Logistics expert's 5 tips for SMEs to cut shipping costs

Steve Zammit, CEO of Interparcel – a leading Australian logistics technology platform - says he understands the cost pressures SMEs are under.‍

‍“Major courier companies have invested in larger warehouses, distribution centres and technology to support and handle the growing demand in the eCommerce industry, ensuring they can keep up with rising parcel delivery volumes – but this comes with higher costs that are affecting customers.”

“This means that SMEs need to get savvy with their operations now, more than ever. Businesses should run a business check every six months, with a bigger focus around processes and procedures, particularly in shipping.”

To help small and medium sized enterprises improve their logistics effiiciency Steve offers these five tips.

1) Offer more choices at the checkout stage to reduce cart abandonment

Steve explains, “Offering customers choices at checkout is crucial for eCommerce businesses to help reduce the demanding issue of cart abandonment.”

“After all the hard work to drive traffic to your website, whether through ads or influencers, the last thing you want is to lose a customer at checkout because you’re only offering one shipping option.”

“For example, if a customer needs the product for the weekend or as a gift, it is highly likely they will abandon the cart if only standard shipping is available. Offering multiple shipping options like express or same-day delivery can prevent this.”

2) Use shipping technology to save time on daily tasks

Steve shares, “The deployment and use of shipping technology enables businesses to focus on growth.

“Automating manual processes in particular can free up more time for other business priorities. At Interparcel, we’ve been helping small and medium-sized businesses operate efficiently for 15 years and we’re seeing a lot of retailers are still doing work manually, such as creating shipping labels and preparing orders for pickup.”

“However, this can all be automated, saving time and reducing errors. Our platform allows you to import orders, select courier services, process labels, and update customers with tracking information.”

3) Conduct regular health checks to ensure processes are in line with new business developments

Steve says, “There’s a lot that businesses can control, one of which is performing regular health checks every six months.”

“Implementing simple improvements such as re-organising your warehouse can make a big difference in time management.”

“For example, if your most frequently bought items are stored in the back, re-arrange them so these are closer to the dispatch area to save time.”

“Small adjustments like this, combined with efficient shipping management, can have a major impact on the business and the post-purchase experience for your customers.”

4) Consider the delivery preference of your customers

Some customers may prefer one courier service over another, so it is vital that businesses consider their preferences in all stages of the buying experience.

Steve shares, “Without offering these critical choices, you risk losing sales. At Interparcel, we provide technology that allows businesses to offer calculated rates at checkout for platforms such as Shopify and WooCommerce.”

“This ensures that customers have options, such as opting for one courier service for standard delivery and have other alternatives for express deliveries.”

“It’s important to consider your customer preferences as some may prefer one courier over another because they know drivers could deliver at certain times, while others may prefer using parcel lockers instead due to busier schedules.”

5) Set up international shipping to leverage and maintain competitive advantage

Steve concludes, “One strategy businesses can implement to help maintain competitiveness is exploring international markets. We’re seeing a huge demand for international eCommerce products, especially business exporting to and from the UK and USA.”

“Setting up your business to ship internationally is straightforward and relatively competitive compared with shipping domestically. Exporting goods to New Zealand, for example, often takes the same time as shipping to Australia. Expanding your international shipping reach can open up new revenue streams for businesses, especially in times of rising costs.”