Stopping shipping errors in ecommerce: the power of address validation & customer self-service order editing
How can you improve your ecommerce shipping?
Improving your ecommerce shipping: effective strategies
To improve your e-commerce shipping, taking steps to rectify common issues like shipping errors should be a priority. Errors in your shipping not only lead to dissatisfied customers but can also create an unnecessary financial burden on your business.
The two-pronged strategy of proactively and reactively improving your ecommerce shipping involves addressing issues through:
Proactive solutions
Address validation
Customer self-service order editing
Free shipping and returns
Reactive solutions
Customer self-service order editing (yes, it’s both!)
Transparent communication
Optimized delivery times
Considering how more than 8 out of 10 Millennials and 'Zoomers' stand ready to abandon brands after an unsatisfactory delivery experience - it's clear that shipping errors are hard-hitting adversaries in the aggressive world of online retail. And don’t forget about the immediate cost to your business when shipping errors happen. The “last mile” of delivery - the final logistics step when the order is shipped from the distribution site to the final destination - accounts for 53% of the total shipping costs. By implementing these strategic steps, you will be well on your way to improving your ecommerce shipping — delivering improved customer satisfaction, reduced costs, and overall business growth.
Understanding the costs of shipping errors
Common reasons for shipping errors
More times than not, shipping errors arise out of innocent mistakes made by customers when entering their delivery addresses. Whether it's being in a hurry or mistyping details, the human element leaves room for error. Adding to these, system glitches or misinterpretations of non-standard address formats can also throw a wrench in your delivery mechanisms.
Direct costs
The fallout from faulty delivery addresses ventures into territories far beyond the immediately obvious. First, we have the direct costs that severely damage your profit outlines including:
Refunds
The added strain of re-shipping charges
The notable impact of lost inventory
👇 Just look at what UPS charges for address correction
An additional charge of USD $10 per package or a maximum of USD $35 per shipment may be billed to the shipper for unsuccessful delivery because of an incorrect address, or if addressed to a P.O. Box.
- 2023 UPS Rate & Service Guide
Indirect costs
But the blow extends further. Shipping errors instigate a collapse of indirect costs across your organization. This predominantly includes the damage that your brand's reputation undergoes. It's the metaphorical bad taste that lingers in your customer's mouth, long after the disappointment of an empty mailbox. The chaos snowballs, culminating in a hefty backlog for your customer service teams, further burdened by potential lost sales due to negative reviews, swiftly decreasing customer trust, and an adverse impact on your brand's credibility.
Proactive solutions to shipping errors
Address validation services
So, what is address validation? In simple terms, it's an advanced service that cross-references raw customer-entered addresses against a comprehensive database. This ensures that the final address is standardized, accurate, and set for delivery so your risk of delayed or lost packages is reduced.
There are considerable benefits of implementing address validation in your operations. It significantly reduces the scares associated with undeliverable shipments, streamlines your operations, and frees up valuable resources that would otherwise spend countless hours in addressing issues post-dispatch.
But, it's crucial not to overlook the importance of choosing the right address validation tool. Key features to consider would revolve around accuracy, speed, global reach, and most importantly, a seamless integration with your existing e-commerce platform for a frictionless experience.
Empowering customers: the role of self-service order editing
Address validation stops customers from making typos in their shipping address, but self-service order editing helps when they put the wrong address.
Maybe they accidentally put their old address, or maybe they’re sending their order as a holiday gift, and the receiver changed plans and is now spending their holidays in New York instead of Vermont.
What can self-service order editing solve?
Shipping to the wrong address, like home vs work
The wrong address during a 1-click purchase
Difficulty during a mobile order
Consider the benefits: a massive reduction in customer service dependency for address corrections, and a perceptibly enhanced consumer experience. Not to mention a quicker resolution of errors, leading to faster dispatch and delivery times.
As ecommerce evolves, it's become increasingly clear - flexibility is the name of the game. Today's digital consumers demand more control and more involvement. Answer that demand with self-service order editing - a tool that paves the way for your customers to make changes at their convenience.
When it comes to implementing customer self-service tools, a few things stand out: ease-of-use, stringent fraud measures, and above all, the ability to maintain order integrity without compromising on customer experience. That’s where Cleverific’s Customer Portal tool comes in.
Need to reduce shipping errors? Customer Portal does that.
Want to make sure fraudulent orders can’t be edited? Customer Portal has you covered.
Its proactive approach and customizable settings means you can reduce unnecessary support interactions. Customers can serve themselves, but you control the rules and time limitations.
How Peter Manning NYC reduced their shipping errors
For a real-world illustration, consider the dramatic transformation of NYC-based clothing brand Peter Manning. They were already winning by using an address validation tool, but still experienced recurring shipping errors, thanks to reasons like shipping to the wrong address. To solve this, they turned to self-service order editing tools. The outcome? A noticeable decrease in shipping errors and a significant improvement in customer satisfaction. About one-third of all their orders edited with self-service were orders saved from shipping errors. Read more about how Peter Manning reduced their shipping errors and removed the bulk of their order change requests from their support queue with self-service order editing.
Implementing reactive solutions: transparent communication and optimized delivery times
Optimize your delivery times
Speed is everything in today's rapid-paced ecommerce landscape. The sooner your customer gets their purchase, the happier they are. It's essential to adopt efficient and reliable shipping partners and explore the possibilities of prioritizing order dispatch based on region or utilizing distribution centers.
To significantly improve delivery speed, here are two strategies to consider:
Regional prioritization
Some orders are easier to fulfill than others. To improve efficiency, identify where the majority of your customers live and prioritize dispatching orders to these regions. Consider offering same-day delivery or next-day delivery within certain regions where it's feasible.Utilize distribution centers
Instead of operating through a single fulfillment center, consider strategically located distribution centers across your primary market regions. This dramatically shortens the delivery route and speeds up the order fulfillment process, consistently offering quicker delivery times for a vast majority of your customers.
Transparent communication
Be upfront about your shipping times and costs. Overpromising and under-delivering can damage your brand reputation. Be clear and communicate any delays immediately to keep your customers in the loop. To improve your communication, consider these two strategies:
Effective problem communication
Issues such as order delays or stock shortages are inevitable. Be consistent in communicating these to your customers, along with an explained action plan. Not only does this limit negative backlash, but it also builds trust and shows your brand's commitment to customer service.Real-time updates
Updates on the status of an order, including dispatch and estimated delivery date, can be automated and sent to customers via email or SMS. This gives customers peace of mind and reduces the number of queries raised to your customer service team.
Ecommerce directors, take note
The act of minimizing shipping errors is not just crucial to preserving your brand's reputation; it's an integral component in driving growth. A dual strategy of proactive and reactive problem solving - especially implementing address validation and order editing - shields your brand against current and potential pitfalls. Simultaneously, it offers exemplary customer service, builds loyalty, and ensures your bottom line remains robust and healthy.
