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For eCommerce sellers, competing on price means hitting a point where you just aren’t profitable anymore…or at least not enough to justify your hard work.
Not only is it tough to compete on price, eCommerce marketplaces lose out on revenue as well if prices drop.
That’s why marketplaces like Amazon, eBay, Walmart and more have shifted towards providing great customer experience instead. 86% of buyers are willing to pay more for better service and 75% have spent more with a company thanks to a history of positive customer service experiences.
If marketplaces and sellers with their own online stores can get customer experience right, they gain a competitive advantage without having to drop prices. It enables you to deliver a better quality product, work with happier customers, and increase loyalty.
There are different components of customer experience, including after-purchase support, ease of use, and fulfillment. In this article, we’ll be focusing on how to use fast fulfillment to boost your customer service, stay competitive, and increase conversions.
Simply put, fast shipping contributes to the customer experience. It gets conversions, reduces cart abandonment, and protects your pricing. Here are some statistics about fast shipping that all eCommerce sellers should pay attention to.
To understand what constitutes as fast shipping today, let’s take a look at the fast shipping programs across marketplaces. Amazon Prime promises 2-day shipping, same day delivery, and even 2-hour shipping for eligible zip codes.
eBay and Walmart have emerged with their own fast shipping programs as well, called eBay Guaranteed Delivery (eGD) and Walmart Free 2-Day Shipping.
Walmart’s fast shipping program, as the name implies, promises free 2-day shipping on eligible items. Getting this tag is valuable for visibility, search rankings, and is an indicator of a good, reliable customer experience. It shows up in three places; search results, item descriptions, and above the “Add to Cart” button.
Looking more closely at the search results above, you may also notice that 8 out of the 10 top results have the green 2-day shipping tag, even without having filtered for it. This is a key finding, as we discovered that marketplaces reward fast fulfillment with higher search result rankings, even if shoppers don’t specifically filter for it.
eBay Guaranteed Delivery provides guaranteed delivery dates of 4 or fewer days.
Tip: For the best results, aim for 3 days or less to get through the 3-day filter.
Now that there’s an option to Group Similar Listings on eBay, sellers need any competitive advantage they can get to stand out in the search results or make it past customer experience filters.
This feature allows shoppers to group items from different sellers, reducing the number of listings but also reducing the visibility of many sellers.
The big question regarding logistics is: To outsource or fulfill in-house?
Getting items to customers is not necessarily a difficult thing, but it is complicated and takes a lot of moving parts working together to avoid mistakes. However, getting items to customers quickly is harder.
If you decide to handle fulfillment in-house, not only do you need to have a great infrastructure set up, you’ll have to deal with fluctuating demand and talent management.
You also need to select your warehouses carefully, figure out where your demand is greatest (and when), and negotiate your own rates with carriers. This option gives you the most control, but comes with the most risk.
Tip: If you want to focus on speed, forgo those branded boxes!
Outsourcing fulfillment to a reliable partner is your other option. Amazon sellers can go with the reliable FBA, and multi-channel sellers might choose to go with a 3PL or Deliverr. Study your fulfillment costs for each of these options to protect your profits.
We hope these tips will help you boost your eCommerce business, get more sales, and ultimately help you grow.
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