Expanding your business to a new market can be both exciting and challenging. In recent years, Singapore has emerged as a significant hub for e-commerce in Southeast Asia, with Shopee Singapore leading the charge as one of the most popular platforms.
Whether you are a small business owner looking to scale or an established brand aiming to tap into a new demographic, understanding the nuances of Shopee Singapore is crucial for your success.
This guide provides a comprehensive overview of how you can leverage Shopee Singapore to expand your business effectively in 2024. From setting up your store to mastering local marketing strategies, this article will equip you with the knowledge and tools needed to thrive in the Singaporean e-commerce landscape.
Shopee has a deep understanding of what its users desire. They conducted a survey of over 1,300 users aged 15 to 70 to explore Singaporean consumers’ online shopping habits. The survey revealed that 87% of respondents find the convenience of online shopping to have a positive impact on their lives.
More than 70% of them receive up to five packages from e-commerce platforms each month. This shows that consumers value the ease and efficiency of online shopping. They are also attracted to platforms that provide a comprehensive shopping experience, including engagement and entertainment.
These digital-first shoppers are keen on quality and spend time ensuring product and retailer authenticity before purchasing.
2. Building a Community of Trust
Trust and authenticity are paramount in online shopping. Shopee fosters a community of trust by encouraging users to read and leave reviews. This feedback helps other consumers make informed decisions, with three out of four survey respondents finding customer reviews on Shopee reliable.
Shopee also implements robust consumer protection measures. For instance, Shopee Mall allows users to purchase directly from brands or authorized retailers, guaranteeing the authenticity of the products. This focus on trust and authenticity builds consumer confidence and loyalty, making Shopee a preferred platform in Singapore.
By focusing on understanding user needs and fostering a trustworthy shopping environment, Shopee has positioned itself as a leading e-commerce platform in Singapore. For businesses, leveraging these insights can help in crafting strategies that resonate with the local market and drive sales.
Types of e-Commerce Businesses You Can Pick on Shopee Singapore
Shopee Singapore offers a diverse range of business models for sellers. Whether you are a manufacturer, wholesaler, dropshipper, or interested in white labelling, Shopee provides the platform and tools to succeed. Here are the types of e-commerce businesses you can choose from:
1. Manufacturing
If you produce goods from raw materials, you can list yourself as a manufacturer on Shopee. This involves creating products from scratch. You have the flexibility to sell items across various categories such as fashion, beauty, home and living, health, and accessories.
The key requirement is that you must be producing these products yourself. This model allows you to control the quality and uniqueness of your offerings, making it ideal for those who want to build a brand from the ground up.
2. Dropshipping
Dropshipping is a popular business model on Shopee Singapore. It involves selling products without holding any physical inventory. Instead, you act as an intermediary, connecting buyers with wholesalers, manufacturers, or fulfillment centers that handle the delivery.
Dropshipping is attractive because it requires minimal upfront investment, no need for storage space, and low overhead costs. It allows you to focus on marketing and customer service while your suppliers take care of the logistics.
3. Wholesale
Shopee Singapore also supports wholesalers who sell products in bulk. This model caters to buyers looking to purchase large quantities at discounted prices. As a wholesaler, you must sell a minimum quantity of goods rather than individual items.
This approach can help you move inventory quickly and cater to businesses or large buyers who need bulk supplies. It’s a great option for those who have a steady supply chain and can handle large orders.
4. White Labelling
White labelling allows you to purchase products from manufacturers or wholesalers and rebrand them as your own. This means you can sell these repackaged items under your brand name. Many similar-looking products on Shopee with different logos and brands are a result of white labelling.
This business model is ideal for those who want to build a brand without getting involved in the manufacturing process. It offers the advantage of leveraging existing products and giving them a unique identity through branding.
Shopee Singapore provides a robust platform for various business models, each with its unique benefits. Whether you want to manufacture your products, sell in bulk, connect buyers and suppliers, or rebrand existing items, Shopee has the tools and resources to help you succeed.
Understanding Shopee Singapore’s commission structure is essential for planning your business expenses. Shopee charges a transaction fee for each successful order on its Marketplace and Shopee Mall platforms. In Singapore, this fee is 2% of the order amount after any promotions or discounts have been applied. This fee is separate from the 7% GST that is also applicable to your order.
For example, if you successfully sell an item for S$100, Shopee will deduct a transaction fee of S$2. Additionally, a GST of S$0.14 will be applied. Therefore, the final amount you will receive is S$97.86 (S$100 minus S$2.14). It’s important to factor in these fees when setting your prices to ensure you maintain healthy profit margins.
For those selling through Shopee Supermarket, the margins and commission rates are negotiated individually with each seller during the onboarding process. This personalized approach ensures that both Shopee and the seller find a mutually beneficial agreement.
Shopee’s transparent commission structure helps sellers manage their costs effectively, allowing them to focus on growing their business and maximizing their sales potential.
Tips To Boost Sales on Shopee Singapore
Getting your products listed on Shopee Singapore is just the beginning. To truly drive sales, you need to engage with potential customers effectively. Here are six tips to help boost your sales and enhance your presence on Shopee Singapore.
1. Enhance Your Product Searchability
Visibility is crucial. If your product doesn’t show up on the first few pages of search results, it’s less likely to be purchased. Optimize your product titles and descriptions with popular SEO keywords to improve your search rankings. Use structured naming conventions such as:
Brand Name + Product Model + Specifications + Size + Keywords for SEO
Gender + Specifications + Product + Keywords for SEO
Age + Specifications + Product + Keywords for SEO
Age + Gender + Specifications + Product + Keywords for SEO
Specification + Product + Keywords for SEO
These formats ensure your products are easily found by potential customers.
2. List Your Business On Shopee Mall
Building trust is vital for online sales. Listing your business on Shopee Mall can enhance your brand’s credibility. Shopee Mall is a platform for top sellers and official brands, offering increased visibility and consumer trust.
However, be prepared for stricter guidelines and additional costs, such as the S$315 ACRA registration fee and service fees. Review Shopee Mall’s terms and conditions thoroughly before applying.
3. Leverage Shopee’s Advertising Campaign Options
Running advertising campaigns on Shopee can significantly improve your product’s visibility. Under the ‘My Ads’ tool, you can use two types of ads: keyword ads and targeting ads.
Keyword ads involve bidding for relevant keywords, ensuring your product appears in relevant search results. Targeting ads bid for slots in the ‘Similar Products’ feature, positioning your ads alongside similar items.
Manage your campaign’s duration, budget, and bid price effectively, and use the insights to refine future marketing efforts.
4. Utilize Campaigns and Flash Sales
Shopee’s “My Campaigns” feature allows you to nominate products for main or category page promotions at no cost. Approved products are highlighted on campaign banners, email blasts, and targeted push notifications.
Additionally, participate in Shopee’s flash sale promotions. Flash sales attract Singapore shoppers and can help clear out outdated or excess stock while boosting sales.
5. Maintain a Separate Business Account to Save on Costs
Using a separate business account for expenses like paying overseas suppliers and online advertising can save costs. Consider options like the Aspire Cashback Reward Card, which offers 1% cashback on digital marketing and SaaS purchases.
The Aspire Corporate Card also provides competitive rates for multi-currency transactions, particularly beneficial if you source goods from China. These financial tools can help you maximize your marketing budget and reduce transaction costs.
6. Use High-Quality Images and Detailed Product Descriptions
Great marketing won’t compensate for poor visuals and vague descriptions. Invest time in improving your product photography by studying competitor images and learning from online resources.
Ensure your product descriptions are detailed, highlighting key features and specifications. Tools like Grammarly can help you maintain high-quality grammar and spelling, making your listings more professional and trustworthy.
By following these tips, you can improve your product’s visibility, build trust with consumers, and ultimately drive more sales on Shopee Singapore.
How to Dominate Shopee Singapore Market
If you want your products to thrive and dominate the Shopee Singapore marketplace, AsiaCommerce can help you achieve this goal. Our Southeast Asia Marketplace Distributions & Fulfillments services are designed to maximize your success. We offer a comprehensive range of solutions including:
Localized Product Listings: Tailor your product descriptions and listings to meet the preferences and expectations of the Singaporean market.
Order Management: Streamline your order processing with our efficient management systems, ensuring a smooth and seamless experience for your customers.
Order Fulfillment: Rely on our robust fulfillment services to handle all aspects of your shipping and delivery, ensuring timely and reliable service.
Monthly Sales Report: Stay informed with detailed monthly reports that provide insights into your sales performance and areas for improvement.
Click here to be a partner with AsiaCommerce to enhance your presence on Shopee Singapore and watch your business grow.
Indonesia’s e-commerce sector has experienced exponential growth in recent years, making it one of the most dynamic markets in Southeast Asia. As we move into 2024, the landscape of ecommerce in Indonesia presents unparalleled opportunities for businesses looking to expand their reach and increase their revenue.
With a population of over 270 million people and a rapidly growing middle class, Indonesia’s online marketplace is ripe with potential. This article explores the top e-commerce platforms in Indonesia, providing insights on how they can benefit your business and help you tap into this vibrant market.
Indonesian Market Overview
Indonesia’s e-commerce landscape is rapidly evolving and has gained global recognition. From 2023 to 2027, revenue in this sector is expected to soar from 52.93 billion USD to 78.68 billion USD, marking a remarkable growth rate of 10.42% annually. This dynamic market expansion is creating unprecedented opportunities for Indonesian merchants to achieve greater heights.
Despite a significant portion of Indonesia’s e-commerce revenue coming from foreign buyers, particularly from China, the domestic market has seen formidable growth. In recent years, more buyers have shifted from physical stores to online retail. This transition has been significantly accelerated by the pandemic, which caused a 23.8% increase in e-commerce growth in 2022. The trend is expected to continue, reinforcing the shift towards digital shopping.
The digital transformation has been a key driver in Indonesia’s e-commerce success. With enhanced logistics infrastructure, the country can support the growing influx of online orders. Innovative merchants, coupled with strong business acumen, are propelling Indonesia’s e-commerce sector to new heights. As a result, the Indonesian market is becoming increasingly attractive for businesses looking to expand and tap into this vibrant, rapidly growing market.
What are the factors driving the market growth of e-commerce in Indonesia?
The e-commerce market in Indonesia has experienced rapid growth due to a variety of factors. One significant driver is the Indonesian government’s proactive approach to enhancing internet accessibility. Initiatives like the “100,000 Broadband Villages” program, launched in 2020, aim to improve internet access in rural areas. This effort bridges the digital divide, allowing rural communities to participate in e-commerce. With an internet user base of approximately 224 million in 2022, projected to reach around 270 million by 2028, the potential consumer base for e-commerce is vast.
Additionally, the government has implemented training programs to empower SMEs with digital skills. In collaboration with the Ministry of Cooperatives and SMEs, programs like the “Digital Talent Scholarship” provide workshops that guide SMEs on effectively using e-commerce platforms. These initiatives ensure that small businesses are well-equipped to sell their products and services online, further boosting the e-commerce sector.
Another crucial factor is the integration of traditional small-scale shops, known as warungs, into the e-commerce ecosystem. E-commerce platforms partner with warungs to use them as pickup points and delivery hubs for online orders. This collaboration extends the reach of online shopping to areas with limited delivery services. By leveraging the existing warung infrastructure and their trusted local presence, e-commerce platforms offer customers convenience and accessibility, effectively combining online shopping with traditional retail.
Payment Methods, Trends, and Consumer Behavior in Indonesia
Understanding the e-commerce landscape in Indonesia involves keeping up with current trends and consumer behaviors. In 2024, Shopee has emerged as the most searched e-commerce platform in the country. This popularity is largely driven by attractive discounts, coupons, and free delivery options, which entice consumers to make online purchases. Technology products, particularly brands like Vivo, Oppo, HP, Samsung, and iPhone, dominate the most searched items on these platforms.
Digital payments have become the norm in Indonesia, with the majority of transactions occurring online. Consumers frequently use digital wallets, mobile payments, and Buy Now, Pay Later (BNPL) services. These payment methods offer convenience and flexibility, aligning well with the fast-paced e-commerce environment.
However, merely staying updated with these trends is not enough to sway consumer behavior. To remain competitive, businesses must develop strategies that align with these trends and adapt their offerings accordingly. This means continually innovating and providing value to meet the evolving preferences of Indonesian consumers. By doing so, businesses can thrive in the dynamic e-commerce market of Indonesia.
Top 4 Ecommerce in Indonesia in 2024
Indonesia’s e-commerce market is dominated by several key players that have successfully carved out significant shares of the market. These platforms provide a variety of products and services, catering to the diverse needs of Indonesian consumers. Based on similarweb research, there are 4 top ecommerce in Indonesia, include:
Shopee ID, partially owned by China’s Tencent, is the largest e-commerce platform in Indonesia and Southeast Asia. In recent years, it has surged ahead to become the leading marketplace in the country. Shopee’s wide range of products, user-friendly interface, and aggressive marketing strategies have contributed to its dominance.
Founded in 2009 as a C2C platform, Tokopedia has evolved into a major multi-vendor marketplace. Headquartered in Jakarta, it now hosts over 8,000 official brand stores. Tokopedia’s extensive logistics network covers 93% of Indonesia, with many regions offering same-day express delivery. The platform’s recent acquisition by TikTok, which holds a 75% stake, has further strengthened its position.
As part of the Alibaba family, Lazada operates as an online department store and marketplace for retailers. It is one of the largest e-commerce platforms in Southeast Asia, serving customers in Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. Lazada’s robust infrastructure and diverse product offerings make it a favorite among Indonesian shoppers.
Blibli is a prominent local e-commerce platform in Indonesia, known for highlighting local brands and managing its logistics in-house to ensure quick delivery. In 2019, Blibli introduced Blibli Play, an on-demand sports streaming service integrated with its e-commerce platform, setting it apart from competitors.
These platforms exemplify the dynamic and rapidly growing e-commerce landscape in Indonesia. By understanding and leveraging these platforms, businesses can tap into the vast potential of the Indonesian market, reaching a broad audience and driving sales.
Unlock The Potential of Ecommerce in Indonesia
If you want your products to thrive and dominate the marketplace, AsiaCommerce offers the perfect solution. Utilize our Southeast Asia Marketplace Distributions & Fulfillments services to ensure your business succeeds in the dynamic Indonesian e-commerce market.
AsiaCommerce provides a comprehensive range of services including localized product listings, efficient order management, seamless order fulfillment, and detailed monthly sales reports. Partner with us to unlock the full potential of e-commerce in Indonesia and elevate your business to new heights. Click here for further information and consultation for your business.
A new customer comes to your website, finds a product they want at a price they like and adds it to their cart.
They get to the checkout page and then it happens. They get hit with the shipping and handling rates and all of a sudden they start second-guessing their decision to buy.
Suddenly a product they thought had a fair price is starting to seem a little expensive. One of two things happens next. Either they decide to press on despite the increased costs, or they abandon their cart and leave your website disappointed.
So what can you do to influence this decision?
Let’s take a look at some shipping strategies and how you can use them in your business.
Shipping Rates and Abandoned Carts
The real challenge when figuring out your shipping strategy is determining a solution that cuts into your margins as little as possible yet remains attractive to your customers.
And this is something you’re going to want to get right. Studies have shown that shipping and handling fees are the number one factor driving shopping cart abandonment.
With this information in mind, let’s look at the three most common shipping options and the pros and cons of each.
Option 1: Offer Free Shipping
Offering free shipping – usually just for domestic orders – is a sure-fire way to get your customer’s attention, however, depending on your margins, it can also potentially cut into your profits.
That said, the marketing punch that displaying ‘Free Shipping’ on your website provides can be a significant advantage over any competitors that don’t offer the same perk. Deciding to offer free shipping will require you to either absorb the cost or slightly increase your prices to cover it.
You could also try offering free shipping with a minimum order amount or minimum number of items. This should drive up your average order value and help you have more profit dollars to apply the shipping cost against.
Prominently advertising that you offer free shipping can be an effective way to drive up conversion rates. Chubbies offers free shipping on all their shorts (including return shipments) and which they proudly display on their website so customers shopping know that the price they see is the price they pay.
Determining whether to offer free shipping or require a minimum threshold often comes down to your margins and the niche you operate in.
If you offer luxury or handmade, one-of-a-kind items, rolling in an extra percentage for shipping and handling into the cost of your products probably isn’t too much of an issue. However, if you’re in a highly competitive market where both free shipping and the lowest prices are the norms, like refurbished cell phones, for example, marking up your products to cover shipping costs may not the best idea. This is where you have to consider either a different option entirely or absorbing the cost for the shipping on most of your items.
There are, of course, exceptions.
Large or particularly heavy items like full tower PC cases or furniture can cause some problems for your ‘Free Shipping’ promotion. Doing your research and knowing your numbers about things like how much each of your products actually costs to ship, how your competitors handle shipping, and your allowable profit margin can help you make the right decision.
Option 2: Charge What You Get Charged
In some shopping carts, it’s possible to set up real-time shipping quotes – in other words, your customers more or less pay exactly what you would pay to ship your products.
There are always small discrepancies that can happen, of course, but in many cases, you can end up breaking even between the shipping charges you collect and what you ultimately have to pay to ship the package.
Simple Sugars, a store that was recently on Shark Tank, employs this tactic, offering real-time shipping quotes to their customers at checkout. Once a customer gets to the checkout, they select where they want their order shipped to, and the calculator does the rest.
Using a real-time calculator like this can win you a lot of trust with your customers. It shows that you aren’t inflating your quoted shipping fees or raising your item prices to cover the charges.
This strategy doesn’t have the same persuasion power free shipping does but it’s an easy way to make sure that you’re not draining shipping costs out your ears, and that your customers are getting the best deal possible.
This is also a good option to use for heavy or oversized shipments that you simply cannot or do not want to allow to ship out under a free shipping promotion.
Option 3: Offer Flat Rates
Your third option is to offer a flat rate for every package, or flat rates for weight ranges and order totals.
This particular method of charging for shipping requires a bit of preparation as you need to figure out your average cost of shipping a package. This is a best practice you should be doing anyway to make sure that you don’t drastically undercharge or overcharge your customers.
When you hit the right cost, you’ll probably be over – or under – the actual shipping cost by a little, but it should even out in the end.
Truly’s Natural Deodorant takes the flat rate approach, and has a simple $2.99 charge for a single product order.
Angela Collison, the founder of Truly’s says her “main focus in setting up my shipping prices was to make it as inexpensive as possible while still delivering the product in a reasonable amount of time. My products are relatively inexpensive and I don’t think anyone wants to pay as much for shipping as they do for the item ordered. USPS was a good fit for us as they are very affordable for single items and their flat rate priority options allow me to ship out multiple items for one flat rate regardless of the weight. I was able to set up price-based shipping as I have only a few different products, but I am not sure how that would work out for someone who has a large number of products.”
The above quote highlights an important point about the nature of flat rate shipping: figuring out what flat rate works for you, and if you need to do it by order totals or weight ranges will require some testing.
Luckily, USPS does offer a few different sizes of flat rates boxes, and if you have particularly small, but heavy objects, taking advantage of the cost savings from cubic shipping prices can help to bring your flat rates into a comfortable range.
Of course, every business is different and only through testing will you find out what works best for you.
You’ll need to find out the statistics on your products and the best ways to ship them to be able to make the most strategic decision possible. This is where additional apps can help you find information and alternatives (both with shipping carriers and methods) that you may not have had access to previously.
Option 4: Outsource shipping to a third-party logistics provider (3PL)
Outsource part or all of your distribution and fulfillment services to a 3PL. They deliver your products with an out-of-box experience—some 3PLs can even handle returns and provide ePacket tracking.
If you have difficulty with setting shipping strategy for your online store, AsiaCommerce has a service to help you. We can also help you to market and sell your products, both a retail product or a product that needs to be sold in a huge amount. We are making it possible for local business leaders to cooperate with the International global market. Besides export service, we can also help you to import, transport, search for foreign products and handle distribution issues of your company in southeast Asia.
Your business is at the point where it is about to explode. How do you transition from a small shop (fulfilling orders from your basement) to fulfilling orders with major retailers too? What are the biggest pitfalls to watch for?
First of all, congratulations! This is an undeniably big moment, and while it comes with a lot of change, and a lot of hard work, so did getting to this point—that’s worth celebrating.
But OK, you’re here now, and you’re wondering about the hard work part of it.
There’s so many things that change when you go from fulfilling orders yourself, in your own little space, to selling to independent stores, to dealing with big box chains. And speaking of fulfilling orders, that’s the first thing you’ll need to get a handle on as you grow.
Managing your (new) fulfillment process
There’s a lot you need to know about working with big box stores, and working within their systems—but don’t worry, they’ll tell you about it. In detail.
All big box stores have vendor manuals, these things are like 200 pages of guidelines on how they want to receive the product, because these companies are getting the product in from hundreds, if not thousands, of different vendors
When they get a shipment in they want it to all look the same no matter who it’s from. They want the barcode printed and placed like one inch from the top right corner of every box so that when they get it they know exactly where the barcode is going to be
Working within that framework is going to be a major change (and challenge) for anyone who’s used to shipping and fulfilling orders themselves.
Start outsourcing
If you’re at the point of working with major retailers, it’s time to bring in some professional fulfillment support.
You don’t need to become the warehouse logistics expert as well. Found value in outsourcing this. Basically shipped all your goods to a logistics center and then gave them the instructions on where it’s to go, when it was supposed to go, who it was going to, and then they did all the preparation for that shipment properly, so you wouldn’t get any fees.”
Um, fees?! Yeah, large retailers take their fulfillment process seriously, to the point that it will cost you if you’re not compliant.
If you don’t meet their requirements you get dinged. You get fees taken off your invoice. Like, ‘Oh, you put the label in the wrong spot? That’s $200.
You’ll save yourself a lot of time if you focus on your strengths, and don’t try to become a logistics expert on top of everything you’re already doing. And how should you find a fulfillment partner? Dan says it’s all about the legwork.
It’s not hard to do a Google search to find warehouse and logistics or fulfillment centers. Then you just have to interview them and be like, ‘Do you deal with big box store X, Y, Z?’
Getting your legal stuff in order
It’s not just your fulfillment process that needs to change as you grow. You’ll also need to look into legal protections for yourself and your business that might not have been necessary as a smaller shop.
You had to incorporate it because you wanted to separate the business from your personal life now that you’re being exposed to way more customers. If anything goes wrong, you don’t want to be personally liable. Plus, once you realized you were getting way more exposure.
It’s not just your own protection you need to worry about anymore, either, so make sure you read the fine print.
A lot of larger vendors will have specific requirements on how much business insurance you have. You had to up your business insurance because they wanted a certain amount of coverage.”
Managing your cashflow
Cashflow is always going to be a cornerstone of running your business, but it changes pretty drastically when you go from a small shop to working with big businesses.
The other big thing to prepare for is the payment terms. A lot of these big box stores won’t pay you for 60 days after receiving the shipment. Meanwhile, you’ve probably put out all your money 60 days before you deliver the product to them, so you’re out that money for almost 120 days. Cashflow can be a challenge.
Plus, a big order is great for volume, but take cautions that you’ll need to take another look at your numbers when you’re handling large shipments.
Once you’re dealing with these big orders, they’re great, but you have to output so much more because the volume’s so much bigger. Your margins are smaller because you’re dealing with a big box store, and you’re not getting paid for longer. It’s a different game.
If you have difficulty with preparing your store to work with big-box retailers, AsiaCommerce has a service to help you. We can also help you to market and sell your products, both a retail product or a product that needs to be sold in a huge amount. We are making it possible for local business leaders to cooperate with the International global market. Besides export service, we can also help you to import, transport, search for foreign products and handle distribution issues of your company in southeast Asia.
A fulfillment warehouse can help automate and handle the shipping for you. When you choose to work with a fulfillment warehouse, you will store your inventory at one of their warehouses. Depending on their level of integration with your shopping cart, when an order comes in your fulfillment partner will automatically be forwarded the order to pick, pack, and ship the purchase order on your behalf.
There are a number of advantages to using a fulfillment warehouse including:
Cheaper shipping rates. Because fulfillment warehouses ship such large quantities for multiple vendors, they receive cheaper shipping rates. They’re also integrated (usually) with all of the major shipping logistics and 3PL companies, giving you easier access to the widest range of shipping options.
Shorter shipping times. Strategically choosing your fulfillment partner and the warehouse to store your inventory means you can store your inventory closer to the bulk of your customers.
Fulfillment warehouses aren’t for everyone, though. There are several disadvantages as well that you need to consider.
Branding experience. Generally, if you use your packaging presentation as part of your branding experience, like Trunk Club, you’ll be hard-pressed to find a fulfillment warehouse that will work with that level of dedication and customization for your brand.
Additional costs. Although you will likely receive better shipping rates working with a fulfillment partner, there are other rates that need to be paid including what is commonly referred to as ‘pick and pack fees’ as well as warehouse storage fees.
Shipping is a fundamental part of your ecommerce business
Shipping is definitely a challenging aspect for any ecommerce business. Every business will have their own unique challenges they need to work through and overcome to develop the best and most efficient shipping strategy. Like many aspects of building your new ecommerce site, it will take time and tweaking to determine what works best.
Understanding all the variables and evolving your shipping strategy with your growing business is vital to its long term health and success. So once you think you have it figured out, don’t let it go stale. Reevaluate every six months to make sure you’re delivering the absolute best possible service and experience for the best possible price to your customers.
As you can tell by now, shipping can be tough. Deciding what to charge for shipping, then figuring out how you get it to your customer. There are so many decisions to make along the way.
If you have difficulty with packaging and shipping, AsiaCommerce has a service to help you. We can also help you to market and sell your products, both a retail product or a product that needs to be sold in a huge amount. We are making it possible for local business leaders to cooperate with the International global market. Besides export service, we can also help you to import, transport, search for foreign products, and handle distribution issues of your company in southeast Asia.
As the world of ecommerce develops so do the expectations of customers who buy online. Years ago, packaging and shipping was simply a way to receive a product purchased online, but more and more people are looking for shipping, packaging and presentation as part of the ecommerce experience.
This expectation means that for many businesses, outside of selling commodities, competing effectively means going above and beyond to impress customers and exceed their expectations by delivering an experience, not just a product.
Packaging options
Before you can ship your products, you’ll need to package them for safe transport. So what options do you have? There are a few common options for packaging including boxes or envelopes (padded or unpadded). For many businesses and products, you’ll a box as well as some other packaging materials to safely ship your products.
You may also want to try thinking outside of the box (no pun intended) and look at other packaging options. For example, poly mailers can be a great way to mail products that don’t need a lot of structure or cushioning, like clothing.
Poly mailers offer multiple benefits. They’re lightweight, which reduces your shipping costs, and they can adjust to different volumes and weights depending on what’s included in the order. For example, the same size of poly mailer could accommodate one pair of socks, or five, and you wouldn’t be overpaying on packaging weight or dimensions for the single pair.
Keep it light and small
Because the cost of most shipping options is based on size and/or weight, do your best to keep your packaging as small as possible. This will not only help you save on your shipping costs and what your customer paid for shipping, but will also keep packaging costs from eating away your profit margin.
Depending on your business and product line, you may want to consider carrying a variety of package sizes and packaging materials.
Most people would consider the packaging for the product above to be excessive. This is exactly what you’re trying to avoid as it inflates shipping costs dramatically.
Insurance and tracking
Depending on what you’re selling and its value, shipping insurance and tracking can offer a great deal of security. With most carriers, insurance and tracking is relatively inexpensive and provides you recourse should one of your packages get lost or damaged. Some shipping services like UPS and USPS Priority Mail offer complimentary coverage for up to $100, and that coverage can be up to $200 in some cases.
Consider purchasing insurance on big-ticket items so that, in the rare cases when a package does get lost, you’ll be covered. Keep in mind that some shipping services have insurance already built into the price, so consider this when you are comparing various courier prices.
Customs declaration and forms
If you’re shipping outside of your own country, you’ll need to include the proper customs documentation. These are available online through Shopify or at your local post office or shipping retail location. These forms tell the customs officers at the country of import what is in the package, how much it costs, and whether it is a gift or merchandise.
Check with your country’s postal service to find out exactly which forms you’ll need to attach to your package. These forms should be completed honestly and clearly to prevent your package from getting held up in Customs.
Tariffs, taxes and duties
If there are any additional customs fees due when a package reaches its destination, your customer will be responsible for them at the time of delivery. It’s always a good idea to make sure to include this information in your shipping policy page so customers aren’t surprised by unexpected fees.
Here’s an example of how one store prominently displays information regarding additional charges on their shipping policy page to ensure customers are aware of possible charges:
Customs declaration information
For more information on customs declaration and the required forms and policies, please see the resources below:
USPS Customs Information
UPS
DHL Express
If you have difficulty with packaging and shipping, AsiaCommerce has a service to help you. We can also help you to market and sell your products, both a retail product or a product that needs to be sold in a huge amount. We are making it possible for local business leaders to cooperate with the International global market. Besides export service, we can also help you to import, transport, search for foreign products, and handle distribution issues of your company in southeast Asia.
