78% of French e-consumers abandon their shopping baskets if they consider shipping costs too expensive, according to a Sendcloud study on e-commerce delivery trends for 2021-2022. They say they are prepared to pay 3.10 euros for a 15-euro order and 4.70 euros for a 150-euro basket.
By way of comparison, these thresholds were 3.40 and 6.40 euros respectively in 2020. When choosing an e-boutique, consumers place the greatest importance on delivery costs (98%). This criterion is followed by delivery times at 78%, then flexibility at 75%.
In this context, any online sales site that wants to succeed in attracting buyers must reduce its e-commerce delivery costs. The challenge is to keep shipping costs under control, without compromising delivery service quality. D&fiGroupe gives you some practical tips on how to meet this challenge!
1. Use automation processes to save packaging time
To reduce delivery costs in e-commerce, automating packaging processes is key. Here are some practical tips on how to achieve this:
- Invest in automatic sealing machines: these machines can seal cartons faster and more reliably than manual methods. They minimize the risk of breakdowns and jams, reducing downtime and waste.
- Use automatic filling systems: machines that add padding to delicate packages not only speed up the process but also ensure more precise and economical use of protective materials, reducing excess and carbon footprint.
- Automate carton assembly: machines can assemble and seal cartons in record time, enabling more orders to be processed in less time and with less manual effort.
- Adopt automatic tape systems: these devices apply tape evenly and efficiently, avoiding waste and ensuring secure package closure.
By integrating these automated solutions, you can not only reduce labor and material costs, but also improve employee productivity and safety, by reducing the risk of repetitive motion injuries.
Are you unable to invest in such solutions to optimize your packaging processes? Have you considered outsourcing your logistics? Our experts can help you optimize your supply chain and reduce your delivery costs.
2. Optimize the organization of goods and production flows
Good management of goods and production flows requires a number of best practices.
Selection of suitable containers for transport
Depending on the size and type of product, American crates, container crates, pallet boxes or parcel boxes can be used. Desiccant or zip bags are more suitable for small items requiring specific packaging bags.
Use of suitable cushioning materials
To protect items during transport, cushioning paper or bubble wrap can be used. Smaller products benefit from being shipped in padded pockets or envelopes, offering greater protection and reducing shipping costs.
Optimizing warehouse organization
Organizing the warehouse to maximize space and minimize employee movements is essential. Similar goods can be grouped together to facilitate picking and speed up the order-picking process. Separating product categories helps to relieve congestion on production lines, enabling more efficient workflow management.
Streamlining production flows
It is important to constantly analyze and improve production flows to eliminate bottlenecks. The use of inventory management tools makes it possible to monitor product levels in real time and proactively plan replenishments.
By applying these strategies, warehouse efficiency is improved, costs associated with logistics and packaging materials are reduced, and fast, secure delivery to customers is ensured.
3. Save space on the size of e-commerce delivery parcels
Dimensional pricing is a method used by carriers to charge customers according to package weight and volume, penalizing excessively large packages. To avoid additional charges, it's essential to maximize the number of items inside each package. Here are a few tips on how to achieve this:
- Use a variety of packaging sizes: Having a range of packaging sizes to suit your regular shipments optimizes the space in each package. Having a range of sizes available ensures that each product is shipped in an appropriately sized package, minimizing unnecessary space.
- Negotiating rates with carriers: For recurring shipments, it's possible to negotiate advantageous rates with carriers. An account manager can help you identify your shipper profile and better manage these negotiations, thus obtaining more competitive rates.
- Automate the packaging selection process: Automation can speed up the selection of the ideal packaging for each product, ensuring that the right format is used every time. This not only saves time, but also reduces human error.
- Use envelopes for small items: Envelopes often involve lower delivery costs than cardboard boxes. They are ideal for sending small items, helping to reduce shipping costs.
By implementing these strategies, you can not only optimize the use of space in each parcel, but also reduce the associated delivery costs, while ensuring efficient, cost-effective shipping for your customers. What's more, it helps green your supply chain.
4. Monitor and apply new industry innovations
The delivery industry is constantly evolving, with innovations designed to improve efficiency and sustainability. To reduce delivery costs in e-commerce, it is essential to follow and apply these advances. For example, the use of lighter, more durable materials for packaging can significantly reduce shipping costs, while also reducing environmental impact. By adopting these new materials, companies can also benefit from the possibility of reusing packaging, leading to further savings in the long term.
Intelligent packaging is another key innovation. These technologies enable products to be tracked and analyzed throughout the shipping chain, providing greater visibility and more efficient inventory management. This not only improves product safety and traceability, but also optimizes logistics processes, reducing delivery times and associated costs. By integrating these technologies, companies can benefit from smoother, more transparent logistics.
Finally, the integration of robotics into production, sorting and packaging lines is radically transforming the industry. Robotic machines increase productivity and reduce human error, resulting in substantial savings over the long term. What's more, the use of eco-friendly materials, such as fiber-based designs, is beginning to replace plastic, responding to growing consumer demand for sustainability.
By investing in these innovations, companies can not only improve the efficiency of their logistics operations, but also strengthen their commitment to sustainability, making the delivery process more cost-effective and environmentally friendly.
5. Offer a variety of delivery methods and give priority to relay points.
To satisfy your customers' preferences, offer a variety of delivery methods. Offer at least one express and standard delivery option, as well as home delivery and drop-off options. Relay point delivery is often the most economical, as it reduces carrier travel.
Vary price ranges too: express home delivery will be more expensive than standard delivery. Finally, free delivery can attract more customers, by offering it above a certain purchase amount or via in-store collection, thus increasing your conversion rate.
6. Outsource your e-commerce site logistics
Outsourcing logistics can also reduce delivery costs. By entrusting this task to experts, e-tailers can benefit from more efficient management of inventory, orders and shipments.
To find out how logistics outsourcing can optimize your supply chain, read our article on the benefits of delegating all or part of your supply chain management.
At D&fiGroupe, a dedicated supply chain expert is available to help e-commerce managers control delivery costs and optimize their customer experience. Let's discuss your logistics project!
Did you find this article useful? Discover 10 other tips to optimize parcel shipments for an online store.
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