8 Data-Driven Ecommerce Shipping Hacks That Will Save You Time and Money in 2023

Shipping and delivery is a crucial part of any e-commerce business. Shipping costs are often one of the largest expenses for online retailers, and effective shipping can help you save money and increase sales. However, it can be difficult for small businesses to get started with data-driven ecommerce shipping strategies--and even more challenging to scale up these efforts over time. In this post, we'll outline some easy steps your company can take right now to start saving money on shipping costs:

Automate shipping processes with software

Shipping your products is a complex process, and ensuring that all the right information is collected, processed, and sent out promptly can be challenging. But don't worry—several software tools are available to help you automate this process so you can spend more time on other important tasks like marketing or customer service.

The software can help you:

• Manage shipments from start to finish using one platform instead of having multiple systems spread across different departments or platforms (like email inboxes)

• Streamline any manual steps involved in shipping by automating them through artificial intelligence-based algorithms.

• Send confirmations automatically when packages are shipped or returned.

Analyze shipping data to adjust staffing

The most crucial point to remember is that data-driven e-commerce shipping can aid in better decision-making. If, for instance, your data shows that your shipping process is less effective than it could be and that it takes too long to fulfill orders, this could indicate a problem.

Customer comments /feedback on the length of time their packages took to arrive at their homes can be analyzed to help pinpoint these problems. Customer complaints about extended shipment wait periods or the inability to track orders could indicate that the company's operations department or infrastructure needs improvement.

Negotiate better rates with carriers

As a shipper, you want to ensure your carrier is happy with you. It's essential to remember that the carrier can change rates at any time, so it's up to you and them to determine the best rate going forward.

Before negotiating rates, make sure:

• That they have a good relationship with you

• That they aren't overpaying or underpaying for shipping services

• That they aren't charging too much for empty boxes or heavy boxes (these are often excluded from price calculations)

Bonus tip: Before negotiating rates, make sure that you visit a reliable source for eCommerce shipping information, such as https://firstmile.com/what-is-ecommerce-shipping/.

Use address verification software to reduce errors

The use of address verification software can help cut down on shipping, invoicing, and fraud mistakes. If a customer's address has been checked and approved by a computerized system, the package is less likely to be delivered to the wrong person or address. This should result in fewer packages being sent back to you. Customers who place online orders are less likely to call and wonder where their goods are or what happened to them.

In addition, address verification software can highlight any SARs (suspicious activity reports) on your company's account from the previous year, preventing similar issues (such as too many purchases being rejected as undeliverable) in the future.

Optimize packaging size to reduce costs

Regarding shipping, packaging size is a significant factor in costs. The bigger the box, the heavier and more expensive it is to ship—and sometimes even harder to find space for on delivery trucks (which makes up much of your transportation costs).

You have two options to reduce these costs: use smaller boxes or larger ones. If you're using smaller boxes, ensure they are strong enough not to break during delivery attempts.

If you're using larger boxes, then consider looking into customizing them with custom printing on their sides or tops so that customers can quickly identify them as yours upon arrival at their doorsteps without having any other information about where exactly this product came from (i.e., whether it was made locally or overseas).

Implement a shipping calculator

Making sure that you're shipping your products in the right way is an integral part of running a successful e-commerce business. If you don't know how much it costs to ship something, then there's no way for you to know if your shipping rates are fair.

Many things can affect the cost of shipping: weight and size of the package; distance traveled (how far it has to go); who will receive their order (if they live near enough), etc. But one thing remains constant: no matter how many variables change when calculating how much it costs per unit (or pound), one thing will always be constant—the distance from origin point A, through point B…and back again!

So why not use this information? This may take up too much time or money, but we're here today because we've got some tricks up our sleeves to save both!

Consider using a 3PL provider

A 3PL provider can be an excellent option for small businesses.

• They have access to more carriers and carriers of higher quality than you to negotiate better rates. They can often offer wholesale pricing lower than what you would pay your carrier directly, which means they will save you money on shipping costs.

• They can also add new services like DHL Global Mail or UPS Next Day Air at any time and provide other types of delivery options such as expedited two-day shipping (UPS Overnight).

Personalize shipping based on customer segmentation

Personalization is the key to success in e-commerce. By offering customers a customized experience, you can increase revenue and customer loyalty. It’s also a great way to improve customer satisfaction and retention rates by providing relevant information that resonates with their needs.

If you haven’t heard of personalization before, here are three reasons why it will help your business:

Final Words

As you can see, there are plenty of ways online retailers can save time and money with data. But if you're unwilling to make these changes, it might be a good idea to look elsewhere for your next e-commerce project.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes