Laura Behrens Wu - Shipping First And Last Impressions Of eCommerce

Summary

Laura from Shippo discusses the critical role of shipping in e-commerce, highlighting how it impacts customer experience and can be leveraged as a competitive advantage. She emphasizes the importance of meeting customer expectations for free and fast shipping, transparency in shipping costs, and providing diverse shipping options to cater to different needs. She also stresses the value of tracking updates in maintaining customer engagement.

Takeaways

• 🚀 Laura founded Shippo, a company focused on simplifying shipping for e-commerce, using a multi-carrier shipping API to connect stores with various shipping providers.
• 🌐 Shippo shipped to 230 different countries last year, highlighting the global reach and importance of e-commerce shipping.
• 📈 E-commerce is growing rapidly at a rate of 15% year-over-year, making it a significant market with a high volume of packages shipped annually.
• 🚚 There are over 500,000 different shipping providers, indicating a vast and diverse shipping landscape.
• 🛒 Shipping is a competitive advantage, not just a necessity, and can be leveraged to enhance customer experience and satisfaction.
• 💰 Free shipping is a major influence on purchasing behavior, with 81% of customers prioritizing it, but it's not free for merchants and can impact margins.
• 💳 Offering flat shipping fees can help predictability and prevent surprises at checkout, enhancing customer trust and satisfaction.
• 💡 Setting a minimum order threshold for free shipping can incentivize customers to add more items to their carts, potentially increasing sales.
• 📅 Communicating transit times and setting clear expectations is crucial for customer satisfaction, as many abandon carts due to uncertainty about delivery dates.
• 🔍 Providing shipping options, such as expedited shipping at a premium or free shipping with longer transit times, can cater to diverse customer needs.
• 📬 Utilizing tracking updates to keep customers informed throughout the shipping process can enhance the overall shopping experience and maintain customer engagement.

Q & A

What is the mission of Shippo as described in the presentation?

Shippo's mission is to simplify shipping for e-commerce by providing a multi-carrier shipping API that connects e-commerce stores to a network of different shipping providers and helps them optimize between different shipping options.

How many countries did Shippo ship to last year?

Last year, Shippo shipped to 230 different countries.

What is the significance of shipping in e-commerce according to Laura?

Shipping is an essential step in e-commerce as every store that sells physical items needs to ship. It is also a competitive advantage and can influence purchasing behavior positively.

How has Amazon influenced customer expectations in shipping?

Amazon has introduced free and fast shipping, which has raised customer expectations. This has led to a growing demand for similar services, with Amazon Prime growing at a rate of 53% year over year.

What is the impact of free shipping on small and medium-sized businesses (SMBs)?

For SMBs, the shipping cost can be as high as 35% of total costs, which is significantly higher than the 12% for companies like Amazon. Offering free shipping can be expensive for these businesses.

Why do merchants still want to offer free shipping despite its cost?

Free shipping influences purchasing behavior positively. It is a significant factor for customers when checking out online, with 81% of people saying free shipping is most important to them.

What is the role of predictability in shipping costs and transit times?

Predictability in shipping costs and transit times is crucial. Customers want to know the shipping costs as early as possible in the process and expect accurate delivery date estimates to avoid surprises at checkout.

How can e-commerce stores offer flat shipping fees effectively?

Stores can offer flat shipping fees for every purchase or for purchases higher than a minimum order threshold. It's important to calculate these fees correctly to avoid overcharging customers or reducing margins.

What is the strategy behind offering free shipping with a minimum order threshold?

Setting a minimum order threshold for free shipping can incentivize customers to add more items to their carts. This strategy can increase sales and is a way to offer free shipping without significantly impacting margins.

How can e-commerce stores communicate transit times effectively?

Stores should communicate transit times upfront and proactively include pick and pack times in their estimates. Providing tracking updates can also help manage customer expectations and keep them informed about their deliveries.

What are some actionable insights Laura shared for improving the shipping experience?

Laura suggests offering flat shipping fees for predictability, setting minimum order thresholds for free shipping to increase sales, and communicating transit times and pick and pack times proactively to manage customer expectations.