In this section, you will learn:
- How to help dealers select the shipping providers that are right for them
- Tips and tricks to help dealers optimize the shipping process
- How to help dealers optimize their pricing strategy so they can offer free shipping
- How dealers can set up shipping accounts to send packages faster and for less
Once a dealer decides to start selling online, shipping becomes a huge aspect of their parts counter’s operations and sales. Shipping can be a profit center for many dealers, but it can also be a deal-breaker for many owners when shipping costs are too high.
SHIPPING OPTIONS:
The SimplePart platform supports all major shipping carriers: Canada Post, UPS and Fedex. For small orders and anything that will fit in a flat rate box, we recommend using Canada Post because it’s often the cheapest option. Often, dealers can charge owners a lower rate and make more gross profit utilizing Canada Post. For larger items like bumpers and grilles, UPS and FedEx can also be considered.
ShipStation - Take advantage of our integrated shipping software and platform solution. SimplePart offers integration with ShipStation. ShipStation allows you to easily compare shipping rates in real-time, accurately gauge delivery times and select the best carrier based on cost and delivery. While you still need to box-up orders, this makes it easier to ship them, saving you time and resources.
Note: Do utilize local pickup, as consumers who choose this option are 13% more likely to convert a sale. which increases conversion and sales of non-shippable items.
*Real Time Shipping is not currently available for Canadian dealers with SEM.
SHIPPING TIPS:
Avoid under-charging for bulky or heavy products: On average, 2% of orders will include an item requiring additional shipping fees. To cover this, dealers can set a fixed shipping rate specifically for these items by part number, or by an entire category.
According to a survey done about retail shoppers’ shipping expectations, 62% of shoppers expect free shipping on their orders. What’s more, further studies report that shipping fees are frequently named as one of the main reasons for cart abandonment—with an average abandonment rate of 69.8%.
With these statistics in mind, try to offer competitive shipping rates to customers: Cheaper or free shipping means more attractive prices to owners, which ultimately leads to increased conversion rates and more sales.
Note: According to a McKinsey report, retailers should deliver the product quickly to create repeat buyers, as 90% of eCommerce consumers expect a three-day shipping time in general for their orders. Do pay attention to orders’ shipping time!
SHIPPING STRATEGIES
Let’s continue by going over free shipping–it’s everywhere in eCommerce. According to a 2021 report on consumer shipping expectations, an overwhelming 83% of consumers prefer free shipping when given the choice between free shipping and fast shipping. Furthermore, a 2019 survey found that free shipping leads to more sales: 84% of shoppers have specifically made a purchase because shipping was free, and 30% said they always increase the size of their orders if it qualifies them for free shipping.
As more and more shoppers are coming to expect free shipping when they purchase online, how can you help your dealers take advantage of this trend?
Here are some examples:
- Set a free shipping threshold. We recommend setting it at 10-15% above your existing Average Order Basket (AOB) Note: Dealers should set a free shipping threshold that makes sense for their dealership.
- Bake some or all of the shipping cost into the price
- Market free shipping by running promotions
- Select the most cost-efficient shipping carrier
Keep in mind that offering free shipping is not a necessity, but merely another tool to drive sales.
Our experienced Client Services Team is knowledgeable in these areas and is available 24/7 to help you with any questions or concerns. You can contact us by email at support@simplepart.com, or call 1-888-843-0425.
