Save on shipping it is a goal shared by both those who buy and those who sell on the internet. After all, both sides want to pay the lowest possible amount for deliveries, right?
But this task is not that simple! It is not just today that freight represents a challenge for the development of London e-commerce, being even pointed out as the main responsible for cart abandonments.
Although the country’s logistical situation has improved in recent years, with more carriers used to serving e-commerce, saving on freight can still be a challenge. That’s why we’ve put together 5 tips showing how you can do this. Good reading!
Although it does not directly contribute to decrease the actual value of freight, the tactic makes the shipping cost not as representative for those who make the purchase. It is especially useful for those who sell products whose unit price ends up being similar to the average freight value.
For example: if you sell mugs at R $ 20.00 and your average shipping costs R $ 15.00, this means that shipping costs 75% of product price. The customer would need to pay R $ 35.00 to receive only one mug from your store, which is unattractive.
Things change when you assemble product kits. Say you sell kits with three mugs for R $ 60.00.
The average freight value will not change significantly due to the addition of two products to the package, but the buyer’s perception will change in most cases.
You will agree that, for the customer, it is more “acceptable” to pay R $ 15.00 for a purchase of R $ 60.00 than for a purchase of R $ 20.00, right?
The question becomes clear when we establish a direct comparison:
- 1 mug for R $ 20.00 + R $ 15.00 shipping. Delivery corresponds to 75% of the total purchase price.
- 3 mugs for R $ 60.00 + R $ 15.00 shipping. Delivery corresponds to 25% of the total purchase price.
This approach also goes very well with the mental trigger of free shipping.
You can assemble a product kit, embed part of the freight cost in the final price and, with that, create even more attractive offers for your audience. Returning to the example above, it would look something like this:
- R $ 3 mugs for R $ 70 + free shipping. In the customer’s perception, there are no costs for delivery of the order.
The print exemplifies the strategy of using product kits to reduce the customer’s perception of the freight price. Image: Free Market (reproduction).
2. Work with pick-up points to save freight
The withdrawal points (pick up points, in English) are not exactly new. The idea of buying on the internet and withdrawing at a physical point is already part of the consumer’s routine.
Large London companies have been using the strategy for some years. Via Varejo, Lojas Renner, Magazine Luiza are just a few. In the United States and in European countries, then, the concept is even more widespread.
And why do pickup points help to save on shipping? This is because they eliminate the last mile, the most expensive stage of delivery. According to an ILOS study, the last mile represents 45% of logistics costs of e-commerce companies.
The last mile ends up being more expensive because it concentrates most of the freight difficulties.
Traffic in London cities makes it difficult for carriers to work, there are areas that are difficult to access, the recipient is often not at the address to receive the order, generating the need for new attempts… All of this contributes to increase delivery.
It is not difficult to understand why the pick-up points can help you save on shipping, right?
Despite this, implementing the strategy can be challenging for small and medium-sized salespeople, who do not have the physical store structure of large chains.
However, thanks to the maturation of the national logistics market, alternatives are emerging that make the pick-up points feasible for sellers of all sizes. The Post Office has the Click and Remove, a service in which the shopkeeper can use more than 6 thousand branches of the state-owned company as pick-up points.
Another similar alternative is the Jadlog Pickup. Through partnerships with merchants, Jadlog created a network with more than 3,000 pick-up points.
Smart lockers also appear as allies of cheaper freight. In this delivery model, the customer chooses a locker as the destination address of the goods. The carrier leaves the package there, the customer is notified and picks it up.
Amazon lockers are very popular in the United States and Europe. Image: Amazon (reproduction).
If you want to save on shipping, it’s interesting to think of ways to take advantage of these logistical innovations to implement the pick-up points in your online store strategy.
3. Identify problems related to freight calculation
Problems related to freight calculation may increase the cost of deliveries. As it is not always easy to identify this type of situation, we will list 3 of the most “traditional” causes for it to happen.
Errors in the product registration step
In addition to taking into account the distance between zip codes, the freight calculation is made from the information of the products registered in your store.
THE weight and dimensions that you enter when registering an item make all the difference in the amount displayed to the customer at the time of the quote.
A common mistake is to register products with real weight and dimensions, that is, without taking the packaging format in consideration.
The correct thing is to register your products with the weight and dimensions that they will have after packaged and ready for shipping!
You can use the product description to inform the weight and the actual dimensions of the item, but in the registration step what matters are the packed product information.
The freight calculation can also be affected by the size of the packaging used. This is because carriers do not only consider the real weight when pricing the shipment.
THE object volume it is also evaluated using cubing calculations, a tool used to determine the relationship between weight and space that an object occupies in the cargo vehicle.
In cases where the cubing calculation determines that the volume is greater than the actual weight, the carrier charges freight based on cubic weight – and this is one of the reasons why it is so important to use suitable packaging.
For example: using a very large package to pack a light product is not a good idea, as shipping may end up being more expensive.
In addition to keeping an eye on the cubing calculation, you must ensure that your packaging is capable of protect the product properly. This saves you from having to spend on reverse shipping of damaged items, for example.
Problems in shipping tables
When you do contract with a carrier, it is normal for the company to give you a freight table with values different from over-the-counter values - and this is great to save on shipping!
But care must be taken not to transform this advantage at a disadvantage! Any inaccuracy in a table can make your freight much more expensive for certain zip codes ranges. You need to review the document very carefully before implementing it in your store.
It is also important to be aware of customer feedback, as they will be the first to alert you if very strange values appear in your store’s shipping calculation.
4. Find out if fulfillment is viable for your business
The fulfillment can certainly be useful to save on freight. In this logistical model, an outsourced company is responsible for maintaining inventory and dispatching orders.
It works something like this:
- The shopkeeper hires the fulfillment operator and moves the store’s inventory to the outsourced warehouse
- Through integration between software, the fulfillment operator receives orders from the shopkeeper
- The fulfillment operator separates, packs and dispatches the order
One of the obvious advantages of fulfillment is that it reduces the degree of involvement the shopkeeper with day-to-day operational activities. But that’s not all.
Depending on the service contracted, it is possible to enjoy cheaper packaging and even differentiated freight tables, two factors that contribute to savings in the final value of freight.
This type of service can also be advantageous for those who have a business outside the South / Southeast axis and wants to compete with e-commerce from those regions.
After all, most fulfillment services distribution centers are located in the Southeast.
With the logistics modality, it is possible to live in the North of London, but have the company’s stock in the Southeast – region that concentrates 66.6% of London e-commerce orders, according to a study by Compre & Confie.
There are already some fulfillment options in London: Correios Log +, Pier8 and B2W Fulfillment are the main examples. It is worth researching and analyzing whether services make sense for your business.
Despite all the advantages mentioned, fulfillment is not suitable for all types of e-commerce. Entrepreneurs who manufacture their own products to order – such as artisans, for example – may not be able to obtain great advantages with the logistics model.
On the other hand, those who work with larger inventories and have sales predictability can certainly save on freight using fulfillment. It’s a case-by-case analysis!
5. Count on the services of several carriers
Use the services of multiple carriers it is essential to save on shipping. The more options you have at your disposal, the greater the chance of finding more affordable prices.
This is because the same shipment will have different conditions depending on the carrier consulted. And it is by taking advantage of this price variability that you (and your customer) can get cheaper freight!
And how to use the services of several carriers at the same time? The answer to this question was much more bureaucratic a few years ago: you would need to contact several companies, negotiate contracts … An offline dynamic and very incompatible with the reality of e-commerce.
Thankfully, technology took care of simplifying this process! Nowadays, you can use the Best Shipping to have access to the services of the main carriers in the country.
With the Freight Calculator from the platform, it is possible to compare prices and terms with several carriers at the same time, choose the most advantageous option and generate the freight of your orders with a few clicks.
In addition to reducing the bureaucracy of access to the service of several carriers, Best Shipping has resources that help those who sell over the Internet to save time and money.
Integrations: there are more than 30 e-commerce platforms, ERPs, hubs and marketplaces in which the Best Shipping user can automate the calculation of shipping and / or generation of shipping labels.
Tracking: the shopkeeper can automatically share tracking information with customers.
Support: the platform helps the seller to solve any problems with cargo, mediating claims for compensation and other dealings with carriers.
Reverse logistic: ideal to save on shipping exchanges and returns.
And you can enjoy all these advantages without paying anything, because Best Shipment is free to use. You only pay for freight generated on the platform.
It is no coincidence that more than 230 thousand retailers use technology to save on shipping! Sign up and join them you too!
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