The Ecommerce Industry is changing fast. Several years ago, we were all in tune with going to a brick and mortar store to shop. But, today, we live in a digital world with lots of changes happening every single day both for sellers and buyers.
A study done by YCharts reveals that e-commerce businesses had an increase from 27.8 billion dollars in the second quarter of 2006 to 97.3 billion dollars in the second quarter of 2016 alone.
This establishes the fact that e-commerce is where major commerce happens today. Plus, having a good understanding of some of the techniques that make up the e-commerce industry, gives you a major advantage as a business person today.
Here are 3 smart ways you can improve your e-commerce store with Logistics in order to stay ahead:
1. Offer Free Shipping
Offering free shipping can increase your bottom line. But, when it is done wrongly, it can really hurt your business.
Over the past five years, studies have revealed that free shipping is the most effective method to boost sales for e-commerce stores and this trend has been envisaged to continue in 2019.
Apparently, e-commerce stores that offer free shipping do have logistics cost to cover. However, customers care less about this and are much concerned about getting free delivery as you promised. Some of the reasons offering free shipping is much effective in skyrocketing sales are because consumers do not like to be surprised at the checkout section. They prefer to know the cost of the product and what they are getting into upfront.
Moreover, “free” is a really magical word in business. We all like to get something for free sometimes. Plus, there is the psychology of reciprocity at play here; when you do something nice to someone, subconsciously, they want to repay that goodness by doing business with you.
So, how do you offer free shipping without hurting your bottom line and increasing profit? Some methods that businesses employ include free shipping for all items (mostly retail stores), free shipping for a particular amount of order, free shipping for certain products, free shipping to certain locations, free shipping for times of the year, including the cost of shipping to the price of products, etc.
On our website, there is an estimator that lets you know the cost of shipping upfront which will enable you to make informed decision as regards offering free shipping to customers. This way, you can easily decide how sustainable free shipping will be for your business.
Perhaps, deciding the number of free shipping you can do per time can help while still ensuring the business makes some satisfactory profit. You don’t want to run at a loss while trying to offer free shipping to customers. Right!
2. Offer Same Day Delivery
Although this is a little more expensive and demanding, offering same-day delivery is one sure way to have competitive advantage today.
A survey done by Go People revealed that 66% of consumers are willing to pay more to get products delivered on the same day.
What most e-commerce stores don’t realise is that offering same-day delivery places you at a great advantage in the e-commerce industry today. With a competitive edge of over 85%, eCommerce businesses that offer same-day delivery are more likely to have twice as much conversion.
Also, be aware that most consumers are willing to pay a little more to have a product(s) they order delivered to them on the same day.
With the Kobo360 App, you can get an arrangement to have your goods delivered on the same day although this could be subject to distance or location of delivery point.
3. Free in-store Pick up
This simply means that a person who makes an order online can go to the physical store to have the order picked up for free instead of waiting for it to be delivered. Leaving an option for free order pickup helps shoppers save time and money. It also cuts out issues like late delivery.
Moreover, there’s also the possibility of cross selling. When shoppers come to a physical store to pick up a product they ordered online, chances are that they’ll find another product they’re interested in. Hence, cross-selling takes place.
So, this logistics option increases your conversion rate, actually.
The bottom line is, like every other business today, attaining success in the e-commerce is about thinking ahead and staying proactive. It’s about making calculated decisions to propel your business forward and taking the right steps to help you gain the advantage you need.