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Using International Priority Shipping as a Strategic Advantage for Retailers

Diana Zheng
  •  
October 23, 2020

The retail business is in its finest hour. The need for Canadians to stay at home because of the pandemic has forced them to rely more on eCommerce for their daily needs. In 2020 alone, the global sales for online retail has jumped from $3.5 trillion to $4.13 trillion in 2020, and the year isn’t even finished yet. 

There clearly is a need for fast delivery times in today’s complex social environment. Don’t get me wrong. Delivery has always been an integral part of eCommerce. International priority shipping is proving to be a valuable tool in keeping delivery times quick and efficient for some companies. 

Amazon is leading the way with their offers of free same-day shipping, free two-day shipping, and free same-day delivery for its Prime customers. Still, not all products and locations are eligible for these lightning-quick shipping times. For international deliveries, the old rules still apply (3-6 weeks for standard and 3-7 days business days for expedited).

It’s natural to assume that retailers gain advantages when they shorten their delivery times. However, it’s vital to know in which areas they gain an advantage. Let’s discuss those areas. 

Reduced Costs

Lower delivery costs just don’t appear out of nowhere. They start with an excellent warehouse management system. Some people sorely underestimate the benefit of a trained team to handle the grunt work in your warehouse. Here are the basics.

Order Verification and Processing

This is a vital process in any eCommerce platform, whether it’s your own or a bigger company, like Amazon. For some, it might seem unnecessary, but this is just double-checking the information the customer put in in his order. Some companies send an email; others have an automated text message they send to the customer’s mobile phone directly.

Sorting and Packing

One of the things that is so easy to overlook is the cost of packaging materials, especially in international priority shipping. If you have a logistics partner that can provide these materials at a reduced price, that would be ideal. Sometimes the costs of packaging may pile up, eating away at your profits. Proper labeling can lower the price of shipping as some labels can sometimes be costly if you’re not equipped with the proper tools. Some logistics companies offer these services for free as part of their contract. They will integrate your online platform with their shipping system. In these cases, the only thing left to talk about is the price.

Inventory Management System

Selling online wouldn’t be very efficient without an effective inventory management system. You have to know if your stock is available for purchase online. This process would be easy if you’re selling only a few items. However, the difficulty increases as you offer more items to sell, and if the demand also increases. The best thing to do is get an inventory management software integrated with your online ordering system. If your stock for one item runs out, the ordering system will display “out of stock” and disable the customer’s ability to buy it.

Increased Sales

Since the advent of the pandemic, Canada’s eCommerce sales have soared to a record $3.9 billion. The increased demand for online retail platforms has also given shipping companies a golden opportunity -- giving more affordable rates and more reliable delivery times. As a result, many companies have been offering more flexible delivery options for international priority shipping.

A study from the Oregon State University in 2017 clearly suggests that delivery performance affects sales volume and unit price in different ways. Good delivery metrics increases sales volumes, and at the same time, lowers costs for international shipping from Canada.

What is the cheapest international shipping from Canada?

Some logistics companies in Canada are offering as much as 85% lower rates for international priority shipping to select locations. Taking advantage of these offers gives you, as an eCommerce seller, more flexibility in your prices. Lower shipping costs means being able to set a more competitive price. 

More Consistent Customer Experience

People recall their negative experiences more easily and in greater detail, that’s why consistency is key in retail. It doesn’t matter if you have the cheapest international shipping rates. If you mess up on delivery once, it could mean loss of business and more. People have been known to rant on social media and other platforms about the bad delivery experiences they’ve had. Studies have clearly shown that being more consistent with deliveries can result in more business from existing customers.

What is the Best Way to Ship Internationally?

Treating international priority shipping as an advantage involves a lot of parts. The key is finding a logistics partner that can offer eCommerce integration, international tracking, and more consistent delivery times. 
If you’re looking for all of these things, please call us at +1-877-863-7447 or email us at [email protected].

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