How to reduce your e-commerce cost using delivery management software

If you run an e-commerce business, you’re constantly juggling a multitude of costs, right from website hosting and inventory management to marketing and delivery. These costs, if not appropriately managed, can quickly add up and eat into your profits. 

A key cost that many e-commerce businesses grapple with is delivery. But did you know efficient delivery management can help you slash your costs significantly? By optimising your delivery management, Innoship can help you drastically reduce expenses and amplify your delivery performance, enhancing customer satisfaction and boosting your bottom line.

The role of delivery management

In today’s competitive e-commerce landscape, you must pay attention to the role of delivery management. When you hear the term ‘delivery management’, you should think about the complete oversight of your entire delivery operation. This encompasses every step of the process, from the instant an order is placed to the moment it lands on your customer’s doorstep. It’s about ensuring that all operations run smoothly, efficiently, and cost-effectively.

Effective delivery management is the backbone of customer satisfaction. It guarantees timely deliveries and minimises instances of mishandled or lost packages. 98.1% of shoppers say that delivery impacts their brand loyalty. This clearly shows that efficient delivery management can translate into higher customer retention and, ultimately, increased profitability. [1]

Now, if you’re wondering about the impact of delivery management on overall costs, let’s break it down for you. Efficient delivery management can significantly reduce your operational costs. It can minimize the need for warehouse storage by ensuring a faster order fulfillment process. It also reduces losses associated with returned or misplaced packages. More importantly, it optimizes delivery routes and schedule, saving you substantial fuel and labor costs. 

The role of delivery management software in this context is unquestionable. It is a powerful tool that can help you automate and streamline your delivery process. From order tracking and carrier selection to returns management and customer communication, everything can be handled seamlessly through this software. It can result in considerable time and cost savings for your e-commerce business. 

How delivery management software reduces costs

Investing in delivery management software is a strategic move towards cost efficiency and business growth. Learn more about this powerful tool in the next chapters!

1. You can offer your clients access to multiple delivery options

In the fiercely competitive e-commerce landscape, offering multiple delivery options can be a game-changer for your business. Whether it’s same-day delivery, next-day delivery, pick-up-drop-off (PuDo), or lockers, Innoship has got you covered. Its intuitive interface and easy implementation process make it a breeze to incorporate multiple delivery options into your e-commerce platform. 

Offering multiple delivery options can significantly reduce your e-commerce costs. By providing options that cater to your customers’ lifestyle and preferences, you can mitigate the number of failed deliveries and returns — two major contributors to e-commerce costs.

Given these compelling benefits, it’s clear that investing in delivery management software like Innoship can lead to significant cost savings and improved customer satisfaction. Explore the capabilities of delivery management software today and optimize your e-commerce operations for the better.

2. Eliminate Delays During Carrier Connectivity Issues

In today’s fast-paced world, efficiency isn’t just a goal; it’s a necessity, especially when it comes to delivery processes that keep the wheels of commerce turning.

Aware of your daily challenges, Innoship introduces the Offline Waybill Generator, a feature designed to ensure the continuity and efficiency of your delivery processes, even in the face of technological challenges. This new feature allows you to generate Air Waybill (AWB) documents even when the connection to courier systems is interrupted or delayed, ensuring that your warehouse operations never miss a beat.

3. Automatic order allocation

Understanding the concept of automatic order allocation is the first step towards streamlining your delivery process and reducing costs. With the help of Innoship, this process becomes a cakewalk.

The software intelligently assigns eligible carriers based on the specifics of the order like pick-up location, and destination, along with the preferences of your e-commerce business. This feature not only saves you time but also ensures you always choose the best options in terms of cost and delivery time. 
 
Innoship’s delivery management software allows for unprecedented customisation of delivery rules, adding an extra layer of flexibility and efficiency to your e-commerce business. You can set specific rules to suit your needs. From choosing your customer’s preferred courier to regional restrictions for particular couriers or ensuring parcels over a certain value, Innoship’s algorithm seamlessly adapts to ensure your deliveries are smooth and stress-free. This feature lets you completely control your delivery options, further helping optimise costs. 

Cost and quality management are integral to any business strategy. With Innoship, you can set a maximum limit to which you are willing to pay extra for better service. The software understands that there can be price differences between carriers for the same destinations, depending on the price you have negotiated with each courier service supplier. By using this feature, you can manage your delivery costs while maintaining the quality of service.

Another noteworthy feature of Innoship’s automatic allocation is its detailed exception management. The software considers the order’s specifics, allowing you to make informed decisions regarding delivery management. This means you can proactively handle any issues that might arise and reduce costs associated with last-minute alterations or cancellations.

4. Provide the best post-purchase experience with branded tracking pages

In today’s digital era, consumers expect seamless online shopping experiences, including transparent post-purchase communications. A branded tracking page, hosted by the brand itself, meets this demand by providing timely updates and offering opportunities for further engagement through related content or product recommendations. This approach enhances customer satisfaction and opens new avenues for increased sales.

Innoship addresses a common post-checkout issue: the disconnection between customers and brands, which often results in delays and reliance on impersonal carrier tracking. By offering a custom tracking page, Innoship allows brands to maintain direct communication with customers throughout the delivery process, including returns. Whether you send shipment status updates to your clients or communicate internally with your customer support team, our platform provides fully automated notifications based on all possible pre-defined delivery events.

This strategy reduces customer anxiety, boosts brand loyalty, and enriches the post-purchase experience. Through Innoship’s solution, e-commerce clients can achieve higher customer retention and drive additional sales by engaging customers effectively after the sale.

5. Optimize delivery costs through invoice check functionality

The Invoice Check feature gives you a complete overview of your shipping service provider’s invoices. You can verify each line, ensuring that all rates and fees are correct. This eliminates hidden or unnecessary costs that can eat into your profit margins. 

Another advantage of the Invoice Check feature is the automated analysis of carrier performance. This not only saves time but also helps to identify any weaknesses and inefficiencies in the delivery process that might be driving up costs.  

But the Invoice Check feature doesn’t stop at analysis. It uses big data to recommend the best-performing carriers. These recommendations directly address the weak points in your shipping process, helping you to optimize delivery costs.

And if you thought that was all, you’re in for a surprise. The software also provides in-depth cost control. This means that you can pinpoint where your money is going, identifying areas of wastage or inefficiency. This level of cost control can lead to important savings.

6. Improve your returns management

An efficient returns management system is not only a necessity, it’s a game-changer. A streamlined return process not only builds customer trust but also fosters loyalty, leading to increased sales in the long run. This is where the Innoship intelligent algorithm comes into play. By ensuring that returned products are delivered back as quickly and efficiently as possible, it takes the hassle out of returns, making your customers’ lives easier.

Consumers are not merely interested in delivery options, they also look for an easy return process. In fact, 95% of customers are likely to shop again with a retailer that offers an easy return process. A well-implemented return policy can significantly increase your conversion rate, convincing more potential customers to make a purchase. [2]

Trust is the bedrock of any successful e-commerce business. An easy return process can earn you that invaluable vote of confidence from your customers. By showing your commitment to customer satisfaction through a smooth returns process, you’re not just selling a product, you’re building a relationship.

7. A delivery management software helps you understand information on carrier performance and cost

With Innoship’s intuitive dashboard, you can gain real-time, easy-to-understand data on carrier performance. This powerful tool can quickly identify the trends in delivery performance for any courier service. By providing the necessary information, it empowers you to make well-informed, goal-oriented decisions. 

Another feature of the delivery management software is the provision of real-time reports and analytics. These reports are pivotal for operational optimization. This feature allows you to spot any blockages in the delivery system instantly, ensuring that promises made to customers are kept. 

Analyzing long-term trends and performance is made easier with Innoship’s delivery management software. Having full visibility over carrier performance on each delivery service allows you to identify specific trends and areas where the delivery process could be improved. This long-term analysis ultimately leads to more efficient operations, better customer service, and increased profitability.

One of the most significant benefits of this software is the ability to compare carrier services. You can measure the quality of services and the efficiency of each carrier in use. This comparison helps in setting new rules that will improve delivery performance or cost.

Sources

[1] https://www.mageworx.com/blog/author/valery-sha. “On-Time Shipping Makes Your Customers More Loyal.” Mageworx Blog, 26 Sept. 2019, www.mageworx.com/blog/on-time-shipping-makes-customers-more-loyal. Accessed 12 Feb. 2024.

[2] Made, Refunding. “Refunding Made Easy: Streamlining the Return Process – FasterCapital.” FasterCapital, 2023, fastercapital.com/content/Refunding-Made-Easy–Streamlining-the-Return-Process.html. Accessed 12 Feb. 2024.