It is no joke that the business world is becoming more and more competitive by the second. Naturally, things are always changing and getting better. As the world continues to advance, it is true that people are becoming smarter, and things continue to be done more and more efficiently. That being said, I have seen a lot of problems that persist within the industrial and manufacturing industries. More specifically, I think it can be said that plant managers and business manufacturers are not keeping up with their shipping needs being met and are losing out on revenue because of it. I mean, you are a company looking to make some budget changes, right? What are some of the first things to be slashed? Well, it better not be your shipping and manufacturing budget that is touched, because that is probably the single most important part of your business. After all, what is more important than the product getting to the customer? That’s the thing that a lot of businesses do not seem to be understanding right now. If you are struggling to stay afloat, there is probably a problem related to shipping and manufacturing. Now I am no expert (even though I may sound like one), but it could be said that I definitely know what I am talking about. I wanted to write this brief article about how one can be more proactive about protecting their shipping budgets and more efficiency in their shipping and manufacturing.
There was a recent study done by some fairly prestigious individuals (that I will not be citing in this article) in which some substantial research was done into consumer behaviour in regards to shipping products for eCommerce companies. One of the big ticket items that was talked about was that many consumers are not willing to put into the additional cost and wait the additional time of ordering a product that does not align with their current expectations.
This means that, if your company is having a hard time meeting shipping price and efficiency expectations from your consumers, you may be losing out on a ton of revenue that is lost because of this. So what is the reason behind all of this? Well, for starters, I can tell you right now that just because you have a good inventory of shipping boxes does not mean you know what you’re doing. Shipping boxes do not make the man, as is said by many business insiders. I personally believe that the main reason behind all of this is just the way that the world continues to change. Maybe shipping expectations were much looser 5 years ago, but things sure have changed in the last few years. As eCommerce continues to grow, consumers continue to expect more out of their products and out of the whole purchasing experience.
All I can say right now is that I am glad to not be in the eCommerce industry. Competing with a company like Amazon is almost impossible, unless your profit margins are high enough that you can afford to kick in some shipping costs. One thing to keep in mind is that shipping in higher volume is usually a lot cheaper as well, so that could help cut down costs too. I hope you learned something from this article!