money.
According to a 2021 study by the Baymard Institute, 49% of customers left their carts at the register because the added fees, such as shipping and taxes, were too excessive.
By mentioning shipping costs before a customer reaches the checkout page, you can prevent cart abandonment. It's a good idea to start by including delivery costs on your shipping information page.
In particular, for large, bulky, or heavy items, think about including delivery costs in the buy box or on each product page. For instance, if you sell furniture, you might charge $150 for flat-rate shipping. Put that in the product description, a buy box, or another place with information so that customers can see it as they browse.
Even if your shipping prices are expensive, taking the element of surprise out of the equation creates transparency and establishes expectations upfront.
When they notice a final price that is substantially greater than what they had anticipated, customers can mentally add the additional cost to their purchase while they shop rather than abandoning a basket.
Inform customers that you also provide low-cost or free shipping. They may require that extra push to finally buy something.
Include explicit return and price policies
If a customer buys something from you, especially if it's their first time, they should understand how to return it to you if they're unhappy with it and how much it will cost them in terms of time and money.
Inform customers of your return policy, similarly to how shipping costs are disclosed upfront. Your shipping information or specific returns page should offer a complete description of your return policy. You should also include information regarding your return policy in the "additional information" section of your product sites.
Consider including that information as an icon in the product buy box if you provide free, inexpensive flat-rate, or in-store returns, like jewelry retailer Stone and Strand does. Make that policy extremely clear if you don't accept returns.
Make clearer delivery estimation and prioritize checkout
Customers are curious about the length of the shipment process. The survey found that 45% of consumers want to see clearly stated expected delivery times.
If you provide a variety of shipping options, it will be challenging to convey all the time estimations on your website. Keep the long list of delivery times for your shipment information page.
Instead, think about placing a banner at the top of your website that lists the least expensive choice. Any version of "$X flat rate shipping, delivered in Y to Z business days" could be used in the copy.
Directly in the buy box is another location to display this kind of information. On its product pages, Stone and Strand do a fantastic job of clearly stating production times and shipping costs. The company discloses that the product is in stock, how long it will take to ship, and when it is anticipated that it will arrive.
Add a second line with the anticipated delivery date to go the extra mile.
Inform about any shipping delays before payment
Make sure to let your customers know as soon as there are any shipping delays, as so many other companies do, Beneath Your Mask, a high-end skincare company advertises both its shipping options and the fact that there are delays at the very top of its website.
Customers visit the homepage and immediately see that update.
Once a consumer has placed a purchase, email them to inform them if the delivery timeline changes. If you can, explain why the timeline is taking longer than anticipated. The worst thing you can do, especially if the timeframe is extended by more than a day, is to not provide any kind of update.
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How can shipping procedures be improved to meet rising customer expectations?
Consumers stated that these shipping options had a "very large influence" or "considerable influence" on their choice to make a purchase in the Future of Commerce report:
- Free delivery: 75%
- Quick shipping (such as same-day or next-day delivery): 60%
- Adjustable shipping (such as choosing the delivery time and date): 53%
In order to meet these expectations, several firms are investing in the implementation of free or flat-rate shipping.
Some of these options will cost more money for your company to implement, but there are methods to mitigate those costs, such as by providing flat-rate shipping, including shipping costs in your product margins, or using Siam Shipping for cheaper shipping rates. Here's how you can match this year's increased consumer shipping expectations.
Make free delivery service
Consumers love free shipping. But recovering it out of pocket can put a huge strain on the profits of your e-shipping business. Here are a couple of ways you can offset the burden of free shipping:
- Factor it into the margin of each product you sell. Do you have a big enough margin on your products to cover shipping costs and still turn a profit?
- Increase the price of your products to include shipping costs.
- Offer free shipping right above your average order volume threshold to raise your average order value (AOV). Win-win!
- Make free shipping a promotion that you run a few times per year.
- Use free shipping as a way to increase SMS or newsletter subscribers.
Use a shipping company to receive lower prices.
At Siam Shipping, based on our eight years of expertise, we will identify the best logistical solution and provide a customized and affordable service through our network.
Provide a flat-rate shipping
Consider offering a flat-rate shipping option if you can't or don't want to offer free shipping to your clients. You have three options: take on the entire sum, split it among your consumers, or give it to them. If shipping your products costs a lot, flat-rate shipping is a wonderful method to set expectations upfront.
Here are a few strategies for utilizing flat-rate shipping:
- You can tie the flat rate to the cost, the weight, or the shipping distance. Orders up to 15 pounds, for instance, might ship for $5, orders up to 25 pounds, for $15, etc. If you choose this course of action, create a table that details the flat rates associated with each order amount, weight, and/or distance.
- On all orders or on orders greater than a specific amount, provide a flat cost. Look at your typical order value and apply a flat rate to any orders that are a few dollars or more.
- Every order will be charged the same flat rate. Simple and straightforward, but you could pay a little bit more for it.
It really is up to you to determine how to compute flat-rate shipping. We advise figuring out the average shipping price for each item in your whole product inventory as the first step in the process.
Increase your shipping options or use precise shipping costs
Customers will become dissatisfied if you just offer one or two shipping options, and they are all pricey or take a very long time. If you decide against using flat-rate or free shipping, make sure to provide clients with at least three options that range in price and speed, so they can pick the one that best suits their needs.
Charge exact shipping rates, which implies charging your consumers exactly what the carrier will charge you to send their item, as one approach to do this. Pick from a range of carriers, speeds, and prices.
Despite the fact that it could cost more from your customer's perspective, make sure you constantly offer options for quick shipment.
Reduce delivery costs and give customers savings
Many other business owners struggle with keeping shipping expenses down. Here are four suggestions for reducing shipping costs:
- Lighten the packing. An envelope weighs less than a box, while corrugated boxes are lighter than regular cardboard. To fill up space and protect objects, use the lightest packaging material you can find, such as tissue paper.
- From USPS, request free boxes and envelopes. Simply register for an account with USPS to have a variety of boxes sent to your home or place of business for free.
- Use packaging of the proper size. You will only pay more if you pack a tiny object in a medium-sized box. Reduce the weight and expense of shipping by using the smallest box, envelope, or padded mailer you can.
- Get discounted rates through Siam Shipping. Save up a lot of money on shipping costs through Siam Shipping.
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Be original with your packages and notices
By providing little treats for your consumers inside each package, you can stand out from the competition. That may be an incredibly cool box, a handwritten message, a brand-name sticker, or a fridge magnet.
At Siam Shipping, we offer you custom packing services. Add branded colors or designs to your package to make it uniquely yours. If this year's resolution is to become more environmentally friendly, you can also buy packaging made from sustainably harvested materials.
Advice on improving the sustainability of the shipping process
An increase in sustainability is one of the top priorities for 53% of companies for the year 2023.
Finally, the use of more environmentally friendly packaging for products and shipping is becoming increasingly widespread among businesses and customers. Here are a few methods for embracing this shipping fad with eco-friendly shipping choices.
Use sustainable packaging instead
Making the switch to sustainable shipping materials provides advantages for your company in addition to benefiting the environment. According to the study, 46% of customers are more likely to make an online purchase if the product's packaging can be recycled.
As a result, you must not only move to a more environmentally friendly shipping option but also prominently promote your dedication to sustainability on your website. Add a website devoted to your sustainability goals, including sustainability information on your product pages, or let consumers pay to offset carbon emissions when they check out.
The owner of Abracadana, Mary Helt, states that she and her company place a high value on using environmentally friendly shipping supplies. There are numerous possibilities, she asserts: "You can use a recyclable, compostable mailer. They're not at all pricey!"
There are various possibilities for sustainable packaging, and as Mary points out, going green doesn't have to be more expensive. Here are a few businesses that market eco-friendly shipping supplies:
- EcoEnclose. EcoEnclose offers a wide range of products, including recycled-content boxes and mailers, that are 100 percent recyclable and compostable. Purchase a case of 250 recycled paper mailers for $80 or 25 for $14.
- Arka. Arka produces custom-branded packaging and provides a line of shipping supplies made from ethically based materials. Prices for 250 white six-by-six-by-two-inch mailer boxes start at $392.50, however, you'll need to write in for a quote for custom boxes.
- Noissue. Mailers from Noissue are entirely compostable and biodegradable. Purchase 50 envelopes measuring 160 by 230 millimeters for $15.
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Give clients a chance to pay to offset emissions
Allow customers to make a small donation—say, $1 or $2—to offset the carbon emissions associated with shipping their orders.
Customers can pay to plant trees or offset the carbon emissions of their orders using these applications at the point of sale.
Bulk shipping
The environmentally friendly retailer Zero Waste Cartel advises delivering goods in bulk because doing so results in using less packing and emitting fewer emissions than shipping goods individually.
Customers receive a bulk discount and the assurance that their order is better for the environment compared to delivering 10 toothbrushes once versus 1 toothbrush 10 times.
Conclusion
For shipping in 2023, dependability and transparency are essential.
Customers are more interested in knowing the price and time frame of shipping when making an online purchase in 2023. Customers will feel more comfortable making long-term purchases from you if you are open and honest with them upfront and make your shipping delays, shipping costs, and sustainability pledges evident on your website.
With Siam Shipping, you can make big savings on your shipping. We determine for you which method of transportation, such as sea or air freight, will be the most cost-effective for you. And thanks to our long-standing partnerships with our carriers, our shipping costs are the most attractive. Do not hesitate to contact us for more information!
FAQ | Meeting Customers’ Expectations for Shipping
What are the main shipping methods?
The main transportation methods are air freight, sea freight, road freight, and rail freight.
Sea freight will be the most used for long-distance and oversized shipments.
Air freight can also be used for long-distance shipments, but the quantity of merchandise will be much more limited and the price higher.
Rail freight is the most ecological and secure method, but the world rail network is not sufficiently developed, this method is profitable only for shipments between Europe and Asia.
Road freight is used for local shipments or shipments between border countries, or most often as a complement to another freight method.
Why is it so expensive to ship a package internationally?
Shipping a package internationally can be more expensive than shipping domestically for several reasons:
- Distance: Shipping a package further away from the origin to a different country typically involves more transportation costs and logistics.
- Customs and duties: Packages that are shipped internationally are subject to customs and import duties, which can add to the cost of shipping.
- Insurance: Shipping insurance is typically more expensive for international packages, due to the higher risk of loss or damage during transit.
- Fuel costs: The cost of fuel can also affect international shipping rates, as carriers may pass on the increased cost of fuel to customers.
How can I save on shipping costs?
Use Siam Shipping to benefit from attractive shipping costs thanks to our network of carriers and our knowledge of the market.
You will be able to offer cheaper delivery fees to your customers to attract more of them or increase your margin.
Why is it important to indicate on our online shopping site the costs and delivery times?
Indicating the costs and delivery times of products on an online shopping site is important for several reasons:
- Transparency: Providing clear and accurate information about the cost and delivery time of products helps establish trust with potential customers. This is because customers are able to see exactly what they are paying for and when they can expect to receive their order.
- Better decision-making: Customers use the cost and delivery time information to make informed purchasing decisions. They can compare the prices and shipping delays of different products and choose the one that best meets their needs.
- Reduced customer complaints: If customers are aware of the delivery time and cost upfront, they are less likely to experience disappointment or frustration when their order arrives later or costs more than they expected.
- Increased conversion rates: A well-designed online shopping site that provides clear information about costs and delivery times is more likely to attract and retain customers, and can ultimately lead to increased conversion rates and sales.
What are the shipping trends for 2023?
Here are some of the shipping trends that are expected to shape the e-commerce industry in 2023:
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