Contemporary shopping is defined by e-commerce and online retailers—both of which rely heavily on commercial shipping services to send their packages. Modern logistics partners, however, can be more expensive and less reliable than in the past. The United States Postal Service, for example, noted a nearly 5% spike in late deliveries between 2022 and 2023, despite general services costing 24% more than they did just three years ago.
To optimize your on-time deliveries while minimizing your logistical overhead, you’ll need some savvy tips about how to improve shipping processes for your business. In this guide, we’ll unpack seven innovative shipping strategies that can streamline your workflow, enhance customer satisfaction, reduce operational costs, and distinguish your company from its less capable competitors.
#1 Integrating Advanced Analytics for Predictive Shipping
Being able to forecast and manage demand is key to predicting your shipping volumes and delivering more products to their destinations on time. A lot goes into shipping a single parcel. From finding the right packaging to properly securing the goods and affixing the correct shipping label, it can be a time-consuming, tedious procedure. Having everything on hand and ready to go can save significant labor and streamline the entire process.
The best way to predict and prepare for future shipping volumes is with sophisticated shipping analytics. Lojistic audits your past shipments and delivery patterns to provide accurate, up-to-date predictions to help you prepare for future volumes. It can also analyze robust sets of related data to help you compare shipping carrier costs, maintain a better sense of your commercial trends, and identify cost-saving opportunities in your shipment process.
Furthermore, Lojistic’s comprehensive shipping reporting solutions quickly compile relevant data into weekly, monthly, or quarterly reports to make large figures more digestible and useful. You can easily sort them by carrier, fee, date, or other factors to instantly gain access to the information you need—and then take action on it.
#2 Leveraging Local Delivery Networks
Tapping into regional delivery networks can keep shipping costs down, support local businesses, and help you maintain timely deliveries. Local couriers have unparalleled knowledge of their client base and know neighborhoods like the back of their hands, leading to more efficient deliveries and satisfied customers.
Amazon went down this route with its Delivery Service Partner program and, after half a decade of operations, they deliver 10 million daily packages via 275,000 local drivers with no signs of slowing down.
#3 Customizing Packaging for Efficiency and Branding
Unnecessarily large packaging isn’t just cumbersome, it’s wasteful. Every inch of excess cardboard, paper, or plastic signifies lost funds and diminished profitability.
To reduce packaging costs and increase overall profit margin, choose custom-built packages that snugly fit your products without extra material. As a bonus, when you design custom packaging, you can enhance it with your brand’s unique colors and aesthetics so customers know your delivery has arrived before they even open the box.
#4 Streamlining Returns Management
Nearly 15% of all goods purchased in the US are eventually returned. These persistent buybacks can result in high costs for your business—especially if you’re footing the bill for shipping.
To minimize refund expenses for your business, you can try:
- Implementing reasonable policies and communicating them very clearly to consumers
- Establishing easy-to-use return platforms, such as central stores or hubs where customers can bring their goods without the need for shipping
- Allowing customers to keep, recycle, or donate low-value items, rather than requiring a return that (almost or definitely) costs more than the item itself
- Refurbishing and reselling used products to recoup some refund costs
#5 Implementing Real-Time Tracking and Communication
Visualizing where your package is at all times is the type of service that modern consumers have come to expect from their deliveries. As a business, being able to offer real-time tracking not only satisfies more customers, but helps you keep tabs on packages in cases of disputes and lost items.
- Employ platforms that automatically send updates to customers at key stages of the delivery process, such as when a package is dispatched, out for delivery, or has been delivered. These updates can be sent via email, SMS, or through the mobile app.
- Use delivery management systems that offer interactive features like the ability for customers to view the delivery vehicle's location on a map in real-time and receive notifications if there are any changes or delays.
- Integrate your tracking system with major carriers and logistics providers through APIs. This allows for seamless real-time tracking information across different carriers, making it easier for businesses that rely on multiple shipping partners to provide consistent tracking information to customers.
- Implement a system for collecting and responding to customer feedback on delivery experiences. This feedback can help identify areas for improvement in real-time tracking and communication strategies.
- Utilize dispatch software that uses algorithms to optimize delivery routes in real-time. This software can also provide delivery personnel with the most efficient routes, reducing delivery times and improving the accuracy of estimated arrival times shared with customers.
#6 Exploring Cross-Border Shipping Solutions
Selling internationally can sharply boost your customer base and lead to more sales, revenue, and profit. Shipping across borders, however, can open your business up to the headaches of customs, taxation, and unfamiliar logistics partners.
UPS and FedEx are two of the world’s leading companies when it comes to trustworthiness and reliability across international borders—their prices, however, may run higher than smaller, local or regional parcel carriers.
To avail yourself of their lauded services at reasonable rates, explore UPS & FedEx shipping contract solutions that let you access premium discounts on bulk and repeat shipments. So, whether you’re shipping to a neighboring country or another continent, you’ll always receive the best deal.
#7 Adopting Sustainable Shipping Practices
Consumers are becoming more eco-conscious and they want every aspect of their purchases—including the packaging and shipping methods—to align with these values. According to recent studies:
- Searches for sustainable goods have shot up 71% over the last five years
- 66% of consumers consider sustainability when making a purchase
- 37% of consumers consider a product’s environmental impact as a deciding factor before making a purchase
With the ongoing rise in eco-conscious consumerism, sustainable shipping isn’t only an environmental concern, it’s also a savvy business practice. So, consider making the switch to recycled packaging, shipping by sea rather than air, and reducing your single-use plastic packaging and void fill whenever possible.
Elevating Your Shipping Strategy with Lojistic
In order to maximize shipping efficiencies and minimize costs, you’ll want to employ innovative, sustainable strategies and partner with reliable logistics companies. Use predictive analytics to forecast your volumes, minimize late deliveries, and optimize customer satisfaction. To meet modern consumers’ eco-conscious sensibilities, use sustainable packaging, delivery, and return methods. And, finally, choose trusted local and international partners to ensure your goods arrive at their final destination.
To easily implement these savvy solutions for your company, turn to Lojistic.
With parcel shipping cost comparison, we’ll help you devise the quickest, most cost-effective solution that meets your needs. Furthermore, with the industry connections forged through our freight marketplace, high-volume businesses can enjoy exclusive discounts on some of the nation’s most reliable couriers.
Partner with Lojistic to satisfy your client base and turn them into repeat customers with every fulfilled delivery.
Sources:
- Katz E. Mail delays spike during USPS’ busiest season. Government Executive. December 5, 2023. Accessed February 21, 2024. https://www.govexec.com/management/2023/12/mail-delays-spike-during-usps-busiest-season/392499/.
- Katz E. USPS looks to raise rates for fifth time under Dejoy. Government Executive. October 10, 2023. Accessed February 21, 2024. https://www.govexec.com/management/2023/10/usps-looks-raise-rates-fifth-time-under-dejoy/391066/.
- Martins A. Your customers prefer sustainable products. Business News Daily. Accessed February 21, 2024. https://www.businessnewsdaily.com/15087-consumers-want-sustainable-products.html.
- Staff A. How Amazon’s DSP program has created $26 billion in revenue for owners. US About Amazon. August 19, 2022. Accessed February 21, 2024. https://www.aboutamazon.com/news/transportation/how-amazons-dsp-program-has-created-26-billion-in-revenue-for-owners.
- Placek M. Retail: Share of items returned U.S. 2012-2023. Statista. February 19, 2024. Accessed February 21, 2024. https://www.statista.com/statistics/876378/retail-industry-reverse-logistics-share-united-states/.
Author
Bryan Van Suchtelen
Bryan Van Suchtelen
Corporate Director of Parcel Rate Services
Prior to joining Lojistic in 2015, Bryan enjoyed a 26-year career with UPS where his roles included Pricing, Field Sales and Director-level Sales Management of some of UPS’s largest customers.
At Lojistic, Bryan leverages his wealth of experience/expertise to identify and execute supply chain cost management solutions for parcel shippers of all sizes. Bryan has helped his customers reduce their shipping spend by tens of millions of dollars.