Did you know that 69% of customers abandon their cart if the shipping takes more than 2 Days? Yes, not only that, 41% of online shoppers expect their order to be delivered in the first 24 hours. Thus, resolving your shipping problems as an eCommerce business owner has become more important than ever.
Shipping problems encompass a wide range of issues that can disrupt the smooth flow of goods from point A to point B. From out-of-stock products to unoptimized pick and pack strategies, anything can cause shipping delays causing you huge losses.
That said, it is highly imperative to determine the root cause of shipping problems and get them fixed. As the leading Canadian fulfillment and distribution center, ShipTop has penned down common shipping problems and how to strategically address them.
What is Causing Shipping Delays in 2024?
Shipping delays have become increasingly prevalent in 2024 due to a combination of factors, ranging from logistical hurdles to external disruptions.
Here are some key contributors to shipping delays in the current landscape:
- Global Supply Chain Disruptions: The COVID-19 pandemic continues to impact global supply chains, causing disruptions in manufacturing, transportation, and logistics. Restrictions on movement, labor shortages, and port congestion have all contributed to delays in shipping operations.
- Increased eCommerce Demand: According to Hostinger, eCommerce sales made a 19.5% contribution to total global retail sales. And the sales are predicted to go to 23% by 2027. The surge in eCommerce activity places immense pressure on fulfillment and distribution centers to fulfill orders promptly. As more and more consumers increasingly turn to online shopping, carriers are struggling to keep up with the high volume of shipments, leading to delays in delivery times.
- Capacity Constraints: Shipping companies are facing capacity constraints, particularly during peak seasons such as holidays and promotional events. The limited availability of transportation resources, including trucks, vessels, and aircraft, has led to bottlenecks in the shipping process.
- Customs Clearance Delays: This problem is mainly faced by distribution centers selling across borders. Stringent customs regulations and documentation requirements can lead to delays in clearing goods at international borders. Changes in trade policies and geopolitical tensions may further exacerbate these delays, impacting cross-border shipping operations.
- Natural Disasters and Weather Events: Natural disasters and adverse weather conditions can disrupt the functioning of a fulfillment and distribution center. This results in shipping delays.
- Labor Shortage: Another major challenge is hiring and retaining logistic operators. This automatically affects the smooth functioning of a supply-chain management system. However, more and more companies are partnering with third-party logistics to handle their fulfillment needs.
- Inefficient Inventory Management: Poor inventory management practices, such as inaccurate stock levels, stockouts, and inventory discrepancies, can contribute to shipping delays. Without real-time visibility into inventory levels and proper inventory control measures, businesses may struggle to fulfill orders in a timely manner, leading to delays in shipping.
- Poor Order Fulfillment Processes: Inefficient order fulfillment processes, including manual order processing, picking errors, and packaging inefficiencies, can result in delays in order fulfillment and shipping. Without streamlined fulfillment operations and automated order processing systems, businesses may face challenges in meeting customer demand and shipping deadlines.
How Do Shipping Problems Affect eCommerce Businesses?
Other than product delivery getting delayed, here’s how shipping problems can affect your eCommerce business:
- Increased Shipping Costs: Wrong order fulfillment results in delivering incorrect product to the customer. Not only do you have to bear the loss spent on shipping the product but also the money spent on return management adds more to the burning pocket.
- Increased Labor Hours and Costs: Any error occurring in the supply chain management takes more resources and time. This requires more labor and eventually costs you more money spent on labor.
- Lost Sales Opportunities: Delays in shipping can lead to lost sales opportunities for businesses, especially during peak seasons and promotional events. A report by WebsiteMagazine suggests that 69% of customers don’t revisit a brand if their order wasn’t delivered within two days of the promised date. This definitely causes your business a huge loss in revenue and market share.
- Bad Brand Reputation: A 2023 study conducted by Koerber found that 58% of customers left a bad review about the company when experienced a shipping delay. So, shipping delays can result in losing more than half of the total customers even when it is for the first time.
Strategies to Address Shipping Problems in 2024
As customers expect timely deliveries and seamless service, you must address these challenges head-on.
Here are some effective approaches to address common shipping problems in 2024:
1. Invest in Fast Shipping Services
From 10 days to 2 days to now same-day delivery, fast shipping is paramount. As an eCommerce business, to have a competitive edge over others you must offer fast shipping services to your customers. This can be done by partnering with a reliable fulfillment center that deals with quality shipping providers. Look for a distribution center that allows you to offer express delivery options to your customers and helps you enhance the overall customer experience.
2. Optimize Fulfillment Processes
Efficient order fulfillment is the backbone of a well-managed supply chain system. From optimized picking and packing processes to timely delivery, it is critical to streamline your fulfillment processes. Investing in advanced warehouse management systems (WMS) and automation technologies can help optimize inventory management, order picking, and packing processes, leading to faster order fulfillment and reduced shipping delays.
3. Diversify Shipping Partnerships
Relying on a single shipping carrier can be risky, especially during times of heightened demand or disruptions in the supply chain. For years ShipTop is working with multiple shipping carriers to offer tailored fulfillment solutions to our clients. By doing so you can mitigate the impact of shipping delays and ensure greater flexibility in their shipping operations.
4. Improve Inventory Management
Implementing practices to optimize inventory and shipment tracking can help you proactively identify and address potential shipping problems. Inventory management software and real-time tracking systems help you optimize your supply chain operations. Optimized inventory management includes monitoring inventory levels, tracking shipments, and identifying areas for improvement.
5. Enhance Communication
Effective communication between stakeholders in the supply chain is essential for addressing shipping problems. Establishing clear lines of communication with shipping partners, suppliers, and customers can help businesses proactively manage shipping delays. Providing real-time updates to customers and manufacturers is the key to optimizing shipping strategies.
Partner with Shiptop to Get Rid of All Your Shipping Problems in 2024
As an eCommerce owner, if your business is suffering due to shipping problems, it is high time to change your fulfillment partner. If you don’t have one, you might put your business in a huge problem. That said, with years of experience and worked with different niches, ShipTop is making all the difference. From Apparel to pet industries, our partnership has helped them overcome shipping delays and streamline their operations.
With Shiptop’s advanced shipping proprietary solutions and strategically distributed warehouses in Canada and the United States, we completely streamline your shipping operations, minimize delays, and stay ahead of the competition in a dynamic marketplace.
Get in touch with us today to discuss your shipping problems and know how we can resolve them.
