Entrepreneurial ventures and shipping, whether sending or receiving, go hand-in-hand. Especially if your entrepreneur startup is within the ecommerce or online retail space.
For example, ecommerce sales estimates are nearly $700 billion for 2022. That is a lot of profit on the table for entrepreneurs. But without a shipping strategy, sending and receiving goods can eat into those potential profits.
Entrepreneurs also need to find their place among the competition, which can be local competitors, or big retailers. What do many big retailers have that many smaller businesses and startups do not? Free two-day shipping. Hard to compete with that dominating factor.
There is good news. With more shipping options available to smaller businesses, you can compete and grow your entrepreneurial vision into something profitable. You may even be able to find shipping options that can rival products on Amazon or eBay. That would be ideal right?
We compiled a few key shipping strategies entrepreneurs can leverage for growth and success. Let’s dive in!
Integrate Automated Shipping To Increase Efficiency And Cut Shipping Costs
Handling shipping can be pretty challenging for entrepreneurs. Mainly because you might lack the technology and team to make shipping as efficient as you want and need it to be. This is what gives those big retailers and other competitors a competitive edge. The solution, however, is automation.
By automating your business’ shipping, as well as receiving process, you can get a foothold among the competition by having efficiency drive lower shipping cost. What does sipping automation look like? It is really just having rules in place using technology to enforce those rules when shipping orders come in.
For example, almost all shipping workflows can be automated, from labels to actual shipping options via your website’s checkout page. You can also use carrier selections and shipping categories to automate and streamline the process.
This creates a more efficient process for shipping and allow you to get back to being an entrepreneur instead of a shipper.
Entrepreneurs Need To Redefine Their International Shipping Process
For some entrepreneurs, having the ability to connect, send, and receive products internationally can impact bottom lines significantly. This is especially true for entrepreneurs who do not reside and work in North America, but want to tap into the more than $5 trillion retail market of the US.
“Many U.S. online retailers and auction site sellers do not ship purchases overseas, charge too much for international shipping, or do not accept international credit cards,” according to BluePostal, an international shipping solution provider for consumers and businesses.
There are, however, new ways to ship and receive products internationally. These intermediary businesses are cost effective with tax reduction, and efficient for entrepreneurs who are more international. If you are thinking about taking your business international, this could be an easy way to capitalize on global marketplaces.
Dive Into Expenses And Find Ways To Cut Costs
Shipping is not cheap, especially for entrepreneurs that handle large products. On top of that, competing against cheap and free shipping can be a big challenge. So how can you reduce the shipping cost to the customer without raising your item price? This takes some research and savvy entrepreneurial thinking.
First, start looking for areas in your business to cut costs. This could be ordering more inventory to get a better price that can then be transferred onto better shipping options for the end consumer. You may even find cost cutting by changing certain vendors, or maybe cutting back on certain monthly expenses your business could potentially do without.
“Depending on what you’re selling, you want to make sure you’re still keeping your prices competitive, but this is a great way to offset some of your shipping costs while still keeping that shipping price ‘low’ or ‘free’ for your customers,” Thea Earl, product marketing manager for Shopify Shipping said in a Shopify article.
The bottom line is to adjust your costs to make your shipping more enticing to potential customers. You may have to dig deep into where your expenses are leading, but the end result could increase your overall profits.
Entrepreneurs certainly have their work cut out for them, and shipping is just one factor when it comes to the overall business. The three shipping strategies outlined are not the end all when it comes to shipping. However, they provide a clear path to starting the process of changing shipping for your startup.
From automating the process to finding ways to offer the same shipping options as big retailers, there is always a way to increase customer sales, and your bottom line.