Creating Value with Ecommerce Shipping: Part 3
Our last post discussed ways to earn more money from customers and how this is related to shipping.
In this one, weâ€™ll hear from a popular nutraceutical business, Shredz, and learn how outsourced ecommerce shipping creates extra time and business opportunities that can lead to significant growth.
Freeing up time
We have established that managing shipping on your own is complicated, and the complexity only grows as you expand globally. Increasing responsibilities often require the help of additional employees, whose salaries add up quickly, and who require training on the vast array of shipping options, tax consequences, customs clearance rules, and international trade policies. By the time youâ€™re ready to execute, itâ€™s likely youâ€™ll have spent more time than anticipated preparing the process.
If you donâ€™t have the time or interest in calculating all these factors, consider outsourcing fulfillment. Offloading ecommerce shipping means that everything â€“ inventory storage, packaging, labeling, shipping, and even returns â€“ is left to seasoned specialists who can handle anything from one order a day to a thousand orders a day. By cutting out the nitty gritty of picking, packing, and shipping, your team can run a leaner operation and kick back more often.
While some might choose to relax or take a vacation once the stress of shipping is handed off to a fulfillment partner, others opt to focus on big-picture questions and chase after new business opportunities with the spare time they have gained.
Take the example of SHREDZ, a New Jersey-based supplements company that partnered with Shipwire to manage logistics and order fulfillment.
With 2013 gross revenue estimated at $8 to $10 million and nine-digit goals set for 2014, the company was busy gearing up for a B2B sales channel and further international expansion, which took a lot of time and energy. â€œWe started our relationship with Shipwire in February of 2013, when the partners of the company realized that they were spending more time physically packaging shipments than producing sales and driving the brand,â€ explained Ankur Garg, the companyâ€™s COO. â€œShipwire also supported our need for freight shipping â€“ not to mention we saved money with great shipping rates,â€ he said.
SHREDZ has already done a lot of hustling and heavy lifting, and itâ€™s ready for more. The companyâ€™s long-term goal is to establish a positive lifestyle change for a billion people in the world. Where will they go next? Said Garg, â€œWeâ€™ve set our sights on gaining a large percentage of the market share in Mexico/Canada, Europe, Asia, South America, and Australia. We are growing incredibly fast. Without Shipwire we wouldnâ€™t be able to do it.â€
SHREDZ is headed into new international markets, but there are other expansion options to consider if youâ€™re looking for a less aggressive maneuver. For example, consider doing some research on cross-selling and upselling to increase your sales.
How you approach new opportunities will depend on your product and business model. The bottom line is that by spending less time on shipping, you can focus on improving your strategy.
The next part of the series examines how shipping impacts branding and customer satisfaction. Weâ€™ve also combined the entire series into a handy guide, which you can download for free.