Why Have Online Retailers Decided to Take Care of Their Own Shipping?
For a long while, online retailers relied on other companies that specialize in shipping to handle their deliveries. For smaller retailers, this was the perfect solution as they wouldn’t have to worry about warehouse and fleet management in addition to other logistical issues. Small companies have many aspects of running a business to deal with and outsourcing shipping to one of the big shipping companies was the best approach.
However, as of late, more and more online retailers have been choosing to handle their own shipping. Why is that so when the ease of outsourcing exists, you might be wondering. Well, there are many benefits to taking care of your own shipping and online retailers have started to realize that. Keep on reading to learn more.
Big carriers are not meeting the demand
Seeing as how we have all been encouraged to stay home to save lives during the pandemic, it should come as no surprise that online shopping has been on the rise. Countless people have turned to online stores and retailers when they need to purchase something, which means that there are many more packages to be delivered. However, big names like FedEx and UPS are swamped with work and the quality of their service is suffering. According to ShipMatrix, FedEx Ground delivered 91.4% of packages on time in May 2020, compared to 94.6% in May 2019. UPS Ground has fared a bit better but still suffered, with 95.4% in May 2020 and 98.5% in May 2019.
Online retailers are getting blamed for late deliveries
Even though the world is dealing with a pandemic, the consumers are still expecting their deliveries to arrive on time. While carriers are doing their best to do just that, sometimes it is just not possible due to the sheer amount of packages. However, when a delivery is late, it is not the carriers that get blamed but the online retailers. Despite the fact that retailers process the order and send out the goods on time and that it is the shipping companies that cannot keep up with the demand, customers use social media and other channels to attack the retailers. These companies understand that their reputation will suffer if this trend continues, which is why they are considering other ways of shipping the orders to their clients.
Assembling the right team is crucial
In order to fulfill their customers’ needs, online retailers have started looking into ways how they can handle their own shipping. Small companies are aware that they don’t have the means to deal with every single aspect of delivery on their own and they realize that certain jobs will still have to be outsourced. This means that assembling the right team is essential. For example, online retailers probably don’t have the funds to invest in their own vehicle fleet and a system to manage it.
But, working closely with a company that can provide them with such services is a much better alternative they simply depending on the big names in the game that have thousands of clients. Furthermore, finding a reliable logistics company that can handle both national and international shipping is another vital component of staying on top of each delivery. By carefully assembling their own team, small online retailers are also able to vet every partner to ensure they are eco-friendly and use clean methods of transportation. Many customers care about the environment and only want to order from companies that have the same values.
Packaging can help with marketing
When it comes to eco-friendliness, the packaging is another aspect that is best handled in-house. If the company cares about the planet, they will make sure that the packaging is not harmful to the environment. Something else that packaging can help with is marketing. Seeing as how unboxing videos are all the rage now, making sure the goods are well protected and packed is of the essence. No company wants to see a video about them where customers complain about receiving a damaged product. Plus, using their logo in the packaging will help online retailers attract more attention.
Providing impeccable customer service is imperative
There are many aspects to customer service and by handing their own shipping, online retailers are able to provide their clients with a top-notch service. For example, partnering up with a company that allows tracking packages means that customers will always know where their order currently is. Many people don’t care about same-day or next-day delivery; they just need to know when it will arrive. Even if a customer calls to ask why a package hasn’t been delivered yet, companies can always get in touch with their trustworthy partners that will give them an update in no time. With complete control over the shipping, online retailers know they don’t have anyone else to blame if a shipment is late.
With an increase in online shopping, delivery companies are dealing with a lot of packages on a daily basis. In order to not lose customers, online retailers are looking for ways how they can make deliveries much faster and handling their own shipping is definitely one of the options they have decided on.