To keep up with the growing volume of orders, carriers like USPS have announced temporary price adjustments for the 2024 peak holiday season. Effective from October 6, 2024, through January 19, 2025, these rate changes will impact Priority Mail Express, Priority Mail, and USPS Ground Advantage shipments.
Within the world of e-commerce, customer expectations are far from slowing down. In fact, customers expect their orders faster than ever, putting increasing pressure on businesses to optimize their fulfillment processes.
One strategy to help streamline operations and meet customer demands more effectively is order splitting. In this article, we will explore what order splitting is, why it is used, the challenges, and how businesses can implement it successfully.
What is Order Splitting?
Ever had an order arrive in 2 separate boxes? Or only had half of your order arrive to have the other half delivered the following day?
That’s order splitting.
Order splitting (split shipping) is the process of dividing a customer's order into multiple shipments. Instead of sending all items in one package, items are shipped from different locations or at different times, depending on their availability and the logistics involved. This can mean splitting an order between multiple warehouses or even sending part of the order immediately while waiting for other items to become available.
Why is Order Splitting Used?
Faster Delivery Times
One of the primary reasons for order splitting is to reduce delivery times. If a customer orders multiple items, and one of them is out of stock at the nearest warehouse, the entire order might be delayed if shipped together. By splitting the order, available items can be shipped immediately, ensuring faster delivery for part of the order. However, to avoid customer frustration, be sure to communicate this so customers are not left wondering if the other part of their order has been lost or forgotten.
Inventory Optimization
Order splitting allows businesses to optimize their inventory management. By shipping items from multiple locations, companies can balance stock levels across warehouses, reducing the risk of overstocking or stockouts in any single location. This leads to more efficient use of inventory and storage space.
Cost Efficiency
Shipping costs can be a significant expense for e-commerce businesses. Order splitting can help reduce these costs by allowing items to be shipped from the closest warehouse, minimizing shipping distances and costs. Additionally, it can help avoid expedited shipping fees that might be necessary if waiting for all items to be available at a single location.
Use the VESYL USPS Zone Map for a clear breakdown of shipping zones and costs.
Improved Customer Satisfaction
By splitting orders and shipping available items immediately, businesses can improve customer satisfaction. This demonstrates a commitment from the brand to deliver orders to their customers as quickly as possible and when communicated well, can foster further trust and brand loyalty. This partial fulfillment can be especially beneficial during peak shopping seasons when delays are more common.
Challenges of Order Splitting in E-commerce
Increased Complexity
Order splitting can add a layer of complexity to the fulfillment process. Businesses must have systems in place to manage multiple shipments, track inventory across various locations, and ensure accurate order processing. This can require robust order management software and efficient coordination between warehouses.
In VESYL, you can view these split orders in the Orders tab. They will show the same order number but will show different tracking numbers and shipping information.
Higher Shipping Costs
While order splitting can reduce shipping costs in some cases, it can also lead to higher costs if not managed properly. Multiple shipments mean multiple shipping fees, which can add up if not carefully monitored. Businesses need to analyze zones and shipping costs and determine the most cost-effective way to split orders.
Customer Communication
Effective communication with customers is crucial when splitting orders. Customers need to be informed about the multiple shipments, expected delivery times, and any additional tracking information. Failure to communicate clearly can lead to confusion, dissatisfaction and reduced brand loyalty.
Inventory Management
Order splitting requires precise inventory management to ensure that items are shipped from the correct locations. Inaccurate inventory data can result in delays, stockouts, or shipping errors which can make or break a customer relationship. By leveraging inventory management software and ensuring it is up to date, brands can mitigate these risks.
Simplified Order Splitting with VESYL
With VESYL, it’s simple to split orders and view shipping information in one place. Simply navigate to orders, select edit and split. From here, shippers are able to move items between the order split and can ship the split orders using different rates and carriers. This is particularly useful for stores who have one item of the order out of stock, or if one item is particularly large or heavy and it is cost effective to use a different carrier to the rest of the order.
For a step-by-step guide to order splitting on VESYL, head on over to our Help Desk. For a complete demo of order splitting with VESYL, schedule a call and we’ll show you the ropes. For any questions, feel free to email us at hello@vesyl.com.
Conclusion
By enabling faster delivery times, optimizing inventory management, and potentially reducing shipping costs, order splitting offers significant advantages. However, businesses must also carefully navigate the challenges.
With the right systems and strategies in place, order splitting can become an effective tool in e-commerce operations, helping businesses stay competitive in an incredibly fast-paced environment.
Starting July 1st, 2024, USPS is implementing new shipping rates for various services and packages. Here’s a detailed look at what’s changing:
USPS Shipping Changes: What You Need to Know
Ground Advantage
- Price Increases for Packages Over 1 Pound: Rates will rise by up to $2.11, particularly affecting packages in the 1-5 pound range.
- Price Increases for Packages Under 1 Pound: Rates will increase by up to 33 cents for zones 6-8.
- Cubic Pricing: Ground Advantage Cubic rates are increasing by up to $1.67.
Priority Mail
- Weight-Based Rates: Prices will increase by up to $3.10.
- Cubic Rates: Expect an increase of up to $2.97.
- Flat Rate Prices: These will go up by as much as $1.18.
Discount Adjustments
- The maximum discounts available for USPS compared to Retail Pricing will drop from 89% to 88%.
Additional Changes Effective July 14th
- Media Mail Rates: These will increase by up to 56 cents.
- Signature Confirmation: The cost is going up by 20 cents, bringing the total to $3.70.
These changes are universal across all platforms where you can buy postage online.
Best-In-Class Rates with VESYL
Despite these increases, VESYL continues to offer the best-in-class shipping rates through its partnership with USPS and other carriers. Our goal is to streamline your shipping operations, providing discounted rates for a silky smooth fulfillment process.
Navigating the Changes
By staying ahead, you can make the best informed decisions for your shipping needs. Utilize VESYL’s simple rate shopping feature to compare rates and make informed decisions on the best options for your shipping needs, whether you're shipping 1 or 1000's of packages a day.
Want to learn more about VESYL's smooth shipping software? Book a demo with us or read more.
More than half of the world’s population are now on social media. That’s over 5 billion people! On the subway, in restaurants, anywhere, you can witness people on their favorite social media platforms, amounting to 1 out of every 3 minutes spent online.
With such a vast number of potential customers at just a click away, this provides an unparalleled opportunity for brands to engage customers, drive sales, and build brand loyalty. In this article, we explore the most effective strategies for leveraging social commerce to boost e-commerce sales.
The Rise of Social Commerce
With the introduction of Facebook Shop back in 2020, the ability to shop within a social media platform is still relatively fresh. However, its convenience and immediacy has transformed social media platforms into a one stop shop with 47% of Americans having made a purchase through it.
The rise and continued growth of social commerce is not slowing either, with social commerce sales in the U.S. projected to reach $79.64 billion by 2025, according to eMarketer. Another report by Accenture estimates that global social commerce could grow three times faster than traditional e-commerce, reaching $1.2 trillion by 2025.
This explosive growth is driven by the increasing time spent on social media, especially by younger demographics, and the continuous improvement in platform features facilitating more convenient shopping.
Why Brands Should Leverage Social Commerce
The blend of social interaction and convenient purchasing meets modern consumer expectations and offers unique opportunities to build relationships, increase visibility, and boost revenue. Here's why leveraging social commerce is essential for brands aiming to stay ahead in the competitive e-commerce landscape:
- Increased Reach and Visibility: As highlighted above, social media platforms have billions of active users.
- Enhanced Customer Engagement: Social commerce allows for direct interaction with consumers, fostering stronger relationships and brand loyalty.
- Streamlined Purchase Journey: By reducing the steps between discovery and purchase, social commerce minimizes drop-offs and enhances the customer experience.
- Data-Driven Insights: Social media platforms provide detailed analytics, helping brands understand customer behavior and preferences to tailor their strategies.
Key Strategies for Boosting E-commerce Sales through Social Commerce
Leverage Shoppable Posts and Stories
Shoppable posts and stories allow users to click on a product within a post and be directed to a purchase page without leaving the social media app. Platforms like Tik Tok, Instagram and Facebook have integrated shopping features that enable brands to tag products in posts and stories, making it easy for consumers to shop directly from their feeds. Platforms like Shopify and BigCommerce seamlessly integrate with Facebook and Instagram. A study by Instagram found that 70% of shopping enthusiasts turn to the platform for product discovery.
VESYL seamlessly integrates with major e-commerce platforms, so whether someone is shopping through a social media platform or your website, you can simply import all orders into VESYL for fast, simple and cost-competitive batch shipping.
Engage with Influencers
Influencer marketing is a powerful tool in social commerce. Collaborating with influencers who resonate with your target audience can amplify your reach and drive sales. Influencers can create authentic content showcasing your products, which can significantly impact purchasing decisions.
Utilize User-Generated Content (UGC)
User-generated content, such as customer reviews, photos, and videos, serves as authentic social proof. Encouraging your customers to share their experiences with your products on social media can enhance credibility and attract new customers. Nielsen reports that 92% of consumers trust UGC more than traditional advertising, making it a crucial element of social commerce.
Implement Social Media Ads with Precision Targeting
Social media platforms offer advanced targeting options that enable brands to reach specific demographics based on interests, behaviors, and past interactions. Crafting compelling ad campaigns that resonate with your audience significantly enhance engagement and sales. Facebook and Instagram ads, for instance, allow for retargeting users who have previously interacted with your brand, increasing the likelihood of conversion.
Host Live Shopping Events
Live shopping combines the immediacy of live streaming with the convenience of online shopping. These events allow brands to showcase products in real-time, answer questions, and engage with viewers, creating an interactive shopping experience. Platforms like Facebook Live, Instagram Live, and TikTok Live are ideal for hosting live shopping events.
Optimize for Mobile Shopping
Given that a significant portion of social media usage occurs on mobile devices, it’s crucial for brands to ensure their e-commerce sites are mobile-friendly. Fast load times, intuitive navigation, and a seamless checkout process on mobile devices are essential for capturing sales from social media referrals. Statista reports that mobile commerce accounted for 72.9% of total e-commerce sales in 2021, highlighting the importance of mobile optimization.
Measuring the Impact of Social Commerce
By effectively measuring the impact of your social commerce strategies, you can continuously improve and refine your social commerce strategies. To do this, track key performance indicators (KPIs) such as:
- Engagement Rates: Likes, comments, shares, and views on social media content.
- Click-Through Rates (CTR): The number of clicks your social media posts and ads receive.
- Conversion Rates: The percentage of social media users who make a purchase after clicking on your content.
- Average Order Value (AOV): The average amount spent by customers in a single transaction.
- Return on Ad Spend (ROAS): The revenue generated for every dollar spent on social media advertising.
Tools like Google Analytics, Facebook Insights, and Instagram Analytics provide detailed data to help you understand the effectiveness of your social commerce efforts and where adjustments may be needed.
In Summary
Social commerce offers brands a unique opportunity to drive sales and build lasting customer relationships. By leveraging shoppable posts, influencer partnerships, user-generated content, targeted ads, live shopping events, and mobile optimization, brands can harness the full potential of social commerce. As consumer behavior continues to evolve, staying ahead of these trends will be crucial for brands looking to thrive in the competitive e-commerce landscape.
With an estimated 356 billion packages shipped worldwide in 2023, it’s no surprise that with this increase in online shopping, there has also been a rise in damaged, lost and stolen packages. However, it’s not the be all end all as there are a variety of steps brands can take to protect their packages and ensure they reach their customers in one piece. We’ve packaged these up with some real-life examples for you below.
Common Challenges with Shipping Damages
Shipping damages are a challenge for e-commerce businesses, manifesting in various forms such as physical damage to products, broken seals, and moisture-related issues. These damages can arise from inadequate packaging, mishandling during transit, or environmental factors. It all sounds straightforward however, when it comes to deciphering who is liable for the damages, that is when the headache can start. For damages associated with insufficient packaging, it often falls on the business, leading to financial losses, increased return rates, and the necessity for refunds or replacements. For damages due to mishandling, the liability can fall into the carriers hands, but it’s important to note this can be timely and not always successful. Moreover, shipping damages can severely impact a brand’s reputation, reducing customer trust and satisfaction. Frequent occurrences of damaged goods not only escalate operational costs but also diminish customer loyalty, making it crucial for businesses to adopt the tips outlined below.
Tips for Brands to Protect Packages and Minimize Damage
Invest in High-Quality Packaging Materials
There’s many areas where businesses cut costs, however, effective and robust packaging should not be one of them. Brands should invest in high-quality materials that provide adequate protection. This includes:
- Sturdy Boxes: Use corrugated cardboard boxes that are correctly sized for the items being shipped. Oversized boxes can lead to shifting and damage, while undersized boxes may burst open.
- Protective Padding: Incorporate bubble wrap, packing peanuts, or air pillows to cushion products and absorb shocks.
- Durable Tape: Secure boxes with strong, adhesive tape designed for shipping. Reinforce edges and seams to prevent accidental openings.
Properly Cushion and Pack Items
Effective cushioning and packing techniques are crucial to preventing damage. Follow these steps to ensure your products are well-protected:
- Wrap Each Item Individually: For fragile or breakable items, wrap each piece separately with bubble wrap, foam sheets or tissue paper.
- Fill Void Spaces: Use packing materials to fill any empty spaces in the box, preventing movement during transit.
- Double-Boxing: For highly fragile items, consider double-boxing. Place the item in a smaller box with padding, then place that box inside a larger, well-cushioned box.
Label Packages Correctly
Clear and accurate labeling can significantly reduce the risk of damage. Ensure your packages are labeled with the following information:
- Fragile Stickers: Use “Fragile” or “Handle with Care” stickers for delicate items.
- Up Arrows: Indicate the correct orientation of the package with “This Side Up” arrows.
- Shipping Information: Clearly display the recipient’s address and contact information. Include a return address as well.
Choose Reliable Shipping Partners
The choice of a shipping carrier can influence the safety of your packages. Choose carriers known for their reliability and careful handling of parcels in addition to:
- Insurance: Opt for shipping insurance to cover the cost of potential damages.
- Tracking: Use carriers that provide tracking information to monitor the shipment’s progress and address issues promptly.
Leverage Package Protection
Leveraging extra package protection allows brands to protect their revenue and reduce the load for the CX team. Customers are able to add or remove the package protection from their cart at the checkout. If purchased and a package is stolen, lost or damaged in transit, the customer can contact the protection provider directly who will process the claim and issue a reorder or refund, without any extra cost to the brand or customer. This not only protects revenue, but also enhances customer trust and confidence, knowing if any issues arise, it will be resolved quickly and hassle-free.
For example, our friends over at Corso have a simple to use claims portal for customers and pride themselves on resolving shipping issues within 24 hours.
Collect and Analyze Data
It’s tough to improve if you’re not measuring. By gathering data on damages such as certain items are damaged more than others or certain package sizes are being frequently damaged, brands can effectively adjust packaging methods. Not to mention, for new products or packaging, you can conduct test runs or even drop tests in house, to ensure they will reach your customer in one piece.
In Summary
Securing shipments and minimizing damage requires attention to detail, investment in quality materials, and collaboration with reliable shipping carriers. By implementing these strategies above, brands can enhance customer satisfaction, reduce financial losses, and build a reputation for reliability and care. Not to mention, the key to successful shipping lies in the preparation and continuous improvement of your packaging and shipping practices.