A sign of a good businessman is to think like a buyer while selling a product and also keeping in mind his business logistics! E-commerce is not an exception to this rule. Whims of a customer and fears of not receiving the desired products play a crucial role in conversions and the seller has to target these to satisfy them.
Logistics show that consumers often abandon carts due to high shipping rates, long delivery times, delayed delivery and other such issues. It has also been seen that consumers do not shop from the same seller if they had delivery issues with the seller in the past. Another big issue is,if the buyer wants a product they want it now so fast delivery increases conversions and reduces cart abandonments.
E-commerce websites like Wal-Mart are offering two day deliveries which is making it a norm of the market. Companies like Amazon and Flipkart have also followed suite. While Amazon offers free 1-2 day delivery to its prime members it charges a fee for the non members for faster delivery options.
Faster delivery not only satisfies the urgency of the buyer but also gives an assurance to the fear of not receiving the product at all. Along with fast delivery if the delivery is free the chances of conversion are increased manifold. Free shipping is a major marketing tool.
Free and fast shipping can be offered on a minimum order amount, for example free shipping programs like Amazon. in offers a free delivery of products above Rs.500, or, free delivery by Flipkart on Flipkart assured products. The seller can also offer free shipping for a limited period of time, for example as an introductory offer. While for faster shipping can be offered at minimum rates or buy including the cost in the pricing of the product. A customer does not like to be surprised at the time of checking out with high shipping charges and this may cause cart abandonment therefore shipping charges should be minimum and notified early on.
A fast and successful delivery increases the credibility of the seller and also increases chances of future conversions.
While a two to three days shipping is lucrative what actually gives the boom is same day delivery! While this might not be a viable option for small business this can definitely be tried by the bigger ones. The attraction of receiving the product within few hours of placing an order is massive and the customer is even ready to pay a price for it. This boosts sales manifold!
For a successful management of fast delivery businesses can opt for experienced shipping companies like FedEx or Flipkart Assured where the hazards of managing warehousing and delivering a product is taken by Flipkart.
The expectations of the buyers are increasing by the day and so is the competition. Therefore, to be in the game and to ace it one needs to play the fast delivery game well!