The Webretailer News Digest for January 10, 2023
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Late last week, we and many other outlets reported about Amazon’s SEC filing for an unsecured $8 billion loan to cover “general corporate purposes.” Clearly, Amazon is anticipating market headwinds, and it looks like the ecommerce industry will face a slowdown in 2023.
What happened to online shopping in 2022?
Many e-commerce and tech companies overspent after reaping the benefits over the past two years. But in late 2021, people returned to brick-and-mortar stores in droves. Combine that factor with overall economic slowdown, and you have dark clouds looming over the industry. However, a slowdown isn’t a crash.
Becoming a resourceful online seller
Resourceful sellers know how to navigate market fluctuations, and we want to equip you with the tools you need to succeed. This month, our Tuesday Tips will feature insights on how to save money and optimize your business during a downturn. This week, we start with shipping.
The Webretailer can connect you with a host of shipping and fulfillment tools and services to keep your ecommerce business on track in 2023.
Ecommerce Shipping tips for 2023
1. Offer in-store pickup
Obviously, this one isn’t for the dropshippers out there — we’ve got you covered in the next tips. But if you’re holding on to inventory at home or at an office, then local pickup could be a viable option to help lower shipping costs. Even if you don’t want people at your home or office, you can set a neutral location for pickup — like a local store or make use of a contactless locker system like a USPS GoPost.
2. Analyze and adapt how you charge for shipping
Shipping can be a sticking point for many sellers as they chalk it up to ‘something that’s out of my control.’ But successful sellers know how to adapt and adjust their prices or model. Shopify has some solid Ecommerce Shipping Solutions to help you come up with a successful strategy. Some rate adjustment methods include:
- Setting up a real-time carrier rate in your store. This tool generates shipping options and live pricing from various carriers. Check our list of shipping and fulfillment tools above to find a solid provider.
- Switch to a flat-rate system. This can work well if your product line has a similar size and weight — not so well if you don’t. Just be sure to find a solid ‘mid-point’ price that’s beneficial to both you and your customer.
3. Consider label costs
Label costs can add up quickly for developing small businesses. If you have the time, it’s worth it to invest in a solid laser printer or thermal label printer to print the labels yourself. eBay, Etsy, Shopify, and other big name marketplaces also offer deals on labels in bulk. Check with your marketplace provider to see if you can take advantage of a discount.
4. Shipping software
One of the best ways to save money on shipping costs is to invest in shipping software. Yes, you’ll have to pay the monthly or annual fee, but it will save you time and money in the long run. The right shipping software allows you to manage your inventory, calculate shipping costs, and print labels right from your computer. Look for software that integrates with the e-commerce solution you’re currently using.
Do you have more tips to help ecommerce sellers save on shipping costs this year? Leave a comment below!