Online shopping has revolutionized how we live (and our access to goods). And while traditional retail is alive and well, eCommerce is growing too. With it, so are customer expectations–particularly those related to delivery. As such, online businesses that invest in better eCommerce delivery strategies deliver to their customers’ expectations–and thus maintain their loyalty and attention.
But how do you build an eCommerce delivery strategy that stands out, helps you win (and keep) more customers, and works from a cost-related point of view too?
Here’s everything you need to know about this.
An eCommerce delivery strategy is a set of practices and processes an eCommerce business uses to manage the shipping and delivery of goods purchased through their online store. This strategy involves planning, organizing, and implementing various aspects of product transportation, including packaging, carrier selection, tracking, and customer communication.
Although the process may seem simple, an effective eCommerce delivery strategy requires careful consideration and attention to detail to ensure a smooth and efficient delivery experience for both the business and its customers.
No less than 98% of customers (!) say their loyalty to a brand would be affected by the delivery experience.
An eCommerce delivery strategy plays a crucial role in the success of an online store. It not only impacts the customer's overall shopping experience but also has a direct impact on the business's bottom line. Here are some reasons why having a well-thought-out delivery strategy is essential for any eCommerce business:
As you can see, there's a heap of reasons to invest in building a successful shipping strategy for your eCommerce business. Not only will it improve customer satisfaction and loyalty, but it can also lead to cost savings and increased revenue.
eCommerce has come a long way since its early stages. Not only is it a market worth $6.09 trillion in sales in 2024, but the whole buying experience has evolved. With the rise of online shopping, customers have come to expect fast, convenient, and reliable delivery options.
It's more than just "quick" deliveries, though – it's about the whole experience. From the moment they place an order (and want to have as many delivery options as possible) to the moment they unbox their parcel, they want everything to be flawless.
And eCommerce businesses are competing against each other to make sure it happens: multiple delivery and payment options (including "pay later" programs), sustainable packaging, small trinkets of appreciation in the parcel (see, the little Haribo packet every Caseking package comes with, for example).
All of these customer expectations go beyond the point of assumption, at this point. They are well-studied and backed by data:
If fast, flawless, and flexible delivery were straightforward, everyone would do it. And yet, every day, online stores struggle to meet their customers' expectations. Here are some of the key challenges they face:
Managing costs is one of the most significant challenges in transportation and logistics. Fuel prices, vehicle maintenance, driver wages, and unexpected expenses like repairs or delays can quickly add up.
Companies need to strike a balance between minimizing operational costs and maintaining service quality. Inefficient route planning, poorly maintained vehicles, or underutilized cargo space can inflate costs unnecessarily.
Adopting technologies like route optimization software, fleet tracking systems, and predictive maintenance tools can help manage and reduce expenses. Additionally, consistent data analysis can highlight inefficiencies and opportunities for cost-saving across the supply chain.
Narrow roads pose a challenge for logistics, especially in urban areas, rural regions, or older cities with infrastructure not designed for modern traffic.
Large vehicles like trucks or delivery vans may struggle to navigate tight spaces, leading to slower deliveries, higher fuel consumption, and potential damage to vehicles or goods. This issue can also create safety concerns for drivers, pedestrians, and cyclists.
To address these challenges, businesses can explore smaller, more agile delivery vehicles, deploy local hubs for short-distance deliveries, or use mapping and navigation tools that factor in road width to avoid problematic routes. Governments and urban planners can also support this by modernizing infrastructure to accommodate current transportation demands.
Last-mile delivery is often regarded as one of the most complex and expensive stages of the supply chain. A lack of visibility during this phase can result in missed deliveries, inefficiencies, and frustrated customers.
Without real-time tracking or delivery updates, businesses may struggle to ensure timely deliveries or proactively address issues like delays or incorrect addresses. This can lead to customer frustration, as most people expect to know, with at least some level of clarity, when their packages will arrive (and the last mile delivery is precisely where most delivery processes go "dark").
Investing in advanced technologies like GPS tracking, delivery management platforms, and customer notifications can provide greater transparency.
Offering customers real-time updates about their package location or estimated delivery time can enhance their experience and build trust. Additionally, analyzing last-mile data can help identify patterns, optimize delivery routes, and improve long-term efficiency.
Traffic congestion is a major hurdle for transportation and logistics, leading to delays, increased fuel consumption, and higher operating costs. Urban centers, peak hours, and road construction zones are common hotspots for traffic issues.
This can disrupt delivery schedules and impact customer satisfaction. To combat this, businesses can leverage real-time traffic data through GPS systems to reroute vehicles and avoid congested areas.
Scheduling deliveries during off-peak hours or using alternative transportation modes, such as bicycles for urban deliveries, can also help reduce the impact of traffic. Strategic planning and flexibility are key to overcoming this challenge and ensuring timely deliveries.
There is a pretty important distinction to be made between a "shipping strategy" and a "delivery strategy"–one that can make or break how you operate your eCommerce business.
Namely, a shipping strategy is about getting the product from your warehouse to your customer's doorstep. A delivery strategy, on the other hand, is focused on ensuring that the package arrives at its destination in a timely and reliable manner. While these two terms may seem interchangeable, they actually require separate considerations and approaches.
To create a good delivery strategy, you first have to settle on one (or more) clear models. Essentially, it all boils down to six main eCommerce shipping models you need to be aware of:
Two-day shipping is a delivery option that ensures customers receive their packages within two business days after an order is processed. Ideal for those who need their items quickly but aren’t in urgent need of same-day delivery, it strikes a balance between speed and cost. Many eCommerce retailers offer this as a standard expedited shipping choice, making it a popular preference for consumers.
Same-day delivery guarantees that orders placed before a specific cutoff time will arrive at the customer’s doorstep within the same day. This service is perfect for urgent needs, such as last-minute gifts or essential items. While it may come with a higher price tag, it offers unparalleled convenience, especially for those in metropolitan areas where logistics networks are most robust.
Overnight shipping ensures that a package will be delivered the following business day, making it an efficient option for high-priority shipments. Whether it's critical documents, replacement items, or time-sensitive goods, overnight delivery provides a reliable and speedy solution. Businesses often use this method to meet tight deadlines and maintain customer satisfaction.
International shipping facilitates the delivery of goods across borders, enabling businesses to reach customers worldwide. While delivery times can vary depending on the destination and customs processes, many carriers offer expedited international options. This service is essential for global commerce and allows consumers to access products that may not be available locally.
Eco-friendly shipping focuses on reducing the environmental impact of package delivery. This might include carbon-neutral shipping, minimal or recyclable packaging, and optimized logistics to decrease emissions. It’s an increasingly popular option for both businesses and consumers seeking sustainable practices without sacrificing delivery reliability.
Hybrid shipping combines multiple transportation methods, such as a mix of traditional carriers and local delivery services, to optimize costs and efficiency. For example, a package may be shipped via a national carrier and then handed off to a local courier for the final leg of delivery. This approach helps reduce costs while maintaining timely delivery, making it an effective solution for businesses.
Like it or not, delivery doesn't come free (or even cheaply, in most cases, especially when the strategy is not fully optimized).
Ensure your products are packed securely to prevent damage during transit. Use high-quality materials like bubble wrap, sturdy boxes, and sealing tape. For fragile or perishable items, consider specialized packaging to maintain product integrity. Proper labeling, such as "fragile" or "this side up," can also help protect your goods.
Choose a reliable delivery service that aligns with your customers' expectations. Offer multiple shipping options, such as standard, express, or same-day delivery, to suit different needs. Clear communication, including tracking updates and delivery timeframes, ensures a smoother customer experience and builds trust.
For international/ cross-border shipping, it is important to calculate any additional costs like customs duties, tariffs, and taxes. Be transparent with customers about these fees to avoid surprises. Familiarize yourself with the regulations and documentation required for cross-border shipping in the target countries to ensure a seamless process.
Furthermore, although this is not directly related to shipping, it is important to consider the potential currency conversion fees that may be applied by banks when international transactions are made. This should also be communicated clearly to customers.
And if you are shipping to countries where tax and duty charges may apply, make sure to clearly communicate this information to customers as well. This will help prevent any unexpected fees or delays in delivery.
In addition to these considerations, it is also important to familiarize yourself with the cultural norms and customs of the countries you are shipping to. This can include things like packaging preferences, holidays and festivals that may impact shipping times, and even greeting customs for when addressing customers in different regions.
Protect your shipments with shipping insurance to cover potential losses, damages, or theft. This is especially important for high-value items or fragile goods. While some carriers include limited liability, comprehensive insurance provides extra peace of mind for both you and your customers. Consider adding insurance as an option for customers to purchase during checkout.
On top of the delivery costs mentioned above, you might also want to consider:
Make sure to factor in these additional costs when determining the final price of your product. It's important to be transparent with your customers about any potential extra fees they may incur during the shipping process. You can also offer options for free shipping on orders above a certain amount to incentivize customers to purchase more items at once.
So, when all's been said and done, and when your strategy is starting to take shape, what are some of the most important best practices to keep in mind for your eCommerce delivery strategy?
Although not exhaustive, the following list of tips will help you keep things neat on the operational part, setting your brand apart (and keeping your customers happy too.)
Offering free shipping is a great way to attract more customers. It eliminates a common barrier to purchase and makes your products more appealing. Whether it’s a limited-time offer or for orders above a certain amount, free shipping can boost sales and encourage larger orders.
In today’s world, customers expect speed. Providing fast shipping options can set you apart from competitors. Even if it costs more, many shoppers are willing to pay for the convenience of receiving their orders quickly.
Set realistic expectations when it comes to delivery times. If you say an order will arrive in 5 days but deliver it in 3, it creates a positive impression and builds trust with your customers.
For example, if a customer orders a product on Monday and you estimate delivery by Saturday but it arrives on Thursday instead, the earlier delivery feels like a pleasant surprise. This can enhance their experience and encourage repeat business.
Transparency is key. If you must charge for shipping, make sure the fees are reasonable and clearly communicated at checkout. Hidden costs are one of the top reasons customers abandon their carts.
Flexibility matters. Offering choices like standard, expedited, and next-day shipping allows customers to pick what works best for their budget and timeline. Providing clear delivery options also builds trust and enhances the overall shopping experience.
The shipping experience reflects your brand. Use quality packaging and reliable carriers to ensure products arrive safely. Cutting corners on shipping may save money upfront but can cost you in customer satisfaction and loyalty.
Communicating with your customers doesn’t end with the delivery. Maintaining communications after the delivery is, in fact, quite important: it keeps you top of mind for your customers, it helps you collect feedback, it provides opportunities for upsells and cross-sells, and, overall, it encourages customer loyalty.
Once your product has been delivered, send emails to ask for feedback, to suggest new purchases, or to simply make sure your customers know what your return policies are. If you plan on sending marketing emails (such as new offers or upsell/ cross-sell opportunities), do make sure you have permission to do so (as per GDPR regulations).
It is very important to set clear goals and expectations for how your delivery strategy’s success should be measured. Here are some of the KPIs you should be looking at:
Focus on increasing the percentage of website visitors or leads who complete desired actions, such as making a purchase or signing up. This can be achieved by optimizing your website's user experience, improving calls-to-action, and running targeted marketing campaigns.
Encourage customers to spend more per transaction by introducing upselling and cross-selling strategies, offering bundle deals, or implementing loyalty programs with incentives for larger purchases.
Identify new customer segments or geographic regions to target. This could involve launching localized marketing campaigns, partnering with distributors, or leveraging social media and digital advertising to expand your brand's visibility.
Streamline business processes to reduce expenses without compromising quality. This might include renegotiating supplier contracts, automating manual tasks, or adopting more cost-effective tools and technologies.
Boost overall productivity by optimizing workflows, enhancing team collaboration, and investing in employee training. Use performance metrics and regular feedback to identify bottlenecks and implement solutions to improve operational efficiency.
Setting clear expectations for customers is crucial in ensuring a positive shipping experience. Provide accurate delivery timelines, transparent tracking options, and upfront information about shipping costs. This avoids surprises and builds trust with your customers.
Choosing reliable shipping partners can make or break your delivery process. Work with carriers that have a proven track record of on-time deliveries, good customer service, and efficient handling of packages. A dependable partner ensures your goods arrive safely and on schedule.
Leverage technology to streamline your shipping process. Use automated systems for tracking, inventory management, and real-time notifications. These tools not only enhance efficiency but also improve the customer experience by keeping them informed every step of the way.
Fulfillment centers can help speed up delivery times and reduce shipping costs. By storing inventory closer to your customers, you can fulfill orders more quickly and efficiently. This approach is especially beneficial for businesses catering to large, geographically diverse audiences.
Zone skipping is a cost-effective shipping strategy that consolidates orders and moves them closer to the final destination before handing them off to local carriers. Basically, what it does is skip over intermediate zones, such as distribution centers or warehouses, and directly ship the product to the end customer from the originating warehouse.
While zone skipping may seem like a straightforward concept, various factors need to be considered to successfully implement it. One important consideration is the size and weight of the products being shipped.
Zone skipping works best with smaller, lightweight items because they can be consolidated into larger shipments more easily. However, for larger and heavier items, it may not be cost-effective to ship them directly from the originating warehouse as they would require special handling and incur higher shipping costs.
AI-powered logistics tools are revolutionizing the supply chain by streamlining operations and improving efficiency. These tools make use of advanced algorithms and data analytics to predict demand, optimize routes, and automate repetitive tasks.
For instance, AI can analyze historical shipping data to forecast peak periods, enabling companies to allocate resources more effectively. Additionally, real-time tracking systems powered by AI provide greater visibility into shipments, enhancing customer satisfaction by offering accurate delivery updates.
Automation in logistics further amplifies the benefits brought by AI. Automated systems reduce human error and accelerate processes such as packaging, sorting, and inventory management. Robotics and autonomous vehicles, for example, are increasingly used in warehouses to handle goods with speed and precision.
Combining these technologies with AI-driven insights allows companies to adapt swiftly to changing market conditions while minimizing costs, ultimately creating a more resilient and sustainable supply chain.
As more and more consumers turn to online shopping for their purchasing needs, it has become increasingly important for retailers to have a solid eCommerce delivery strategy. In today's competitive market, customers expect fast and reliable delivery options from retailers, making it crucial for businesses to develop an effective delivery strategy to stay ahead of the game.
A good delivery strategy takes attention to detail and the involvement of multiple stakeholders in your company to work. But it doesn't have to be rocket science. After all, the golden rule is keeping customers happy– so do whatever you can do that (within reason and profitability margins, of course).
Finally, don't be afraid to invest in good software applications that can make things more efficient and provide everyone with more clarity. Postis, for example, provides you with a control tower that enables you to centralize data and decision-making across last-mile operations. As a result, you:
Here's more about how our platform works and what it can do for you.
And here are some customer stories to give you a better understanding of what can be done with a platform like Postis.
A delivery strategy is a plan for efficiently getting products or services to customers. It covers logistics, shipping, costs, speed, tracking, and returns to balance customer satisfaction with operational efficiency.
eCommerce delivery refers to the process of shipping products purchased online to customers. It involves various steps, including order processing, packaging, shipping, and final delivery to the customer's address. Key aspects of eCommerce delivery include offering multiple delivery options (such as same-day, standard, and express shipping), providing real-time tracking updates, and ensuring timely and accurate delivery to enhance the overall customer experience.
E-strategy in eCommerce is the overarching plan a business creates to achieve its goals in the online marketplace. It includes strategies for marketing, sales, customer engagement, and logistics, with a strong focus on leveraging digital tools and platforms.
Shipping strategies refer to the specific plans and methods a business uses to deliver products to customers in a cost-effective and timely manner. These strategies can include free shipping, flat-rate shipping, tiered pricing based on order value, or creating partnerships with carriers to reduce costs.
