5 Reasons You Need Shipping Management Software

Shipping is more than moving products from point A to point B. It’s a critical factor in your eCommerce success – impacting customer experience, conversion rates, and profitability. Yet, many retailers struggle with shipping inefficiencies that slow down their operations and hurt the bottom line.

When you’re just starting, handling shipping manually might work. But as your business grows, manual processes can become bottlenecks. If you’re dealing with high shipping costs, frequent errors, or frustrated customers, it might be time to look into shipping management software to streamline your operations.

So, how do you know if it’s time to adapt shipping automation? Here are five signs to look for in your business.

#1 You’re Losing Sales Due to High or Unexpected Shipping Rates

Ever added something to your cart, only to abandon it when you saw the shipping costs? 48% of shoppers abandon their carts due to unexpected extra costs like shipping and taxes.

The Problem

Shoppers expect transparency in shipping rates – hidden or unexpected fees drive them away.
Flat-rate shipping might overcharge some customers while undercharging others, eating into your margins.

The Solution

A shipping management software integrates with carriers to provide real-time rate calculations, ensuring accurate shipping costs at checkout. This transparency helps prevent sticker shock and keeps them from leaving their carts behind.

In short, instead of guessing, you can provide cost-effective and competitive shipping rates – keeping customers happy and loyal.

#2 Managing Multiple Carriers Feels Overwhelming

Shipping isn’t one-size-fits-all. Managing multiple shipping carriers is like juggling flaming torches; it’s doable for a while, but eventually, something’s going to drop.

The Problem

shipping management software - rate shopping

Carrier rates may fluctuate due to fuel surcharges, peak-season pricing, and zone-based costs.
Certain carriers are better for specific types of shipments and choosing the wrong one can cost you money.

The Solution

With carrier rate shopping, you can automatically compare shipping rates from multiple carriers and choose the best ones based on cost and speed.

You can also set rules to prioritize certain carriers for specific destinations, ensuring a seamless shipping experience for customers.

#3 Shipping Errors Are Increasing Your Costs

Mistakes in shipping aren’t just annoying – they’re often expensive. Incorrect labels, wrong addresses, and missed deliveries result in extra fees, delays, and unhappy customers. 23% of all failed deliveries are due to incorrect addresses, costing businesses millions every year.

The Problem

Incorrect addresses lead to reshipping and double your costs.
Customers waiting on delayed shipments get frustrated and end up losing trust in your brand.

The Solution

Shipping automation helps eliminate human errors and ensures accurate address validation, automated label generation, and seamless order processing.

This reduces costly shipping mistakes, minimizes returns, and saves you from unnecessary hassle.

#4 Your Customers Expect Faster and More Flexible Shipping Options

Gone are the days when customers waited a week for their orders. Thanks to Amazon and quick commerce apps like Instacart, 56% of online shoppers now expect same-day delivery.

The Problem

If you only offer standard shipping, you may lose customers to competitors with faster options.
Flexible delivery options like in-store pickup or same-day delivery can increase conversions and repeat business.

The Solution

Multi-carrier shipping management solutions enable you to offer flexible delivery choices like expedited shipping, in-store pickup, and local delivery on the checkout.

Additionally, providing accurate delivery dates at checkout boosts sales since customers know when to expect their package.

#5 You’re Struggling with Dimensional Shipping Challenges

Shipping costs aren’t just about weight. Carriers use dimensional weight pricing, meaning they charge based on the size of the package rather than its actual weight. If you’re not optimizing packaging, you could be dealing with unnecessary inefficiencies.

shipping management software - dimensional weight shipping

The Problem

Large but lightweight packages get charged at higher rates.
Inefficient packing leads to wasted space and higher shipping fees.

The Solution

Optimizing how orders are packed can make a huge difference in shipping efficiency. With the right approach, you can determine the best box sizes and minimize excess packaging.

Shipping management software with dimensional packing logic takes the guesswork out of your order fulfillment process.

Take Control of Your Shipping Strategy

If any of these signs sound familiar, it’s time for you to explore shipping management software for your online store. With automation, real-time rate shopping, and error-free shipping, you can save time, reduce costs, and keep your customers happy.