Running an e-commerce business is tricky. There are a lot of things to consider, such as managing your inventory, setting your prices and shipping to customers. Of all these, shipping may be the biggest headache of all. Debates like economy international shipping vs. standard international shipping have been raging since logistics companies started offering them. But how does shipping affect an e-commerce business?
In e-commerce, 69.57% of shoppers abandon their shopping carts, and the number one reason is extra costs related to shipping and taxes. This figure proves that logistics companies need to offer affordable shipping services and balance them with the delivery speed.
Let’s dive into the pros and cons of economy international shipping vs. standard international shipping and determine when these methods are appropriate for your business.
Economy International Shipping
Economy international shipping is the cheapest option logistics companies can offer you. It’s a viable alternative for sending out packages, but it has its advantages and disadvantages.
If your e-commerce business is just starting out and you want to set more competitive prices, economy is the way to go. The prices of products are often within 5% of each other. Keep this in mind because offering affordable shipping can be the difference between a sale and an abandoned shopping cart.
Since the cost of shipping is lower, the delivery time naturally takes longer. The delivery time is 6–10 days for most major destinations, but it could take longer for other places.
Economy international shipping transports packages in bulk. Packages wait in the warehouse until there are others to be sent to the same destination. However, the slightly longer delivery time may be worth it, considering the savings. Consider sending non-urgent items through economy international.
Less Efficient Tracking
Most of the time, economy-shipped packages are scanned when they’re collected and when they’re delivered to your customers. There’s usually no information between those two stages.
According to Narvar’s 2018 consumer report, 53% of shoppers won’t buy from you if they don’t know when a package will arrive. In this regard, the lack of reliable international shipping tracking could affect your sales. The bulk transport of economy packages also limits the efficiency of tracking.
Standard International Shipping
Standard international shipping is the normal shipping method that many logistics companies offer. The cost of shipping packages this way is usually reasonably priced, and it offers average shipping times and full tracking.
Higher But Reasonable Cost
The cost mostly depends on the size and weight of your packages. Most companies have international shipping calculators so that you can input the dimensions of your packages. Then, you’ll get an idea of the cost of shipping.
Sending a package from Canada to the United States is usually very reasonably priced for most logistics companies. However, different couriers offer different rates, so do your research, particularly on your courier’s shipping partner in the United States.
Average Delivery Time
Though this method is faster than economy shipping, it’s slower than international priority shipping. Some deliveries take three days; others may take up to four weeks to deliver because of customs issues. If that happens, say goodbye to good customer feedback.
You can use standard shipping for most of your packages, but set your customer’s expectations. Always mention that delays sometimes happen, and make sure to inform them if their package takes longer to deliver.
Full Tracking Options
Most shipping companies offer full tracking services for standard international shipping. Online tracking is also an option that most companies offer nowadays. Because these packages aren’t transported in bulk, keeping track of them is a lot easier than economy shipping.
What Is International Priority Shipping on eBay?
eBay’s Global Shipping Program gives sellers another shipping option. If you choose this, your customers will have to pay for the following:
- The item’s selling price
- Ebay’s calculated international shipping fee
- Import duty and taxes
The delivery is fast and has full tracking, but it is on the expensive side. International Priority Shipping starts at $24. It’s possible for you to send smaller and lighter packages directly for less.
Can Amazon Ship Internationally?
On the other hand, Amazon ships products internationally using Amazon Global. Customers can buy products from the Amazon Global Store, and Amazon will ship them to the United States using their fleet of cargo planes. However, not all countries are eligible for international shipping offered by Amazon. Check the list of countries Amazon can ship from to be sure.
How Can Shipping Help My E-Commerce Business?
Many sellers apply flat-rate shipping to their businesses to be more consistent. With this method, you can include your shipping cost in the price of your products and waive the shipping fee. Nothing attracts buyers more than free shipping. It’s a viable third option aside from economy international shipping vs. standard international shipping.
If you need a logistics partner that can help you improve your e-commerce business, contact Stallion Express. We’ll give you all the information you need about our integration and shipping process.