delivery management

It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.

Warren Buffett

Creating a perfect user experience is an online store’s most important success factor. But sometimes, the managers of online stores forget that shipping and sending the order on time is also part of the buying cycle of users and can lead to multiple purchases from the online store.

Instant delivery has become an essential competitive advantage in the highly competitive online store market, and customers want to receive their orders in the shortest possible time.

In this article, we will describe step-by-step how to set up online store delivery.

Redemption in delivery in 4 step

1- Organize your warehouse

The warehouse may not be necessary for start-up businesses and small online stores. According to the type and size of the warehouse, the company can start from a part in one room and expand to several warehouses in different cities. But regardless of the type and size of the warehouse, you should pay attention to the fact that proper inventory management is independent of the type and size of the business, and you should have a plan for it.

If a customer orders a product and you don’t have stock in your warehouse, you will have to collect it from another store, and if you can’t get that product, it’s better to say goodbye to that customer forever!

delivery

2- Determine the type of delivery

To determine the type of shipment, you should pay attention to 1- financial resources and 2- order dispersion. Choosing the proper delivery method is one of the essential steps in setting up successful in-house delivery in an online store.

There are different types of delivery, such as:

Free shipping

Providing “free shipping” service is very attractive to customers. But do not forget that this cost is free for the customer, not for you! To compensate for this issue, there are the following solutions:

You pay the shipping fee.
  • Pay all shipping costs from your profit margin.
  • Offer specific customers a discount code for free shipping.
  • Offer free shipping with minimum order quantity. (This strategy can help offset shipping costs by helping to increase average orders, but you’re still paying from your profit margin.
Your customer pays the delivery fee.

Do not be mistaken. The delivery fee is still free, but you can increase the price of the products to cover the shipping costs.

Shipping at a fixed cost

If your business serves a specific area, you can consider the average shipping costs as a fixed cost.

On the other hand,  your business is substantial, and you have many customers; You can specify the average delivery cost for all orders.

 

Warning: Be careful using this delivery method. Generally, this method is not recommended at the beginning of the business.

3- Calculate delivery costs

Delivery costs include: *

  • transportation: packing, fuel costs, and vehicles
  • Inventory management: inventory place, shipping from inventory, and sending
  • Management: Delivery management software
  • Human resources: salary, hiring, implementation
* These categories can be done in a different way, which of course, does not make a difference in the essence of the matter

4- Set a price correctly

To be successful in the online store, always pay attention to your profit margin. Because if you are not accurate in calculations and other costs are imposed on you, these costs will make your profit less and less and may even ultimately lead to your loss.

 

last mile delivery

 

Conclusion

With the expansion of online stores and intense competition in customer service, the importance of delivery management is felt more than ever. To correctly manage business delivery, we have four steps in front of us. In the first step, we improve warehousing and inventory management. In the second step, we choose how to send orders according to the type and size of our business. In the third step, we will calculate the costs of different stages of delivery (transportationwarehousingmanagement). In the last step, we will set the price for products by calculating the total of all costs and applying the appropriate profit margin.

 

Angariium is a simple and smart last-mile delivery management software that helps you manage your fleet and delivery process without any doubt. By using Angariium you have easy access to every feature you need for your managers. intelligent features in Angarrium help you experience agile management. You can easily see our demo and test Angariium software by clicking on the below button.

Free Demo

Also, you can stay in touch with us with live chat on this page and this way: Sales@angariium.com

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