Multi-carrier shipping software increases profitability

November 6, 2014 at 3:23 PMAdministrator
Multi-channel shipping software allows businesses to offer more competitive shipping prices to customers.

Businesses looking to offer the best shipping options to their customers, while still making a profit, should invest in multi-carrier shipping software.

First of all, sticking to one carrier limits the amount of sales a business can handle. With the impending holiday season, it's imperative that companies expand to include several different carriers in their stable, At least one, if not several, national carriers should be part of any business's shipping operation. E-commerce stores that plan on selling items online will likely encounter mailing addresses that are not local. However, for those buyers that do live nearby, a local option might be less expensive than a national brand. Regional carriers also may be able to offer more reliable next-day delivery. Depending on how recipients ask that their packages are wrapped and insured, one carrier may provide shippers with a better rate than another. Shopping around eliminates the potential for overspending.

Experiment with free shipping
Free shipping is something that consumers are beginning to expect more and more these days. When an online store is considering whether or not to offer free shipping to its customers, it should try out different processes that would allow such a discount. For instance, increasing the minimum order amount required to obtain free shipping is a common practice that appeals to clients as they shop. It's recommended that businesses set this amount at a price point above their average order price. Try this method out to see if the margin improves.

Another idea is to raise product prices by a certain percentage across the site. While this may seem counter-intuitive at first, many customers appreciate the transparency this provides. When they see the price of an item, they know how much they'll pay. When shipping charges get added on at the end of a transaction, many customers abandon their carts. Avoiding this situation not only increases the likelihood that a sale will happen, it leaves the customer with more faith in the business. 

Any special promotion can boost sales and satisfaction. During the holiday season, in order to ensure that consumers are not passing an e-commerce store up, offering free shipping within a specific time frame can be beneficial. Popular products or trends can be applied as well; for example, free shipping applies to all products in a single category on the company website.

The key to profitability, aside from the logistics, is to make sure customers are aware of these opportunities and understand how much money the business is saving them. People like to get deals on merchandise they know they are going to buy; this typically means having items delivered free of charge. Look closely at the e-commerce's store finances and business model to determine the best shipping practices for customers. 

Multi-carrier shipping software can help businesses deliver the best rates to their customers, any time of year. By streamlining communication and managing inventory in an organized way, businesses will have an easier time making a profit.