Shipping method optimization

Shipping is the crucial step in online order processing, and a suitable shipping method helps eCommerce sellers unleash sales, increase profit, and reduce transit time. Also, shipping can help the online store branding building and increasing customer loyalty. However, commercial express companies like DHL, FedEx, and UPS stand for high speed and high service quality, but the shipping costs are over budget. How could eCommerce sellers ship the orders fast but with cheap shipping costs? We will give you a whole frame of the eCommerce shipping world.

List of shipping methods

Freight

It mainly ships large quantities or the enormous size product. B2B trading primarily uses freight shipping, and nowadays, Amazon sellers start to ship the FBA inventory by freight to save cost.

Freight shipping includes air cargo, sea freight, rail freight, and ground freight.

Commercial express

It is designed to ship tiny products like samples or documents. It’s due to express shipping specification fast and secure. There is three express company in the world, DHL, FedEx, and UPS. (FedEx acquired TNT in 2016)

Postal

It ships small parcels and essential documents. However, it works domestic, not international shipping like USPS, Australia Post, Singapore Post, Royal Mail, and ePacket.

Developed shipping method

Nowadays, eCommerce changes so fast that the shipping method is also developed to meet the online seller’s and customer’s requirements. There is new shipping method called direct international line has been created. In the past, the seller’s fulfillment center in China, the orders go to the US, Europe, and Pacific. Before the sellers only can ship by ePacket, 30-45 days is the standard transit time. If you ship by express, customers receive the parcel in 3-5 days. However, the shipping cost is 3-4 times higher than ePacket. Now your ship by direct international line, the average shipping time is 8-12 business days, the cost is only 20% higher than ePacket.

Pros and con for shipping methods

Freight

Pros

Size-good for shipping a large product or large quantity

Trading-Designed to ship B2B product or Amazon FBA inventory

Cost is lower than express shipping

Cons

Transit time is slower than express

Quantity-cannot ship with small quantity product

Fluctuation-prices fluctuate quickly during high peak season

DHL, FedEx, UPS

Pros

Speed-quick transit time is a priority for the express company, even if it’s the most reliable shipping method for urgent delivery during high peak season.

Damage-it’s lower rick for damaged goods, due to express company SOP, and the shipments are transit in the same shipping system.

Customer satisfaction-express shipping is always a way to increase customer service or customer satisfaction. Every customer is willing to receive the orders as soon as possible after they place the order. And express shipping is an excellent way to recover the order mistake or order lost.

Cons

Cost-in the shipping world, the speed always relates to cost. If you want to deliver or receive the orders quicker, you will pay more.

Volumetric weight-express is shipping by air, so the volumetric weight needs to consider. Express company calculate volumetric weight is divided by 5000. When you ship the high volumetric weight product (like a pilot, cushion, down products) need to be careful when you calculate the shipping cost.

Charged weight-the weight for shipment starts with 0.5kg as minimum weight. Additional weight is added by 0.5kg.

Developed shipping method

Pros

Transit time-the transit time is slower than express but quicker than ePacket.

Cost-because the first trip is shipped by air cargo, and the total air cargo cost breaks to each parcel, plus the postal delivery cost, it is reduced.

Charge weight-it calculate the weight as 1gram, and there is no minimum charging weight

Cons

Products-the shipments ship by air as the first trip. There is a limitation of shipping products. It can ship 3C, textile, cloth, fashion accessories, makeup tools, and beauty devices. However, the product contains liquid, flam, and gas that are limited to ship.

Delivery option-destination postal service as the last-mile delivery, the delivery option depends on destination. Most of the postal service doesn’t offer second-time delivery. Once first-time delivery failed, the parcel will return to the post office neat to consignee’s address, and customers need to pick it by themselves.

Which shipping method should eCommerce sellers use, express or developed?

Orders with free shipping can ship by developed shipping method. The developed shipping method helps sellers keep the shipping cost at a low level and keep a high shipping quality and transit performance.

The express shipping method can be an alternative solution for the customers who are willing to pay more to improve the shipping speed.

Express vs. developed shipping

The shipping method for online stores relates to the cost margin and product specifications.

Express shipping is an add-value shipping service for customers, and the developed shipping method is a standard shipping service.

Customers use express shipping services for a gift order, like Mother’s Day, Valentina’s day, birthday day, party, or festival (4^th of July, St. Patrick, and Ester). Also, DIY, customized, and POD products stores need express shipping.

The developed shipping method is a renovation for ePacket, and it keeps the shipping cost as ePacket meanwhile improved transit performance.

How does the developed shipping method drop the shipping time and cost?

The developed shipping method combines freight shipping with postal delivery. It uses air cargo to ship the parcels to the destination country, then handles all shipments to the local postal service for last-mile delivery. When the orders are fulfilled, the shipment Shipments are labeled destination postal airway bill. When 3PLs pick up the shipments, they sort the shipment into the same country, load the shipments to flight, the flight land in the destination country, local postal pick up the shipments, then dispatch them. When air cargo cost breaks down to each small parcel, the cost of each package is meager, and the postal price is not expensive too, so the developed shipping method cost is acceptable.

The developed shipping method with eComhub.net

North America

United States

The average transit time: 6-10 business days

Maximum weight: 30kg/shipment

Last-mile delivery: USPS or FedEx ground

Canada

The average transit time: 8-12 business days

Maximum weight: 30kg/shipment

Last-mile delivery: Canada Postal

Latin America

Brazil

The average transit time: 15-20 business days

Maximum weight: 2kg/shipment

Last-mile delivery: Brazil Post

Asia Pacific

Singapore

The average transit time: 4-6 business days

Maximum weight: 30kg/shipment

Last-mile delivery: Ninja Van

Australia

The average transit time: 5-8 business days

Maximum weight: 30kg/shipment

Last-mile delivery: Australia Post

New Zealand

The average transit time: 8-12 business days

Maximum weight: 30kg/shipment

Last-mile delivery: New Zealand Post

Europe

Germany

The average transit time: 6-8 business days

Maximum weight: 30kg/shipment

Last-mile delivery: DHL/Deutsch Post

France

The average transit time: 6-8 business days

Maximum weight: 30kg/shipment

Last-mile delivery: La Poste

United Kingdom

The average transit time: 5-7 business days

Maximum weight: 30kg/shipment

Last-mile delivery: Royal Mail/Hermes

Spain

The average transit time: 8-10 business days

Maximum weight: 30kg/shipment

Last-mile delivery: Correos

Italy

The average transit time: 8-12 business days

Maximum weight: 30kg/shipment

Last-mile delivery: Poste Italiane

Northland

The average transit time: 5-7 business days

Maximum weight: 30kg/shipment

Last-mile delivery: PostNL