04/01/2020
Consumer-Packaged Brands Should Enhance Shipping Plans for E-Commerce, Advises Portland-Based CEO
It’s about time for consumer-packaged goods (CPG) brands to develop effective shipping strategies to enhance its preparedness for e-commerce, according to Ice Break Shipping’s CEO Augusto Beato.
He was reacting to a study conducted by Profitero and Kantar where many CGP companies brands admitted not being prepared for e-commerce.
Just 17 percent said they are ahead of the e-commerce space, while 71 percent but are trying to catch up with competitors.
The study was done from September to December last year, just before the coronavirus outbreak.
Beato, who is also the CEO of Portland SEO, noted that many CPG brands admit not having dedicated e-commerce strategies, which include goals, customer master plans, and a set of processes to handle orders.
With pricing and profitability being the biggest challenges for e-commerce firms, Beato pointed out that shipping should be made a core aspect of e-commerce to reduce the customer’s cost.
“If you keep shipping honest, you may entice customers with promos as free shipping,” said Beato. “This will give you a headstart against competitors who don’t even mention shipping.”
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Beato added that sellers could establish a price threshold per order where shipping becomes free but should be consistent on offering the promo.
“Thus, if a seller gives free shipping for orders worth $100 or more, it would be good to apply the promo consistently and eventually remove the value requirement for loyal customers,” he pointed out.
Beato also added that more complex setups, such a “Same Day Delivery” should be coordinated with the fulfillment partners and the warehouse team to be able to make good on the offer consistently.
With online shopping habits likely to last after the coronavirus outbreak, it is crucial for brands to put their e-commerce strategies in place.
“With digital shoppers doubling since August 2019 and more people planning to start buying groceries online if the virus scare continues, this is a chance for brands to cash in on e-commerce,” he quipped.
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