In today’s competitive online landscape, ensuring customer satisfaction is essential. With many businesses offering 60-day return policies and satisfaction guarantees, the bar for customer expectations is set high. While this can be daunting, it ultimately encourages 3PL providers to enhance the value they provide.
Fortunately, achieving customer happiness isn’t complicated. It comes down to fulfilling the promise of delivering what customers want, when they want it. When selling services through 3PL providers, you commit to timely delivery, and even though a carrier (like UPS or FedEx) handles the shipping, the responsibility remains yours. If issues arise, customers will rightly hold you accountable.
The Importance of Customer Satisfaction in a Competitive Market
Shipping involves more than just placing items in a box and handing them off to a carrier; it requires careful consideration to mitigate risks. Here are some key challenges and solutions MacMillan SCG initiates to be aware of when shipping packages:
Lost Packages
Lost packages are a reality and can occur for various reasons, such as:
- An item falling out of a truck
- A smudged or unreadable shipping label
- Misrouting to the wrong distribution center
- Rare instances of theft by the carrier
- Small items being misplaced
Prevention Tips: While you can’t eliminate this risk entirely, you can minimize it:
- Use discreet packaging for valuable items to avoid drawing attention through MacMillan.
- Avoid reusing boxes with old shipping labels, as they may cause confusion for carriers.
Returned Packages
Returns are common and often result from incorrect addresses. Even minor formatting differences can lead to issues. Other reasons for returns include insufficient postage due to incorrect weight or dimensions when printing labels. MacMillan offers zero error rate and damage control and provides real-time tracking throughout Canada as a competitive 3PL providers.
Damaged Packages
Packages can also be damaged during transit, leading to returns or holds. Proper packaging is crucial to prevent movement inside the box. 3PL providers such as MacMillan ensures your packaging is sturdy enough to support heavy items, most boxes can handle up to 40 pounds, while heavy-duty options can manage over 60 pounds.
Special Considerations for sensitive products
Certain items, like batteries, are classified as “Dangerous Goods” and come with strict shipping regulations. These items typically cannot be shipped by air and must be clearly labeled. When shipping internationally, additional precautions like a safety data sheet may be required by 3PL providers such as MacMillan SCG.
International Shipments
Shipping internationally requires compliance with extra guidelines, including attaching a Commercial Invoice or CN22 form to describe the package contents and their value. While customers purchasing from the U.S. may avoid duties on items valued under $800, those in Canada will incur duties on items worth $30 or more. Understanding these regulations is vital for smooth international transactions for 3PL providers. (Read more about Section-321 and shipments)
Minimizing Issues
Being aware of potential shipping issues is the first step to prevention. As your shipping volume increases, these challenges will become clearer. While some issues are inevitable, developing robust procedures can help you address and prevent them in the future.
As a business owner, your role involves problem-solving, and effectively managing these shipping challenges is part of that responsibility. With the right strategies in place, you can minimize risks and enhance customer satisfaction.
5 urgent challenges 3PL providers need to tackle in 2024
In recent years, the eCommerce industry has experienced significant growth, with a projected compound annual growth rate (CAGR) of 14.7% through 2027. The shift to online shopping during lockdowns drove sales up, but it also introduced challenges for retailers. They now face hurdles like managing international shipping and competing with larger brands on pricing while striving to meet increasing customer expectations.
Here are the top five eCommerce challenges that we’ve identified for 2024 and MacMillan’s proposals for how to overcome them:
Shipping and Order Fulfillment
Shipping and order fulfillment have become increasingly difficult due to rising fuel surcharges in the Canadian logistics market. International container freight rates now exceed $2,400, up from pre-pandemic rates of around $1,500, although they’ve dropped from a peak of over $8,000. These high shipping costs lead to increased product prices, delayed deliveries, and reduced margins for retailers. To mitigate these challenges, MacMillan uses strategies to shorten supply chains by utilizing local production, optimizing routes, consolidating shipments, and improving demand forecasting.
Meeting Rising Customer Expectations
Consumers now demand fast delivery, quality service, and flexible return policies, and they will switch to competitors if these needs aren’t met. Meeting these expectations can foster customer loyalty and boost revenue. Sustainability is also a key concern for MacMillan, with 66% of shoppers willing to pay more for eco-friendly products. Retailers can enhance customer experience by adopting sustainable practices and personalizing services across all channels.
Cart Abandonment
The average cart abandonment rate is nearly 70%, meaning many potential customers leave before completing their purchases. This not only impacts revenue but also increases acquisition and retargeting costs. To reduce abandonment, retailers should simplify the checkout process, disclose shipping costs, offer multiple payment methods, and optimize site speed. Creating urgency with limited-time offers can also encourage completions for 3PL providers as well.
VR Technology in eCommerce
Virtual reality (VR) is transforming eCommerce by providing immersive shopping experiences, allowing customers to try on clothes or visualize furniture in their homes. While promising, VR comes with challenges such as the need for costly hardware and specialized skills. Retailers should invest strategically and start small to gauge ROI.
Customer Data and Cybersecurity
In 2022, there were over 4,100 data breaches globally, highlighting the growing threat to eCommerce security. Sensitive customer data is at risk from phishing, financial fraud, and malware attacks. A breach can result in financial loss and damage to reputation. To protect customer data, retailers should implement strong security measures, such as SSL certificates, secure payment gateways, and staff training on data handling.
