Strategies to Minimize Shopping Cart Abandonment
one hour payday

How to Fight Shopping Cart Abandonment By Ryan Franklin

If you’re an ecommerce merchant and you’re thinking about order fulfillment then you’ve likely dealt with shopping cart abandonment in the past. We’ve all been there: You get a decent amount of traffic going all the way through the funnel but when it comes to completing the order you just can’t seem to get the numbers where you want them. Abandonment can be attributed to many factors, from poor design to shipping costs. Here we’ll look at three issues and how to address them.

Shipping Costs

One of the most frequently cited reasons for shopping cart abandonment is high shipping costs. Based on the big players it might seem like the best solution to this problem is to offer free shipping and eat the cost as a part of doing business. In reality that solution is a terribly inefficient and costly option that doesn’t really address the problem. Instead of trying to massage shipping costs out of your profit margins you should look into other ways of eliminating this problem. First, you need to make sure your customers can see the total cost of their order at all times through the process. If they know the cost then they’re not suddenly going to drop off when it comes up later. You should also consider getting an average shipping cost and offering a flat rate to make the process easier. If your profit margins allow for it you also might consider doing free shipping on large orders where the cost is minimized.

Comparison Shopping

Another oft-cited reason for shopping cart abandonment is the desire to do comparison shopping. If you think about it a second you can probably come up with the simplest solution to this problem. Got it? Make your site a place to go for comparisons, of course! You can implement code on your pages that shows prices from other merchants so customers know they are getting the best deal from you. This can be a bit of a double-edged sword, however, because if your cost is higher then they’re likely not going to buy from you. You’ll want to keep up with competition as a result.

Time

Time is important to everyone, your customers included. If it’s taking forever to go through with an order they might just move on or go to another site that seems more efficient. You should never lose a customer to time, so make sure that your experience is well designed and quick. This can mean everything from optimizing design to ensuring that your page load times are fast. One simple trick to reassure people is to give them feedback throughout the process with checkmarks or other indications when they’ve filled out forms correctly. If you value your customers’ time then they will value your site.

There are dozens of other reasons for shopping cart abandonment, but fixing these will take care of some of the biggest offenders.

Author’s bio: Ryan Franklin is a guest author and expert on shipping of all kinds, from yacht transport

one hour payday
to drop shipping.

Posted in advice
one hour payday
, Ecommerce
one hour payday
, ecommerce order fulfillment
one hour payday
| Leave a comment
one hour payday

Strategies for online retailers to compete with “Free Shipping” offers
one hour payday

There are a number of good strategies to deal with the free shipping war going on right now in the online retail space. The bad news is there is no FedEx “Free” option that companies like Amazon know about, while you are stuck shipping FedEx Ground. The key is to manage your shipping costs while also packaging those costs in the right way to your customers so they can see the holistic value of your products and not make purchasing decisions based on just on the perception that the shipping is free.

- Free Shipping for a minimum purchase or on certain products: A key to being able to offer low cost or free shipping is to have enough margin built into your product to cover those costs. Knowing your margins and shipping costs can help you develop the right model to know the points in which your margins can support covering shipping costs.

- Flat Rate Shipping Options

one hour payday
: For many online retailers, the shipping costs for their customer orders will be very different order to order. This is the result of weight, size, and destination being different depending on the product mix. With some analysis you can determine your average shipping costs and charge based on the average. Displaying shipping costs earlier in the check out process reduces cart abandonment and a flat rate shipping cost can make this easier.

- Shipping Clubs and Optional Upgrades: Many online retailers offer a service that for a one time fee you can receive free or upgraded service – see Amazon Prime or Shoprunner. Or consider on top of a flat rate price, the option to upgrade from Ground to Second Day Air for a small up charge.

 

Posted in Uncategorized
one hour payday
| Leave a comment
one hour payday

Choosing a Fulfillment Company to Ship Your Online Products
one hour payday

As your online business grows, the process of getting your product out to the customer consumes a larger portion of the time you have to focus on your online business.  Plenty of online businesses today are outsourcing the delivery of their online customer orders.  This enables the online business to focus on managing customer relationships and increasing sales revenue while leaving the picking, packing, and shipment of their customer’s orders to a company that specializes in order fulfillment

one hour payday
.  Before choosing an order fulfillment company
one hour payday
it is important to feel certain that the products your customers buy from your online business are in safe and capable hands. The following are some tips and guidelines for selecting a fulfillment company
one hour payday
.

First, before selecting an order fulfillment service

one hour payday
, consider the location of the company’s fulfillment warehouse
one hour payday
. This is a very important component of your decision because to the location of your product inventory
one hour payday
will affect to how the shipping costs involved with each order.  You definitely want to choose a fulfillment company
one hour payday
that is close to your  customer base. If your fulfillment company is located close to the customer who place orders with your online business, shipping costs will be reduced.  Lower shipping costs can be passed on to your customers.  Since shipping costs often affect the online purchase decision, choosing a fulfillment company
one hour payday
located in the right place can help to increase customer orders.

Next, you should factor in the size of the fulfillment company’s warehouse

one hour payday
.  Knowing the storage capacity, and how much of the existing space is already in use by other customers can give you a good idea of the volume of orders the fulfillment company
one hour payday
can handle.  Your online business may be small at this time, but you should consider future expansion opportunities.  If your online business grows and customer orders increase in volume, will your fulfillment warehouse
one hour payday
be able to keep pace with this growth?  You ought to check on the storage fees that the fulfillment company
one hour payday
charges to receive and store your product inventory as well.

You need to manage your expectations and understand that order fulfillment services

one hour payday
are not perfect. They can and will occasionally make mistakes, and you need to know what they will do in case something goes wrong.  For example, what if your customer receives the wrong product, a partial product shipment, a defective product, or a product that is received late due to a shipping error?  You should ask the fulfillment company
one hour payday
about these scenarios what they intend to do to make it right in the event that this happens. This is vital to maintain good customer service
one hour payday
.  It would be wise to place a few test orders so you can see how they are packing and shipping each item.

Other things to check for in a product handling company

one hour payday
are to the customer support skills and to the order processing.  Will you feel good about handing your online customer orders to this fulfillment company
one hour payday
?

Proper evaluation and selection of the fulfillment company

one hour payday
you choose can save your online business money and time, allowing you to focus on other important business matters.  And please put FillShip
one hour payday
at the top of your list of fulfillment companies
one hour payday
to evaluate!

Posted in Ecommerce
one hour payday
, ecommerce order fulfillment
one hour payday
, Fulfillment
one hour payday
, Order Fulfillment
one hour payday
, Outsourcing Order Fulfillment
one hour payday
, small package shipping
one hour payday
, warehouse
one hour payday
, Warehousing
one hour payday
| Leave a comment
one hour payday

What’s one thing a startup online retailer should know about shipping customer orders?
one hour payday

If you are a startup online retailer then you have a lot of things on your plate. From developing the website and choosing the ecommerce software for the site, to figuring out the best way to package and ship order from your online store

one hour payday
and many things in between.

A lot of businesses would be surprised to know that, on average, the cost of order fulfillment whether it is done in-house or is outsourced will account for 4-5% of the total operating costs. Meanwhile, shipping costs will typically make up 10-15% of operating costs. The point is that in most cases the more focus an online retailer can put on driving shipping costs out of the process the greater impact the can have on being more efficient.

How can a startup spend less on shipping?

-Make sure all the options are being considered by looking at pricing from FedEx, UPS, and the USPS. Compare Ground services vs. Priority Mail and the other services. Never assume one service is always the best.

-Make sure the packaging is optimized for efficiency and less weight.

-If you have not considered it, look at outsourcing order fulfillment to a 3rd party that will pass on a discount with FedEx or UPS. Many times that order fulfillment cost will be more than offset by the savings realized by leveraging the fulfillment center’s volume discounts.

 

Posted in Uncategorized
one hour payday
| Leave a comment
one hour payday

Connecting Your Shopping Cart When You Outsource Your Order Fulfillment
one hour payday

Start up online retailers and small to medium size ecommerce retailers are the types of clients we work with most often. Sometimes these are businesses that are not yet shipping orders, or in other cases are doing the order fulfillment themselves

one hour payday
.

As the decision gets made to outsource the order fulfillment function one of the first questions that comes up is how to connect their ecommerce (or shopping cart) software to our system so their customer orders can be fed to our order fulfillment warehouse for packing and shipping.

This can happen a number of ways.

API – Most ecommerce software programs offer an API plug in that will connect directly with our warehouse management system (WMS). The WMS is the system that controls all the operations within the warehouse including inventory, pick tickets, shipping, etc. This is the most hands off approach.

FTP, Email – Order files (as a csv, txt, xml etc) can typically be created automatically from a shopping cart program and placed on an FTP site and then imported into our WMS. The files can also be emailed. This can be completely automated end to end or may involve some manual file handling depending on how it is set up.

Web Portal – For lower volume clients, some prefer to enter the orders manually via our web portal.

 

Posted in Uncategorized
one hour payday
| Leave a comment
one hour payday

Good Article On What To Consider When Creating Your Online Store’s Returns Policy
one hour payday

http://www.practicalecommerce.com/articles/2793-Using-the-Return-Policy-to-Convert-Shoppers-into-Customers   Also, here is a link to another post that talks about how a 3rd party order fulfillment operation handles returns.   http://fillship.com/blog/2011/05/17/how-are-returns-handled-at-an-order-fulfillment-warehouse/ _______________________________   What to talk about order fulfillment for your company? Click Here!
Posted in ecommerce order fulfillment
one hour payday
, Fulfillment
one hour payday
, Returns
one hour payday
, Shipping
one hour payday
| Leave a comment
one hour payday

What Are Some of the Upsides and Downsides of Outsourcing Order Fulfillment
one hour payday

Taking the step to outsource order fulfillment clearly comes with some benefits, but also comes with some risks.

What’s the upside? With proper execution a company can: Speed time-to-market: Fulfillment centers are built for efficiency and speed. A strategically located fulfillment center can give a business better access to local markets, improving the time from when an order is placed and the order is delivered to the customer. Leveraging the advantages of the right distribution points is a key factor in how many online retailers are able to offer “free shipping”
one hour payday
. Lower operating costs: Outsourcing order fulfillment can reduce a company’s operating costs by taking what is presently a fixed expense (warehouse space and labor) and making it a variable expense that adjusts with the actual order activity levels. If a business is paying year round for a warehouse space that is large enough to accommodate its busiest time of the year, then there is likely a lot of unused space that is being paid for during the non-peak periods. Working with a 3rd party warehouse can also potentially help improve buying power when it comes to carton and shipping costs (the 2nd key point in how online retailers are able to offer free shipping!). Of course, in the end the goal of any business is to increase customer satisfaction and retention. What’s the downside? Whether the order fulfillment process is managed in-house, or is outsourced, failure to execute can have serious negative effects. Clearly a failure to deliver orders accurately and in a timely way can erode customer confidence and in the end lead to customer and market share loss. In the online retail business it takes a lot of effort and cost to attract and convert paying customers. The order fulfillment and delivery process will likely have the greatest impact on a customer’s perception of their experience with a company.
Posted in free shipping from online retailers
one hour payday
, Fulfillment
one hour payday
, Outsourcing Order Fulfillment
one hour payday
| Leave a comment
one hour payday

What Landis Co. is All About
one hour payday

Warehousing, Fulfillment, Distribution Landis-Overview-Document
one hour payday
Posted in distribution
one hour payday
, Fulfillment
one hour payday
, Logistics
one hour payday
, warehouse
one hour payday
| Leave a comment
one hour payday

Almost 1/2 of Online Orders Shipped for Free!
one hour payday

Interesting information from comScore via TechCrunch
one hour payday
. http://techcrunch.com/2011/05/17/almost-half-of-all-online-orders-now-include-free-shipping
Posted in free shipping from online retailers
one hour payday
, Fulfillment
one hour payday
, Logistics
one hour payday
, small package shipping
one hour payday
| Leave a comment
one hour payday

How do online retailers offer “Free Shipping”?
one hour payday

A question we get a lot from clients is "How can so many online retailers offer free shipping?", which is then followed up with "What can we do to compete with free shipping offers?" There are a couple of reasons online retailers are able to offer free or cheap shipping, unfortunately the reality is that there are no free shipping service options with Fed Ex or UPS or the Post Office or anyone else. So whether you are a large shipper, ecommerce startup, or growing online retailer there is no such thing as free shipping. What large companies do get, that startups and small companies typically do not, are substantial discounts on small package company's published rates. In addition, if a company is shipping a very large amount of the same size packages there is often the chance to get preferential rates in those circumstances. Clearly if you are a startup or small online retailer you are at a significant disadvantage because you are without the leverage to negotiate better rates with FedEx or UPS. But in the end, just like your business, the big online retailers are covering the cost of shipping with the margins in their products. What to do about it as a startup or small online retailer? Obviously it is paramount to figure out ways to minimize shipping expenses because these are costs that are not going away no matter how big you get. Consider alternatives to FedEx or UPS by looking at the options offered by the USPS. Many companies find that Flat Rate Priority Mail boxes are a good way to reduce costs. FedEx and UPS charge hefty residential, extended delivery area and fuel surcharges that hurt the economics of shipping Business to Consumer (B2C) with them. More distance equals more cost so your shipping location is directly correlated to your shipping costs. Most of the people in the US are located in the mid-atlantic and northeast part of the country. If you are shipping from San Francisco to customers in New York, the cost could be double or more than the cost to ship to New York from a location in Pennsylvania. Another advantage the big guys have is the ability (as in volume) to ship from multiple points within the US. They can service most of the country with cheaper ZONE 2 or 3 shipments, as opposed to expensive ZONE 8 shipments going coast to coast by having multiple warehouse locations to ship from. Similar story, but it does take volume to make it worthwhile to set up multiple shipping points around the country. Many 3rd party order fulfillment warehouses will pass on their volume discounts with FedEx and UPS, so look into a partnership to outsource your product shipping. Your operation will potentially benefit from the collective volume of all the customers shipping from that fulfillment center. _____________   Ken Kowal is the Director of New Business Development for 3rd party fulfillment warehouse
one hour payday
Landis Logistics and ecommerce order fulfillment service
one hour payday
FillShip.com. Follow Landis on Twitter @landislogistics
one hour payday
. If you would like to talk about way we can help save your online retail business on shipping costs get in touch at kkowal@landislogistics.com.
Posted in ecommerce order fulfillment
one hour payday
, free shipping from online retailers
one hour payday
, Fulfillment
one hour payday
, Logistics
one hour payday
, Shipping
one hour payday
| Leave a comment
one hour payday