Logistics in e-commerce

Fernando Maciá

Written by Fernando Maciá

Logistics in e-commerce
Anyone who wants to explore the world of e-commerce will have to stop and think about some important issues. Setting up an e-commerce business is a lengthy process that requires a lot of time and effort. We have to take into account all the details without forgetting any of them, because many of them can affect the conversion rate of our online store.

There are many points that should not be overlooked and one of them is logistics, an issue that takes on considerable importance in any online store. Many users who visit a particular e-commerce site abandon the purchase process without completing it.Why, you may ask. One of the answers to this fact can be found in the high cost of shipping costs. A price that the user is not willing to pay.

But how can we get information about how a user behaves in our store? As you may already know, there are currently numerous web analytics tools on the market, such as Google Analytics, which can help you understand the behavior of your users on your website. Do they finalize the purchase process? If they abandon it, at what step do they usually do so? All these questions and more can be answered with the data provided by these tools. Linking your Analytics account to your e-commerce will give you access to really interesting data. Knowing user behavior is crucial when creating conversion-oriented strategies for your business.

What is logistics in e-commerce?

When we talk about logistics in e-commerce, we refer to the transportation, storage, control and shipping service of online orders that allows the product to reach the end customer.

One of the first questions we must ask ourselves before anything else is which external service we are going to hire. In the case of an online store, this step is essential because, unlike a traditional store, we do not have warehouses and we do not have staff with experience in logistics. The company we choose must be suitable for our e-commerce. You have many possible options: from private companies such as SEUR or UPS to public services such as Correos.

Actions to increase your e-commerce conversions

As we have pointed out above, logistics is an element that we must take into account in our e-commerce. We must not neglect such a relevant aspect. We recommend you to carry out a series of actions to ensure that your shipping costs do not translate into losses but into new purchases.

Discloses the shipping cost prices

Users want to know what your online store logistics are likeNot every user has the time to start a purchase only to check, at the end of the process, the amount of the costs that will be charged for the shipping of the product. A customer who enters and does not find this information in your online store, will leave the same way he came in and will continue looking for the item in your competitors’ stores. Ideally, you should add a section on the home page of your website that includes information about shipping costs. In this way the user will be able to solve his doubts about the price of the shipment without having to start the purchase.

Don’t forget that we are in the age of immediacy. We want everything on the spot and without having to wait. Remember that a consumer will have no problem looking for the product he/she wanted in a competitor’s store. If you don’t offer him the service he wants, you will end up losing him.

Offers several shipping alternatives

  • Shipping to the physical store

If your online store has one or more physical stores, this shipping option should be present in your online store. It is a way to encourage the user to make the purchase, since by this means he will be able to save the costs of shipping and handling. In this case it will be the customer who will have to go to the physical store in question to pick up the order he/she has requested.

  • Home delivery

This shipping option usually involves higher costs since the order is delivered to the place you specify at the time of purchase. It is a much more convenient way for the user as he/she does not have to go anywhere to pick up the item and can also send the order to the address of his/her choice. Because of all these advantages, the shipping costs of this type of service represent a greater economic investment than the previous one.

Propose several transportation options

Different shipping times in e-commerceWhen establishing your transportation options you should consider offering at least two. In this way the user will be able to choose the alternative that best suits his needs.

  • Fast shipping

Normally the customer receives the product within 24 hours of placing the order. A perfect option for all those latecomers who buy gifts at the last minute.

  • Normal shipping

In this shipping option the user usually receives the product in a longer period of time than the previous option. This results in lower shipping costs.

Strategies to help you sell more in your online store

Research and learn about market trends, inquire about your customers’ behavior, what they do, what they say, and based on that, start creating strategies that will help you achieve your goals. As you know, every business is different, but there are some sales strategies, related to logistics, that work for some e-commerces as well as for others:

Free shipping on the first purchase

Offering free shipping on the user’s first purchase will build trust and encourage purchase. In addition, it will generate long-term benefits for you. The customer who is satisfied with your product will come back. Moreover, a user will be willing to pay more for a product he already trusts than for a new product he has not yet tried and therefore does not know.

Free shipping from a minimum consumption

Make free shipping available to the customer when the purchase exceeds a minimum price. This type of strategy in your e-commerce can translate into a greater possibility of sales as long as it is done correctly.

The option we propose is not only to provide the user with a free shipping service, but it is something more complex. It is advisable to add the option to recommend, that is to say, we will tell the user how much is left to reach the minimum amount for the shipment to be free. We will show you certain products that you could purchase related to the purchase you have already made. This can be an incentive for customers that ends up translating into a new conversion.

Reducing shipping costs by increasing the price of the product

Many e-commerce companies choose to calculate their logistics and distribution costs by increasing the actual price of their products. In this way, the shipping costs are lowered. This strategy follows several studies that show that the customer will be more willing to pay a higher price for the product than for the shipping costs.

Aspects of logistics that the customer will take into account in your e-commerce

When a user accesses your e-commerce site in search of a product, he will pay attention to a series of aspects related to logistics, which are very important to him. These are elements that we must take into account because they can help us to increase purchases in our online store,

Shipping and handling

A user will appreciate that in your e-commerce you have added visible information about shipping conditions and costs. Don’t waste their time trying to purchase a product just to get this information because they will leave your site in the middle of the buying process. Make it easy and don’t keep him waiting.

Returns

For the customer this type of information is really valuable. When a user buys a particular product, he likes to know what return possibilities he will have. Incorporating this information in your online store will offer customers purchase guarantees.

Agility in returns

If our online store allows returns, we must be agile in these transactions and offer a fast service to the customer. We will not take more than one week to return the product once we receive it.

Order tracking

Customers appreciate the fact that they can track their order. The user wants to know where the product he has paid for is located and exactly how much time is left to receive it. We like to have the whole process under control and even more so if it is something for which we have invested a certain amount of money.

Attention and response

You don’t have to be glued to your computer screen 24 hours a day, but we do recommend you to be attentive to the needs of our clients: calls, messages, e-mails… Don’t take too long to answer their questions. The era of immediacy is joined by the era of impatience, which is characterized by wanting everything fast and without having to wait.

Selection of a logistics company

The choice of an external company to manage the shipment of orders is not a simple matter. Choosing one or another carrier will depend on many factors that are different for each e-commerce. Aspects such as price, type of product or distribution area will be some of the decisive elements in the final choice of one or another external company. Choose your ideal logistics company and start selling on the Internet now.

 

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Fernando Maciá
Fernando Maciá
Founder and CEO of Human Level. Expert SEO consultant with more than 20 years of experience. He has been a professor at numerous universities and business schools, and director of the Master in Professional SEO and SEM and the Advanced SEO Course at KSchool. Author of a dozen books on SEO and digital marketing.

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