The True Cost of Cheap Shipping – 5 Part Special Report
06 April 2020
Part 1
Smart Send has helped thousands of SMEs with their shipping. A common theme is the prevalence of a ‘cheap shipping mindset or mentality’, including:
- Always choosing the cheapest possible delivery service
- Cherry-picking between different services (no allegiance or loyalty)
- Scrimping on packaging
- Not utilising technology to save time/money. I understand why SMEs/startups do this; I was also a small business owner once. Keeping costs low is important, however not looking at the big picture can cost you much more in the long run, eg:
- Delivery issues
- Time wastage = $$$
- Loss of sales/returns
- Bad customer reviews
The numbers:
- 66% of shoppers bought goods from one retailer in preference to another because the delivery services on offer were more appealing
- 51% said they had failed to complete an online order because of poor delivery choices
- 96% of shoppers said a positive delivery experience would encourage them to shop with a retailer again. Maximising online profitability depends on retailers exploiting every opportunity to achieve a first-time successful delivery. We encourage you to read the ‘True Cost of Cheap Shipping’ report for more info.