Optimising your e-commerce logistics during sales

The analysis of your demand level, the turnover of your stocks, the optimization of your product lists and the planned promotions should by now be under control. However, there remains a critical factor to take into account, on which partly depends the success of the sales on your site: the handling and shipping of orders.

COSTS & SHIPPING TIMES: STANDARDS IN E-COMMERCE.

With regard to costs and shipping times, consumer expectations have evolved considerably in recent years. Your ability to offer delivery to your customers' door at a lower cost and in a short timeframe will partly determine your positioning in front of your competitors. Indeed, if the price of the product is a decisive factor in purchasing, too costly or too long delivery quickly becomes an obstacle and can even divert a user from your site. Be careful of cart abandonment due to overly archaic delivery options.

FAST OR FREE SHIPMENTS? YOU SHOULD PROPOSE BOTH.

According to a study by the firm AlixPartners , a significant lever in the purchasing decision of visitors to your site is free delivery. Indeed, it would affect the purchasing decisions of 96% of your visitors.

Offering free delivery allows you to optimize the conversion of your baskets. However, the influence of free delivery is independent of that of delivery time. According to recent study reports published by the retail research firm eMarketer, buyers are not willing to wait more than four days to receive an order placed on the internet. This period applies even if the delivery is free. The delivery time standards have evolved in recent years thanks to the emergence of players betting on their operational and logistical efficiency. Amazon is an example of this desire to always gain in efficiency: short deadlines, loss rates, breakages and low thefts thanks to a logistics chain under control, from the first to the last kilometer. Thus, users accustomed to shopping on marketplaces whose logistics are perfectly oiled will tend to be even more demanding in terms of delivery times.

The double requirement of "fast and free" has direct consequences on the performance of your site. Another study carried out by Global Web Index makes it possible to account for the phenomenon. 30% of visitors surveyed said they were suspending their purchases due to excessively high shipping costs. In addition, 24% of users abandon their baskets at the time of check-out for excessively long delivery times.

Sales and highlights of e-commerce: is "fast and free" a differentiating competitive factor?

Delivery options quickly become a differentiator for sellers during sales. The markdowns offered on the products are a first factor of attractiveness, however the way in which you propose to send these products also plays a role on the purchasing decision of your visitors. As options such as one-day delivery (D + 1) and express delivery (D + 2) are increasingly offered by online stores and marketplaces, competition is constantly increasing. Standards are evolving rapidly and the level of demand from buyers is increasing.

Indeed, according to a study conducted in 2017 by FitForCommerce, 73% of existing e-commerce stores already offer delivery on D + 1, which allows us to consider that it is no longer just an element that sets it apart from competition, but has become an obligation for many e-tailers.

Growing expectations for shipping and free shipping can become a major hurdle for smaller retailers. Although free delivery can often be absorbed as an expense, expediting delivery usually involves sophisticated storage. Reactive logistics execution may be possible thanks to solid partnerships with carriers specialized in express shipping, or by outsourcing its logistics to a service provider.

FOCUS ON VALENTINE'S DAY

People who decide to give a gift on Valentine's Day spent an average of 142 euros. As these purchases are often made at the last minute, users will tend to turn to a site offering fast delivery. Offering this option to your customers is a competitive advantage during this period.

Indeed, according to a study of the Criteo site, it is possible to see differences in buyer behavior depending on the number of days between the weekend before Valentine's Day, and the day of the week it falls. It seems that the more days in between, the higher the peak order.

- In 2017, the purchase window was shorter (February 14 fell on a Tuesday, just two days after the weekend), and the increase in sales was average. - In 2018, the window between the weekend and the holidays was wider (February 14, 2009) and the peak was slightly larger.

According to Microsoft's figures, in 2017 the 10 most searched keywords on PC and mobile on the theme of Valentine's Day were: Jewelry, Valentine's Day, Engagement rings, Earrings, Love, Gift card, Pandora charms, Etsy, Necklace, Online supermarket

Management of your carrier strategy during sales:

When planning the peak period, consider the options for diversifying your carrier strategy. While it is tempting to go through only one carrier, this approach can cost you dearly during peak activity times. Indeed, depending on the type of orders that you have to process, the most efficient and profitable delivery method can vary considerably from one order to another.

For example, you can offer fast shipments on D + 1 for all orders exceeding a certain amount. Thus, you will absorb the costs generated by shipments made with express carriers (type FedEx, DHL, Chronopost, UPS ...) and protect your profitability.

Management of your returns during sales:

Buyers expect to be able to benefit from free deliveries and receive their packages quickly. The return policy is also increasingly taken into account when making the purchase decision. If 96% of buyers are influenced by free delivery, they are also sensitive to the return policy of merchant sites. Offering returns is also a real advantage in triggering purchases, as explained by this study carried out by Shopify. Indeed, free returns can increase conversion rates, since 71% of customers consider that replenishment or shipping may prevent them from making a purchase.

During the sales, this reality can be verified by the figures. The average return rate for an e-commerce site is around 20% of the total volume of orders. This rate increases considerably during sales, reaching 30% or even 50% for the most expensive products. In addition, the sales period being conducive to attracting new visitors, offering returns can contribute to their loyalty.

Conclusion

Sales and other commercial events are highlights that allow you to test your customers and the efficiency of your site. These are times when you can take advantage of the discounts and promotions you offer to retain your new buyers and reward your existing ones.

It is also a good time to take stock of your logistics organization and your overall performance, when your chain is under "pressure". Thus, the regular increase and seasonality of your sales can be a first call for outsourcing to a partner who will be able to support your volumes and growth.

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