More businesses are meeting their customers’ demands, and the logistics sector needs to make many adjustments for that to happen.

Consumers want faster service but also more visibility in the supply chain. Companies need to change how they use data to improve consumer satisfaction. In the logistics sector, improving the customer experience in logistics can help you stay innovative and meet changing client needs.

Consumer expectations are rising, particularly in the delivery and logistics sectors. Online merchants must rise to the challenge of offering exceptional service throughout the customer journey. That means taking care of the initial point of contact up to the final delivery destination.

In addition to quick responses, modern customers want openness and involvement from the brands. Eighty-six percent ( 86%) of consumers are prepared to pay more for superior customer service. 

A PricewaterhouseCoopers (PWC) study indicates that consumers are willing to pay more for more expensive items. For example, just by having a positive customer experience, consumers are prepared to pay a premium of up to 13% (and as high as 18%) for luxury and indulgence services.

Businesses that offer individualized consumer experiences (CX) in logistics must surpass expectations and competitors. Every touchpoint a consumer has with your company should be customized from the first minute they interact with it. 

Personalized experiences from beginning to end offer various opportunities to expand and scale. 

The Need for a Positive Customer Experience in Logistics

Positive experiences can result in higher customer satisfaction scores, which attract new business and encourage clients to spend more. 

Transport and logistics firms can expand their client base and obtain more data from the ecosystem by bringing in more business. This data can then be used to customize and improve their products and achieve operational excellence.

When paired with excellent service, these enhancements decrease expenses and pricing, enhancing the whole customer experience. Therefore, improving the client experience can significantly affect the company’s revenue and profitability.

Several touchpoints impact the consumer experience in logistics from the time an order is made until the point of delivery. Effective supply chain and logistics management make these touchpoints seamless, reliable, and efficient.

What does a superior customer experience look like? For logistics and transportation firms, it begins with communicating with potential clients, obtaining quotations, and using a smooth onboarding procedure. 

_{Customer Experience for the Logistics Sector (superstaff.com)}

When teams begin collaborating, inquiries will be answered faster and more effectively, operational execution will be best-in-class, and problem-solving will occur in real-time. These are key to faster complaints and claims responses and effective invoicing procedures.

By setting themselves apart through outstanding customer service, logistics teams can enhance their image and obtain a competitive advantage in the market. 

Consumers value logistics partners that are prompt, dependable, and proactive in attending to their demands. Creating a culture of excellent customer service increases customer happiness and fosters enduring relationships and favorable brand awareness.

A business’s greatest reward is gaining the loyalty of its customers, which results in healthy financial gains. 

Excellent customer service in logistics guarantees that consumers will routinely use the brand’s services and goods and integrate them into their daily lives. Customers are likelier to stick with a company they’ve had excellent experiences with. It even extends to auxiliary services, meaning they are less likely to visit a new company or brand. 

Customer loyalty corresponds to a direct increase in profits. A brand-loyal consumer purchases nearly 67% more goods and services from a brand. As a result, the company can spend less on running expenses while making more money from returning customers. Profits can rise by nearly 25% with just a 5% increase in client retention efforts. 

The complexity of your logistics increases with the size of the company. Due to the numerous steps and parties involved in the shipping process, maintaining excellent customer service can be challenging for large businesses or complex supply chains. 

Every stage and party involved in the shipping process impacts a company’s reputation through customer experiences. It is difficult to achieve perfection in logistics or customer service. However, it is possible to improve and offer the best services to clients continuously. 

Optimizing the Customer Experience in Logistics

Logistics companies prioritize customers and employ technology to address issues. By utilizing sophisticated analytics and track-and-trace systems, they can provide insight into shipment progress and implement backup plans in case of delays.

_{Customer experience in transport and logistics | Strategy& (pwc.com)}

Logistics firms can proactively solve possible difficulties by identifying them early on. By making data-driven decisions, they can reduce the effects of interruptions and uphold a high degree of customer satisfaction.

When dealing with logistical challenges, providing excellent customer service extends beyond problem-solving. It highlights a logistics provider’s dedication to providing outstanding service and building resilience in the face of difficulty. 

By prioritizing customer service, logistics firms can efficiently prevent roadblocks and guarantee an excellent client experience.

1. Reduce Customer Touchpoints

Consumers dislike having their concerns handled by several representatives, as it can be confusing and time-consuming. It can give off the impression that your business is poorly organized and your staff is incapable.

One way to prevent this is to have a thorough internal communication system. ?It should unite all the pertinent teams and give them a shared internal platform to exchange information, recognize issues, and quickly and effectively discover solutions. 

An automated routing system that sends customer requests to the appropriate teams can also reduce customer touchpoints and enhance the customer experience in logistics. 

2. Leverage Real-time Visibility 

Logistics companies must provide real-time updates, data, actionable insights, and end-to-end visibility on a single platform. Integrating sophisticated analytics into your supply chain empowers managers to make more informed decisions. You’ll need all of these to meet the needs of today’s clients.

Businesses must change their approach to the customer experience from a conventional one to a digital strategy. A multi-channel approach can provide them with real-time visibility into every customer encounter. It enables businesses to provide experiences promoting sales and contextually relevant and personalized information.

3. Utilize Automated Vehicles for Deliveries

Drones and driverless cars have been trending topics for the past few years. Many people already use them extensively for their personal and recreational needs. 

Companies involved in logistics and transportation have also started to see how these technologies can provide convenient and quick delivery.

Delivery trucks and human drivers will continue to be required for long-distance shipping and transportation. Drones and autonomous vehicles, however, can cut down on delivery wait times over shorter distances.

Drones and self-driving cars equipped with artificial intelligence (AI) technology offer quicker service but can also improve delivery routes and reduce operational costs. Both are equipped with sensitive cameras and powerful software to help them skillfully avoid obstructions.

4. Continuous Skills and Training Development

Investing in ongoing training and skill development for your customer support team is essential. 

Giving them the tools to solve problems, communicate effectively, and understand the logistics process enables them to offer better support to clients. 

Representatives with proper training can confidently and accurately manage client questions and maneuver through complex logistics problems.

5. A Smooth Returns Process

Returns are inevitable in logistics and eCommerce. A smooth and effective return procedure is one of the most critical aspects of customer service. 

Even with delivery issues, you can improve customer satisfaction by providing instructions on uncomplicated swaps or refunds and prompt return processing.

Automating return management can help process returns faster and more effectively. Software for managing returns can trace returns, create mailing labels automatically, and provide reimbursements. 

Automating these processes can reduce the time and money to handle returns while increasing accuracy and lowering costly errors.

6. Provide Omnichannel Support

A single customer support phone number is no longer enough because of increased consumer expectations over the past few years. The logistics industry’s wide range of consumer touchpoints drives businesses to employ various customer service software to manage data and optimize workflows.

Although having access to several systems is beneficial, switching between platforms takes time and can lead to information loss. 

To avoid this, use a dedicated platform for shared communication. It will ensure every interaction is well-informed. Your customer service representatives must offer the best solutions, enhancing the overall customer experience in logistics.

Transport and logistics firms must properly deliver products to customers, regardless of shifting market conditions. But now there’s another thing to consider: having the right customer experience.

The logistics sector must keep up with the ongoing evolution of customer demand. Developing a complete CX strategy that connects consumers across all touchpoints and gives them the high-quality service they deserve requires embracing new technology and creative solutions.

ZhenHub keeps you and your customers connected with our all-in-one platform for digital logistics solutions—track packages worldwide with our global network of interconnected fulfillment centers. Sign up today and start providing a best-in-class customer experience in logistics. Contact our fulfillment experts to learn more.

eCommerce Conversion Optimization or Conversion Rate Optimization is the process of structuring a website, so it encourages visitors to take a specific action on a web page. These actions can be in the form of account creations, whitepaper downloads, newsletter sign-ups, or, in the case of eCommerce, check-outs. Conversion Optimization is a never-ending analysis of online market behavior — how they navigate a site, the clicks they make, and what encourages or stops them from completing a set goal. 

To compute the eCommerce Conversion Rate, just divide the number of successful check-outs by site traffic. For instance, if a website earned 50 sales transactions after generating 100 website visits in a month, that online store’s conversion rate is 50%.

eCommerce Conversion Optimization Tips

There are numerous ways retailers can attract customers to their online stores. Something as small as changing the color of a call-to-action button can significantly impact online revenue. For merchants looking to update and upgrade their online presence this coming 2021, here are a few eCommerce Conversion Optimization tips to follow:  

Understand Your Market

The cornerstone of every winning marketing strategy is understanding market behavior. Retailers who know their audience find it easier to send their brand message across. High traffic does not always equate to increased sales, especially when a merchant’s site does not attract the right market. Three key factors can help sellers determine their ideal market: 

• Demographic and Psychographic

Demographic data is statistical data that defines the particular characteristics of a market segment. Age, gender, household income, and occupation are common demographic data points used in brand marketing, both online and offline.

• Buyer’s Journey

A deep understanding of the buyer’s journey will help retailers know the best way to approach their online presence. For instance, do consumers like to compare product models before deciding what to buy? If yes, then a “comparison feature” might be an excellent eCommerce Conversion Optimization strategy. 

• Device and Channel Preference

An omnichannel strategy continues to become the norm for eCommerce. Now, retailers need to consider the devices and channels a specific audience prefers. Should products be available for check-out on other platforms like Facebook and Instagram? Or is a website shop enough? Do buyers prefer browsing items on mobile or desktop? Merchants who have this knowledge will find it easier to optimize their online presence to meet their market’s preference.

Know Your Marketing Options

Once a merchant fully understands their online market, the next thing to consider is available marketing avenues. Before the world became a digital-first society, the only online channel merchants could use to market their products is email. Digital marketing has come a long way since then. Small to medium businesses can now compete with industry giants on a variety of platforms:

• SEO

Search Engine Optimization is one of the more popular strategies when it comes to eCommerce Conversion Optimization. A study by Zero Limit reveals that the first five organic results on Google account for 67.60% of all clicks.  SEO aims to put a website on the first page of Google search results by optimizing its content, design, and speed. This involves studying what potential content users will find exciting and identifying what search terms they will use to look for that type of content. 

• Social Media

Social Commerce has been making waves the past few months, especially with the release of Facebook Shops. In fact, based on data published by emarketer, 55.2 percent of American internet users under the Gen Z cohort say that social media content inspired their most recent purchases. If a seller’s primary audience is more in the younger age bracket, it’s best to take advantage of social media as an eCommerce Conversion Optimization strategy. 

• Email Marketing

Email marketing has been around longer than before the term “digital marketing” was coined. Amazingly, when done right, it can still be just as effective. Retailers who have a robust customer database can leverage existing information to make marketing a more personal experience for consumers. A drip campaign triggered by previous purchases is just one example of remarketing that can increase the eCommerce conversion rate. 

• Paid Ads

A retailer looking for instantaneous results and web traffic can maximize the power of pay-per-click ads. This particular digital marketing strategy is available both on search engines and social media. It is an excellent way to increase targeted reach to generate relevant website traffic. With the right keywords and market targeting options, paid ads can be an effective eCommerce Conversion Optimization strategy to turn clicks into customers. 

• Influencer Marketing

This eCommerce Conversion Optimization strategy involves tapping a social media influencer’s loyal following to widen targeted reach. With influencer marketing, retailers can increase brand awareness and encourage conversions through an influencer serving as an endorser. However, this is a more authentic approach to advertising, as the influencer publishes more organic content than planned and carefully curated. 

Give Them What They Want

The foundation of every successful eCommerce Conversion strategy is simple: addressing the market’s needs. Once retailers know who their market is and where they prefer to shop, the next step is identifying how to give them a positive shopping experience.  

• Seamless Checkout Process

If an online shop is experiencing a high shopping cart abandonment rate, retailers must first evaluate their checkout process. Are there too many steps before they can complete a transaction? Are they required to create an account just to check out? These are only two of the many questions merchants must ask themselves to ensure that the checkout process is as simple as it could be for the buying market. 

• Flexible Payment and Shipping Options

Another factor that could influence eCommerce Conversion Optimization is a retailer’s available payment and shipping options. Amazon has made two-day shipping the standard for sellers, but if a merchant can partner with a reliable 3PL, they can offer expedited shipping such as same-day deliveries or overnight shipping. 

Payment options also play a role in website conversion. In addition to traditional payment methods such as cash on delivery, credit or debit card, and Paypal, many online shops now offer contactless payments such as Apple Pay and Samsung Pay. If shipping and payment capabilities are too limited, sales can suffer as buyers can feel alienated or forced to find other providers to meet their preferences. 

• Bundles, Discounts, and Promos

There’s a reason the holiday shopping season is the busiest time of the year for retailers and buyers alike — it rains deals and discounts. Merchants who offer special bundles, limited promos, exclusive discounts, and free shipping will naturally enjoy higher site traffic and conversion. Through data, sellers can identify what products are usually brought together and sell that as a bundle. Likewise, perfectly-timed deals and discounts, such as payday sale, can also be an effective eCommerce Conversion Optimization strategy.

There is so much an entrepreneur can do to optimize their online presence for conversion. It can be overwhelming, but the key is to start with what’s feasible and taking it one step at a time. Retailers can do this in phases: Phase 1 will focus on improving site speed; Phase 2 will tackle content and design changes, and so on. 

As previously mentioned, small changes can significantly impact conversion. The important thing for sellers to remember is to track every little adjustment they make on the site. Monitoring all updates on the site will make it easier for sellers to identify what works and what does not in the long run. 

If you are an eCommerce entrepreneur searching for a fulfillment company to supercharge your online business, our experts at ZhenHub are ready to talk! Together, let us optimize your digital store for conversion. Get a free quote now. 

From customer service to shipping and delivery, these are some of the factors that influence the customer experience. Arguably, one of the most important factors is the provision for shipment tracking. Twenty-Four percent (24%) of online shoppers say they are likely to make repeat purchases from a brand that offers shipment tracking. According to the respondents, shipment tracking allows them to plan their day accordingly without postponing tasks because they have to wait for their package.

Providing shipment tracking is a means for retailers to remain competitive within the eCommerce industry. But it’s easier said than done. This article explores the importance of shipment tracking, including practical ways to implement it and best practices in improving shipment tracking usability. 

What is shipment tracking?

eCommerce has made customers more demanding. Aside from having a plethora of options at their fingertips, they want a great overall purchase experience.

Shipment tracking is an effective way to build trust and open communication lines with the clientele. It involves communicating the order status of every step in the shipping process. Order tracking differs from retailer to retailer. It can entail real-time tracking, estimated delivery dates, and updates on the order status.

Why is shipment tracking Important?

As mentioned earlier, order tracking is crucial in maintaining transparency with the customer. However, the benefits of this feature go beyond communication.  

• Lower Costs

Choosing to use shipment tracking software is an expense. Software prices depend on the scale of the eCommerce operation. But it’s well worth it as it allows retailers a full view of the status of their shipments. Should any issues pop up during the shipping process, operators can address the problems before reaching the customer. It can save them a lot of money from returns, refunds, or customer complaints.  

• Improve Customer Experience

Today, the brand that can provide the best customer experience wins the loyalty of the consumer. Shipment tracking plays a role in improving the customer experience. Order tracking provides customers with peace of mind and can even win over hesitant buyers. A pleasant purchase experience builds customer loyalty. 

• Ensure On-Time Delivery 

Shipping delays are one of the most common reasons for customer complaints. Again, consumers are demanding. It barely matters that the package arrived undamaged; if it’s late, the overall purchase experience is poor. 

Shipment tracking can minimize the instances of delayed shipments. Because of the high transparency of shipment tracking software, retailers can collaborate with carriers and warehousing personnel. 

• Improve Supply Chain Efficiency

An eCommerce supply chain, regardless of the scale of the operation, entails plenty of significant steps. If any of the processes are not working efficiently, it affects every other part down the line. Order tracking improves a retailer’s visibility of its supply chain. It is easier to spot areas that need improvement through this technology. 

6 Best Practices in shipment tracking 

It is one thing to offer shipment tracking; it is another to provide shipment tracking that customers use. Below are a few steps that can help improve a buyer’s online shipment tracking experience:

• Provide Tracking Numbers for Each Order

Tracking numbers are a vital cog in the order tracking machine. They are a unique set of numbers that get assigned to a specific order. Customers use tracking numbers to view the status of their purchases. Without tracking numbers, shipment tracking is impossible. 

It is best practice to make the tracking number as visible as possible after customer purchase. Some companies send a confirmation email that also includes the tracking number. 

• Allow Customer to Track their Orders on the Website

There are several ways customers can view the status of their orders. But convenience is everything. To make the order tracking process easier for shoppers, make the feature available on the website. 

• Make Tracking Highly Visible

Again, package tracking affects customer satisfaction. As a retailer, equipping your website with this feature is an added but worthwhile expense. To make the most out of the investment, shipment tracking updates should be as visible as possible. Do not bury it in categories and sub-categories. If possible, include it on the homepage, preferably in the top right corner of the page. 

• Provide Estimated Date and Time

As far as a customer is concerned, the estimated delivery date is the most critical part of order tracking. Ideally, it should be the first thing a buyer sees when they check up on their purchases. If possible, provide the approximate time that the package would reach their doors. 

• Automate Notifications 

Providing all customers with step-by-step updates on their orders can be laborious, but it is a necessary task. Make the process easy by automating shipment tracking notifications. Send automated emails as order status changes. This small step keeps customers informed and gives them peace of mind.  

Shipment tracking is beneficial for both the retailer and its customers. For online shops, it is a means to keep track of shipments and stay ahead of issues during the delivery process. It is an effective tool that builds trust. In eCommerce, trust is invaluable. 

Not all shipment tracking software is created equal.  To ensure that your operation uses the best tracking software available, it’s best to partner only with experts. ZhenHub offers a wide array of tech-based logistics solutions that can fit every need. We have supported eCommerce companies of all scales. With our help, you can take your operation to the next level. Contact us today to learn more about our services or request a free quote to get things started. 

It is challenging to track important dates, holidays, and deadlines that impact Amazon purchase trends. Nevertheless, taking note of key events is vital to maximizing everything the marketplace has to offer. This article details the Amazon seller calendar, showing significant dates in the last remaining months of 2021 that every FBA seller should prepare for. 

Amazon Seller Calendar 2021: Important Dates

When it comes to successfully navigating Amazon, marketing for the peak season isn’t enough. The platform is competitive, and if a retailer doesn’t take marketing initiatives to promote their products year-round, another online operation might corner the market. Taking advantage of all holidays and events throughout the year is crucial to generating more sales through the platform.

Aside from holidays, the list below also includes crucial dates for Amazon FBA sellers, such as inventory deadlines and cut-off periods, as well as Chinese events to take note of:

September

• Last Day to Order Inventory for Black Friday, Cyber Monday, and the Holiday Season: September 15

October

• Golden Week in China: October 1 – 7
• Halloween / Last Day to Order Inventory Before Chinese New Year
• Amazon Selling Partner Summit: Late October

November

• Last Day to Get Inventory to Amazon Fulfillment Centers before Black Friday/Cyber Monday/Holiday Season: November 1
• Singles Day in China: November 1
• US Thanksgiving: November 25
• Black Friday: November 26
• Hanukkah: November 28 – December 6
• Cyber Monday: November 29

December 

• Christmas Eve: December 24
• Christmas Day: December 25
• New Year’s Eve: December 31 

Importance of Preparing for Chinese Holidays 

The list of events in this article includes Chinese holidays that Amazon FBA businesses should put on their calendars. While these dates might not seem much, especially from non-Chinese operators, China is the top source of inventory for most Amazon FBA sellers. Holidays can affect the supply chain in various ways:

• Lag in Production Times

Most sellers pre-empt the business of Chinese holidays by requesting larger orders before the festivities. While this strategy can help a seller prevent an out-of-stock situation, higher inventory demands strain the production process of most manufacturers. This issue can affect the order fulfillment cycle time and lead to significant delays and longer production times. 

• Lax Quality Control

Due to high demand, sellers produce a more significant number of products during the peak holiday season in China. Because of the rush, retailers can expect a decrease in quality control around this time. Sending orders before the influx of demand can help retailers ensure that their inventory maintains its quality. 

• High Shipping Rates

There is an increase in shipping costs during Chinese festivities. Couriers might hike their prices during the rush, and sellers get pressured to expedite shipping for their inventory. 

• Delay in Shipping Times 

Despite paying a premium for express or overnight shipping, shipping delays still happen- all the more so during the holiday rush. It is in the best interest of retailers to account for these delays and manage their customer’s expectations. 

Prime Day: What You Need to Know

In the Amazon Seller Calendar, Prime Day is an annual shipping event that caters to the marketplace’s Prime subscribers. Initially, this promotion was designed to be a one-day event. However, due to the demand and popularity, it has become a 48-hour global scale extending to India.  

Amazon held the first Prime day in July of 2015 to celebrate the platform’s 20th anniversary. It has now become a more significant shopping event than Black Friday and Cyber Monday. Usually held around July, it was postponed last year to October due to the pandemic. At the time of writing, Amazon has yet to announce Prime Day 2022. 

How to Prepare for Amazon Peak Dates 

Being familiar with holidays that influence buying behavior is the first step in preparing for Amazon’s peak dates. However, the work doesn’t stop there. Selling on the world’s top eCommerce platform is a year-round responsibility.

It is crucial to stay on top of consumer trends to understand which inventory to stock during peak events. Ample research and diligence prevent overstocking of slow-moving items. It also ensures that products in demand are well-stocked for the incoming surge. 

Likewise, allocating an inventory budget for significant shopping dates like Prime Day, Black Friday, and Cyber Monday is vital to generating more sales on Amazon. As a retailer, there are very few things more upsetting than knowing there is a demand but not having a means to fulfill it.  Planning should also account for expedited shipping.  

The peak dates emphasize the importance of efficient coordination with suppliers and staff. With ample information and correspondence, manufacturers should be able to churn out inventory in time for peak dates with relative ease. Moreover, training staff to handle the sudden surge of customer questions and complaints during the holiday rush is imperative. 

The end of 2021 is fast approaching. Soon, a new Amazon Seller calendar will be ready with peak dates to prepare for. That said, the remaining months of this year are a great time to practice and prepare for the coming holiday sales and the following year.

Whether you are new to Amazon FBA or have already found your footing in the marketplace, ZhenHub can support you by developing an Amazon strategy that is right for your business. Your online operation is in good hands with our years of experience and slew of tech-based logistics solutions. Reach out to us today for a free quote or to learn more about our services.

Free shipping is the number one driver for shoppers to make an online purchase. They are willing to spend at least 30% more on an eCommerce site to avail of a free delivery option. Likewise, shoppers are likely to cancel their orders and abandon their cart altogether if a brand does not offer free shipping. 

But offering free shipping can be a tricky proposition. Striking a balance between making money on purchases and cutting profit margins from offering free shipping can be challenging. This article explores how to offer free shipping to consumers without going in the red. 

How to Offer Free Shipping: Covering the Cost

Offering free shipping without recouping the cost elsewhere is a recipe for disaster. Unless a retailer sells expensive and one-of-a-kind products, sitewide free shipping without any conditions isn’t feasible for most online shops. Thankfully, there are ways to offer free shipping without dipping into the profit margins: 

• Include Shipping in the Cost of the Product

Raising prices often harms sales. Surprisingly, consumers would choose a higher-priced product with free shipping rather than a cheaper item with a minimal shipping fee. So it is essential to know your baseline before raising prices. Several big eCommerce corporations like Zappos employ this technique, but this doesn’t mean that it works for every online store. Work out the plan with your business and finance managers on how to go about this.

• Offer Free Shipping Promotions

Not all online shops know how to offer free shipping feasibly at all times. Especially if the market is too competitive, bundling the shipping cost into an item’s price isn’t possible. The solution to this problem lies in offering free shipping for a limited time. 

This tactic is effective for several reasons. First, retailers take on minimal losses if they don’t have to shoulder free shipping at all times. Second, since it is on a limited time, the sense of urgency to avail of it is enough to entice customers. 

• Consider Customer Lifetime Value

Keeping a loyal customer is more cost-effective than trying to acquire a new one. When it comes to recouping free shipping, striking a balance between acquisition and shipping costs is crucial. 

A second and a third purchase is often enough to make up for the loss. The repeat business can be made possible through proactive marketing strategies like loyalty programs and newsletter promos. 

• Develop a Membership Program

Seventy percent (70%)  of millennials are willing to spend on a premium membership that offers free shipping. Developing a paid membership program can potentially offset free shipping costs, entice customers to purchase more at little or no capital cost. 

• Set a Minimum Amount

Setting a minimum amount threshold for free shipping not only makes it feasible for retailers to offer this feature, but it also entices customers to add products to their basket. 

Free shipping encourages customers to shop. Fifty-eight percent (58%) of consumers would add more items in their order to qualify for free shipping. 

Calculating the Minimum Spend

One of the most popular eCommerce free shipping strategies is offering a minimum order requirement in exchange for free shipping. Coming up with the minimum order requirement entails a level of deliberation and mathematics. High minimum requirements deter customers from making purchases. If the prices are too low, you’ll lose any profit. Ideally, the minimum spend threshold depends on the following factors:

• Average Order Value

The average order value, or AOV, refers to the total amount customers spend on each transaction before shipping fees. Retailers must know this figure since, ideally, the minimum amount should be above the AOV to ensure profits. 

• Average Shipping Costs

The amount a retailer spends on shipping a package to the customer also affects the minimum spend threshold. The costs should include the shipping service, the packing materials, and the packaging a product comes in. 

• Average Gross Profit Margin

To compute the average gross profit margin, subtract the total cost of sound production from the total sales. Divide this figure by the total sales. 

The equation below computes for the minimum spend threshold:

((Preferred Revenue Amount + Average Shipping Cost) / Average Gross Profit Margin) + Average Order Value = Proposed Amount Minimum.

Strategies to Keep Shipping Costs Low

It is easier for retailers to learn how to offer free shipping if they are strategic with their shipping costs. The lower the shipping cost, the more sustainable the free shipping program becomes. 

• Keep Packaging Simple

Most carriers charge by dimensional weight. While branding is important, there is an argument to be made for sparse packaging. Some retailers offer free basic packing supplies. It is best to take advantage of these free resources to minimize shipping costs.

• Purchase Supplies in Bulk

For packing materials that aren’t free, put items in bulk. A wholesale order costs less per piece than buying packing materials as needed. 

• Decrease Shipping Distance 

Aside from weight and dimension, a package’s destination is also a determining factor of the total shipping costs. The further away a warehouse is from the consumers, the more expensive shipping fees are. Choosing to partner with a third-party logistics provider that offers global warehousing services can significantly reduce shipping costs. While there is an upfront investment, offering free shipping almost guarantees a hefty ROI. 

Key Takeaways 

Learning how to offer free shipping is a complex problem with a simple solution. The notion that this perk is only possible for big eCommerce retailers is wrong. Even small enterprises can do it. If you can offer free shipping at the end of the day, you should.

Need help with logistics? ZhenHub can help you minimize your eCommerce shipping costs. The savings that you get, you can pass on to your customers.  Learn more about our solutions today.  Email hello@zhenhub.com or request a quote, so we can start revolutionizing your logistics and order fulfillment process.

Your -commerce business success will depend on how well you’re able to handle all of the responsibilities involved. A lot will be required, from manufacturing or sourcing your products to effective branding and marketing, shipping and logistics, customer service, and more.

There’s a lot to do, so you want to as productive and efficient as you can. And as it turns out, order fulfillment is one of those tasks that could be taking up much time and impeding efficiency if you don’t develop an effective strategy.

What is e-commerce self-fulfillment?

Self-fulfillment is when, as a retailer, you choose to manage your inventory and order fulfillment processes in-house or by yourself. This is often the case when;

• You’re at the early stage of your business, and you’re fulfilling orders from home;
• Your business is now well-established, and so big you now handle warehousing and fulfillment in-house. You now have a dedicated team and world-class infrastructure.

The other option is outsourced fulfillment, in which case you rely on a 3PL provider for your order fulfillment services. There are also store-specific fulfillment services like Amazon’s FBA program, where Amazon stores your inventory and fulfills orders on your behalf.

Self Fulfilment: Getting it Right

The early stage of most e-commerce businesses is characterized by low sales.

At this point, most business owners tend to manage their inventory and order fulfillment right from their home. Investing in a 3PL provider for outsourced fulfillment might not make enough financial sense in this case. So, how can you get fulfillment right even at this crucial time?

1. Order processing

Timeliness and accuracy are critical when it comes to order fulfillment. This is why you need an order management strategy to ensure you process orders timely so your customers can receive their delivery within the expected time frame.

2. Packing materials

It’s essential to always have the right packing materials readily available whenever a new order needs to be shipped. This will help you avoid costly mistakes such as using the wrong-sized packaging material, damaging the product, or overpaying for shipping.

3. Packaging

You want your customers to have a perfect unboxing experience, so it’s essential to package your order effectively. It’s important to avoid mistakes such as shipping the wrong items or not packaging the delivery properly.

4. Labeling and shipping

You’ll probably have to make several visits to the post office or a carrier’s store to send your package to customers. You’ll also need to print shipping labels, as well.

You’ll, therefore, need a car, printer, ink, and a shipping account. As your business grows, you may be able to schedule pickups with carriers at a cost so you can take some burden out of the process.

5. Tracking and delivery

You might have dropped off the package with your carrier, but your work is still far from being done. Customers want more visibility into the shipping process, so you want to provide some tracking information for them. You should also have a strategy in place for returns when the need arises.

Common Ecommerce Self-Fulfilment Challenges

Juggling product manufacturing and sourcing with marketing and branding, and still with fulfillment is a big challenge on its own. But then, in-house e-commerce fulfillment, on its own, also presents some common problems.

• Scaling order fulfillment as your business grows, is often very difficult and this can make or break your ability to sustain current growth and/or achieve further growth;
• E-commerce order tracking is quite complicated, especially in this case, when customers may not get proper visibility and insight into issues themselves.
• Costs of shipping for most small businesses may be high despite having limited financial resources.
• The time-consuming nature of juggling fulfillment with other equally important business tasks can take a toll on efficiency and productivity with the fulfillment process and others.

Should you consider outsourcing your fulfillment needs?

There’s no perfect time to decide whether or not to outsource your order fulfillment services to a 3PL provider. In as much as you can hire more people to help with specific tasks related to your in-house fulfillment process, outsourcing tends o make the most sense when;

• Your company is growing, and you need to scale your fulfillment service;
• Fulfillment is gradually becoming an expensive aspect of your business;
• Inventory management is taking too much of your overall time, etc.

Bottom Line

If you’re starting small, self-fulfillment is usually the way to go. Over time, as your business grows, you’ll be better off outsourcing your fulfillment needs, a 3PL fulfillment expert agency.

Want to improve your inventory management, warehousing, and order fulfillment services? ZhenHub is best-positioned to help take your business to the next level with our range of services. Click here to learn more!

If you need assistance with reducing logistics costs, you can reach out to our specialists – hello(a)zhenhub.com or submit an enquiry here.

A product description is a type of marketing copy that brands use. It provides essential details about specific items that merchants are selling online. Compelling content makes up for the lack of tangibility in shopping online just by describing product features, key benefits, dimensions, models, and make. 

The Role of Product Descriptions in Online Conversion

In the world of eCommerce, online merchants need to rely on the power of product descriptions and various media to entice shoppers to add to cart and check out. Marketing copy is brand storytelling, a way for retailers to give customers a clear picture of how a product looks and functions. 

Studies have shown that missing or unclear product details account for 20% of failed purchases. A good product description should answer what customers are likely to ask to make a purchase. Sellers just need to consider the various factors that can influence a buyer’s decision and use that as a foundation to write great product descriptions. 

The Formula of a Good Product Description

A good product description also enumerates an item’s technical details, highlighting its value by telling how it can solve the target market’s pain points or needs. A poorly-written product description can do as much harm as having nothing at all. Merchants must invest time and energy to ensure that marketing copy accurately represents both the brand and the product. 

A good product description commonly consists of the following: 

• Headline
  Creatively writing product headlines is not the goal. It can be as straightforward as merely providing product and model names that customers can easily refer to.

• Feature and Benefit
  The main difference between a product feature and a product benefit lies in intent. The former is more about educating the market about the product’s specifications of the item. The latter is about providing the product’s value, telling how it can better make a user’s life.

• Reviews
  There is more to customer feedback than just building a good reputation. Retailers can use glowing reviews as a basis to write compelling product descriptions. Identifying what particular product feature rakes in positive sentiment and incorporating it into the product description is an effective copywriting strategy.

• Call-to-Action
  A seller’s goal with a good product description is to sell, so it only makes sense to write it in an actionable way. A call-to-action can be in the form of a button or a closing statement designed to encourage the reader to put the item on their carts and check-out. 

How to Write Product Descriptions That Sell 

More than a formula, a seller must consider a lot of things when writing product descriptions. Here are five tips that can help online entrepreneurs craft compelling and high-converting copy: 

1. Know Your Audience
   Effective marketing feels personal. A good copy resonates with the retailer’s target audience, and a great approach is to understand what they value and look for in products as consumers. Merchants equipped with the knowledge of their customers’ pain points will make it easier for them to write copy that directly addresses those.

2. Use High-Quality Product Images
   While words have a powerful impact, images serve as key supporting content that can give a literal picture of how a product looks like. Online sellers must not settle with blurry or pixelated product photos, especially since the human brain processes visual data 60,000 times faster than text. Merchants must invest in having high-resolution pictures of their products or risk losing their consumers’ interest.

3. Be Descriptive About the Product
   Writing product descriptions should be treated as creative storytelling. A good marketing copy can make the reader feel as if they can physically see, hear, feel, or taste the product. It is about helping the online shopper imagine what it is like to own the product enough to make them push through with the purchase.

4. Make Formatting Clean and Simple
   Given that humans are highly visual beings, a product description placed on a poorly-designed page layout might discourage online shoppers from reading it. Merchants must consider the design of their product page in relation to the other elements that make it. Using negative space wisely can help sellers direct their consumers’ focus on the main point of the page, which is the product.

5. Use Social Proof.
   A 2018 ReviewTracker Research showed that 90% of consumers would avoid a business after reading a negative review about it online. This statistic is a testament to the influence product reviews have over a consumer’s purchase decision. Placing social proof, like online reviews and star ratings on product pages, can boost conversion rates and build credibility for sellers. 

The art of writing compelling product descriptions is not something merchants can master quickly. But with patience, testing, and data analysis, they eventually craft marketing copy and reap long-term benefits through increased online sales and repeat customers. 

If you need expert advice in managing inventory and order fulfillment, do not hesitate to reach out to us here at ZhenHub! 

Ecommerce Trends 2020: 7 Trends that Will Define Ecommerce This Year!

In the face of increasing competition and ever-evolving consumer expectations, it will always pay off to keep up with the latest trends to win at the eCommerce and retail game.

In no particular order, here are the most influential eCommerce trends 2020 that will make or mar your eCommerce business success in the new year;

1. Voice Search will impact eCommerce in 2020

Gartner predicts that 30% of web browsing will be done without screens by 2020. This is going to mean a lot to how consumers interact with businesses across different industries.

ComScore puts their figure at 50%, making Gartner’s a lot more modest. One thing is certain though, voice search is the future of information search, and that future is here already!

2. Mobile Commerce is here to stay

Investopedia defines mobile commerce as;

“The use of wireless handheld devices like cellphones and tablets to conduct commercial transactions online, including the purchase and sale of products, online banking, and paying bills.”

That has brought ease and convenience on a whole new level to eCommerce. And with Statista placing the value of global mobile commerce expectations at $189 billion for 2020, you know this is something you should be well prepared for.

3. AI will revolutionize online shopping

AI is set to transform eCommerce; the good thing is that this is now happening after years of huge promises and disappointment. AI solutions in 2019 are now easier than ever to apply to your eCommerce business. This will be among the major eCommerce trends 2020.

AI makes it easier to utilize big data for more accurate predictions. Examples of this can be seen in how chatbots are being used to communicate with consumers on eCommerce websites, and in facilitating sales, etc.

4. Social Media and eCommerce in 2020

As an online merchant, you can’t afford to remain inactive any longer, in this time and age. Both eCommerce and social media are becoming increasingly enmeshed in our lives each new day.

Statista reveals that social media penetration is about 45% as of January 2019. The Pew Research found out that at least seven in ten Americans use social media to connect and engage. It’s no secret that social media my influence consumers’ purchase behavior. According to stats from Lyfe Marketing, almost half of the people within the 18-29 age range have bought something after seeing it on social media. More interestingly, about 77% of Millenials revealed they’d purchased a product online or in-store after seeing the product on Facebook.

Image Credit: Vantage

5. Increasing customer expectations of delivery

Meeting customer expectations is key to increasing sales conversion. The only problem is that customers’ expectations are in a state of perpetual increase.

A Delloite survey revealed that as much as 96% of consumers consider same-day shipping as fast shipping. Subsequently, only 63% of these consumers feel the same way about three-day or four-day shipping. Want to give your consumers more control? Offer as much as possible shipping options, even if it means adding a little surcharge where necessary. As far as eCommerce trends 2020 goes, this will be an important thing to watch.

6. Shopping engines are replacing search engines

Google and the other search engines used to be the first point of call for search queries. But today, more and more online users are taking to marketplaces such as Amazon and Walmart to begin their product search.

Bloomberg reports that 50% of Americans would look to Amazon first, to begin their product search. And it’s interesting when you consider that that figure was obtained in 2016. This is more reason why your marketplace should be designed to make product searches and purchases as easy as possible.

Forrester reports that while Amazon, Alibaba, eBay, and JD.com accounted for half of all online purchases made in 2019, this figure is expected to reach about 67% in 2020.

7. Global Order Fulfillment

It’s high time you start seeing your eCommerce business as part of a global eCommerce ecosystem. The global eCommerce market is expected to reach approximately $30 trillion by 2023, according to eMarketer.

Image Credit: eMarketer.com

Currently, about 57% of online users are believed to be purchasing products from retailers who are based overseas, according to a Nielsen survey. This is a market that every forward-looking marketer should tap into. This, among the other commerce trends 2020, will likely see an uptick in the new year, as well.

But to win at order fulfillment, both local and global, as well as in eCommerce, generally, you need to work with a reputable order fulfillment agency, among other things.

Conclusion

ZhenHub offers reliable order fulfillment, warehousing, and inventory, and other eCommerce-targeted services to help retailers win. There’s just so much to keep up with that one can easily lose track. But as far as eCommerce trends 2020 go, these are some of the major trends that will dominate and define retail in 2020 and beyond.

Want to win big?

Go the way with ZhenHub and enjoy reliable services designed purposely for your eCommerce business. Click here to get started.

Why spend your time packing boxes when you could use it to sell more products?

It’s important to understand that you can’t do it all. There are times you just have to let go and trust other competent hands to get the job done. If you’re in the e-commerce business, your order fulfilment sector is one place that makes perfect sense to outsource.

What do order fulfilment providers do?

These agencies basically store your products and fulfill orders on your behalf. They work by integrating their software with your e-commerce store so they can easily pick, pack, and prepare a product for delivery once the order has been placed.

Image Credit: EConsultancy

Many online retailers are failing at fulfilment majorly because this requires a vast range of skills, expertise, and commitment. And since it’s often not one of your core competencies, you’re better off focusing on your other business strengths. It will be a win-win!

Benefits of Outsourcing Order Fulfilment

Outsourcing your orders to qualified order fulfilment service providers has enormous benefits. Obviously, it will help you improve customer experience in the face of growing expectations. But how about we get into more details?

1. Reduced shipping costs

Outsourcing order fulfilment may help you save money on shipping.

Let’s say for instance you ship about 300 orders per month at $5 per shipment. This would have cost you about $1,500 per month and $18,000 per year.

Order fulfilment providers often provide bulk delivery discounts for their clients. Let’s say you were able to save 20% with bulk delivery discount, you would save about $300 and $3,600 monthly and yearly, respectively.

2. Reduced operational expenses

Considering the fact that it costs about 70% of the average order value to fulfil an order in-house, outsourcing your order fulfilment will save you a whole lot of operational expenses.

You won’t have to commit limited resources to warehousing and logistics. By outsourcing to order fulfilment services, you’ll only have to pay for the services you use.

3. Faster delivery times

Today’s businesses are locked in a fierce battle to outdo each other when it comes to creating positive service experiences for their customers.

And as revealed by Smart Insights, aside from browsing problems, most potential customers who abandon their shopping carts do so because of unfavorable shipping terms.

This can range from costly shipping costs to slow delivery. Order fulfilment centers, on the other hand, are well-equipped to deliver faster and better compared to what may be achieved in-house.

Image Credit: Smart Insights

4. Improved customer experience

But outsourcing your order fulfilment will easily take care of most of these fulfilment issues. Aside from offering the best available fulfilment services, the fulfilment provider will also provide excellent customer service which not only helps to improve your bottom line but also retain more customers for the long term.

This other infographics from EConsultancy also paints a similar picture;

Image Credit: EConsultancy

Meeting all of these needs will be next to impossible for most retailers. However, there will always be qualified fulfilment service providers ready to help you turn things around to guarantee the best experiences for your customers.

5. More focus on your business

Order fulfilment is a challenge on its own.

Juggling this with daily business operations would make, however, this even more challenging. This is more reason why the case for outsourcing remains ever strong. Aside from the significant boost in order fulfilment and service delivery, you get to focus on core business tasks.

In a way, this is great for both productivity and business efficiency which of course would prove vital to your business’s long term growth and success.

6. Leveraging technology for a streamlined fulfilment

Many efforts should go into finding a qualified fulfilment provider with the right experience, expertise, and technology to make your business run much better.

Being able to leverage state-of-the-art technology will help these providers integrate easily with your sales channels to optimize tasks like carrier selection, payment processing, and a generally streamlined order fulfilment.

Areas where this may help includes;

• Inventory optimization;
• Carrier selection;
• Payment processing;
• Item tracking;
• Security, and
• Shipping and handling.

7. Widening your reach

Growing into new markets has always been virtually impossible for most small businesses. However, the advent of third-party order fulfilment providers has changed that narrative.

Many of these providers are equipped to ship and deliver products to out of state clients or even those in other countries across the world.

Businesses in the e-commerce industries are often keen about reaching into the new markets. Outsourcing order fulfilment to competent fulfilment providers will provide enough leverage in this area.

Way forward…

You know by now the enormous benefits that outsourcing order fulfilment may bring to your business. You’ll only need to get a grasp on the cost so you can know what’s involved.

In the end, you’ll have to do the best for your business to get ahead in today’s competitive consumer markets. If you’re contemplating how to go about this, ZhenHub can help you get started!

If you’re alone on Valentine’s Day, you may feel like you’re the only one in this world without a partner. But that’s okay; China now has a day that celebrates singled too.

The unofficial holiday is named the Single’s Day, and when you look at it, it’s bigger than both Black Friday and Cyber Monday, combined. This year’s Singles’ Day has come and gone with lots of records broken. The holiday is celebrated on November 11 -11/11.

So, what’s it with Alibaba and Singles’ Day?

The unofficial holiday was an idea conceived in the 1990s by a group of college students as a form of protest against China’s traditional festivals, most of which are predominantly couple-centric. But that’s only about history.

Singles’ Day is the world’s largest shopping event today, thanks to Alibaba. The retail giant came into the picture sometimes in 2009. That year, Alibaba rebranded what we’ve always known as Singles’ Day and promoted it as an opportunity for singles to splurge on themselves, offering massive discounts on goods on its TMall consumer-focused store.

That first year, Singles’ Day sales raked in about $7.5 million in gross merchandise value, GMV. Eight years after, this had become 3,000 times higher than the first year’s value of $25.3 billion.

It’s noteworthy that while it only took Chinese consumers the first two minutes to splash $1 billion in the 2017 Singles’ Day sales, Amazon needed 30 hours to hit that mark during the Amazon Prime Day sales, in the same 2017.

Singles’ Day Shopping & Festivities

Alibaba employs a combination of both massive online shopping discounts together with awe-inspiring offline entertainment.

The company has been organizing galas to mark the holiday celebration since 2009. These events are usually televised, drawing in an audience of about 200 million who would watch various things from celebrity performances to product launches, prize winnings, etc.

For 2018, the celebration had featured A-list names like Pharell Williams, Jessie J, along with a short kung-fu film that had featured Nicole Kidman, Jet Li, Donnie Chen, and many others, alongside Jack Ma, Alibaba’s co-founder.

Singles’ Day 2019

This year, the event kicked off with a bewildering concert headlined by Taylor Swift. This year, all it took for the retail giant to hit the consumer spending mark of $1 billion is a mere one minute and eight seconds. Sales for the 2019 edition raked in a total of $38.4 billion, more than the $30.8 billion recorded last year. That’s more than analysts predict for the combination of Thanksgiving, Black Friday, and Cyber Monda.

This year’s sales also surpassed last year’s number of orders and deliveries. At the heart of this massive success is Cainiao, Alibaba’s logistics network. The network has always been able to boldly handle the challenges that come with Singles’ Day sales very effectively. In 2017, more than 331 million boxes were dispatched on Singles’ Day sales. The first order only took 13 minutes to be delivered to the Shanghai customer who had ordered some snacks.

What can we learn from this?

Just like Alibaba has been able to do with Cainiao, fluidity in logistics will play a crucial role in the success of any e-commerce business. But while you may not have the financial muscle to pull such a network, ZhenHub can help. Here, everything we do is aimed at helping retailers simplify the processes involved in inventory, logistics, and much more.

Our resources will be deployed to help you refine these core areas of your business to give you a competitive boost and support your long-term business growth.

Click here to get started.

In the end, you’ll have to do the best for your business to get ahead in today’s competitive consumer markets. If you’re contemplating how to go about this, ZhenHub can help you get started!