12 Jul A Solid Shipping Strategy Delivers the Win in an E-commerce World
Thanks to the rise of e-commerce and the heightening of customer expectations by Amazon and other leading companies, shipping and delivery have become a key driver of overall customer satisfaction. Customers now expect reliability, speed and convenience in the delivery experience, and a company’s ability to meet those expectations can even be a source of competitive differentiation.
In the past, supply chain management (SCM), shipping and fulfillment were often seen as necessary evils of e-commerce—an afterthought—which is why shipping information often only made its first appearance on the payment page, deep within the shopping cart. Winners in e-commerce are developing and executing a shipping and fulfillment strategy that highlights their capabilities and puts them front and center in the online shopping experience. The result is higher conversions in the shopping cart. Dropping shipping time to three days or less from four-to-five days can increase sales by over 8 percent by cutting abandonment rates.
Executing against the wrong strategy—or not having a strategy at all—is a recipe for higher costs and lower customer satisfaction levels and can have a major negative impact on your business. Research has shown that 37 percent of consumers who have had a bad shipping experience with a merchant will never shop with them again. On the upside, 87 percent of consumers report that a positive delivery experience makes them more likely to shop with a merchant again.