When\u00a0it comes to shipping, every\u00a0ecommerce\u00a0business wants to\u00a0reduce the cost as much as possible.\u00a0You want to get the lowest delivery rates, the cheapest packing\u00a0materials\u00a0etc.\u00a0<\/p>\n\n\n\n
What if I told you that reducing\u00a0shipping related costs as much as possible\u00a0will\u00a0actually prevent\u00a0your business from growing?\u00a0<\/p>\n\n\n\n
Now, I understand why\u2019d you think that you need to reduce shipping costs. By reducing shipping\u00a0costs,\u00a0you will be able to increase profit margin, lower down prices or even cover the shipping costs to attract more customers and therefore your business will grow.\u00a0\u00a0<\/p>\n\n\n\n
I totally get it and It\u2019s ok if you believe that. But think about this, how much does reducing costs\u00a0actually help\u00a0when it comes to business growth? How much do you think you can keep reducing\u00a0in order to grow the business?<\/p>\n\n\n\n
Shipping is one of the most important, yet often overlooked influence\u00a0on how people buy online. When visiting an ecommerce website, shoppers often have these questions in mind before they proceed to checkout:<\/p>\n\n\n\n
Even if they do proceed to checkout, there\u2019s still big chance of dropping off or as we call it \u201cabandon cart.\u201d Total amount of the item(s)\u00a0is\u00a0displayed\u00a0but when\u00a0they proceed to checkout, there are unexpected charges for shipping. This is the number one reason for cart abandonment.\u00a0<\/p>\n\n\n\n
Fixing this problem by providing enough information about shipping or implementing shipping strategies can lower the cart abandonment rate, which then increases your conversion rate.<\/p>\n\n\n\n
Amazon is a well-known\u00a0ecommerce giant and a great role model for those in ecommerce. In 2018, Amazon spent $27.7 billion on shipping costs, it said in its most recent annual report<\/a>.<\/p>\n\n\n\n \u201cWe expect our cost of shipping to continue to increase to the extent our customers accept and use our shipping offers at an increasing rate, we reduce shipping rates, we use more expensive shipping methods, and we offer additional services.\u201d\u00a0<\/p>\nAmazon Annual Report 2018<\/cite><\/blockquote>\n\n\n\n Amazon is also spending an additional $800 million roll out free one day shipping<\/a> to Amazon Prime members this quarter.<\/p>\n\n\n\n Related: How small businesses can benefit from same day delivery<\/a><\/p>\n\n\n\n Amazon\u2019s big investment in shipping is to achieve higher sales volumes and to get more Prime members.<\/p>\n\n\n\n Prime members are more loyal shoppers and spend more than twice as much per year on average compared with non-members. And with next-day shipping, Amazon can get more sales that would otherwise go brick-and-mortar retailers.<\/p>\n\n\n\n Imagine where Amazon would be now if they don\u2019t invest in faster delivery methods, more efficient shipping process and offering free shipping. Their shipping strategy is a differentiation factor and big part of their growth.<\/p>\n\n\n\n I understand that Amazon is Amazon and they have the resources to implement such strategies. But thanks to\u00a0Delyva, a one-stop shipping solution<\/a> for small businesses, you too can implement effective shipping strategies for your ecommerce business.<\/p>\n\n\n\n\n
Shipping as a component of growth<\/h3>\n\n\n\n
Not just for big businesses<\/h3>\n\n\n\n