Shipping’s 2023 Transformational Trends

The e-commerce industry is heading into a year of rapid change and potential uncertainty, as labor and capacity issues could intensify or ease, carrier and rail strike concerns could reemerge, and fuel prices and shipping surcharges might be a crapshoot. Plus, ever-evolving technologies, strategies and innovations make keeping up with customers’ expectations increasingly difficult. However, these are all opportunities for growth.

In 2023, e-commerce companies must reevaluate their operations to prepare for uncertainties and set themselves up for long-term success. We now operate in an omnichannel world with more shipping and delivery options than ever before. Therefore, as companies hone in on shipping solutions as a differentiator to both the customer experience and the bottom line, here are four trends that online sellers should keep top of mind.

Flexible Delivery Options

Consumers are increasingly looking for more flexibility when it comes to how and when they receive their orders. In fact, studies show the majority of consumers choose a retailer based on the number of available delivery options. Consider seeking out multiple carriers to find the right balance of price for your bottom line, and the most convenient options for your customers. This allows you to rate shop, charge customers what you deem appropriate to cover the shipping, and also lets the customer choose and pay for the exact service they want or need. Also consider implementing free shipping if you can, same-day delivery, and buy online, pick up in-store (BOPIS) options if you have a brick-and-mortar shop or access to a designated pickup location.

Personalized Shipping Experiences

The future of e-commerce belongs to brands that create personalized experiences that capture attention and keep customers coming back. Incorporating personalization strategies into your shipping efforts can ultimately lead to increased sales and less customer churn. This is achievable both during the delivery process by sending personalized order notifications and custom tracking emails, and in the packaging if you include a packing slip with a personalized message, thank-you note, or other creative messaging connected to your brand and product. It's also a bonus for the customer if you're aligned with like-minded companies offering trial products for shipping inclusion — think on-the-go nutrition and supplement samples for runners and cyclists, organic skincare samples for vegan and cruelty-free haircare purchasers, etc.

Leverage Big Data

In today’s digital world, we all know the value of capturing data, but how you use that data is what can set your brand apart. With the right tools, businesses can leverage real-time visibility into their delivery operations to monitor key performance indices, proactively taking action when needed to make informed decisions. Consider implementing tools such as shipping APIs, which help avoid errors and complications by managing the customer’s order from the moment it’s placed to when the package is delivered. Businesses can use APIs to insert shipping and delivery directly into their business model and fully automate the checkout process, saving time while providing a better customer experience. This can provide better data, leading to key performance indicators for future decision making and customer personalization.

Sustainable Shipping

In a recent survey by Nielsen, 52 percent of people said their purchase decisions are influenced by sustainable shipping. Furthermore, 81 percent said they attach importance to companies implementing programs that improve the environment. The benefits of utilizing these initiatives not only includes improved company reputation and increased customer satisfaction, but also can lower costs and protect the environment. To do this, consider consolidating orders when multiple products are going to the same address, right-sizing your packages to fit the product to save on all materials involved and shipping costs, using green materials, minimizing waste, and choosing a last-mile carrier that already has the infrastructure in place to deliver at the lowest possible cost with minimal impact on the environment.

Applying these tips may help your business face the challenges ahead and improve its overall operations, regardless of the retail and shipping climate. It's never a bad time to optimize your operations, your customers’ experience, and ultimately your bottom line.

James Kelley is the president of OSM Worldwide, a leader in e-commerce domestic and international shipping.