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How To Write Best-in-Class E-commerce Return Policy For Your Store

With the increasing popularity of online shopping, competition amongst E-commerce businesses has become more intense, as customers have endless options to choose from. While offering unique products is important for gaining customers, a clear and customer-friendly E-commerce return policy plays an equally crucial role.

According to reports, customers are three times more likely to NEVER purchase from a company, if they are unsatisfied with the return policy. Therefore, drafting a well-crafted return policy becomes even more important to improve customer satisfaction, boost sales, and establish trust.

However, creating a best-in-class E-commerce return policy can be a challenging task that requires careful consideration of various factors such as product types, logistics, and budget.

In this blog, we’ll explore the key elements of a successful E-commerce return policy and discuss about tips for creating a policy that meets both the customer’s and the business’s needs.

But before delving into those details, let’s first understand the meaning and importance of an E-commerce return policy.

What Is An E-commerce Return Policy?

An E-commerce return policy is a document that outlines the process and requirements for accepting returns from customers. This policy serves two important purposes:

Firstly, from a business perspective, it helps to protect against inappropriate returns and financial loss caused by credit card chargebacks.

Secondly, from a customer perspective, it provides information on the merchandise that can be returned, the reason for return, the time frame for returns, and the process for initiating a return. By understanding these details, customers can make informed purchase decisions and have confidence in the reliability of the business.

Here is an example of a return policy from Flipkart.

This comprehensive return policy provides customers with information about the return process, including the timeframe for returns and processing times. Additionally, it goes a step further by outlining common scenarios that may occur, helping customers understand whether a product is eligible for return or not.

Why Is An E-commerce Return Policy Important?

Are you wondering why you need an E-commerce return policy? Here are some points that will convince you.

Instills a feeling of security

In the world of online shopping, customers seek security in their purchases. They expect E-commerce businesses to offer a certain return timeframe, which not only indicates confidence in the product but also provides a safety net in case of any issues. This helps customers feel secure in their purchasing decisions and enhances their overall shopping experience.

Creates clarity

A well-crafted E-commerce return policy can save you the hassle of communicating return expectations to each customer individually. Customers know exactly what to expect and can initiate the process easily when the policy has clearly outlined the items eligible for returns and the corresponding timeframe. This not only improves customer satisfaction but also saves time, as you don’t have to answer repetitive return queries from customers.

Grows retention rates

Research shows that 92% of customers buy again from the same E-commerce company if the return process is hassle-free. You can create a positive shopping experience for customers, and encourage them to return to their store in the future by making the return process easy. This not only promotes customer loyalty but also helps increase your revenue by driving repeat sales.

Improves trust

Unlike in-store customers who can physically touch and examine products, online customers rely solely on product descriptions and images. It may not provide a comprehensive understanding of the product’s features and quality. As a result, customers may be dissatisfied with their purchase once it arrives at their doorstep. However, a well-crafted return policy that offers customers the option to return or exchange the product can help you with repeat sales and long-term customer relationships.

A well-crafted E-commerce return policy can help your business meet customer expectations and facilitate the purchasing decision process.

You can remove the hassle associated with product returns by providing clear guidelines for returns and exchanges—establishing your business as a customer-centric organization.

An E-commerce return policy can ultimately help businesses stand out in the competitive market and attract and retain customers in the long term.

Now, let’s get down to writing a great E-commerce return policy.

What To Include In Your Return And Refund Policy

To ensure customers understand the boundaries surrounding returns, an elaborate E-commerce return policy must cover specific key points. These include the types of returns that will be accepted by the business and the refund process that will be followed. By clearly communicating these details, businesses can minimize confusion and dissatisfaction among customers, and establish a clear protocol for handling returns.

Here are a few points that should be included in your E-commerce return and refund policy:

Identify the items eligible for return

It is essential to identify which products are eligible for returns and which are not, especially if you sell perishable goods that may not be suitable for resale once they are returned.

It is important to clearly state the types of items that are eligible for return or exchange in your E-commerce return policy to avoid confusion and manage customer expectations. By doing so, you can ensure that customers know exactly what they can and cannot return, which can reduce frustration and improve customer satisfaction.

Determine a clear timeframe for accepting returns

It’s crucial to define a specific time frame for returns in your E-commerce return policy, as customers need to know how long they have to initiate a return. The duration can vary widely, ranging from a week to a year or even longer, depending on the business’s policies. However, the standard timeframe for many businesses is 30 days, which is also the expectation of most customers.

If you fail to disclose a timeframe, you can have customers requesting returns even after years of the purchase. Yes, we are not joking. To avoid this scenario, it’s important to have clear and stricter rules in place to protect your business against open-ended return periods.

Describe the acceptable condition of the returned products to be accepted

It is crucial for an E-commerce return policy to clearly outline the condition in which a product must be returned for it to be processed. This includes detailing requirements such as original packaging, attached tags, and unworn clothing. It is equally important to state that returns that do not meet these requirements will not be accepted.

Failing to specify acceptable return conditions in your policy may result in customers returning products in poor condition, making it impossible for you to resell them and causing financial loss to your business. Therefore, a clear and concise outline of acceptable return conditions in your E-commerce return policy is essential.

Choose in-store credit or a refund

When customers initiate a return, they want to know how they will receive compensation for their purchase. Typically, there are two options for an E-commerce refund policy: in-store credit or a full refund. While some customers may prefer in-store credit, others will demand a full refund. Ultimately, the decision on what type of compensation to offer falls on the business. But it needs to be mentioned clearly in your E-commerce return policy.

We recommend offering a full refund if the returned item meets all the requirements. Some E-commerce companies give customers the choice between two options. However, if you choose to only offer an in-store credit, it can be used to enhance your return process if done strategically. But be aware that this approach may lead to dissatisfaction among some customers.

Disclose any fees associated with returns

Your E-commerce return policy should specify who is responsible for the shipping, restocking, and other fees associated with returning a product. It is important to be transparent about this information to avoid any confusion or frustration on the part of the customer.

If you expect the customer to bear these costs, make sure to clearly state this in your return policy. Customers can become disgruntled if they are not aware of these fees ahead of time, so it is important to be upfront about them.

E-commerce Return Policy Template

You’re now equipped with all the necessary information and guidelines needed to create an effective E-commerce return policy. However, it can still be challenging to write a policy from scratch. Here’s a free E-commerce return policy template that you can use. This policy template is designed to cover all the essential elements needed to be included in an E-commerce return policy.

Just simply replace the text with your policy or use it as a guideline to create a policy from scratch tailored to your business needs.

Sample Ecommerce Return Policy Template

We hope that this E-commerce return policy example not only helps you create an effective policy in a short span of time but also sets you apart from your competitors. Remember, a clear and customer-friendly policy goes a long way in building trust with your customers, eventually increasing sales and revenue for your business.

E-commerce Returns: Best Practices To Follow

You followed all the tips and tricks mentioned above and created a customer-friendly E-commerce return policy, but your return workload is still high. Now what do you do?

Here are some best practices you can follow in your E-commerce returns to ensure a hassle-free process.

Your E-commerce returns policy should be easy to find

The importance of making your E-commerce return policy visible to customers cannot be overstated. It is crucial for the success of your return process.

To achieve this, ensure that your return policy is prominently featured on the homepage of your website. The footer section is a popular spot for this. You can also consider including it in other areas such as the checkout page, FAQ pages, and product pages.

Another effective way to make your E-commerce return policy visible is by printing a copy and including it with every shipped product. Additionally, you can attach it or send a link in order confirmation emails sent to your customers after a purchase is made.

Create concise steps for the buyer to follow

To prevent confusion among your customers, the policy should provide clear and concise instructions on the return process. You can create a dedicated section on your website or app for the return process, or you can direct customers to contact your helpline number for assistance.

Regardless of the method chosen, the guide should include all steps involved in returning the product, such as how to pack, label, and ship the items back to your store.

Make return labels easy to print

Making return labels easy to print is an important aspect of a customer-friendly E-commerce return policy. Customers should be able to easily access and print their return labels without any technical difficulties.

Providing a clear and simple set of instructions on how to print the labels can save customers’ time and frustration, and can also streamline the return process for businesses. Additionally, including the return label in the original packaging or sending it via email can make it even easier for customers to print and use.

Understand the laws governing returns

The laws that govern returns can vary from one country to the other.

In India, E-commerce companies are obligated to inform their customers about their refund and return policies once they have made a purchase. They are also legally required to accept returns of faulty or incorrectly advertised goods.

But in the United States, there is no legal requirement for a return policy. However, some states in the country require you to disclose it in the checkout process.

On the other hand, there are other countries that legally require E-commerce companies to refund, repair or exchange faulty products. Customers in the European Union have the right to return the product within 14 days and receive a full refund.

Therefore, you need to identify the regulations that work in your country of operation and comply with them.

Use chatbots to handle your returns

Integrating chatbots into your E-commerce return process can greatly enhance its efficiency. Simply add them to your website and they will make your process seamless.

With chatbots readily available on your website, customers can easily provide return details and receive guidance throughout the process. This not only ensures customer satisfaction but also saves you time and effort in handling each return individually.

Keep your return policy simple

Ensure your E-commerce return policy is crafted using clear and concise language, which states rules that are easy to understand for each and every customer. Do not leave your return conditions open to interpretation.

Put every detail down correctly and make sure your customers can understand the rules and process of your returns. You can also seek feedback from other people before publishing your return policy online for your customers.

Where Can You Display Your Return Policy?

After crafting a well-defined E-commerce return and exchange policy, the next crucial step is to ensure that your customers can easily access and view the policy before making a purchase.

Displaying your policy prominently can set expectations and minimize the number of dissatisfied customers. While it’s impossible to please everyone, making your policy visible can go a long way in reducing the number of returns and exchanges.

To make your policy easily accessible, include links to it in the following places:

Your website footer
Your FAQ page under the returns section
Your product pages
Cart and checkout pages
Order confirmation email
Your wish list pages

Ensure that customers are aware of your return and exchange policy before they purchase by placing links to your policy in these key locations.

Are Return And Refund Policies Legally Required?

The legality of an E-commerce return and refund policy can vary based on the country in which your business operates.

According to the Consumer Protection Act of 2019 in India, E-commerce companies are obligated to inform their customers about their refund and return policies once they have made a purchase. They are also legally required to accept returns of faulty or incorrectly advertised goods. Customers are entitled to return semi-durable and durable products within 15 days of purchase, provided they are in their original packaging and have not undergone any changes in shape or size.

In the United States, there is no legal requirement for an E-commerce return policy, but it is important to clearly state on your website whether or not you have one. Some states may also require you to disclose this information during the checkout process.

In the European Union, sellers are required to offer repair, replacement, or refund options for faulty products. In the United Kingdom, traders must offer a full refund for faulty, damaged, or misrepresented products. And in Australia, customers have the right to repair, refund, or replace products under the Australian Consumer Law.

Therefore, it is important to research the legal requirements for an E-commerce return policy in your country of operation and comply with all applicable regulations.

Final Words

Whether you’re starting a new online store or looking to improve an existing E-commerce return policy, the above guide will help you create a policy that sets your business apart from the competition.

ANS Commerce is here to help with the digital process. As a full-stack E-commerce enabler, we offer top-notch solutions and services to online businesses. Our team of experienced professionals can assist you from start to finish, helping you achieve your goals and boost your sales and revenue. Whether you’re launching a new online store or seeking to enhance your existing E-commerce business, ANS Commerce has the expertise and resources to help you succeed in the digital marketplace.

To know more about how ANS Commerce can help you, Book a free consultation with our E-commerce experts today!

O2O Commerce: Evolution Of Retail Business

Imagine a scenario: your customer is scrolling through your E-commerce website, adding items to their cart, and getting excited about their upcoming purchase. But then, they start to second-guess their choices. What if the product doesn’t fit? What if the color is different than what they had envisioned? Suddenly, the convenience of online shopping starts to lose its allure.

This is where online-to-offline (O2O) commerce steps in – a strategy that seamlessly blends the convenience of online shopping with the ‘touch-n-feel’ experience of in-store shopping. By embracing O2O commerce strategies, businesses can eliminate the uncertainties of E-commerce, drive retail sales and build customer loyalty in a quick span. In this blog, we’ll dive into the world of online-to-offline commerce and understand how it will revolutionize the way customers are going to shop in the coming days.

What Is Online-To-Offline (O2O) Commerce?

Online-to-offline commerce refers to a modern business strategy where you attract potential customers from online channels to your physical store in order to complete a purchase. In O2O Commerce, online shoppers get the best of both worlds (online and offline) via capabilities such as try & buy, in-store pickup, and home delivery.

The major goals of O2O commerce include:

To ensure that your online and offline channels complement and not compete with one another
To build better brand awareness across channels
To gather valuable customer data that can be used to improve marketing efforts and enhance customer experience

How Does O2O Commerce Work?

O2O commerce starts with online engagement, where customers search for products online, check their availability, and compare prices across different platforms. Then customers either place the order online and choose to pick up the product at a store or book an appointment online to personally visit the store and try the product before purchasing it. Either way, your online customers get the opportunity to physically experience the products before using them.

Customers also get personalized service from the staff and a chance to clear all their doubts and apprehensions about the product. Additionally, some e-commerce brands also deliver products to the doorsteps of the customers, thereby boosting convenience even further.

O2O commerce business model benefits

Let’s explore some of the key benefits of the O2O E-commerce business model and understand why it has become so popular in recent years.

Reach more customers

By having an online presence, you attract one set of customers who prefer the convenience of E-commerce. At the same time, by creating an opportunity to complete the purchase from a brick-and-mortar store, you also pull those audiences who love to engage in a physical purchasing process that online shopping can’t provide. This automatically multiplies your reach and drives both online and offline sales.

Pro Tip: In case you already have a strong web presence, motivate your consumers to shop in your brick-and-mortar stores by offering special in-store discounts and conducting events.

Reduce shipping & logistic cost

In O2O, you offer your customers an option to research online and buy in-store, which eliminates the need for shipping. This reduces not only the cost of logistics, returns but also the risk of lost or damaged packages. Apart from this, you can use your physical stores as mini fulfillment centers, allowing you to use your existing infrastructure to fulfill your regular online orders. This can reduce the cost of warehousing.

Give shoppers what they want – the store experience

Despite the convenience of online shopping, many customers still value the store experience. In a store, you can provide a brand specific personalized shopping experience that enables customers to touch, feel, and try products before making a purchase. This is particularly important for products that require a more tactile experience, such as clothing, shoes, or home furnishings.

The O2O model also allows customers to get their products right away, which creates instant gratification in their minds. With online shopping, there is always a delay between the time a customer places an order and when they receive their product.

O2O commerce strategies retailers can implement

As the competition in E-commerce is heating up, retailers must adopt innovative strategies to stay ahead of the curve. Here are some effective O2O commerce strategies that you can implement to stay ahead of the competition

BOPIS (Buy Online, Pick-up In-Store)

By implementing BOPIS, you enable your customers to buy products online and pick them up at a nearby physical store. This is beneficial for both parties. Customers enjoy the flexibility to choose when and where to receive their products. They can select a store location and a convenient pick-up time that fits their schedule. For retailers, this strategy creates an opportunity to upsell customers on additional products when they visit the store to pick up their purchases.

However, you must provide clear information on your website about which products are available for in-store pick-up, as well as the time frame for pick-up. To make the process even smoother, you can offer a designated pick-up area in-store or even provide a curbside pick-up option.

Offer Appointment Booking

Allow customers to book a time to come into the store to browse products or receive expert advice from a sales associate. It provides customers with a convenient way to schedule their visit to the store, eliminating the need to wait in long lines or deal with crowded stores. This can be particularly appealing to those customers who have busy schedules and want to avoid wasting time waiting for assistance or finding the product they need.

You can successfully implement this strategy by providing an online booking system on your e-commerce website. It is also important that you send confirmation emails or text messages with details about customer appointments.

Try & Buy/Home Delivery

In this, you allow customers to place the order online, try the products once they are home delivered, keep the products that they like, and return the rest to get a refund. Brands like Firstcry and Myntra use this strategy to drive growth.

Alternatively, you can let customers first research online, visit the physical store to try the product, and finally have their purchases delivered to their homes. This strategy can be particularly useful for those customers looking to purchase products that cannot be transported easily. Brands like Pepperfry, the furniture retailer, use this strategy.

In case you are providing the home delivery service, be upfront about the delivery fees and timelines and ensure that you have the terms clearly mentioned in your shipping policy. You should also consider partnering with third-party delivery services or investing in your own delivery fleet to ensure that deliveries are made on time and in a professional manner.

In-store returns & exchange

This allows customers to return or exchange products they purchased online at a retail store location. This can be attractive to those customers who prefer the convenience of shopping online but want the reassurance of being able to return or exchange products in person. This eliminates the hassle and uncertainty of shipping items back to the retailer.

For retailers, this is a great way to increase foot traffic to their physical stores and create opportunities to engage with customers in person. By having customers come into the store to return or exchange products, retailers have an opportunity to offer personalized recommendations, suggest alternative products, and create a positive and engaging shopping experience.

Pop-up stores

Pop-up stores are temporary retail locations that are typically set up for a short period of time, often a few days or weeks. They are a great way to bridge the gap between your online and offline presence. Since they can be set up instantly with minimal effort, multiple pop-up stores can be installed, preferably closer to customer locations. You can showcase products and give an opportunity for the customers to try out the product in person without having to travel a lot. You can use the pop-up stores to collect valuable customer data and insights, which can be used to tailor future product development and marketing strategies.

Invest in local SEO

Investing in local SEO can help retailers reach customers in their local area. By optimizing your website and online presence for local search, you can improve your visibility on search engines like Google and attract more foot traffic to your physical stores. You can also leverage local search platforms such as Google My Business to increase visibility and attract new customers. By creating a detailed and accurate profile on this platform and regularly updating it with relevant information such as store hours, contact information, and reviews, you can improve your local presence and attract relevant customers to your physical customers.

Examples of O2O Commerce Implementation

Here are some examples of brands that have embraced O2O Commerce in recent years –

Lenskart

Lenskart, the popular eyewear brand, has a strong presence in both online and offline spaces. It is one of the early adopters of the O2O Commerce model. Besides letting customers place an order online, it also lets them try the eyewear at the nearest store by booking an appointment. The brand even offers various freebies and free services for all the customers who visit their physical store. Once the product is ready, customers will receive it at their doorstep.

Online-to-offline strategies they used:

Try & Buy
Offer Appointment Booking
Home Delivery
In-store returns and exchanges
Invest in local SEO

Manyavar

This Indian wedding wear and ethnic wear brand has also adopted the O2O model. On every product’s detail page, customers have the option to book an appointment to visit a physical store in person and try the selected product. This is a great strategy for a brand that sells clothes for special occasions, as every purchase has to be perfect in terms of fitting and appearance.

Online-to-offline strategies they used:

Try & Buy
Offer Appointment Booking
Invest in local SEO

Croma

Croma is a retail chain that sells consumer electronics and home appliances. It operates both offline stores and an e-commerce website that offers a wide range of products. Croma offers an option for its customers to pick up their orders from a nearby store at a convenient date and time. This option is given at the time of checkout. Alternatively, customers have the option to book an appointment to visit the store to experience the product first-hand after researching it online.

Online-to-offline strategies they used:

BOPIS
Invest in local SEO

Bluestone

This jewelry brand has also taken the O2O route to attract website visitors to its store. Bluestone offers multiple options to complete a purchase. You can either buy it online, visit the nearest store where the product is available, or book a home trial. On the product details page, the brand clearly highlights the different stores where the chosen product is available so that customers can visit, try the product, and complete the purchase.

Online-to-offline strategies they used:

Try & Buy
Home Delivery

Conclusion

O2O commerce offers a great opportunity for e-commerce brands to reach more customers, improve customer experience, and boost both offline and online sales. Although there are some challenges that come with implementing an O2O model, partnering with the right E-commerce service provider can make it a lot easier to overcome these obstacles. And that’s where ANS Commerce comes in.

We are an e-commerce expert who takes care of the entire life-cycle of your e-commerce store. We have several specialists in-house who can help you plan, strategize, and implement the online-to-offline commerce model in your business. To talk to our O2O specialists, book a demo now.

A Comprehensive Guide On Creating Shipping Policy For Your E-commerce Business

It doesn’t matter what you sell; the only way to achieve long-term growth in your e-commerce business is by gaining the trust of your customers. And the easiest way to build credibility in their minds is by providing a comprehensive shipping policy.

Think of it as an essential part of your overall shipping strategy. You can set customer expectations and ensure a positive shopping experience by providing a detailed shipping information page on your website. If you want to revamp your existing shipping policy or create one from scratch, we have collated all the essential information you need to get started. Read along!

P.S.: Don’t want to face the hassle of creating the policy from scratch? Get the free shipping policy template right away.

What is a shipping policy?

A shipping policy is a detailed document or webpage highlighting an E-commerce company’s rules and procedures when delivering products to its customers. It covers essential information such as shipping rates, shipping times, shipping carriers, returns & refunds, packaging methods, etc., with utmost clarity. Shipping policies help set expectations for shoppers, ensure consistency and transparency in shipping practices, and protect the business from liability issues.

Why does your E-commerce business need a shipping policy?

A well-designed shipping policy positively impacts the customer experience and reduces returns. Here is how it achieves that –

Prevents misunderstandings regarding shipping costs

By including precise details about the shipping process, a shipping policy eliminates the possibility of any delivery-related confusion, misunderstandings, and last-minute surprises. More importantly, customers will understand their final shipping fees before their purchase. This means they will be less likely to abandon their carts, a plaguing issue faced by most e-commerce sellers today.

Keeps customers informed about the delivery time

A shipping policy lets customers stay informed about their orders by offering details on expected delivery schedules and tracking options. This way, customers can anticipate the arrival of their packages, prepare for possible delays, and have an idea of the maximum wait time if such delays occur.

Sets expectations for refunds, returns, and exchanges

A comprehensive shipping policy outlines the process of initiating refunds, returns, and exchanges. For instance, it could cover details such as the conditions under which customers are eligible for refunds, the processing time for return or exchange, any fees associated with the process, etc.

Provide legal protection to your business

A clear and well-written shipping policy can protect your E-commerce business in case of legal disputes. For instance, by setting out the terms and conditions of shipping, you can defend your business against customer complaints. Also, by highlighting the conditions under which a refund is valid, you prevent the abuse of the returns policy.

5 Things to include in your shipping policy

While a shipping policy can include numerous components, there are a few important ones that should not be missed. Including them will ensure that your customers clearly understand your shipping process. Here are five such components that should be part of your shipping policy –

Shipping rates & cost

Provide your customers with a clear understanding of the shipping costs associated with their orders. Make sure to outline any flat fees, weight-based fees, or other charges that may apply, as well as any minimum order requirements for free shipping. It’s important to be transparent about your shipping rates and to make sure that they are fair and reasonable.

Shipping mode and delivery time

Highlight the different shipping modes available to customers, including the estimated delivery time and associated charges. This will help customers make an informed decision based on their urgency in receiving the product. Again, provide accurate delivery details and be upfront about any factors that may affect delivery times, such as weather or holidays.

Restriction on shipping (if applicable)

If you have geographic restrictions on shipping to certain countries or regions, specify that clearly so that customers are not disappointed at the time of order placement.

International shipping

If you offer international shipping, your shipping policy should highlight the additional costs and fees associated with international orders, such as import duties and taxes. You should also include a statement on who is responsible for these additional fees. Also, have the estimated delivery times and any restrictions for international shipments communicated in your shipping policy.

Missing or lost packages policy

Even though you are not responsible for packages getting lost (in most cases), it is your responsibility to guide the customers when something like that happens. Include the contact information of the department and steps customers can take to report a missing package and file a claim.

Shipping policy page examples you can learn from

It’s always good to look at some real-life shipping policy examples before you are ready to draft your own. Here are three ecommerce brands that have nailed their shipping policy –

Plum Cosmetics

What did we like about this shipping policy?

The entire shipping policy has been formatted as FAQs, with all the answers compressed by default. It has made the shipping policy skimmable. Also, you can find the answer to your specific query instantly without having to go through the entire shipping page. They have also clearly segregated the shipping policy into three buckets: Shipping, Returns, and Cancellations – making it even more reader-friendly.

Farida Gupta

What did we like about this shipping policy?

They have elaborately highlighted every possible element of their shipping process, from what they do to expedite your order in case of delays to whom you should contact in case of damaged products. They have also used screenshots and images to make it easily understandable to the readers. They also have a search bar on the page for users to check if delivery is available in their location.

Nirwaana

What did we like about this shipping policy?

Since they ship both within India and to other countries, they have covered the shipping processes involved in both these categories separately. They have also clearly pointed out who is responsible for paying the import taxes or duties for their orders. The brand has also mentioned the countries that they currently ship to.

Use this free shipping policy template

Here is a downloadable shipping policy template for your online store. Edit, modify, and use them as per your needs. The section marked in blue is meant to provide guidance on how to approach the template. You can delete it from the template when you copy it.

Shipping Policy Template – Google Docs

Where is the best place to display your shipping policy

When it comes to shipping policies, your primary goal is to make them as accessible as possible to customers. This will ensure that there is no scope for confusion in the minds of customers while placing an order. Here are 5 sections on your website where you can place your shipping policy links to make it easily findable –

Website announcement bar

A website announcement bar is a banner that appears at the top or bottom of your website. This banner can be used to convey important information about your business, including key aspects of your shipping policies. Many e-stores use this real estate for high-priority shipping-related information, such as shipping discounts.

A link in your website footer

Your footer is probably the first place your customers will scan for the shipping policy. Why? Because that’s where the links to all customer support pages, such as contact us, social media handles, and FAQs, can be found. Most modern websites place a shipping policy link in the footer, if not anywhere else.

Display Shipping policy link in website footer

Product page

Your product page is where customers learn more about your products before purchasing. While browsing through the product page, customers might end up having several questions about shipping and delivery. Many times, shipping aspects like time of delivery and shipping cost will determine whether they buy from you or not. Consider adding a line or two about your shipping policy on the product details page or a pop-up communicating the shipping policy like how Farida Gupta, an Indian apparel brand, did.

FAQ page

Your Frequently Asked Questions page is where customers go to find answers to various questions they have, including shipping. So it makes complete sense to include various components of your shipping policy in the form of QnA to help customers understand your shipping process better. For instance, check out how boAT has displayed its policy below.

Delivery option labels

If you offer multiple delivery options like standard shipping and express shipping, label your shipping options to include the delivery times and costs to help customers select without needing to go through the entire shipping policy. You can display the label on both the product and the checkout page.

Talk to a fulfillment expert about shipping

The foundation of any good E-commerce business is based on the right choice of shipping partners who can manage its entire lifecycle, right from warehousing to last-mile delivery. At ANS Commerce, we are committed to providing our customers with the best end-to-end E-commerce management services.

We are the preferred E-commerce partner for 100+ brands in India and have helped them achieve both short-term growth and long-term sustainability. To know more about us and how we can aid in your shipping process, book a demo now!

Shipping Policy FAQ

How frequently should you update your shipping policy

It is recommended to update your shipping policy every 5-6 months or whenever you make a change to your shipping methods, costs, or timelines.

Are shipping policies legally required?

No. A shipping policy is not legally required. However, most businesses create one because it is highly beneficial for both customers and the brand. It establishes your e-store as a trustworthy one.

11 Smart Ways To Reduce Shipping Costs for E-commerce Brands

Here’s a fact— as an E-commerce business, regardless of your size, you must deal with the unglamorous yet critical task of shipping. Ensuring that shipments are handled effectively is essential both for the satisfaction of its customers and the company’s success.

And shipping isn’t free. You need to pay the standard shipping charges if you use any courier service to deliver your products safely and timely.

But customers don’t like extra shipping charges.

In fact, extra costs are the number one reason why customers abandon carts during check-outs.

Shipping charges is the main reason for cart abandonment

The best part— shipping doesn’t need to be expensive. There are ways you can use to save money on shipping without compromising anything.

And in this article, we’ll discuss strategies E-commerce businesses can use to reduce shipping costs, but first, let’s understand some basics.

What is shipping cost and what does it cover?

Shipping expenses encompass all expenses involved in transferring a product from a shelf or warehouse to a customer’s doorstep. These expenses comprise, but are not restricted to:

Expenses of boxes, packaging, tape, and labels,
Cost of fuel, tolls, and other transportation expenses,
Expense of hiring a worker to select, pack, and dispatch the item,
Insurance expenses against damages or loss during transit,
Fee charged by a courier to retrieve and transport the item, and
Expenses of import/export charges when shipping internationally.

How to save on shipping costs?

You can’t ask the customers to pay the shipping costs without annoying them. After all, no one likes to pay extra for anything.

This is where a few tips come in that can help you reduce the shipping costs, making it a win-win for both customer and the seller.

Here are a few ways you can save on shipping costs-

Decrease the shipping distance

The more the shipping distance, the more are the charges. Want to know why that is so? Here are the reasons why the shipping distance influences the shipping cost-

Fuel costs: Shipping carriers charge based on the distance the package travels. The more the distance, the more fuel the carrier will need to use to transport the package, resulting in higher fuel costs and ultimately, higher shipping costs.

Handling costs: Longer shipping distances also mean more opportunities for packages to be mishandled, lost, or damaged. With more handling points along the shipping route, the shipping carrier will need to increase the amount of labor and time required to transport the package, ultimately resulting in higher shipping costs.

Customs fees: When shipping internationally, customs fees are charged based on the value of the package being shipped. Longer shipping distances can result in higher customs fees due to the increased value of the package being transported.

Now that you know how distance influences shipping costs, here are two things you can do about it:

Strategically choose your warehouse’s location: The nearer it is to your customer base, the lower will be the shipping charges.

Set warehouses in all four directions: Chances are you’ll have customers from around the country. And if so, you should set up warehouses in all four directions so that the shipping distance could be less no matter where the order is coming from.

Weigh your packages and reduce dimensions

Sending heavier packages usually costs more, except if you’ve chosen flat-rate shipping. If you’re handling the shipping process from your home, it’s a good idea to get a postage scale. This will help you know the exact weight of each package and calculate the shipping cost more accurately.

It’s also a good idea to try and make the package as small as possible. Some shipping companies charge based on the size of the box used for shipping. This means the bigger the box, the more are the shipping charges. So by using smaller boxes, you can save a lot of money.

Here are other things you can do to reduce the weight and dimension, and ultimately shipping cost:

Use corrugated boxes for packaging your products. Corrugated boxes are lighter and stronger than usual cardboard boxes.
Create custom packaging with smaller dimensions to fit your product, rather than using bubble wraps and air pillows to secure your product during transportation
Use the “ship in own container” strategy, meaning use the product box for shipping. No need to pack it inside another box.

Negotiate for discounted shipping rates

Small E-commerce companies are usually under the impression that they need to ship hundreds and thousands of boxes per month to be eligible for discounts from shipping companies. However, that is not true.

Shipping companies offer discounted rates even to small businesses that sell 100 packages a month. But the trick here is to contact these shipping companies and speak with their representative about the business. Explain the shipping needs, projections and volume and negotiate for a better shipping rate.

Some logistics providers also offer discounted rates for loyalty to only them. But keep in mind to contact multiple shipping carriers and get the best rate possible.

Don’t stick with one, consider building multi-carrier strategies

During the initial stage of the business, finding and sticking with one shipping company seems easy. It helps in streamlining the decision process and ticking off an item from the task list. However, this might be doing more harm than good.

A multi-carrier strategy means staying on top of the rates for multiple shipping companies. Yes, there is a lot of work involved in researching, requesting quotes and maintaining data on the same. However, the benefits of a multi-carrier strategy offset the time involved. Here are the benefits:

Greater negotiating power – Keeping up with the services and prices of multiple shipping companies offers business owners more negotiating power. When a carrier knows that businesses are in the market for rates, they might offer a better rate to stay competitive.
Choosing the right carrier – Not all shipping carriers similarly handle products. Some might be better than others. Eg, in handling fragile items. Therefore, having multiple carriers ensures that businesses choose the right carrier for the right product.
Offsetting risks – No one can predict the future. Similarly, no one ever knows when a shipping company’s service goes bad. In that case, a multi-carrier strategy helps in switching from one shipping company to another without compromising on the quality of customer service.

Switch from boxes to poly mailers

If you’re selling small, non-fragile items like clothing then rather than using boxes for shipping, you may want to consider using mailer envelopes or poly bags. This option is way more cost-effective because the smaller dimensions take up less space on delivery trucks, which can save you money.

Plus, using these types of packages usually requires less packing supplies, such as tapes and bubble wraps, which also can help you save bucks. If you have different combinations of products that you need to ship, it may be helpful to think about using different sizes of poly mailers. This way, you can easily accommodate different orders and make shipping more efficient.

Stay on top of shipping carriers pricing changes

Every year, the big shipping carriers hike up their shipping rates as part of the general rate increase (GRI). These increases can vary depending on the carrier, service level, weight, and other factors, but on average, they tend to be around 5% (although during the pandemic, we’ve seen higher increases).

On top of these rate increases, carriers may also add surcharges during peak times, like the holidays and Q4, when there’s a surge in shipping. They may also add other surcharges annually, such as large package surcharges or signature required surcharges.

Unfortunately, there’s no way to avoid these rate increases and surcharges. You’ll either need to include them in the shipping fee you charge your customers, absorb the costs, or find another way to offset them.

Encourage your customers to place orders early

During peak seasons like holidays or festivals, it is important to encourage the customers to place their orders early to ensure they receive their packages on time.

Shipping companies often enforce a cutoff time for placing orders to ensure the packages are delivered on time. Post the cut-off, they would charge a higher shipping fee to guarantee on-time delivery.

Therefore, communicating to customers adequately to place orders early to avoid high shipping fees will help you prepare for the peak season with minimal hassle.

Choose provider with pickup and delivery services

Choosing a shipping partner that offers pickup and delivery services can be very helpful in multiple ways. For example, it can save you time, effort, and money by eliminating the need to travel to a carrier location to drop off your products. This can also offer you more flexibility with shipping times, as you can schedule a pickup at a time that works best for you.

Additionally, pickup and delivery services can boost your overall efficiency by allowing you to focus on other aspects of your business. Also, providing faster delivery and greater convenience to your customers can also lead to better customer service, which can ultimately lead to increased satisfaction and loyalty.

Choose to package provided by the carrier

Most shipping companies offer small businesses certain boxes and envelopes for either free or at discounted prices. If you still need to buy supplies like boxes, bubble wraps, air-fill, etc., you can buy in bulk to get at discounted rates.

Don’t let the investment stop you from providing good packaging. After all, if anything happens to your products while shipping, it will ultimately be your loss.

Pass on the charges to customers

Yes, your customers aren’t going to be happy if they need to pay shipping charges. However, if you use the right way, you can still pass on the charges to your customers.

Here are a few ways you can pass on the charges to your customers without losing them-

Show empathy

Before jumping into offering help or an explanation, take a moment to listen attentively. You’ve probably been in a similar situation yourself, where the cost of shipping made you hesitate to buy something you really wanted. It’s totally understandable to acknowledge this frustration before moving on to any solutions or explanations.

Explain the reasons behind the prices

Customers may not always understand the intricacies of shipping, so it’s important to explain things clearly. The easiest explanation, assuming it applies to your situation, is that you’re only passing on the actual shipping costs to the customer.

Different shipping services offer varying levels of speed, reliability, and coverage, so it’s helpful to share information about your shipping partners and why you’ve chosen to work with them. Ideally, you should add a comprehensive shipping policy page on your website that you can direct customers to for more details.

If the customer is in a location that’s more expensive in terms of shipping, or if they’ve chosen a product that’s more costly to ship, it’s useful to share that information with them as well. Being transparent about the costs can help to build trust and prevent any misunderstandings.

Provide direct comparison

It’s better to provide context for your shipping prices to alleviate any concerns that customers may have about being overcharged. Comparing your shipping prices to that of your competitors can be a great way to reflect that your prices are fair and competitive.

Another useful strategy is to link directly to the shipping provider’s page, so customers can see the base shipping price for themselves. This way they’ll know the real prices and will also not feel annoyed while paying for the shipping costs.

Share your approach

Providing explanations for why your shipping works the way it does can be helpful for some customers. For instance, separating the shipping cost from the product cost can become a part of your transparency values, which can build trust with your customers.

Moreover, if you’re using more expensive shipping because it results in fewer damaged products, you can emphasize how this decision benefits the overall customer experience. This can be a great selling point and let customers feel confident in their purchase, knowing that the product will arrive in good condition.

Offer alternative options

Offering ways for your customers to reduce their costs or get more value for their money is a great way to enhance their shopping experience. Some examples of ways to do this include:

Offering discounts at certain times or for certain types of customers.
Providing bundles or bulk purchase options to reduce the per-item shipping cost.
Allowing customers to pick up their orders at a local store, if that’s an option.
Suggesting lower-cost product alternatives that may be similar to what the customer is looking for.

While addressing shipping complaints one-on-one is sometimes necessary, you can reduce the number of such inquiries by having a clear and comprehensive shipping policy page on your website. This can help customers answer their own questions and feel confident in their purchasing decisions.

Partner with fulfilment centers

You don’t have to do it all by yourself. There are companies like ANSCommerce that can take care of the entire shipping process and get your products delivered to your customers in the best way possible. All you need to do is focus on the production part, and your logistic service provider will manage the rest.

Spread across India, we provide fully equipped storage facilities with cutting-edge warehouse management systems (WMS) and order fulfilment capabilities: pick, pack, dispatch, and return management. On top of this, we have partnerships with all major national carriers, and you’ll get the most favorable rates in the market.

Of Course, this is not all; as India’s best E-commerce enabler, ANS Commerce offers end-to-end solutions to manage your online business-from performance, marketing, and marketplace management to warehousing & logistic services!

To know more about how ANS Commerce can help you with warehousing and logistics support, book a free consultation today!

The strategies mentioned above are proven ways to help small businesses save money on shipping while improving their delivery times and boosting their customers’ experience. Thus, whether you’re just starting your business or looking to optimize your existing shipping processes, employ these tips to take your business to the next level.

How Much Does It Cost To Rent A Warehouse?

Your E-commerce business is growing rapidly, and you’ve started to run out of space to keep the stock intact. Or, your current setup isn’t helping in terms of location and is hindering your team’s efficiency, and you are on an explicit hunt for better storage solutions.

Whatever the reason, if you are seriously searching for a suitable warehouse storage facility for your business and are already foraging options—you’ll need to consider many factors before making the final decision. And the crucial factor that’ll come into play would be accounting and measuring the total cost that’d go into renting a warehouse and comparing alternate options to see what would work best for your business.

This article will help you weigh through the warehousing costs and calculations in-depth and the alternative solutions associated with it—to help you make the right decision. Keep following:

Components of Warehouse Cost

It is no secret that landowners and brokers often make renting a warehouse complex by using complex jargon instead of plain English to communicate their pricing options. But in reality, warehouse cost is based on three main criteria – the floor area (square footage), base rental rate, and estimated operating cost.

The Floor Area

The floor area depends on how much space you need for your business and is usually measured in square footage. The area you use for inventory impacts the cost of renting a warehouse.

Note: You can further cut down costs on warehousing by optimizing and making the best use of the available vertical space—reducing total rental costs, big time.

Base Rate

The base rental rate is the amount you’ll pay the landlord, excluding additional operating costs. A base rate is usually charged per square foot on a monthly, quarterly, or yearly basis—as per your lease agreement.

Operating Expenses

There are two types of operating costs you’ll need to consider before renting a warehouse – Triple Net Lease, also known as Net Net Net (NNN), and Common Area Maintenance (CAM) fees.

1. Triple Net Lease (NNN)

Net Net Net, also known as a triple net lease, refers to the property taxes and insurance fees that you, as a lessee, are supposed to pay besides the base rent—since you are responsible for all the operations happening at the rented property.

2. Common Area Maintenance

Common Area Maintenance (CAM) is the maintenance costs passed down from the landlord to the lessee. Maintenance fees include everything—from management to maintenance of the commercial property.

How is Warehouse Rent Calculated

Did you know in the financial year 2022, the average warehousing rent was 258 Indian rupees per square meter per month in Pune, which was ranked the most expensive among all major cities in India? We’re breaking down the calculations below into three different rental options: monthly rate, quarterly rate, and annual rate–to help you better estimate the warehousing costs specific to your brand:

Monthly Rental Rate

Let’s say your business gets billed every month for warehousing and assume the following:

The storage space you use for warehousing = 1000 sq ft

The base rate = Rs 50 per sq ft per month

NNN = Rs 20 per sq ft per month

Adding up the base rate and NNN (Rs 50+Rs20), you’ll see that your total asking lease becomes Rs 70 per sq ft per month. Just multiply this amount by the square footage of storage, i.e., Rs 1000 X Rs 70= Rs 70,000.

This means you would become liable to pay Rs 70,000 as rent every month at the chosen warehousing space.

Quarterly Rental Rate

Let’s assume the following for quarterly rental rates:

Storage space you use for warehousing: 1000 sq ft

Base rate: Rs 100 per sq ft per quarter

NNN: Rs 50 per sq ft per quarter

Adding up the base rate and NNN(Rs100+Rs50), you’ll see that your total asking lease becomes Rs 150 per sq ft per quarter. Just multiply this amount by the square footage of storage, i.e., Rs 1000 X Rs 150= Rs 1,50,000.

In this case, you would become liable to pay Rs 1,50,000 as rent every quarter or Rs 1,50,000/12 = 12,500 per month.

Annual rental rate

Let’s say you choose the option of yearly billing for warehousing and assume the following:

Storage space you use for warehousing: 1000 sq ft

base rate: Rs 200 per sq ft per year

NNN: Rs 100 per sq ft per year

Adding up the base rate and NNN(Rs 200+Rs100), you’ll see that your total asking lease becomes Rs 300 per sq ft per year. Just multiply this amount with the square footage of storage, i.e., Rs 1000 X Rs 300= Rs 3,00,000.

This means you would become liable to pay Rs 3,00,000 as rent every year for the chosen warehousing space.

Generally, annual billing gives you the most beneficial rate structure, and you’d definitely want to consider this before choosing a warehouse.

Apart from this, make sure to ask your landlord about the additional expenses you might incur, such as electricity, HVAC maintenance, and other operational & repair expenses.

Is Renting a Warehouse Your Only Option?

The simple answer is ‘No.’ Renting a warehousing space is not the only option. While buying your own warehouse can seem very alluring, it’s certainly not possible for most E-commerce brands to make this big of an investment.

You’ll not just become responsible for the maintenance and upkeep of the warehouse but will also be trapped to pay off huge amounts of down payments.

Alternatively, many businesses work with trusted third-party logistics (3PL) providers if renting or owning a warehouse becomes out of the question. 3PL does all the heavy lifting on your behalf by taking care of all your storage and warehousing needs while being cost-effective.

Partnering with third-party logistics providers gives you the flexibility to focus on more important things and take care of all your logistics requirements end-to-end.

If you are looking for warehousing and logistics solutions for your E-commerce business, work with the best in the business. We at ANS Commerce provide fully equipped warehouse facilities across India with cutting-edge warehouse management systems (WMS) and order fulfillment capabilities – pick, pack, dispatch, and return management.

To know more about how ANS Commerce can help you with warehousing and logistics support, book a free consultation today!

Recommended Read:

Shipping Labels 101: A Beginners Guide On How to Create a Shipping Label

In the world of E-commerce, shipping labels might not be the most glamorous topic to discuss, but they are an essential component of any online business. Despite this, many E-commerce owners tend to overlook the importance of shipping labels, which can cause significant issues for both themselves and their customers.

Creating and managing shipping labels play a critical role in ensuring that packages are delivered accurately and on time. Without proper shipping labels, packages can easily get lost, delayed, or delivered to the wrong address, leading to unhappy customers and additional costs for business owners.

In this beginner’s guide to creating shipping labels, we’ll explore the importance of shipping labels, their components, and the best practices to follow. Read along!

What is a Shipping Label?

A shipping label is a piece of documentation that carries key information about a package, such as a recipient’s information, sender’s information, tracking number, etc. It serves as a way for the carriers to identify and route the package to its intended destination. A shipping label is also sometimes referred to as a package label.

How does the shipping label work?

Every organisation uses a specific template for its shipping labels. After printing the shipping label, it is affixed to the outside of the package. These labels are scanned at the source, destination, and intermediate facilities, thus offering real-time tracking information of the package’s location and delivery status. Also, each label is unique, and one cannot reuse them.

Components of shipping label explained

A shipping label includes a variety of critical components that provide valuable information about the package. Let’s take a closer look at all these key components and why they are important.

Sender information

The name and full address of the person or business who sends the package. This information helps the carriers to reach out to someone in case of any issues with the shipment or delivery.

Recipient information

The name and full address of the person who will receive the package. This information ensures that the carriers deliver the package to the right person.

Package weight

The weight of the product in kilograms or grams. It helps the carriers determine how to handle the package at each stage of the shipping process. For instance, if a package is very heavy, it may require special handling or equipment to load and unload it from the truck or airplane.

Special handling information

This includes instructions such as “fragile” or “handle with care.” This is to ensure that the package is treated appropriately during transit and there is no damage to the product.

Routing and tracking number

These unique identifiers help in tracking the package throughout the shipping process, right from the point of origin to the final destination.

Customs information

This is applicable only if the package is being shipped internationally. It may include the contents of the package, the value of the contents, and any other necessary customs documentation. This information ensures that the package clears customs quickly and easily.

Here is an example of a shipping label –

Different types of shipping label

Different types of packages need different types of labels. Here are some of the commonly used types of shipping labels -.

Arrow labels

As the name suggests, these labels contain an arrow indicating the correct orientation of products during transit. Orders containing electronic items and hazardous materials use these kinds of labels.

Fragile labels

These labels indicate that the entire content of the package is delicate and should be handled very carefully. The word “Fragile” is often written in bold and in large font with bright background for easy readability.

Dot labels

They are used for packages that contain flammable, corrosive, explosive, or poisonous products. These labels are extremely important to avoid any risk to life and property while handling the package. They are also printed in bright colors and have bold text.

International shipping label

Such labels are specifically designed for packages that will cross international borders. They contain important information required by customs officials and shipping carriers in different countries. It always includes the sender’s and recipient’s addresses, the weight of the package, the contents of the package, any customs declarations, and special instructions or warnings for handling the package.

How to Create a Shipping Label

There are two common ways to create a shipping label,

Creating Shipping Labels Through a Carrier

Most shipping carriers like DHL, UPS, FedEx, and USPS have software to create shipping labels. These in-house tools come with ready-made templates that fit their specific label requirements. All you need to do is enter the necessary shipping information, download the label, and print it at your home or office. You can then attach it to the package and drop it off at the carrier location or schedule a pickup. However, this is not the best method in terms of efficiency and cost, especially if you handle hundreds of orders daily.

Creating Shipping Labels Through Software Solutions

You can use specialized software designed explicitly for creating labels. These programs can be installed and integrated with your E-commerce platform, helping you automate shipping. For instance, it can directly connect with your E-commerce store, retrieve every order information from the database, and automatically create the label. This is the more efficient and cost-effective method if you are shipping large volumes of packages.

Shipping Label Best Practices To Follow

Here are 3 special tips you can follow while managing shipping labels for your E-commerce business –

1. Special Instructions

No amount of bubble wrap can protect your package if it is not handled properly during transit. And that’s why it is very important to mention special instructions such as “Fragile,” “Flammable,” “This side up,” etc., on your shipping labels. Adding these special requirements will ensure that your package arrives at your customer’s doorstep in perfect condition.

2. Label Placement

You should always place the label on the top of the package, preferably near the center. This makes it easy for carriers to scan the package. It also ensures that the label is easily visible throughout the shipping process – very important if there is a “This Side Up” or “Fragile” instruction. Also, make sure that the label is not folded over any edges and is affixed securely. This will make sure that it is not covering any important information, such as the recipient’s address.

3. Packing Slips

Make sure your order includes a packing slip, also known as “waybill”. A packing slip typically contains information such as the customer’s address, order date, order number, product details, quantity, customer service number, etc. This is usually placed inside the package or outside in a plastic wallet. A packing slip also sometimes serves as the receipt for the customer. This will help ensure that the recipient receives everything they were expecting and that they have a record of the items that were shipped.

Use Third Party logistic services to streamline the shipping process

As you have seen in this post, creating and managing shipping labels is a time-consuming task. It requires attention to detail, as well as an understanding of shipping carriers and their unique label requirements. Not to mention the added pressure of ensuring that packages are delivered on time and in good condition.

This is where ANS Commerce steps in – we are India’s leading E-commerce service provider specializing in taking care of every aspect of online selling – from managing your brand store to ensuring ROI driven performance marketing and warehousing & logistic services – we provide it all!

By partnering with ANS Commerce, you can focus on growing your brand and delivering excellent customer experiences while leaving everything else to us.

To know more about how ANS Commerce can help you, book a free consultation today!

Shipping Label FAQs answered

What is a prepaid shipping label?

A prepaid shipping label is a label that has already been paid for by the sender, which means that the recipient does not have to pay for shipping. E-commerce businesses offering free shipping use prepaid shipping labels.

Can I print a shipping label at home?

Yes, you can print a shipping label at home. You just need access to a printer, label sheets, and dedicated software for creating labels.

Can I handwrite a shipping label?

Yes, you can handwrite a shipping label, but it is generally not recommended. Handwritten shipping labels can be difficult to read, which can result in delivery delays or even lost packages. You would still need to have barcode labels for tracking.

How much does it cost to get a shipping label?

The cost to print a shipping label can vary depending on the mode you use to create labels. Using softwares to print labels is usually cheaper than getting shipping labels from courier service providers.

Do shipping labels expire?

Expiry policies for shipping labels can vary depending on the shipping carrier. Most shipping carriers have an expiry date of anywhere between 2 weeks to 1 year for the labels generated through their software.

Are there size requirements for shipping labels?

Yes, there are size requirements for shipping labels, and they can vary depending on the shipping carrier. Generally, shipping labels must be large enough to accommodate all of the necessary information, including the shipping address, return address, tracking barcode, and any other required information.

Where should I put a shipping label on a package or box?

Place the label in a location that is visible and easy to scan. It is generally recommended to place the label on the largest flat surface of the package, such as the top or one of the sides. The label should be placed so that it is not obstructed by any seams, flaps, or edges and is positioned straight and flat.

If the package is a box, the shipping label should be placed on the same side as the opening or flaps of the box. This ensures that the label is visible when the package is opened and scanned during the shipping process.

What Are E-commerce Fulfillment Services And How To Choose One?

The holistic E-commerce process involves more than just making a sale— it includes everything, from product development to marketing, operations, fulfillment, and more.

But do you know what’s the most challenging of them all— Order Fulfillment.

The reason is that as an E-commerce store, you need to be careful about inventory management and fulfilling the orders in time without compromising the quality.

Failing to do that can hamper your business profitability significantly.

In fact, if an order fails to reach its destination within two days of the estimated delivery date, 69% of shoppers are likely to avoid shopping from that retailer. This is why meeting and exceeding customer expectations is crucial.

And in this article, we’ll cover everything about E-commerce fulfillment services. Starting with the definition.

What is E-Commerce Fulfillment?

E-commerce fulfillment is the end-to-end process of fulfilling an online order. It involves managing inventory, picking products from the warehouse, packaging them securely, and shipping them out on time to the customer’s specified destination.

Here are the steps of E-commerce order fulfillment:

Types Of E-commerce Order Fulfillment Models

Here are the types of E-commerce order fulfillment methods that you can choose from-

In-house order fulfillment

Assuming the responsibility of E-commerce fulfillment in-house can be a wise decision in some cases. By managing the process in-house, brands can earn a higher profit margin on each sale and maintain complete authority over the process. However, it requires substantial initial investment and recurring expenses.

Even though managing the fulfillment process by yourself will provide you with better control over the process and quality, it can be complex and tiresome as the business grows and orders increase. Here are some reasons to avoid maintaining order fulfillment by yourself,

High upfront costs: In-house e-commerce fulfillment requires a significant initial investment in equipment, software, and personnel, which can be a barrier for smaller businesses.
Increased workload: Managing the entire fulfillment process in-house can be time-consuming and labor-intensive, potentially detracting from other important aspects of the business.
Logistics complexity: Managing the logistics of e-commerce fulfillment requires expertise and knowledge that not all businesses may possess.
Risk of errors: With in-house e-commerce fulfillment, there is an increased risk of errors such as shipping delays, incorrect orders, and inventory management mistakes, which can result in negative customer experiences and damage the business’s reputation.

Third-party fulfillment

Under the third-party fulfillment model, E-commerce brands delegate the responsibility of inventory storage and transportation to a third-party provider. While the business retains control over the product quality, the expenses associated with shipping and handling are passed on to the external vendor.

When you opt for a third-party fulfillment model, you get the following benefits:

Reduced upfront costs: Outsourcing E-commerce fulfillment can save businesses a significant amount of money by eliminating the need to invest in equipment, software, and personnel required for managing the fulfillment process in-house.

Access to expertise: Third-party providers specialize in E-commerce fulfillment, which means that they have the necessary knowledge, expertise, and resources to handle the entire process efficiently and effectively.

Scalability: As the business grows and order volume increases, third-party providers can easily scale up their operations to accommodate the growing demand without requiring additional investment from the business.

Streamlined logistics: Third-party providers typically have established networks of warehouses and distribution centers, which can help reduce shipping costs and streamline the logistics of e-commerce fulfillment.

Time-saving: By outsourcing e-commerce fulfillment, businesses can focus on other critical aspects of the business, such as product development, marketing, and customer service, which can help drive growth and profitability.

Lower risk of errors: Third-party providers are experienced in managing the e-commerce fulfillment process, which can help reduce the risk of errors such as shipping delays, incorrect orders, and inventory management mistakes, resulting in a better customer experience.

However, just like any other model, there are a few disadvantages to this too. Here are some of the difficulties you might face while working with a 3PL service provider:

Communication challenges: Coordination between the business and the third-party provider can be challenging, particularly if the business requires real-time updates on order status, inventory levels, and delivery tracking.

Dependency: Outsourcing E-commerce fulfillment can create a dependency on the third-party provider, making it difficult for the business to switch providers or bring the fulfillment process back in-house if necessary.

Additional costs: While outsourcing E-commerce fulfillment can save on upfront costs, businesses must pay for the services provided by the third-party provider, which can add up to a significant expense over time.

Dropshipping

Dropshipping is a retail fulfillment method in which a store doesn’t keep the products they sell in stock. Instead, the store acquires the product from a third party and arranges for it to be shipped directly to the customer. Consequently, the seller is not responsible for handling the product directly.

This method is often adopted by startups and small businesses seeking to sell products without incurring substantial upfront costs. It is easy to start and has low overhead costs, although profit margins are generally lower due to the additional costs of working with a third-party supplier.

Why do you need an e-commerce fulfillment service provider?

If you are contemplating partnering with a third-party E-commerce fulfillment service provider, here are a few reasons for you:

You don’t have the fulfillment expertise in-house

Managing inbound and outbound logistics can be challenging, and running an E-commerce business requires managing multiple interconnected processes. From managing orders and inventory to preparing for peak seasons, fulfillment companies have the expertise to handle it all.

A single fulfillment center can handle operations for numerous E-commerce businesses and ship millions of orders regularly. This extensive experience and high volume make them valuable strategic partners.

Moreover, fulfillment companies can help E-commerce businesses achieve greater efficiencies in various areas, such as negotiating lower shipping rates with carriers and strategically placing their inventory to reduce delivery time and costs.

You aren’t prepared to handle larger volumes during peak seasons

For many E-commerce businesses, demand can fluctuate greatly throughout the year, with peak seasons often resulting in a surge of orders that can be difficult to manage.

Fulfillment providers have the capacity and expertise to handle these fluctuations, ensuring that businesses can meet customer demand without having to worry about the added complexities of managing inventory and fulfillment operations during busy times. They can scale their operations up or down depending on demand, making it easier for businesses to manage inventory levels and avoid stockouts.

You can’t compete with Flipkart & Amazon in fast delivery

Amazon has already set a standard for a fast and reliable delivery time, and keeping up with this standard is a huge challenge for small businesses.

Today’s customers are busy and look for instant solutions. They don’t want to wait for days just to receive their orders. This is why most fulfillment partners have strategically placed fulfillment centers around the country, which can help businesses make faster delivery at lower shipping costs.

You are not using the right technology

Another advantage of using an E-commerce fulfillment service provider is that they have access to advanced technologies and systems that may not be available to individual businesses. These technologies can be used to streamline the fulfillment process, reduce errors, and improve overall efficiency.

For example, fulfillment providers use warehouse management systems (WMS) to keep track of inventory. WMS can help manage inventory levels, process orders automatically, and reduce errors caused by manual data entry. Making managing a warehouse much easier and more efficient.

You’re unable to focus on strategic tasks

Using an E-commerce fulfillment service provider can free up time and resources for businesses to focus on more strategic tasks, such as product enhancement, marketing, and customer service.

For example, a business focusing more on product development can launch new products to the market more quickly, leading to increased revenue and market share. Similarly, a business investing more in marketing activities can drive greater awareness and demand for its products, leading to increased sales.

What to Look For When Choosing an E-commerce Fulfillment Service?

Now that you understand the benefits of having an E-commerce fulfillment service, you should also be able to pick the right one. There are several fulfillment services available in the market, but choosing the wrong one can negatively affect your business and revenue. To pick the right one, here are a few key points that you need to keep in mind-

Location of the fulfillment center

Customers expect speedy shipping, and the proximity of the fulfillment center to the customer is a crucial factor in achieving this. The closer the warehouse is to the end customer, the shorter the distance the products have to travel, resulting in faster deliveries.

When selecting a fulfillment partner, it is essential to consider the location of their fulfillment warehouses. Identify areas from where you are getting maximum orders and ensure that your fulfillment partner has warehouses in those locations.

Additionally, if your business operates globally, it is vital to confirm that the fulfillment company offers global shipping before partnering with them.

Shipping speed/ Speed of delivery

With the arrival of Amazon Prime’s two-day delivery speeds, fast shipping has become the norm, and customers now expect faster delivery than ever before. And if you don’t stand on this expectation, you may start losing money in no time.

This is where a fulfillment partner comes handy.

A good fulfillment company should have streamlined and effective fulfillment processes that ensure quick delivery to customers.

Features of order fulfillment software

As an E-commerce business owner, you already have a lot on your plate, with various digital tools, applications, and platforms to manage. The last thing you need is to add another software that is slow, disorganized, and difficult to navigate. That’s why it’s crucial to research not only the fulfillment company but also the order fulfillment software they use.

Different fulfillment companies use different order fulfillment software, each with its own features and capabilities. It’s essential to understand your business needs and goals and select a fulfillment partner whose software aligns with them. Additionally, you want to ensure that the order fulfillment software is easy to implement and use daily, saving you time and reducing the risk of errors.

Customer support

Although fulfillment companies aim for perfection, errors can occur during fulfillment and shipping, such as damaged, lost, or stolen packages. However, the support provided by the fulfillment company during these situations can significantly impact the customer experience.

Fulfillment companies offer various tools and guidance to help E-commerce businesses and depending on the order volume, a dedicated account manager or a team can support the business. Transparency and visibility into the fulfillment company’s performance should also be expected.

Branding & packaging options

With the vast number of E-commerce businesses in competition, it’s crucial to stand out and make a lasting impression on customers. Sending generic brown boxes won’t do the trick anymore. This is where branding options from an order fulfillment company can make all the difference in building a strong brand and generating buzz for your business.

Personalization is key to engaging modern consumers, and a custom-tailored and exciting user experience can create loyal customers who return to your business. Neglecting branding potential when selecting a fulfillment partner can be detrimental to your user experience, especially when 89% of digital businesses invest in personalization and 51% of digital marketers prioritize it as their top goal. So, choosing a fulfillment company with branding options can help create a positive, memorable experience for your customers and drive business growth.

Return management

It’s crucial for a fulfillment center to not only ship products, but also provide returns management, as approximately 30% of online orders are returned. While some returns are unavoidable, a reliable fulfillment company should work with you to reduce controllable returns through better forward logistics.

Additionally, your fulfillment partner should offer software that enables you to identify “serial returners,” customers who frequently make purchases only to return them. By identifying these customers, you can adjust your marketing strategies to prevent unnecessary returns. For instance, you may choose not to send promotional emails to these customers during sales or email them after the purchase with positive reviews from satisfied customers to increase their confidence in their purchases. A fulfillment company that helps you reduce controllable returns and identify serial returners can significantly benefit your business by improving the customer experience and reducing costs.

Evaluating order fulfillment services: 14 questions to ask

As the owner of an E-commerce fulfillment center, it’s important to choose the right e-commerce fulfillment service provider that meets your business’s needs. However, it can be difficult to know where to begin or what questions to ask. Here are some key questions to ask while evaluating fulfillment service provider for your business:

Picking And Packing Questions

What kind of products do you ship?

If your products are bulky or weighty, choosing a fulfillment service provider specializing in handling such items is crucial. They will offer you the most appropriate guidance on how to pack and ship your products with utmost care. Conversely, a fulfillment center that predominantly handles large items may not be ideal for smaller products, delicate merchandise, or hazardous materials. Selecting a fulfillment center that caters to your product type is prudent, as this can significantly lower your packaging and shipping costs.

What value-added services do you offer?

Having a warehouse that offers kitting services can be a valuable addition to your E-commerce business. Fulfillment services for E-commerce can involve customized labeling or just-in-time assembly to enhance the value of your merchandise.

What are your customer service practices?

It’s important to ensure that the fulfillment service partner has efficient systems in place to promptly address customer inquiries.

Fulfillment Cost Questions

What is the charge for setting up accounts and integrating sales platforms?

It’s crucial to inquire about all fees associated with your account from start to finish. Concealed fees can transform an initially reasonable quote for fulfillment services into an expense that could harm your business.

Who pays for fulfillment mistakes?

Does the fulfillment center provide any guarantees in case of incorrect packing or shipping of an order? Do they waive fulfillment and shipping fees in the event of an error? Such a guarantee is a good indicator of a high-quality e-fulfillment provider.

What is your policy on inventory shrinkage (loss of products from warehouse)?

Beforehand, determine the shrinkage allowance. A first-rate E-commerce fulfillment warehouse will offer an inventory guarantee, shielding you from expenses related to inventory shrinkage and damage.

Shipping Cost Questions

Do you offer shipping discounts?

As most fulfillment service providers are volume shippers, they may be eligible for reduced shipping rates from freight companies. Make sure that you are receiving the benefit of such discounts.

Do you offer international shipping?

While you may currently sell exclusively to domestic customers, why restrict your future prospects? The E-commerce industry has vast potential for global sales. Opt for an e-fulfillment provider that can assist you in elevating your online store to the next level.

What is your system for shipment tracking?

Ensure shipment notifications are sent directly to both you and your customers and contain tracking numbers. This will allow you and your customers to monitor the shipment and address any issues that may arise.

How fast can you ship my orders?

Inquire about the fulfillment provider’s ability to deliver to at least 70% of the country within two days or less. Additionally, ask about the order turnaround time, such as whether they can ship orders received by a specific cutoff time on the same day.

Questions Related To Maintenance & Technology

Does your warehouse have backup power?

Customers in other regions anticipate their orders to be delivered on schedule, regardless of your fulfillment center’s circumstances. They are unconcerned about any blizzards or power outages. It’s important to inquire about the last time the fulfillment center tested their backup systems. A generator that is not functional will not be beneficial when faced with severe weather conditions.

What inventory management and inventory control services do you offer?

To prevent inventory shrinkage, seek out a fulfillment center that offers real-time inventory management. This method is more precise than periodic spot-check inventories.

Do you have ISP backups in place?

Although the power may be functioning, an internet outage can render a warehouse inoperable. Without the transmission of orders from your E-commerce sales channels, orders cannot be shipped. It’s crucial to ensure that your E-fulfillment service provider employs multiple ISPs, guaranteeing uninterrupted internet service.

What are your security procedures?

This pertains to both internet security and the protection of your merchandise. Determine the controls that the fulfillment service provider implements for access to sensitive and confidential information. They should also perform employee background checks and utilize security cameras to deter theft.

Experience the best fulfillment service with ANS Commerce

As India’s best E-commerce enabler, ANS Commerce offers end-to-end solutions to manage your online business-from performance marketing and marketplace management to warehousing & logistic services-we provide it all!

Spread across pan India, we provide fully equipped storage facilities with cutting-edge warehouse management systems (WMS) and order fulfillment capabilities: pick, pack, dispatch, and return management.

To know more about how ANS Commerce can help you with warehousing and logistics support, book a free consultation today!

E-commerce Warehousing 101: Everything You Need To Know

Have you ever ordered something online and been blown away by how quickly it arrived at your doorstep? That’s the power of immaculate E-commerce warehousing!

Without reliable warehouse logistics support, even the most innovative E-commerce businesses would struggle to keep up with customer demand. In this post, we’ll explore the ins and outs of E-commerce warehousing and how it can help you take your business to the next level. Read along!

What Is E-commerce Warehousing?

E-commerce warehousing is the process of storing and managing goods before they are sold online. Effective E-commerce warehousing ensures that the products are safely stored and accurately delivered to customers on time. It also involves keeping track of where the items are located, how long they’ve been in storage, and how much inventory is available at any given time.

What Does E-commerce Warehousing Management Consist Of?

If you are managing E-commerce warehousing yourself and have not partnered with third-party services, these are some of the activities you might have to handle on a day-to-day basis:

Training and management of warehouse staff
Maintain strong relationships with logistics handlers
Forecasting inventory and shipping volume
Obtain all the necessary certifications and licenses to operate
Ensure that your warehouse is adhering to local safety regulations
Recording incoming and outgoing shipments

And, of course, you need to keep the products secure and ensure that delivery is happening on time.

What Are The Types Of E-commerce Warehouses?

E-commerce businesses can choose from several types of E-commerce warehouses depending on their specific needs and requirements. Here are some of them:

Private warehouses

Private warehouses are owned by large businesses, wholesalers, and online marketplaces to handle their own inventory needs. As a result, these warehouses are highly customized and tailored to their needs. For instance, if the business sells perishable goods, the warehouse will be equipped with a cold storage facility. Warehouses owned by Amazon and Flipkart are prime examples of private warehouses.

Public warehouses

Public warehouses are owned by government agencies. They are less advanced and well-equipped than private warehouses and may have limited facilities to store your goods. Government agencies rent these warehouses at highly affordable rates. Due to their minimal functionalities, they are only suitable for short-term storage requirements and ideal for sprouting startups.

Consolidated warehouses

These E-commerce fulfillment warehouses collect goods from multiple suppliers, group them into larger shipments, and then deliver them to different destinations within the same city or area. They act as both the collection center and distribution centers for brands.

As businesses are sharing transportation but get their own storage space, it is an economical solution for small and medium businesses with limited inventory.

Bonded warehouses

Bonded warehouses are managed by customs authorities, providing storage facilities for imported goods before the business pays the customs duties & taxes.

It is common knowledge that a business that imports goods must pay import duties immediately after delivery. However, a bonded warehouse bypasses this rule by letting the business owners pay when they take the goods out of the warehouse.

P.S: Some interesting facts: the name “bond” comes from the customs authorities issuing the businesses a “bond” when they begin to rent the warehouse.

Smart warehouses

Smart warehouses use state-of-the-art technologies like artificial intelligence, drones, robotic arms, and automated vehicles to manage everyday warehousing operations. Because of the automation offered by these cutting-edge technologies, these E-commerce warehouses are highly efficient but equally expensive.

Cooperative warehouses

Cooperative warehouses are owned by multiple businesses from the same industry or selling similar products. They share the warehouse because they have similar storage needs. Cooperative warehouses are almost like private warehouses, except that multiple businesses own these warehouses.

Members of cooperative warehouses pay a small fee for using this facility, while non-members shell out more.

Fulfillment Centers

Better than the traditional warehouse, E-commerce fulfillment centers are designed to not just receive and store your inventory but to pick, pack, and ship orders to your customers too.

E-commerce businesses often use fulfillment centers by outsourcing their order fulfillment to third-party logistics (3PL) providers like Amazon’s FBA (Fulfillment by Amazon) services.

Don’t Let These Factors Stop You From Outsourcing E-commerce Warehousing

Most emerging D2C businesses, despite the benefits of warehousing, do not consider outsourcing their warehousing and distribution. Don’t let the below factors stop you from outsourcing your warehousing process:

1. Your business operates from home

If you are operating from home due to the convenience it offers, it is natural to feel apprehensive about outsourcing your E-commerce warehousing. What if the outsourcing partner asks you to move out to a larger location? What if your staff can’t commute to the new warehouse? What if you have to give up some of the control you had over your business? Such questions are inevitable.

We have good news for you. By outsourcing your E-commerce warehousing, you can still operate from home without losing any control over your business. In fact, the outsourcing provider will only handle the redundant and manual tasks involved in warehousing and storage, allowing you to focus on more strategic and mission-critical aspects of your business.

2. You feel you’re too small to outsource

There is a common misconception that outsourcing is only for large businesses. This is plain wrong. In fact, small businesses have more to gain from outsourcing than large enterprises because they get instant access to expertise and technology that large enterprises would have waited for several years to build.

Also, outsourcing your E-commerce warehousing can help reduce your business risks – you don’t have to worry about the liabilities associated with managing your own warehouse anymore. It will be taken care of by the service provider.

3. You think it is a huge investment

E-commerce warehousing might seem like a huge investment, but it turns out to be quite cost-effective in the long run. For instance, when you outsource, you don’t have to worry about purchasing and maintaining equipment, hiring and training staff, or managing inventory. Instead, you pay the provider a fixed cost, which is way more affordable than managing everything in-house. Additionally, outsourcing allows you to scale up or down your demands, so you can adjust costs based on your business needs.

Benefits Of Using Warehousing Services

Regardless of your scale of business, using E-commerce warehousing services have many benefits:

1. Faster shipping

We are living in the era of 10-minute delivery. So consumers naturally expect all their orders to reach quickly (if not in minutes!). To reduce delivery times and improve customer satisfaction, you can use warehousing services that can expedite your picking, packing, and shipping process. Also, it gives you an opportunity to store your goods in multiple warehouses. This ensures that your inventory is always close to your customers and can be delivered quickly.

2. Better inventory management

Warehousing services can improve the accuracy of your inventory monitoring process and prevent the loss of items. Most warehousing service providers offer advanced inventory tracking and management systems, which let you keep track of your stock levels, monitor product performance, and identify trends and patterns in customer demand. It will help optimize procurement, reduce wastage, and avoid stock-outs or overstocking.

3. Less stress

Managing a warehouse comes with a lot of baggage. You need to monitor the A-Z of your inventory without errors and ensure no delays. Doing this daily can be tiresome. Third-party E-commerce warehousing services take a considerable chunk of these responsibilities off your plate. They have the means and experience required for inventory management.

4. Time savings

For E-commerce business owners, time is money. By freeing up your time for day-to-day supply chain management and analysis, you can better concentrate on business-critical operations.

What Happens Without E-commerce Warehouse Management?

Without a proper warehouse management system in place, E-commerce businesses can face a lot of operational issues that can negatively impact their reputation and sales. Here are some of the consequences of not adopting effective E-commerce warehouse management:

1. Inventory gets lost

Without investing in E-commerce warehouse management, you may find it challenging to keep track of your inventory. As a result, there are high chances of losing, misplacing, or having products expire, especially when dealing with an extensive catalog.

2. Wrong inventory gets shipped

Without proper processes in place, there are high chances of manual errors creeping into your warehouse operations. You may end up shipping the wrong products to the customers, which can result in dissatisfaction, returns, and additional costs for your business. Even worse, it can damage your reputation and drive your loyal customers away.

3. Stock-outs or over-purchasing inventory

By not adopting E-commerce warehouse management, you will never know how much inventory you should have on hand. This can result in early (and unexpected) stockouts or over-purchasing of inventory. Stockouts can lead to lost sales, while over-purchasing can lead to outdated inventory that you can no longer sell. Not to forget the additional cost of management.

How 3PL services can help you with warehouse management

Outsourcing your warehouse management to third-party logistics (3PL) providers let you enjoy benefits like improved efficiency, better scalability, and reduced costs. Here are some other ways in which 3PL services can benefit you:

Ship easily on major marketplaces

Many 3PLs offer direct integrations with major marketplaces like Amazon, Flipkart, Myntra, Nykaa etc. By partnering with such providers, you can seamlessly fulfill all your orders and manage inventory across multiple sales channels from one centralized location.

Order tracking

Customers hate to be in the dark when it comes to their orders. They want to be in the loop from the moment they place an order till the time it arrives on their doorstep. This is made possible through 3PL providers, who provide advanced order tracking systems. It enables the end users to monitor their order progress in real-time, resulting in customer satisfaction. As an E-commerce business owner, that’s one key responsibility you don’t have to worry about.

Inventory management

Just like order tracking systems, most 3PL providers offer sophisticated inventory management systems that let you optimize your inventory levels. Apart from the real-time status of your inventory, these systems monitor trends and historical patterns, helping you predict demand and build stocks. In brief, you can avoid the pain of overstocking and stockouts.

Scaling up operations

With rapid growth comes the demand for more space to store your inventory. This is where 3PL providers help. They offer scalable warehousing solutions that adapt to your business’s changing needs. Whether you need additional storage space or expanded shipping capabilities, 3PL service providers offer everything at an affordable cost.

Faster order fulfillment and return management

Location can no longer be an excuse to deliver orders late in this hyper-connected world. Today, if you don’t deliver fast, your competitors will. This is where the need for a 3PL provider arises. They normally own multiple warehouses spread across the country. This lets you ship orders and manage returns quickly as your distribution centers are closer to the customers, and the orders have to hop across fewer shipping zones.

Let ANS Commerce Help You With E-commerce Warehousing

As India’s best E-commerce enabler, ANS Commerce offers end-to-end solutions to manage your online business – from performance marketing and marketplace management to warehousing & logistic services – we provide it all!

Spread across pan India, we provide fully equipped storage facilities with cutting-edge warehouse management systems (WMS) and order fulfillment capabilities – pick, pack, dispatch, and return management.

To know more about how ANS Commerce can help you with warehousing and logistics support, book a free consultation today!

E-commerce Enablers: The Key To Your Online Success

According to a report by Statista, the revenue generated by the Indian E-commerce market was estimated to be 64 billion USD in 2020 and is expected to reach 200 billion USD by 2027.

Also, a report by the Indian Brand Equity Foundation (IBEF) states that the number of online shoppers in India is expected to reach 220 million by 2025, up from 140 million in 2018.

These stats reflect that the Indian E-commerce industry is proliferating, and Indians are inclining more toward online shopping than offline.

But here’s the thing— it’s still difficult for local retailers to start their E-commerce store. The reason behind this is a lack of experience and resources, which makes them take the easy route.

As a result, they end up selling only on known E-commerce platforms, also known as marketplaces.

But these platforms aren’t Enablers. There’s a fine line between a marketplace and an E-commerce Enabler.

And we will discuss everything about E-commerce Enablers.

Starting with the basic definition.

What Is An E-commerce Enabler?

An E-commerce Enabler is a company that provides comprehensive solutions to brands to operate their online stores. These solutions include website hosting & optimization, digital marketing, customer service, warehouse & inventory management, and logistic support.

It is important to note that E-commerce Enablers are different from E-commerce platforms like Flipkart, Myntra, Snapdeal, and Amazon, which only provide a platform for businesses to sell their products, and for consumers to shop online.

On the other hand, an E-commerce Enabler can assist a brand from start to finish. By offering a solid digital strategy, E-commerce Enablers can help businesses successfully run their E-commerce operations. Retail companies can also opt for full or partial solutions from E-commerce Enablers keeping the cost in control. Also, brands can focus on expanding their business by delegating non-core business operations to outside parties.

What Does An E-commerce Enabler Do?

Here are some of the basic offerings of an E-commerce Enabler-

Online Store & Catalog Management

In order to ensure that your online store is operating efficiently and generating sales, there are several tedious tasks that need to be executed well. These tasks include setting up the online store, managing product listings, running promotional campaigns, managing orders across multiple marketplaces, as well as gathering and reporting insights such as customer feedback.

These tasks are the core focus of E-commerce Enablers, who deal with them on a daily basis and help you manage storefronts on marketplaces, social media platforms, and your own website and mobile application.

Below are some examples of services provided by E-commerce Enablers like ANS Commerce:

Manage product listing and optimization on marketplaces
Track active and inactive SKUs and manage inventory
Build pricing strategies and promotional plans to increase sales
Provide logistic & warehousing support
Provide order management and last-mile delivery support
Ensure exceptional customer service by answering their queries

Digital Marketing/Performance Marketing

Every E-commerce store needs to leverage digital marketing to build brand awareness and reach potential customers. There helps an E-commerce Enabler. With digital marketing experts on their team, E-commerce Enablers can help you plan exhaustive marketing strategies for various channels, including ads, content creation, social media, and more.

With an E-commerce Enabler by your side, you can reach your potential customer effectively, resulting in increased traffic, higher conversion rates, and better sales.

Warehousing & Supply Chain Management

Managing the E-commerce supply chain is challenging, as it involves several stages, such as inbound logistics, warehousing & inventory management, and outbound logistics. These processes require considerable investment and expertise to manage effectively.

Businesses can rely on the competence of E-commerce Enablers to handle E-commerce logistics. These service providers, often in partnership with third parties, offer a range of services such as inventory management, order fulfillment, and return processing to streamline the E-commerce supply chain process.

End-to-end Customer Support

Delivering an exceptional customer experience is a crucial factor in converting store visitors and prospective customers into actual purchasers, as well as retaining them and ultimately turning them into loyal customers. As the traffic and demand on a brand’s online store increases, it becomes challenging to respond to every inquiry or feedback promptly without dedicated resources.

This is where E-commerce Enablers come in. With their experienced customer service teams, E-commerce Enablers offer the perfect solution to this challenge. They can support your business by responding to all your customer inquiries in a timely manner and maintaining a great customer relationship experience.

Brand Store Hosting Tech Platform

E-commerce Enablers understand the need for a robust brand-hosting platform in this technology-driven world, and so offer a brand store tech platform to help you deliver an exceptional E-commerce experience. These platforms typically provide various tools and features that enable businesses to design and customize their online stores to reflect their brand identity and manage all aspects of their store’s operation, including product listings, inventory management, order processing, and customer engagement.

Brand store tech platforms may also offer analytics and reporting tools to help businesses track their store’s performance and make data-driven decisions to improve sales and customer satisfaction.

Our brand tech store, Kartify, has helped over 100 D2C brands improve their digital footprints and grow sales. Here are some benefits of hosting your E-commerce store with Kartify:

Seamless Integration: With Kartify, you can integrate with more than 50 third-party tools and systems, which makes it easier to manage all aspects of your E-commerce business, including payment gateways, marketing automation tools, SMS & email providers, and order management systems.

Managed Support: Kartify offers comprehensive support throughout the migration process and beyond. The dedicated account team, in-house dev-ops, and design experts make it a hassle-free migration.

Highly Customizable: Kartify is a highly customizable, fully mobile responsive platform. You have complete control over the look and feel of your store, including user flows, layouts, menu, and filter options.

Data Security: Kartify takes comprehensive measures to keep your store and customer data secure by adhering to ISO/IEC 27001:2013 security standards, performing regular security audits with vulnerability assessments and penetration testing, and encrypting all data on the platform with access control.

Made for India: Kartify has been designed to the tastes of the Indian audience and offers many India-specific features like login with OTP, automatic pincode & city detection, GST invoicing, and more.

Omnifriendly: Kartify enables the fulfillment of online orders from offline shops, providing a unified and convenient experience for customers. You can also conduct offline surveys and offer cash returns, further enhancing the customer experience and building loyalty.

The Industry’s Blind Spot: E-commerce Enabler Is More Than What You Understand

Marketplaces are not E-commerce Enablers

A marketplace is an online platform that enables businesses to sell their products or services to customers. Examples of marketplaces include Flipkart, Amazon, Myntra, etc.

While marketplaces offer a new channel for businesses to sell their products and facilitate transactions online, they function merely as intermediaries connecting suppliers to buyers. They do not provide end-to-end support for businesses like E-commerce Enablers, who can manage a business’s operations from start to finish.

E-commerce platform alone is not an E-commerce Enabler

Shopify, Magento, WooCommerce, and Shopline are examples of E-commerce platforms that furnish the necessary digital infrastructure to establish an online store, BUT THEY ARE NOT E-com Enablers However, although these platforms are useful in launching your online business, they typically do not offer ongoing operational assistance that is provided by E-commerce Enablers.

A payment gateway solution is not an E-commerce Enabler

An online payment gateway serves as a digital substitute for a physical credit or debit card reader and is responsible for handling customer payments when integrated into your online store. Numerous payment gateways are available for digital vendors, including well-known options like PayPal, Stripe, and Square.

However, it is important to note that payment gateways primarily address your payment processing requirements and differ significantly from E-commerce Enablers.

Third party logistics are only part of what E-commerce Enablers represent

Third-party logistics (3PL) providers offer a range of services related to E-commerce logistics and order fulfillment, which typically encompass warehousing, product picking and packing, and return processing.

E-commerce Enablers offer comprehensive services throughout an online business’s value chain. However, it’s worth noting that 3PL companies mainly handle inbound and outbound logistics aspects, and do not typically address operations, marketing, or other related services. After all, they are third-party logistics companies.

Marketing platform is a tool and not an E-commerce Enabler

Numerous marketing platforms are available to help you streamline and analyze data, as well as automate marketing tasks. For instance, you might utilize MailChimp to send electronic direct mails (EDMs), SEMrush to build your SEO strategy, or HubSpot to manage sales, customer relationships, and other business-related aspects.

However, it’s important to recognize that these are merely tools and software that enable your marketer to perform more efficiently. They automate repetitive tasks and provide data analytics for additional insights, but they do not replace the marketer’s role.

Why Should You Partner With An E-commerce Enabler?

Partnering with an E-commerce Enabler offers numerous benefits for businesses that operate in the online space. Here are some reasons why you should consider partnering with an E-commerce Enabler:

Get a team of E-commerce experts (cover tech, marketplace, and digital marketing experts)

Partnering with an E-commerce Enabler gives businesses access to a team of E-commerce experts, including tech, marketplace, and digital marketing specialists. These experts can help businesses set up and optimize their online stores, connect them with various online marketplaces, and develop and execute effective digital marketing strategies. By leveraging the expertise of an E-commerce Enabler, businesses can improve their online presence, increase sales and revenue, and stay ahead of their competition.

Additionally, E-commerce Enablers provide comprehensive services, that are

Cost-effective: Doesn’t need a huge budget to get started.
Flexible: Works as a part of your internal team.

The best part is they come with a panel of experts with years of experience to guide you in each step. This makes it easier for businesses to focus on growing their operations, as E-commerce Enablers can provide support across the entire value chain of an online business. Overall, partnering with an E-commerce Enabler is a smart choice for brands that want to succeed in the online space and achieve their goals efficiently and effectively.

Get proprietary tech solutions

E-commerce Enabler companies offer powerful toolkits for online businesses to accelerate their growth. These tools and software are easy to use but are expensive and challenging to develop. E-commerce Enablers have invested years of experience to build these technologies. Working with an E-commerce Enabler gives online businesses access to these valuable resources that they may not be able to develop internally.

Free up your time for business growth

E-commerce Enablers offer comprehensive support to help online businesses grow, scale, and succeed in the E-commerce industry. They assist with various aspects of business operations, develop an integrated digital strategy for the brand, and provide tool sets for automation and analytics.

Partnering with an E-commerce Enabler is like having a flexible growth partner that can share the load of your online business operations. By outsourcing your E-commerce value chain to an Enabler, you can save valuable company resources and focus on core activities that drive results. This approach enables online businesses to focus on their strengths and create a streamlined, efficient operation that maximizes growth potential.

Ultimately, partnering with an E-commerce Enabler can help businesses stay competitive, adapt to market changes, and achieve long-term success in the ever-evolving E-commerce landscape.

How to identify the perfect E-commerce Enabler for your brand?

Choosing the right E-commerce Enabler for your brand is an important decision that can impact your business growth and success. Here are some key factors to consider when identifying the perfect E-commerce Enabler for your brand:

Services and capabilities: Consider the services and capabilities the E-commerce Enabler offers. Do they align with your business needs? Do they have the expertise and experience in the areas where you need support?

Industry experience: Look for an E-commerce Enabler with experience in your specific industry. This can provide valuable insights and help you stay ahead of the competition.

Technology and tools: Evaluate the technology and tools that the E-commerce Enabler provides. Do they offer the features and functionality that your business requires? Are the tools user-friendly and easy to integrate with your existing systems?

Customer support: Consider the level of customer support the E-commerce Enabler offers. Will they be available to assist you when you need help?

Third-party partnership: Third-party providers can offer comprehensive support for various processes such as logistics, supply chain management, and more.

Cost and flexibility: Finally, consider the cost and flexibility of the E-commerce Enabler. Is the pricing structure transparent and reasonable? Are there flexible options that can grow your business?

By carefully evaluating these factors, you can identify the perfect E-commerce Enabler for your brand that can provide the necessary support and tools to help your business grow and succeed in the E-commerce landscape.

ANS Commerce: India’s #1 E-commerce Enabler

ANS Commerce is a one-stop E-commerce service provider that can help you manage everything to run an E-commerce store. Here are some of the services we offer at ANS Commerce:

Kartify Brandstore: A proprietary platform that is fully customizable and integration-ready to support your brand’s online store.

Performance Marketing: Experienced team to lead performance marketing efforts on platforms such as Google Ads, Facebook, and marketplaces, striking a balance between sales and return on ad spend (ROAS).

Marketplace Management: Skillful planning and execution of sales strategies on more than 10 marketplaces, including Amazon and Flipkart.

Warehousing and Fulfillment: Nationwide warehousing and fulfillment infrastructure with 3PL support tailored to your specific logistics requirements.

If you need help in setting up your online store or scaling your business in Indian markets. Book a free consultation with our E-commerce expert today!

E-commerce KPIs & Metrics You Should Track For Business Success

As an E-commerce store founder, you must be aware of the importance of setting sales and marketing goals to grow your business. However, to truly understand what’s working and identify areas for improvement, it’s essential to align your E-commerce KPIs and metrics with the customer journey.

By doing so, you’ll gain a better understanding of how your customers are interacting with your brand, and identify opportunities to improve their experience and drive revenue growth. In this blog, we’ll explore the E-commerce KPIs and metrics you should track for business success, aligning them with the customer journey. But let’s cover some basics first.

What are E-commerce KPIs?

E-commerce KPIs (Key Performance Indicators) are measurable values that indicate your progress towards specific business goals. It gives a comprehensive view of how your e-commerce business is performing.

For example, conversion rate or cart abandonment are classic examples of E-commerce KPIs. They are different from metrics, which highlight your progress towards specific business objectives. Number of visits, page views per session, bounce rate, etc., are all examples of metrics.

There are hundreds of different KPIs you could use to track your e-commerce business, but not all of them are equally important for your success. Hence, when choosing KPIs and metrics you should focus on the ones:

That directly impacts your bottom line and supports your business strategy.
That is easy to measure and provides valuable insights.
Are aligned with the stage of your business
Follows business specific needs and not just industry trends.
Lastly, are meaningful and actionable to keep your processes agile.

20 E-commerce KPIs you should monitor for business success

We have mapped the most important KPIs with the customer purchase journey to make things easier for you. Here are the metrics you should measure at each stage:

Let’s dig deeper into each stage and it’s corresponding metrics in the next section:

Product Discovery Metrics

Generating brand awareness is crucial to attract visitors to your website. Even though it may appear to be a simple concept, without building awareness, your brand may remain undiscovered, and you may lose out on potential revenue. Here are the metrics you should track to measure your brand awareness efforts:

Impressions

Impressions help you measure the number of times your ad or content is displayed to someone on any platform such as third-party sites, search results, or social media platforms, regardless of whether the viewer clicks on it or not.

Even though impressions are not a direct measure of engagement or conversions, the metric provides valuable insight into how many people are potentially exposed to your brand, making it a useful metric for evaluating the effectiveness of your marketing efforts.

Reach

Reach is the number of unique individuals who viewed your product or visited your online store during a specific period of time. Reach is a crucial metric for e-commerce businesses because it provides insights into how many potential customers have been exposed to your brand, products, or services.

Don’t get confused between reach and impressions. Reach focuses on the unique individuals who have viewed your content, and impressions refer to the total number of times your content is displayed to customers, including multiple views by the same user. For example, if a person views a product page on your website ten times, this will be counted as ten impressions but only one reach.

To improve your marketing campaigns’ reach, ensure your brand voice is defined and messaging resonates with your audience.

Engagement

Engagement shows how many viewers interacted with your content. It may include both acquisition-related metrics, such as CTC (click-through rate), and non-acquisition-related metrics, such as likes, comments, and shares.

To gauge engagement on your e-commerce site, keep a close eye on the average session duration and bounce rate. Average session duration is the average amount of time a user spends on a particular channel. A high average session duration indicates higher engagement with a channel. Bounce rate is the percentage of users who visited your website but left after viewing a single page. A high bounce indicates lower engagement.

Consideration or Acquisition Metrics

There are multiple ways by which you can reach your potential customers. It could be emails, paid media, and social media, to name a few. You must use all these channels to get your potential customers to consider your products. The following metrics determine whether you were successful in enticing customers to visit your website or not.

Organic acquisition traffic

Organic acquisition traffic measures the number of visitors reaching your site organically. These visitors come from channels like search engines, social media, and even blogging sites. The catch here is that these visitors reach your website through their own research and not explicit paid promotions or advertising. This metric helps you gain insights about your SEO strategy, social media presence, and the overall results of your content marketing efforts—allowing you to improve and optimize these strategies accordingly.

Email Click-through rate (CTR)

In simple terms, this is the percentage of email subscribers who received your email, opened it, and clicked through to your site. It is a valuable indicator of the effectiveness of email marketing campaigns. To improve email CTR, create visually appealing and well-designed emails, including mobile-friendly design, clear and compelling calls-to-action, and engaging subject lines that encourage recipients to open the email and explore the content.

Cost per acquisition (CPA)

Cost per acquisition measures the total cost of acquiring a customer. It is an important metric to measure because it points to the profitability of your marketing efforts.

Cost per acquisition should always be measured in the context of AOV (average order value). For example, having a CAC of Rs 150 and an AOV of Rs 6,000 is a good sign for business, whereas a CAC of Rs 40 and an AOV of Rs 60 means the business is not sustainable.

Social media engagement metrics

E-commerce sales on social media is expected to reach $474 billion by 2024, hence it’s important to have a strong social media presence for D2C brands. To measure the effectiveness of your social media presence, keep track of likes, shares, clicks and comments on posts.

E-commerce metrics during conversion

Now that you have visitors to your site, measuring how well you convert them into paying customers is important. Our goal here is to identify transactional funnel drop-offs and prevent them. These metrics can help you do just that.

Website bounce rate

It is the percentage of visitors who leave a website after viewing only one page. Measuring bounce rate is important because it shows how relevant and engaging your content is. For instance, a high bounce rate indicates that your visitors are not finding what they are looking for. It could be either due to irrelevant content or that your website is difficult to navigate.

Shopping cart abandonment rate

Shopping cart abandonment rate is the percentage of visitors who add items to their cart but do not complete the purchase.

Abandonment rate could indicate that the visitors are experiencing issues with the shopping cart itself, such as a confusing layout or a lack of clear CTA. It could also mean issues with the checkout process, preventing customers from completing the order. We suggest setting up a cart abandonment email sequence to convert these lost sales.

Average order value

Average Order Value or AOV measures the average value of each order placed by a customer. It is calculated by dividing the total revenue by the number of orders. Measuring AOV is important as it helps in understanding the buying patterns and preferences of your customers. This, in turn, will help in identifying and fine-tuning upselling or cross-selling strategies to increase revenue.

Sales conversion rate

The sales conversion rate is the total number of sales divided by the total number of sessions. It helps in determining how much traffic is needed to achieve your target sales. However, this is a granular metric and you need to analyze it at micro levels. You can dissect it by channel, category of products, campaign, etc.

Product delivery metrics

Most D2C brands forget to measure metrics related to product delivery, which can negatively impact their customer experience and might lead to loss of repeat customers. To ensure that your logistics are fool-proof, we suggest keeping track of your Delivery TAT and Return & Refund TATs.

Delivery TAT is the time taken to process and deliver an order to the customer.
Return & refund TAT is the time to process and complete a return and refund request of a customer.

Retention Metrics

Retaining an existing customer is five times cheaper than acquiring a new customer. Also, repeat customers tend to spend more and refer others. Here are the metrics you should track to know how well your brand is retaining customers:

Customer retention rate: It measures the percentage of customers who continue to do business with your company after their initial purchase.
Repeat purchase rate: This measures the percentage of customers who make a second purchase from your brand. A high repeat purchase rate indicates that customers are satisfied with your product or service and are likely to continue doing business with you.
Customer lifetime value (CLV): This metric measures the total money a customer is expected to spend on your products throughout their relationship with your brand. Customers with a high CLV are valuable to your business and should be prioritized in your retention efforts.
Churn rate: It is the percentage of customers who stop purchasing from your e-commerce store over a specific period of time. A high churn rate indicates that your brand may be struggling with customer retention.
Refund and return rate: High refund and return rates can plague your business. It can be either due to issues with your product or because of impulse buying from customers. To minimize the impact, set up clear return and refund policies. Additionally, provide detailed product descriptions, accurate sizing charts, and high-quality product images.

Customer Advocacy metrics

Now that you have acquired, converted, and retained customers, it’s time to convert them as your brand ambassadors. The customer advocacy metrics quantify the degree to which your customers support and promote your brand and products to their friends and family. Here are a few metrics you should consider tracking:

Net Promoter Score (NPS)

NPS measures customer satisfaction and loyalty and is a widely used metric for assessing customer advocacy. It asks customers to rate on a scale of 0 to 10 how likely they are to recommend your brand to others. Customers who score 9 or 10 are considered promoters, while those who score six or below are considered detractors. You can calculate NPS Score by subtracting the percentage of detractors from the percentage of promoters.

Customer referral rate

It is the percentage of customers who refer new customers to your business. When you measure customer referral rate, you will understand the effectiveness of your referral marketing efforts. In addition, it will help you identify areas where you can improve your referral programs, such as by offering better referral incentives or providing an easy way for customers to refer others.

Subscription rate

Email marketing is one of the most promising marketing channels today. As a result, it becomes important to measure the subscription rate or the percentage of your visitors who opted-in for your email lists. When the subscription rate is high, it shows that customers find your products promising and want to keep purchasing from you.

Lastly, you should also monitor customer reviews and ratings to ensure that you are providing exceptional customer service.

Other E-commerce business metrics to track

Apart from the above metrics, E-commerce businesses should also track last-mile delivery and product-related metrics to ensure they can optimize logistic services and make the right decisions about their product.

Last mile delivery metrics

Last-mile delivery metrics are a set of KPIs used to assess the efficiency and effectiveness of the final stages of your delivery process. It mainly involves the delivery of the product to your customer. This stage is often referred to as the “last mile” because it is the final step in the delivery chain and significantly impacts the customer experience. Here are some of the metrics that fall under the last-mile delivery segment:

Delivery accuracy: The percentage of deliveries that are made on time and to the correct address.
Delivery success rate: The percentage of deliveries that are successfully completed without any issues or complications.
Customer satisfaction: The degree to which customers are satisfied with the delivery process and outcome.
Delivery cost: The total cost of the delivery process, including transportation, handling, and other expenses.

Product metrics

With the increasing competition in the direct-to-consumer (D2C) space, it’s essential to continually monitor your products’ performance and make data-driven decisions to stay ahead of the curve.

Some of the essential product metrics that you should monitor are:

Product views: Keep track of the number of times a particular product page is viewed. This metric can help you identify which products generate the most interest amongst your potential customers.
Add-to-cart rate: Monitor the percentage of visitors who add a product to their cart after viewing it. This metric can help you understand how well your product pages and pricing resonate with your target audience.
Product reviews: This metric can help you understand how satisfied your customers are with your products and identify areas for improvement.
Time to sell: Monitor the average time it takes to sell a product after it’s added to the inventory. This metric can help you optimize your inventory management and pricing strategies.
Inventory turnover: Keep track of the rate at which you’re selling through your inventory in a specific category. This metric can help you identify which products are selling well and the ones that may require adjustments to their pricing or marketing.

In addition to these quantitative metrics, you should collect qualitative feedback from your customers through surveys, focus groups, or other feedback channels. The feedback can help you understand your customers’ preferences, pain points, and product expectations, which can guide your product development and marketing efforts.

Finally, it’s also essential to closely monitor your competitors and their product offerings. Analyzing their best-selling products and identifying any emerging trends in your industry can help you stay ahead of the curve.

How to measure e-commerce KPIs success

Start by creating an index that summarizes your performance across specific marketing channels. For instance, let’s say you have selected five metrics which performed at:

Two metrics performed at 80%
One metrics performed at 60%
Two metrics performed at 100%

The index will be calculated as

(2*0.8 + 1*0.6 + 2*1)/5 = 0.84 or 84%

Now you need to focus on how to improve this index. Rather than fixing the lowest performing metrics, identify which of those metrics is most important for your business growth at the time and focus on that.

ANS Commerce is here to help

We know that improving these metrics can be a lot of work and might seem overwhelming, especially if you’re already juggling multiple aspects of your E-commerce business. That’s where ANS Commerce comes in.

As a Flipkart group company, we are India’s #1 Full Stack E-commerce Growth Partner, trusted by over 200+ brands. We offer end-to-end E-commerce services, from creating your online store to running profitable performance marketing campaigns, managing marketplaces, order fulfillment, and warehousing – all tailored to supercharge your brand’s growth.

Want to know how we can scale your E-commerce business? Book a free consulting session with our experts today!