With more online consumers demanding free returns and shipping, Portland SEO's Augusto Beato advised e-commerce stores to automate shipping processes to soften the impact of profitability.
"While free shipping can dramatically increase sales, is the increase enough to be worth it, is the question. Shipping costs account for at least five percent of the total cost, which can eat into profits," asserted Beato, who is the CEO of Portland SEO.
There are numerous solutions to automate every phase of the shipping process to achieve savings. Options range from multi-carrier shipping workstations that streamline carrier selection and optimize employee workflows to fully automated transportation execution systems that minimize employee involvement in the shipping process. "These solutions enable companies to quickly and automatically determine the most efficient shipping option for each parcel they ship, considering delivery deadlines, carrier rates, performance, and other factors," Beato emphasized.
He added that it’s three times more expensive for retailers to deliver products to a customer’s home than to have them shop in the store. Based on the annual eCommerce study conducted by 3PL provider Dotcom Distribution, 90 percent highly value free returns when making online purchases, and 91 percent say free shipping influences future purchases. It added that 62 percent would buy again from a brand offering free returns/exchanges. It added that 93 percent are greatly or somewhat impacted by shipping cost.
Meanwhile, according to Channel Advisor, 79 percent of shoppers look for free return shipping. Fulfillment Service also reported that 58 percent of those surveyed want free and discounted shipping. The Baymard Institute also found that shoppers abandoned their carts because extra costs were too high, including shipping, taxes, and fees, which account for 60 percent.
Of course, there is a host of other reasons shoppers abandon their carts, like forcing customers to register to make a purchase, unnecessary coupon forms, and overly-complicated checkout processes.
Beato asserted that with the majority of shoppers abandoning carts over concerns with shipping costs and options, a smart approach is to leverage smart shipping technology to help close more sales.
To learn more about Portland SEO, follow this link. Those interested can also directly request Augusto Beato for advice by clicking here.
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