Modern customers turn to eCommerce platforms for convenience, and this expectation of quick and easy shopping also includes shipping. Customers demand cheap, fast deliveries, and businesses can struggle to meet those high expectations.

In this article, we’ll discuss the various shipping methods available to you, their pros and cons, and how they affect your customers and your eCommerce business.

Why is Shipping so Important?

Our research found that shipping issues are one of the major causes of cart abandonment.

When it comes to shipping, there’s a lot to think about.

There are plenty of reputable shipping or courier companies on the market. The cost of doing business with reputable shipping companies vs. their cheaper competitors can be high.

Then, there are numerous shipping options you can provide to your customers, such as free shipping, same-day, next-day, express, eco-friendly, etc. Customers like having a choice, but you don’t want to overwhelm them with a confusing checkout experience.

Moreover, it is essential to fulfill customer expectations by providing cost-effective delivery services, reliable tracking systems, and ensuring the product arrives undamaged at the correct address. This must be achieved even when the customer is unavailable.

Add all that up, and you have a difficult decision.

To stay competitive and avoid reputational damage, your eCommerce store must offer reliable, fast, and tracked shipping options at a fair price. Read more about the different shipping methods below to decide what works for your business.

The Pros and Cons of Different Shipping Methods for your eCommerce Business

Like finding a good cloud call centre or customer relationship management platform, shipping is an essential part of eCommerce. Each business is unique and has its own needs and resources.

One shipping method might work well for one business and be unviable for another.

So, let’s examine each type of shipping and its pros and cons for customers and your eCommerce business.

    Overnight

    Overnight, next day or express delivery is a service that ensures items reach customers swiftly, usually within one day, appealing to those who value speedy service.

    Pros

    Express lets you offer faster delivery times for a higher shipping cost. Depending on your capabilities, you can decide whether that means next-day, two-day, etc.

    By offering this as an alternative to standard delivery, you’re offering your customers a choice while also asking for a fair price.

    In short:

    • Customers get a choice
    • Faster shipping helps build customer loyalty
    • You get compensated more for delivery

    Cons

    Expedited deliveries cost your eCommerce business more, and you’ll have to decide how to price that into your shipping costs.

    In short, express shipping:

    • Costs you more
    • Creates high customer expectations and pressure on couriers

    Don’t worry about the additional costs! New Zealand Couriers always deliver the item as swiftly as possible – items arrive the next day without additional costs.

    Eco-friendly

    Kiwis are more concerned with eco-friendliness than ever before. Studies revealed half of Kiwis have stopped using certain product or services due to their negative impact on the environment or society.

    Pros

    As more customers value sustainability, offering “green” deliveries can give you a competitive edge. But customer expectations aren’t the only concern.

    In 2023 Stats NZ found that the total greenhouse gas emissions was 76,809 kilotonnes of CO₂-e. Anything brands can do to reduce emissions is a win.

    In short:

    • Customers value greener shipping options
    • You can use eco-friendliness as part of your marketing in eCommerce ads and on social media
    • You’re helping the environment

    Cons

    Eco-friendly shipping has logistical challenges. You might need to invest in greener vehicles, partner with eco-friendly courier companies, open a communication channel offering VoIP calls with your customers, or alter your entire packaging process.

    In short:

    • Eco-friendly shipping alternatives can cost you more
    • Building green infrastructure and methods takes time and resources
    Collection

    For customers who aren’t home, having their package held at a secure collection point until they’re ready is an excellent alternative to home delivery. This can be achieved by giving your customers “leave my delivery” tags, which inform couriers of the designated safe location chosen by the customer.

    Pros

    Couriers don’t need to go from house to house; they can deliver packages to a single location, which reduces time, cost, and emissions.

    This method also offers busy customers more convenience.

    In short:

    • Offers convenience
    • Cost saving for your business
    • Reduces failed deliveries

    Cons

    Collection points might not be the right choice if the premises aren’t monitored, which could be unsafe or if the designated location is difficult for couriers to access.

    In short:

    • Safety concerns
    • Designated safe places could be difficult to access

    International

    International shipping lets you deliver to overseas customers via air, land, and sea routes.

    Pros

    For eCommerce businesses with global aspirations, offering international shipping is a must.

    To sum up:

    • You can grow your brand
    • New audiences offer new revenue opportunities
    • Opens up new opportunities for B2B sales lead generation

    Cons

    To become an international shipper, you must get clearance with New Zealand customs and register as a commercial exporter. You’ll also need to understand and abide by the import regulations of each country to which you ship. This involves a lot of transparency about where you source your products and might require help from a third-party risk management platform.

    International shipping is also expensive and might be cost-prohibitive for brands without a large budget.

    In short:

    • You must learn and comply with domestic and international regulations
    • Costs are high

    Some more Shipping Considerations

    Your eCommerce brand needs to weigh customer expectations with shipping costs. Here are your options:

    • Flat rate: You pay a delivery service a flat rate for every package, regardless of size or weight. This simplifies budgeting, as you always know your exact shipping costs and can spread the cost to your customers accordingly. All this depends on your business, however. Smaller businesses shipping smaller packages might lose out on flat-rate shipping.
    • Table rate: Shipping is calculated based on a package’s variables, such as weight, location, destination, delivery time, etc. This means your shipping costs vary. This makes it harder to evaluate expenses up front, but your business is paying accurately for each delivery.
    • Real-time – Real-time carrier rates calculate shipping costs for customers depending on variables like weight and location. This offers customers variable shipping rates that reflect purchases and more cost transparency.

    Additionally, implementing an AI pricing tool can refine this process, offering more precise cost predictions and optimising shipping rates based on real-time data, ensuring cost efficiency and customer satisfaction.

    In Conclusion

    Shipping is a big deal to customers and a logistical challenge for eCommerce businesses.

    Customers want efficient, fast, high-quality deliveries and are willing to be loyal to brands that provide them.

    Understanding different shipping methods and implementing the right ones for your business gives customers a choice and lets you create shipping costs and promises that reflect your unique capabilities. Looking to deliver a better eCommerce shipping experience? Request a call with New Zealand Couriers today.

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