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Jim Agger
 
May 14, 2014 | eCommerce , Fulfillment/Shipping | Jim Agger

Ecommerce fulfillment strategies need to be updated in 2014

Wine shipping is a complicated process, but it shouldn't be overlooked when assessing your ecommerce strategies. While same-day delivery seems like a distant fantasy for many retailers, some Internet companies are striving to make it a reality, The Economist reported. 

After a couple different attempts, Amazon is launching its grocery delivery service, AmazonFresh, in San Francisco. It currently offers more than 500,000 products, including some perishable foods. Amazon says if customers order by 10 a.m., items will be delivered by the early evening. In a similar fashion, Google and eBay are offering same-day grocery deliveries in the Bay Area, although eBay Now also caters to customers in Chicago, Dallas and New York City. These companies have partnerships with local retail chains in the urban areas they serve, which eases some of the challenges of transporting perishable goods. 

This trend highlights the growing popularity of online shopping because of the convenience factor. In addition, retailers are aiming to eliminate the time between the purchase and fulfillment, once thought to be a barrier to getting customers to buy products on the Internet instead of in traditional stores. 

How wineries can set themselves up for ecommerce success with a competitive shipping strategy
As ecommerce giants like Amazon and eBay continue to raise the bar on what's possible in fulfillment, customers will expect more. While same-day shipping may not become an immediate reality, wineries need to assess their current capabilities to determine how quickly they can reach the majority of their customers.

One of the biggest issues with ecommerce fulfillment is cost to your business compared to the speed products can reach consumers. Several studies have indicated that customers would prefer the most affordable shipping option. Different delivery options have the potential to influence purchasing decisions. In addition, smaller retailers may lose money on advanced shipping strategies, such as same-day delivery, which may prevent them from implementing new shipping methods. 

Wineries need to balance cost-effectiveness and speed to offer the best ecommerce experience to their customers, according to Shopify. The following strategies can be considered to improve your wine shipping: 

  • Know what products cost to ship: While advertising shipping discounts can be more effective at driving conversion rates than offering specials on products, there are some important things to keep in mind. Retailers face expenses when they move merchandise, which is why discounted shipping isn't always the best fit for every company. While giving consumers choices is essential for conversions, you can't cut shipping fees so low that your business is taking a huge loss. The right shipping strategy can depend on your market. If it's highly competitive and other wineries are offering low rates, it may be a good idea to adopt this strategy. 
  • Use a shipping calculator on your website: Because high shipping fees are one of the top reasons consumers abandon purchases, it's important to minimize the impact of this issue. Providing a shipping estimate as shoppers add wine to their carts lets them know how much they will pay before getting to the checkout page. If they intended to limit the purchase to a certain dollar amount, this can help. It may also be beneficial to provide a comparison of different options so consumers know how much they save. This can help shoppers make more informed choices.
  • Outsource fulfillment: If shipping wine is too much to juggle on top of other tasks, outsourcing to a trusted third-party provider can help wineries cut costs, reach customers more quickly and be more efficient. WineDirect's bi-coastal fulfillment services can help wineries adapt to the shifting ecommerce climate. 

Comments

jeff stai's Gravatar
 
jeff stai
@ May 16, 2014 at 1:04 PM
hi Jim - I know what my current shipping costs are, but to make a change I need to accurately estimate what the costs of an alternative would be based on my actual shipping patterns. I have found it close to impossible to make such a determination. Do you have any thoughts?

grocery delivery nyc's Gravatar
 
grocery delivery nyc
@ May 19, 2014 at 3:29 AM
Wine shipping is one of the major cause of concern for many online buyers. As the world is shopping online, same day wine delivery is what we are looking at. Your strategies are quite helpful. Thanks for sharing.

ecommerce fulfillment's Gravatar
 
ecommerce fulfillment
@ Jul 29, 2014 at 11:00 PM
thanks for sharing this information. its a nice post and keep it always.....

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