How to reduce costs and ship more parcels
The costs of doing business online can sometimes be higher than expected. Production, overhead and marketing expenses. To increase your margin on products sold and gain a competitive advantage, one solution is to send your parcels as efficiently as possible. Improving the efficiency of logistics will save money and valuable time that you can invest in your business. By offering multiple destinations for your products, your customer base will increase significantly. In this article, the expert team from B2C Europe would like to give you some insights on how you can ship your parcels reliably and affordably to multiple destinations in Europe.
Customer expectation changes
With the ever-changing eCommerce landscape and increasing competition, the expectations of customers also change continuously. Most consumers demand faster delivery, multiple shipping options and the lowest possible (or even for free!) shipping costs. This means that high shipping costs or few shipping options will lead to fewer potential buyers, therefore less turnover. Of course, you want to avoid that!
So that leads to only one general question: what is the cheapest way to send parcels? Unfortunately, there is a one-size-fits-all answer to this question. However, several factors influence shipping costs and some ways you can act on them. The cost of shipping depends on the weight and size of the parcel, how quickly it needs to be sent to its final destination, and to which country you are sending a parcel.
Weight and size
One important factor that can greatly influence the price of shipping is the weight and size of the package. It is important to know the sizes of your products in advance so that you can adjust the packaging accordingly. The cost of a parcel is calculated using the dimensional weight, also known as the dim weight. The dim weight consists of the actual weight of the package, together with the length, width and height. You may be charged extra for dimensional weight if a box is too large for the products you are shipping. Therefore, always use the right size packaging to save costs.
Apart from dimensional weight, you can also reduce the total weight of a package to save costs. For example, you can use a different type of material for a package that weighs less or change the type of dunnage material to reduce the weight, for example, air cushions. Apart from the cost savings, these are often environmentally friendly alternatives to dunnage.
In other words, in almost all cases smaller parcels get lower rates, and smaller parcels are almost always lighter. Besides, lighter packages get even lower rates.
A second important factor is the speed of shipping. Consumers expect a parcel to arrive at its destination relatively quickly. Some consumers expect the option to ship even faster than the standard shipping time, so always offer this option as well to satisfy all your consumers. By doing so, you will attract more potential buyers in the long run thus more sales.
With different carriers, you can select a standard shipping method or a fast shipping method. At B2C Europe you can choose to ship with our standard solution, ParcelPlus, or with a faster solution, ParcelPremium. A big advantage of working with B2C Europe is that you have the possibility to make combinations between the different solutions, and have a choice between all the major carriers with always a local option! Please note; the faster the delivery speed, the higher the shipping costs.
Another essential thing to mention is that you shouldn’t make false promises about the speed of delivery. If a product takes longer to arrive, consumer expectations won’t be met and your customers will be disappointed. Never overpromise and under deliver. It can also lead to a higher workload for your customer service, due to many customer questions. So practice what you preach.
The last factor, but certainly not the least, is the distance the package has to travel. As you might expect, shipping from the Netherlands to France is a lot cheaper than shipping from Australia to Spain. Usually: the further the shipping zone from the destination address, the higher the shipping rate will be. So keep this in mind as well!
It’s difficult to save costs on distances, but you could consider working with multiple carriers. This way you can always choose the carrier that is reliable and affordable for you and your consumers. Contact one of our experts to discuss all possible logistics solutions.
Other cost factors
Apart from the weight and size of a parcel, the speed of delivery, and the distance the parcel has to travel, insurance and tracking can also influence the shipping costs. For example, insured and tracked parcels are more expensive than uninsured and untracked parcels.
Insurance provides security for the goods during transport and helps to reduce any risks. If you want to save on costs, it’s recommended to check whether an insurance is useful for your products. You can also opt for tracking instead of insurance. Tracking often helps streamline your customers’ experience and builds trust as the consumer can track the parcel throughout its journey. Tracking may be more expensive in shipping costs, but it can also outweigh the satisfied customers it brings. So make an informed decision on this.
Multiple carriers for multiple destinations in Europe
Not only is the online landscape becoming increasingly competitive, but also the logistics world around it. There are many players in the market today, each offering their unique services. This can bring many different benefits to you, but first, you need to decide what service your business needs and what your customers expect from your business.
The moment you offer multiple shipping options from multiple carriers, customers feel like they have control over their delivery. So give them the choice to decide which carrier they prefer and at what cost, so you don’t have to. By doing so, you’ll pass on the high shipping costs, if the consumer chooses this themselves. This will lead to more turnover because it will attract more customers. |
Also, it’ll ensure that the risks to your business are reduced. For example, if one carrier is overloaded, you can easily switch to another carrier. This keeps the shipping process running smoothly and you continue to meet your consumer’s expectations. At B2C Europe you can choose from multiple carriers, such as PostNL, DHL, DPD, Hermes, FedEx, GLS, etc. You’ll be able to ship global with local services.
How do you scale up your business while ensuring you provide the highest standard of shipping services? A multi-carrier strategy could be the answer.
Europe is one of the most advanced markets in e-commerce with fairly complex parcel delivery supply chains. Building on our core expertise, we create logistics solutions for e-commerce that integrate with your entire supply chain.
Maersk announced its intent to acquire B2C Europe on August 6th, 2021 and today it is announced that A.P. Moller – Maersk has completed the acquisition.