Supply chain management tips for your eCommerce business

Explore how to manage your supply chain and delivery processes more effectively to help keep your eCommerce business running smoothly.
· 09 July 2024 · 5 minute read
Delivery driver in van, looking at the orders on his tablet

Meeting consumer expectations for smooth delivery

Online shoppers may have once been happy to wait patiently to have items delivered, but many customers now expect more. Today, you’re expected to deliver items quickly. eCommerceNews reports that 73% of consumers now prioritise delivery in fewer than two days when making an online purchase.

If you’re looking to improve customer experience for your eCommerce business, here are some tips for managing your supply chain and communications to customers.

 

Give your customers multiple delivery options

Shipping speeds can play a big part in your customer satisfaction. They can also influence whether a customer chooses to buy from you. According to the Australia Post 2024 Inside Australian Online Shopping report, consumers between 18 and 43 years of age are likely to switch retailers to get their purchases faster. These are also the consumers who spend more of their retail budget online than other age groups.

To address these customers’ expectations as a small business, there are options you can offer customers that can be cost-effective for your eCommerce operations.

 

Express shipping

Express shipping can be expensive, but it’s also an excellent option for customers who may want to receive their parcel in a hurry.

One way to offset the cost of this service is to charge extra for express postage. This way, your customers can get their parcel sooner without leaving your business out of pocket for the extra shipping costs.

Think carefully about how you approach shipping costs. There are multiple options you can consider. Read our article about the different shipping cost options to help you make the best choices for your business.

 

Click and collect

Click and collect, sometimes referred to as in-store pick-up, allows customers to collect their order from a shop. This can help cut delivery times. It can also suit people who are not at home during typical delivery times.

Once the customer has placed their order online, they’ll receive a notification when the purchase is ready for collection. They can choose when to pick up their product.

Australian consumers have embraced click and collect. Inside Small Business reports that around 70 per cent of Australians use click-and-collect when shopping online. While it’s popular with consumers, it also has benefits for businesses. Click and collect can help increase sales as customers may also spend more time in-store when picking up online purchases.

 

Parcel collection points

Another option is to use parcel collection points. A parcel collection point is a designated location where you can pick up packages. Customers can get their post delivered to one of these points instead of their home or office address. Parcel collection points offer consumers flexibility and convenience, especially when they are not available for home deliveries.

Here are some places you can deliver items to:

  • A local post office
  • 24/7 parcel locker
  • A PO box
  • Retail partners including supermarkets and pharmacies.

 

Authority to leave

When your customers give you the option of ‘authority to leave’, you can give your delivery provider permission to leave their parcel regardless of whether or not they are home. If your customer is out at the time of delivery, their parcel will be left in a safe place at their address. This way, there’s no waiting around and no need to make a trip to the post office for their parcel pick-up.

 

Make the most of delivery management software

Delivery management software, also referred to as shipping software, can simplify your shipping process and help you navigate any disruptions.

Delivery management solutions can help you:

  • consolidate your tracking information
  • set up with automated shipping and returns processes
  • provide your customers with real-time status updates.

Explore solutions to determine which is best to help you streamline your delivery process.

 

Communicate with your customers

Keeping customers up-to-date on the delivery status of their items is essential to making their experience with your eCommerce business a positive one. Research has found that giving your customers status updates with a realistic idea of their product’s location and its expected arrival is important.

According to the Telstra Tech State of Play research, 86% of consumers feel the ability to track delivery times is important when buying from a small business online. There are signs that businesses may be able to do more in this regard. Less than a third (31%) of business leaders surveyed think the ability for customers to track deliveries is important to consumers.

To make sure you’re delivering on customer expectations, it’s worth considering the ways you can keep online shoppers informed as you process their orders.

 

Automate delivery status updates

One option is to create automated status updates on all your deliveries. This function is often built into delivery provider platforms. It’s a great way to let your customers know when to expect their order without relying on your time.

 

Be upfront about delays or disruptions

If you run into problems, it’s important to keep customers informed as best you can. If issues outside of your control disrupt your deliveries, get ahead of the problem by notifying your customers to help you manage expectations. You can do this by contacting them directly. And if the problem is severe, you can consider acknowledging the delay on your website and social media feeds.

If an order arrives late, you could also consider offering your customers a consolation, such as a refund on their delivery fee. In any case, keeping your customers informed helps your eCommerce business to reduce complaints and build brand loyalty.

 

An effective supply chain can be key to future success

With online shopping a part of many Australians’ everyday lives, it’s important for businesses to offer great eCommerce customer experiences to help boost chances of success. Providing a diverse range of shipping options and accurate status updates is a great way to build trust with your customers.

Your eCommerce supply chain underpins the deliver experience you offer customers. To help you design a great experience overall, read about different shipping cost options, creating a returns policy and how you can leverage FAQ pages on your website to help boost customer experience.

To learn more about tech trends shaping customer behaviour, download our Evolve with your customers report.

 

Originally published November 2022. Updated July 2024.

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