How to Choose the Right eCommerce Shipping for Your Business

By

Olivia Armistead

|

Last updated:

Jun 14, 2024
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Customer demands are rapidly changing. With the online shopping cart abandonment rate at 70%, there’s greater pressure for eCommerce businesses to enhance the customer experience at every stage of the shopping journey.

Today, shipping is one of the most critical factors in a customer’s satisfaction. Almost a third of Australian shoppers expect fast delivery, and 24% abandon their carts if delivery is too slow. To stay competitive in the market, adopting efficient and cost-effective shipping methods have become vital to meet customer demands. 

In this blog post, we’ll go over some of the most common eCommerce shipping options in Australia to help you better understand what are the shipping methods that can enhance your eCommerce operations.

What Are Shipping Methods?

The term 'shipping method' refers to the various ways you can deliver goods to your customers. Shipping methods encompass a range of services provided by carriers to move products from a seller to a buyer. Each method offers unique features, advantages, and drawbacks, making it crucial to understand the differences to select the most appropriate option for your needs. 

As a leader in eCommerce order fulfilment in Australia, SKUTOPIA believes in a tailored approach where you integrate these methods into your overall eCommerce order fulfillment processes to enhance customer satisfaction and operational efficiency. To understand the integration of these two better, check out our comprehensive order fulfillment guide here.

Analysing Shipping Options: Costs vs Benefits

Standard Postage

Standard postage is widely recognized as the most cost-effective shipping method for eCommerce businesses. It offers substantial savings, making it an attractive option for budget-conscious operations. However, this method typically comes with longer delivery times compared to faster alternatives, making it best suited for non-urgent shipments.

Cost: ★☆☆☆☆

Speed: ★★☆☆☆

Reliability: ★★★★☆

PROS:

  • Cost-effective for small and light items
  • Wide reach, including remote areas
  • Reliable, with established networks

CONS

  • Longer delivery times
  • Limited tracking capabilities
  • Not suited for high-value or perishable goods

Priority Mail

For a balanced approach to cost and speed, priority mail offers a credible compromise. With faster delivery than standard postage at a moderate price increase, this option satisfies the need for quicker delivery without significant cost impact.

Cost: ★★★☆☆

Speed: ★★★☆☆

Reliability: ★★★★☆

PROS

  • Faster than standard postage
  • Includes tracking
  • More cost-effective than express services

CONS

  • More expensive than standard postage
  • Not as fast as courier services

Express Courier Services

When delivery speed is paramount, express courier services are the optimal choice among delivery options. This premium eCommerce shipping service ensures rapid delivery, often with same-day or next-day options, and is best suited for urgent shipping needs.

Cost: ★★★★★

Speed: ★★★★★

Reliability: ★★★★★

PROS

  • Fastest delivery option
  • Detailed tracking and notifications
  • Best for urgent or high-value shipment

CONS

  • More expensive than other options
  • May not be necessary for less urgent goods

Same-Day Delivery

Same-day delivery caters to consumers who highly value speed and immediacy. This service, though more expensive, is often considered worthwhile for those who require their purchases without delay. The ability to receive items on the same day they are ordered can significantly enhance customer satisfaction and loyalty.

For eCommerce businesses, it can often be a challenge to prepare orders and ship the same day. But with the emergence of advanced robotic fulfillment, providing this level of service has now become more feasible for businesses of all sizes.

Cost: ★★★★★

Speed: ★★★★★

Reliability: ★★★★☆

PROS

  • Ultimate convenience for customers
  • Competitive edge in customer service
  • Increase in customer satisfaction and loyalty

CONS

  • Limited by geographical coverage
  • Higher costs
  • Requires a robust logistics infrastructure

International Shipping

For businesses serving a global customer base, international shipping is the way to go. Costs and delivery times can vary significantly, influenced by factors such as customs clearance, tariffs, and the efficiency of international logistics partners. Navigating these complexities is crucial for timely and cost-effective global deliveries.

Cost: ★★★☆☆

Speed: ☆☆☆☆☆

Reliability: ★★★☆☆

PROS

  • Access to a global market
  • Diverse delivery options available
  • Can be cost-optimised through consolidating shipments

CONS

  • Long delivery times
  • Complexities of customs and import taxes
  • Higher risk of delays and damage

Making Informed eCommerce Shipping Decisions

Selecting the most suitable shipping option is not solely about finding the cheapest shipping for eCommerce; it's about crafting a shipping strategy that aligns with your business model, enhances customer experience, and maintains profitability. Whether you choose to integrate same-day delivery for competitive edge or stick to cost-effective standard shipping, each decision should be informed by a thorough understanding of your customer base and operational strengths.

The best shipping options for small businesses may not be ideal for larger enterprises. Conversely, larger eCommerce businesses may have access to more efficient shipping methods that are not fit for small business operations. 

To help businesses navigate the complex world of shipping and delivery, shipping platforms are now invaluable in helping businesses balance speed, cost, and reliability. SKUTOPIA’s Shipping Platform, for example, aggregates multiple carriers in one platform, providing diversity in options while offering discounted shipping prices from partner couriers. This allows eCommerce businesses – both small and large – to offer the right shipping service tailored to each of their customers without having to juggle multiple systems. 

Want to step up your eCommerce shipping? Learn how SKUTOPIA’s Shipping Platform can help.