Ecommerce and online shopping is very prominent these days, and the industry wants to know what the keys to success are. In general, parcel shipping depends on strong carrier partners, and several shipping options on an easy to use website. Consumers frequently decide on ecommerce outlets based on parcel shipping delivery options. A complicated checkout process leads to abandoned shopping carts and lost customers for your ecommerce company.

The market for ecommerce parcel shipping is growing more competitive. There is a lot of growth in ecommerce sales, which means there is more business for parcel carriers. Both industries are looking for ways to more efficiently capitalize on growth of online sales. The carriers can remain competitive in pretty much the same way they always have: cheaper rates on parcel shipping and reliable delivery times. The strategies ecommerce companies should use to better their business are a little more complicated, however.

Growth in the ecommerce industry, and thus the parcel shipping industry, is projected to continue. The ecommerce market isn’t going anywhere, instead it’s rapidly expanding. A major part of the ecommerce industry is delivery. Parcel shipping delivery is crucial to customer satisfaction and repeat business. Ecommerce retailer delivery options, free parcel shipping options, and return policy are key determiners in the consumer’s mind. Online retailers, usually, do parcel shipping through multiple parcel carriers. This will provide greater delivery options, help to mitigate parcel shipping risks, and work to get cheaper shipping rates on small parcel.

Many ecommerce companies are satisfied with their parcel shipping carriers, likely USPS, UPS, FedEx, or DHL, but many still turn to marketplaces like eBay and Amazon. Ecommerce companies can go through those online marketplaces to reach additional customers and increase sales. This increases competition for parcel shipping companies, and these online marketplaces are moving into the delivery market themselves. Altering business plans to meet these changing competitive threats in the industry is vital to finding ecommerce success.

Areas for Ecommerce and Parcel Shipping Companies to Emphasize for Success

Segmentation: Ecommerce companies are growing. The parcel shipping and other services they require are changing and becoming more complex every day. There are the usual parcel shipping delivery service issues to consider for smaller online retailers, but as they grow it gets more complex. Large ecommerce companies worry about parcel shipping issues like, warehousing and fulfillment, too. These companies should segment customers to specifically address needs of consumers. They can target products to specific audiences to offer more affordable prices and an efficient parcel shipping process.

Customers: Focusing on the needs and desires of the consumer is essential to ecommerce and parcel shipping success. The concerns of online shopping customers include visibility and tracking of packages, and affordable or free return services. There are also new parcel shipping service options coming to the ecommerce industry, including: delivery day/time selection, advanced notification on day of delivery, and the ability to work directly with parcel shipping carriers.

International Shipping: Business to consumer ecommerce shipping across borders is a rising demand in the parcel shipping market. Customized options for international parcel shipping and dependable delivery are growing in importance for consumers. There are different expectations on parcel shipping rates and delivery times for international ecommerce consumers.

Parcel Shipping Rates: Ecommerce depends on a lot of factors, and parcel shipping costs is a big one. Shipping rates and customer satisfaction are paramount in the online shopping industry. The main reason companies work with one carrier is to consolidate shipments to get greater parcel shipping discounts. Ecommerce retailers could also leverage cheap shipping rates by utilizing multiple parcel carriers and collecting parcel shipping data to promote better parcel shipping strategies.

Shipping Returns: One final area of emphasis for ecommerce retailers is to focus on returns. Consumers want simple and cheap or free returns. Easy return systems are important to a lot of customers. Part of providing greater parcel shipping services includes reverse logistics. Ecommerce companies have a lot to focus on just in shipping the product to the customer, but they can’t ignore the demands of consumer’s regarding parcel returns.

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