July 2024 USPS Shipping Changes: What You Need to Know

It’s no secret that shipping costs can eat into your bottom line as a brand. However, with some strategic planning and optimization, you can significantly reduce shipping expenses while still delivering a polished customer experience. In this article, we'll explore 3 simple tips to reduce shipping costs without compromising on quality.

Optimize Packing

One of the easiest ways to reduce shipping costs is to optimize packing, and there’s a variety of simple ways to get started:

• Right-size Packaging: Choose packaging that fits your products snugly to minimize wasted space and avoid dimensional weight charges. Using smaller boxes or envelopes can often result in lower shipping costs. Not to mention, correctly packaging products helps to reduce the risk of damage in transit, further reducing the costs, and time, associated with damage claims.
• Lightweight Materials: Use lightweight packing materials such as bubble wrap, corrugated cardboard or air pillows to protect items without adding unnecessary weight to packages. This helps to lower shipping costs for shipments priced by weight.
• Eliminate Excess Packaging: Avoid overpacking by using just enough cushioning to protect items during transit. Removing excess packaging materials can reduce package dimensions and weight, leading to lower shipping costs. However, while minimizing packaging, it’s important to still use a sufficient amount to reduce the risk of damages during transit.

Rate Shop

Just as you would compare the costs of products in the supermarket, shipping costs are no different. 

• Use Shipping Software: Instead of having to manually compare rates and shipping speeds across various carriers, leverage shipping software that does it all for you. VESYL serves up the most competitive shipping rates in real time across multiple carriers so you can make the best informed choice. The software also allows you to pre-define frequently used package dimensions, to not only save on costs, but also time. 
• Negotiate Carrier Rates: If you have a high shipping volume, consider negotiating discounted rates directly with carriers. Many carriers offer volume-based discounts or incentives for loyal customers, which can help lower your overall shipping costs. However, it’s important to note that this option does limit flexibility in case of shipping disruptions. 

Learn more about VESYL's automations to reduce costs and time.

Utilize Discounted Supplies

Shipping supplies can add up quickly, but there are ways to save on packaging materials:

• Bulk Ordering: By analyzing order history, you can identify the most used package sizes and types and look at bulk ordering to reduce costs. This includes boxes, envelopes, tape, and labels in bulk to fully take advantage of volume discounts, helping you save on packaging costs in the long run.
• Utilize Carrier Supplies: Take advantage of free or discounted shipping supplies offered by carriers. Many carriers provide free packaging materials, such as boxes and envelopes, to their customers. By using these supplies, you can save on packaging costs and ensure compatibility with carrier specifications.
• Consider Eco-Friendly Options: Look for environmentally friendly packaging materials that are not only cost-effective but also sustainable. Recycled cardboard boxes, biodegradable packaging peanuts, and compostable mailers are eco-friendly alternatives that can help reduce shipping costs, improve brand reputation all while minimizing environmental impact.

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By implementing these three simple tips, you can effectively reduce shipping costs for your e-commerce business. Remember to regularly review and adjust your shipping strategies to ensure ongoing cost savings and optimal efficiency. With a little planning and optimization, you can streamline your shipping process and boost your bottom line while providing excellent service to your customers.

With the average return rates for e-commerce stores between 20-30%, according to Shopify,  return logistics can no longer be overlooked. Not only does smooth returns enhance the customer experience, but also removes costly and timely bottlenecks for brands. In this guide, we'll dive into the world of return logistics, exploring best practices and strategies.

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The Importance of Return Logistics

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Return logistics are the processes involved in handling product returns, exchanges, and refunds in the e-commerce ecosystem. The inability to touch, try and see items in person first, make returns an inevitable part of e-commerce. Whether it’s due to sizing or fit issues, a defective or faulty item, or a number of other potential reasons, providing a smooth returns process can enhance your brand reputation, customer loyalty and give you the competitive edge. Think of it as the brand's opportunity to shift a negative experience into a positive and memorable one. 

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Best Practices in Return Logistics

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Clear and Transparent Return Policies

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A clear and transparent return policy removes the guesswork and lets your customers know exactly what to expect if they need to return or exchange an item. This increased transparency builds trust with customers and leads to loyal customers. 

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The return policy should be easily accessible on your website. Some brands choose to include it in a drop down menu on the product listing itself along with sizing and product information. This enables customers to make informed decisions without needing to search the website or contact the CX team. 

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A clear and transparent returns policy needs to include:

• The time frame for returns and exchanges period. Most customers expect a 30 day return policy.
• The conditions required for all returned products.
• If you have different policies and requirements for different products, make sure these are clearly outlined and communicated. 
• Clearly outline any return costs. Free returns are a big draw for online shoppers. Brands can also outline different costs for different return reasons, such as the customer is required to pay the return fees if the reason for return is that they changed their mind. However, for a faulty or damaged product, the brand covers the return fees. 
• Give clear step-by-step instructions on how customers can initiate a return. Include key information about whether they need to return the item in the original packaging, where they can locate the return label and once again the condition the item needs to be returned in. (For more straightforward returns, leverage VESYL’s QR codes, allowing customers to download the QR code and take it to their local drop off point, without needing to print any labels.)

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Simplified Return Processes

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Streamline the returns process by providing multiple return options like online returns, in-store returns, or drop-off locations. This accommodates varying customer preferences and situations, ensuring convenience and flexibility. For example, Amazon's "Online Returns Center" simplifies returns with a user-friendly interface, allowing customers to initiate returns swiftly and effortlessly. By diversifying return channels and leveraging user-friendly platforms, businesses can optimize the returns experience, reduce friction, and ultimately foster stronger customer relationships. Brands can also leverage returns software to centralize return tickets in one place, provide a simple user interface for customers to use and provide detailed information on the progress of the return. 

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Within shipments on VESYL, under actions, you can create a return label on a shipment, allowing you to quickly and easily get return labels over to your customer to return an item.

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Efficient Return Handling

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To optimize efficiency in return handling, it's essential to invest in streamlined procedures that minimize processing time and costs. Automation tools and dedicated teams play a crucial role in managing returns promptly and accurately. By leveraging automated return processing systems, like ASOS does, businesses can efficiently handle high volumes of returns, mitigating manual workload and reducing processing time. This not only enhances operational efficiency but also ensures timely resolution for customers, leading to improved satisfaction and retention. Embracing technology and implementing efficient workflows are key strategies to increase efficiency in return management, ultimately driving better outcomes for both businesses and customers.

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Encouraging Exchanges Over Returns

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By offering incentives such as free return shipping labels for exchanges or store credits, businesses can incentivize customers to opt for exchanges, retaining revenue and fostering positive relationships. For example, brands can offer a gift card for a slightly higher value than the original purchase to encourage customers to continue their journey with the brand. Finally, by leveraging easy-to-use exchanges software allows customers to quickly pick the product size, color or type they wanted to exchange for. This streamlines the process by reducing the need to speak to a CX representative and providing the customer with the options at their fingertips.

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In Conclusion

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With the increase in online shopping, the demand for excellent customer service and quicker resolutions, mastering return logistics can set your brand ahead in an increasingly competitive landscape. By implementing best practices such as clear return policies, simplified processes, and encouraging exchanges, businesses can streamline their return logistics while providing exceptional customer experiences. Remember, prioritizing exchanges over returns not only reduces the strain on your team but also strengthens customer relationships, ultimately driving long-term success.

It’s no secret that expanding across borders presents a vast opportunity for business growth. In this article, we offer a complete roadmap for brands getting started with international shipping operations, emphasizing the importance it plays in reaching a global customer base and the significance of a streamlined process from start to delivery.

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Understanding the Significance of International Shipping

With internet users forecast to hit 5.17 billion in 2024, international shipping allows eCommerce businesses to tap into this growing market. This expansion beyond domestic borders opens the doors to more customers, increased revenue streams, market diversification, and enhanced brand visibility. It’s an opportunity that competitive brands can no longer afford to miss.

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Step-by-Step Guide to Starting International Shipping Operations

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Market Research and Targeting

Successful international shipping starts with comprehensive market research. This involves a thorough analysis of potential target markets, considering key factors like demand, competition, and cultural nuances that influence consumer behavior. In addition to identifying geographical locations, look into demographics to recognize which regions align best with specific products or services, optimizing and refining your market entry strategy.

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Partnering with Global Carriers

Selecting the right international carriers is crucial for successful global shipping operations. Choose carriers with a proven track record of timely and secure deliveries, as this not only enhances customer satisfaction but also helps build increased loyalty and trust in your brand. A partnership with reliable carriers is essential to a seamless international shipping experience, for both you and your customers. 

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Pricing and Currency Considerations

Build competitive pricing strategies tailored to international markets. Factor in currency exchange rates to provide transparent pricing, building customer trust and avoiding surprises during checkout. Additionally, establish any free shipping thresholds for international shoppers, helping to boost average order value and contributing to a positive shopping experience.

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Cross-Border Shipping Solutions

Explore tools and technologies that streamline the shipping process, including automated duties and taxes calculation. This not only facilitates a seamless experience for customers but also optimizes operational efficiency for your brand, allowing your team to focus on other important areas.

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Offering Multiple Shipping Options

As with payment options, products, etc, customers like to have choice and shipping is no different. This includes standard, expedited, and express shipping, each with clear delivery timeframes. Studies indicate that 22% of customers abandon their shopping carts because of slow delivery options. Providing multiple options ensures that customers can choose the shipping method that aligns with their urgency and budget constraints,

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Importance of Customer Communication

Communication is key, especially with international customers. Clear communication helps set expectations regarding shipping times, potential delays, and any associated costs like taxes or duties. Additionally, providing customers with real-time tracking information and updates helps to foster brand trust and improve customer satisfaction. However, it’s important to not go overboard. Make sure updates are relevant, helpful and do not come across as spam.

With so many variables at play with international shipping, sometimes things don’t go to plan. By addressing potential concerns beforehand is crucial, or communicating them as soon an issue arises, helps to position the business as customer-centric. In fact, studies show that effective communication can lead to increased customer loyalty and positive reviews.

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Implementing Technology for International Operations

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E-commerce Platforms and Integrations

The rapid growth of eCommerce has also spurred the development of cutting-edge integrations to help automate, streamline and simplify operations, including international shipping. These advanced solutions go beyond traditional functionalities by automating intricate shipping processes, ensuring accuracy and efficiency all while seamlessly integrating with a diverse range of global carriers. By utilizing such integrations, businesses can effectively navigate the complexities of global commerce, optimizing operational workflows and reducing manual errors.

‍Easily fill out customs forms and compare real-time competitive shipping rates to purchase international shipping labels via USPS, UPS or your own shipping carrier all within the VESYL app. Book a demo to learn how VESYL can level-up your shipping game.

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Tracking and Visibility

Customers want to know where their package is at every step of the way, making robust tracking and visibility tools invaluable to the international shipping experience. Providing customers with real-time updates on the status and location of their shipments adds a layer of transparency that is a must for customer satisfaction. These tools not only provide customers with accurate information, but also enable businesses to quickly and efficiently manage and address any potential issues that may arise during transit. This visibility helps to foster trust, and strengthen the brand-customer relationship.

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Evaluating Performance and Iterative Improvements

How can you improve if you’re not measuring? By delving into key metrics such as shipping times and customer satisfaction, businesses can gain invaluable insights into their logistical efficiency and identify any challenges or bottlenecks faced during the shipping process. This allows businesses to make data informed decisions to steer future improvements. Adopting an iterative strategy is equally crucial – it involves a continuous cycle of assessment. Utilize customer feedback to ensure a smooth customer experience. This not only helps you to identify any issues, but also positions you as a brand who listens to and values their customers, fostering a stronger customer relationship.

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Conclusion

In conclusion, starting international shipping operations is a key strategy for brands aspiring to reach a global audience and expand on their market presence. By following this guide, brands can navigate the complexities of international shipping, optimize their supply chain, and provide customers with a seamless cross-border experience.