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Building an Ecommerce Business, Part 7: Shipping Processes

Ecommerce Conversations · with Cody DeArmond · November 28, 2018 · 35 min

Summary

Optimizing shipping processes is crucial for e-commerce growth. This episode features Cody DeArmond from ShipStation, who shares best practices for streamlining order fulfillment, choosing shipping carriers, and deciding between in-house and third-party logistics (3PL) solutions. Learn how to automate tasks, reduce costs, and meet customer expectations for fast delivery.

Key takeaways

Themes

supply chain & operationsai & automation

Topics covered

shipping automation3pl logisticsshipping carrier selectionecommerce fulfillmentdiscounted shipping ratesservice level agreements

Episode description

A merchant who sells physical products has to figure out how to efficiently get those items into the hands of customers. It can become complicated as the business scales and receives international orders. This is episode seven in my series on building an ecommerce business from the ground up.

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Frequently asked about this episode

What does this episode say about supply chain & operations?
Automate repetitive shipping tasks to save time and money, and to scale operations efficiently. Look for software solutions that integrate all sales channels and carriers into one platform.
What does this episode say about ai & automation?
Leverage discounted USPS rates and compare carrier options (USPS, FedEx, UPS) to optimize shipping costs. Don't settle for the first provider without evaluating alternatives.
What does this episode say about supply chain & operations?
To determine if you should use a 3PL, consider your current storage capacity, desire to focus on product development, and order volume. Many businesses start in-house and move to a hybrid or full 3PL model as they scale.
What does this episode say about supply chain & operations?
When outsourcing to a 3PL, don't just go with the first option. Seek providers specializing in your product type and customer base, and consider a network of regional 3PLs to enable faster, more cost-effective local delivery.
What does this episode say about supply chain & operations?
Aim for next-business-day shipping, or at most two business days, to meet rising customer expectations set by large marketplaces. Automate processes to achieve these service level agreements (SLAs).

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