Category: Shopify Tutorial

Shopify Tutorial

Add Local Delivery Service to Drive More Online Sales

Apr 30, 2021 , by 露露

This article is from Shopify, and was republished and shared through Elksourcing with the permission of Shopify.
Original link:https://www.shopify.com/blog/local-delivery

According to our consumer trends data, more than half of North American buyers say the pandemic has changed the way they’ll shop going forward.

One breakout trend is increased support for small and local businesses, with more than half of consumers specifically seeking out local, independently owned businesses. Nearly a third of buyers say they’ve bought something online and had it delivered locally during the first three months of the pandemic. Local delivery is a great way to connect with nearby customers, drive sales, and provide a great customer experience. 

You may be wondering how to set up local delivery or if local delivery is right for your business. Below, we’ll take you through the ins and outs and how to get started with your own local delivery service. 

Table of Contents

  • What does local delivery mean?
  • How local delivery can help your business
  • Figure out your local delivery logistics
  • Boost sales with local delivery on Shopify

What does local delivery mean?

In ecommerce, local delivery allows customers to buy your products online and have you deliver them straight to their doorstep. Local delivery serves as an alternative to both shipping with a carrier and in-store shopping. It has been particularly impactful for merchants and customers alike in a world where shipping carriers are experiencing increased delays and in-store shopping still carries risk.

How local delivery can help your business

With local delivery, businesses can offer thoughtful shopping experiences for their local customers and help generate sales and revenue. Here are some of the ways delivering locally with Shopify can help businesses connect with customers nearby and carve a place for themselves within their community. 

The Local Delivery feature within Shopify is a set of flexible tools that allow businesses to offer a customizable local delivery service at checkout. Business owners can define delivery zones and multiple pricing conditions for each zone, manage and prepare orders for delivery, and create optimized delivery routes for drivers.

Build a connection with the local community

Making it easier for customers to shop locally is a great way to differentiate your brand, attract new customers, and drive sales. It’s also a powerful way to continue to connect with your existing loyal local customers. Not to mention, adding local delivery service can help you attract new customers to your community. 

It’s been long said that building a loyal customer following is the best way to foster sustained growth. And we’re living in a time where people are feeling the effects of physical distancing during the pandemic and want community more than ever.

Improve the customer experience 

Shipping delays are a natural part of the gig, especially during a pandemic. Shipping costs can also be unpredictable and are a common reason why many customers abandon their shopping carts. 

Delivering orders directly to local customers is a way around delays and shipping costs. By delivering the product themselves, merchants can better control the process without relying on shipping carriers—especially with delivery times impacted by the pandemic. And while there are still associated costs to consider, merchants can manage those costs instead of being tied to carriers, who often have peak surcharges during the holiday period. 

Increase sales

Data from Shopify shows that online shoppers spend 23% more and have a 25% higher cart size when convenient ordering options like local pickup and local delivery are offered by independent retailers. Furthermore, online shoppers that chose local pickup or local delivery during checkout had a 13% and 19% higher conversion rate than shoppers who selected shipping at checkout. You can also increase your average order value by charging for your local delivery service. With Shopify Local Delivery, you have the flexibility to create multiple delivery zones with multiple pricing conditions for each zone.

On a local scale, not only are customers actively looking to support their local businesses to help sustain their communities and economy. They’re also interested in local shipping options because it offers enticing advantages.

First, for online retailers the unfortunate reality caused by the pandemic is shipping delays—and customers want to avoid it. Local delivery can offer price and delivery speed advantages over shipping.

Second, local delivery offers a way to create a personalized brand experience. Customers who shop locally are looking for that personal experience and because you can’t provide that in-store, local delivery is a way to provide it. You can leverage this to connect with existing customers and attract new customers. For example, you can include a personalized packaging insert and thank them for their purchase or a personalized message in the delivery notification.

Future-proof your business

While local delivery adoption may have been expedited due to COVID-19, the effects on consumer behavior will last well beyond the pandemic. The trend for supporting local business is not slowing down and consumers will continue to expect simple, convenient, and low-cost ways to get their online purchases. Consumer behavior has always evolved, and it will continue to do so. Merchants who step up to the plate, anticipate shopper needs, and offer innovative ways to shop will set themselves up for future opportunities. 

Can’t get out and deliver? Offer local or curbside pickup at checkout. Pickup availability complements the local pickup option at checkout by letting shoppers know whether each item they’re browsing is in stock and available for pickup at a nearby location.

Figure out your local delivery logistics

While setting up a local delivery option at checkout is simple, we’ve put together a list of logistical considerations to help you determine the best path for your business. 

Where will you deliver from? 

Some online store owners also operate brick-and-mortar locations, while others have no storefront and rely on an online-only operation. You’ll need to consider which of your stores will offer local delivery and if you will have enough staff to deliver from multiple locations. 

In some cases, especially if you’re doing it yourself, merchants offer local delivery from a single location. But if you have staff members who will be helping out, you might have the bandwidth to deliver to customers who live closer to other locations. 

How far will you travel to deliver orders?

Once you know where you’re delivering from, it’s time to figure out where you’re delivering to. You can be very specific about which areas you do and do not deliver to. Define multiple delivery zones and use a list of zip/postal codes to determine how far you’ll travel to deliver orders. Or simply set a radius around each location to identify your delivery areas, but keep in mind this gives you less jurisdiction over specific areas and neighborhoods.

The larger your radius, the more customers who are eligible for local delivery. This could lead to more sales but also means you might need more help with delivery. If you have a few staff members who can deliver, setting a larger delivery area may be ideal. If you’re doing deliveries yourself, you might want to set a smaller area. Either way, start small and adjust as needed. 

What will you charge for local delivery?

Amazon Prime was the first to make free shipping the norm, and now 21% of small to medium-sized online businesses always offer free shipping in the US. This has conditioned consumers to expect free shipping, and these expectations often extend to local delivery services too. 

But it’s not always feasible to offer free delivery, since you may need to cover related costs, like gas or extra delivery staff. There are two key factors to consider here: your delivery price and your minimum cart value.

You can choose to offer only local delivery for orders above a certain value, which also directly increases average order value (AOV). This strategy works well if you offer local delivery for free or at a low cost. Chris’s Ice Cream, for example, has a minimum $30 order to qualify for free local delivery. 

If you don’t want to introduce a cart value minimum, you can also set a fixed local delivery price for all orders within your delivery zone. For example, you can set a lower price for deliveries within a shorter distance and a higher price for deliveries within a longer distance. To make this delivery option attractive to your customers, price local delivery services lower than shipping through a carrier. This cost should be based on a combination of the time it takes you to deliver and how far you’re traveling to deliver orders. The larger your delivery area, the more you may want to charge for local delivery. 

It’s easy to set up local delivery in your Shopify store. You can create both local delivery rates and “pick up in store” rates to differentiate between the two options. 

When will you deliver orders?

One of the benefits of local delivery is customers can receive their orders more quickly. But this depends on how often you plan to go out on delivery. 

If you’re delivering locally and can’t do it every day or as orders come in, define specific delivery days or times. Make sure you communicate this with your customers before, during, and after their purchase. 

Some options to consider are same-day delivery, next-day delivery, or two-to-three-day delivery. Anything longer may not make sense for the local delivery shopper. The faster you can get products into your customers’ hands, the more you can charge for this service. You might also want to consider setting up your delivery schedule based on neighborhood, especially if serving a large geographic area. 

How will you deliver orders?

There are lots of ways to deliver orders, and it will mostly depend on your location and delivery zone. While motor vehicles may be the first method that comes to mind, you can also fulfill local delivery orders by bike or on foot, which could be faster in some areas, depending on traffic. 

If you’re short-staffed or interested in using third-party services, you could sign up for apps like Postmates. These can come in handy when you’re experiencing high volumes or want to get in front of new potential customers. This also takes the actual delivery process off your plate, which makes it easier to execute. However, it comes with extra fees. 

Who will deliver your orders?

Again, you can deliver the orders yourself, use existing or newly hired staff, or take advantage of third-party local delivery services—or a combination of any of the three. Whoever the delivery driver may be, it’s important to remember they’re a part of the customer experience. So even if they don’t work for you, they are still an extension of your brand. 

Communication is critical. Customers want to be kept aware of when their purchases will arrive. To that end, delivery staff should alert (via text or email) the buyer when they’re on the way and, if possible, provide an estimated time of delivery. Equally important is sending customers a delivery confirmation along with a photo of the product at the delivery location. When using in-house team members to deliver orders, it’s easier to control these interactions. That’s why many of the apps offer tracking options, so customers can see exactly where their order is. 

The Local Delivery feature within Shopify is a set of flexible tools that allow businesses to offer a customizable local delivery service at checkout. Business owners can define delivery zones and multiple pricing conditions for each zone, manage and prepare orders for delivery, as well as create optimized delivery routes for drivers using the Shopify Local Delivery app.

You’ll also need to consider what happens if the customer isn’t available at the time of drop off. Sometimes, it’s as simple as leaving the package outside the front door or in the mailbox. Other times, that’s not possible. Be sure to ask the customer for a phone number, and ensure drivers have it handy so they can contact the customer under these circumstances. It’s also a good idea to ask the customer for delivery instructions at checkout. That way, they can let you know whether it’s OK to leave the order at the door. 

In the case of Great Lakes Brewery, customers need to show photo identification to prove they’re of legal drinking age before they can receive their order.

No matter how hard you try, there will be mishaps. Maybe the customer gets the wrong product or it’s damaged when they open the box. You can take a picture of the package at the customer’s door to protect yourself and confirm delivery, but that’s not 100% foolproof. Have a backup plan in place and be prepared to offer replacement products. Be generous in your return policy in these cases and offer free shipping or returns pickup if possible—as well as free delivery for any replacement items. 

Hopefully mishaps are isolated incidents, but make note. If you notice a pattern—lots of theft in a certain area, damaged products when delivered by a third-party carrier, etc.—there could be cause for further investigation. 

How will you promote local delivery to nearby customers?

First and foremost, you’ll want to put local delivery information on your website. At launch, you might use a pop-up, banner, or marquee to share information with your customers. It’s also a good idea to put it on your shipping policy and checkout pages. Run free shipping campaigns or flash sales and combine the local delivery message to drive awareness and conversions. 

There are ways to promote your local delivery options on your website too: 

  • Social media. Post to your organic channels about local delivery, and complement that with paid ads targeting the area where you’re offering the service. 
  • Email marketing. Segment your list and let local customers know about the new option. Consider incentivizing with a coupon code for their first local delivery order. 
  • Search engine marketing. Chances are, customers in your area are searching for “local delivery near me.” Optimize for local SEO to show up in Google search results. 
  • Retargeted ads. Send campaigns to past and current customers or site visitors. Let them know that local delivery is new and they can take advantage of it today.

There are also traditional tactics that don’t necessarily require digital marketing. Merchants can use their understanding of the local community and events to get involved and market to the local customer base. Post flyers in community hot spots and consider collaborating with other local businesses.

How does local delivery work with your other shipping strategies?

While local delivery is great for nearby customers, you don’t want to isolate customers who reside outside your local delivery zone. Carrier shipping services can supplement and even handle some of your local delivery needs for you. 

Options like curbside pickup can be helpful for local customers in particular. If customers outside of your local delivery radius want online orders fast and expedited shipping isn’t an option or is too expensive, you can offer curbside pickup as an alternative. 

White Rock Soap Gallery has five Texas-based retail stores, along with a significant ecommerce side of the business. It offers local delivery from its retail locations in addition to curbside, shipping, and other options. 

Curbside pickup can work even if you don’t have a physical storefront of your own. Turn your warehouse into a pickup location, launch a pop-up local pickup spot, or partner with another local business to leverage their space. Local delivery doesn’t have to compete with other shipping strategies—it can support them.

Boost sales with local delivery on Shopify

Giving customers the choice of how and when to receive their orders removes barriers to completing the purchase, which in turn boosts your bottom line. It also gives you a chance to plug into a community, driving customer loyalty. 

When it comes to adding local delivery as an option to your online store, you have to figure out the logistics in a way that serves your business goals now and is sustainable to take your business into the future.

With Shopify Local Delivery, you can set up shop and serve a local base of loyal customers while continuing to promote your online sales to a wider audience.

Illustration by Cornelia Li

Shopify Tutorial

Shopify Shipping Services: Offer Affordable and Convenient Shipping for You and Your Customers

Apr 30, 2021 , by 露露

This article is from Shopify, and was republished and shared through Elksourcing with the permission of Shopify.
Original link:https://www.shopify.com/blog/shopify-shipping-services

Getting orders to your customers is a vital part of running your ecommerce business, and there’s a lot involved, from choosing product packaging to planning your shipping strategy.

Underpinning those strategic choices, however, is the fulfillment method that gets your order from point A to point B. Choosing a delivery method, carrier, and shipping services are important aspects of your logistics process. It’s all about finding the right balance between what your customers want and what you can realistically provide, both from an operational and a budget standpoint.

Shopify Shipping works directly with multiple carriers each offering multiple mail classes to make the process as streamlined as possible, so you can get orders into your customer’s hands quickly and affordably, whatever that means for your business.

Table of Contents

  • What is Shopify Shipping?
  • Choosing a carrier and a shipping service
  • Carrier delivery times are impacted by increased volumes and COVID-19
  • How to ship with Shopify Shipping
  • Take the next step with Shopify Fulfillment Network
  • Explore local options
  • Moving forward with Shopify Shipping

What is Shopify Shipping?

Shopify Shipping makes it easier and faster to fulfill orders, solving many common shipping problems. You can buy shipping labels directly in Shopify, print multiple labels at a time, and get orders out the door quickly.

Shopify Shipping works with USPS, UPS, and DHL in the United States, Canada Post in Canada, and Sendle in Australia, and offers multiple mail classes with each carrier. With Shopify Shipping, merchants can access features like overnight delivery, package pick-ups, shipping insurance, tracking information, international shipping, and more depending on your location, carrier, and mail class. We’ve also worked with carriers directly to negotiate competitive rates for each shipping service, which are automatically included on every plan at no extra cost to you.

Choosing a shipping carrier and a shipping service

When you want to ship an order, your shipping carrier is the company that takes your package and delivers it to your customer. Shipping carriers are companies like DHL or Canada Post that physically deliver packages to your customer’s door or mailbox.

Each shipping carrier offers multiple ecommerce shipping services, giving you different options based on your budget and needs. For example, in order to give options to your customers, you might be able to offer both a mail class that guarantees delivery within five business days and a more expensive one that guarantees delivery within two business days—all using the same carrier.

Before you choose a shipping carrier, it’s helpful to know the answers to the following questions:

  • Where are you shipping to?
  • Where are you shipping from?
  • What products are you shipping?
  • How heavy are your products?
  • What type of packaging will you use?
  • What’s your budget? Do you offer free shipping, flat-rate shipping, or exact-cost shipping?
  • What do your customers expect from your shipping policy? Do they expect their order to be insured, or have specific timelines they need for deliveries?
  • Do you need to coordinate with any third party logistics (3PL) providers?

Once you’ve answered those questions, you’re ready to select a carrier and a shipping service—or several, if that’s what works for your business.

You can ship with any carrier, but Shopify has partnered with specific carriers to make the process even easier for you. If you ship through Shopify Shipping with USPS, UPS, or DHL Express in the United States, Canada Post in Canada, or Sendle in Australia, you’ll be able to pay for and print shipping labels directly in Shopify.

Streamline your search for a shipping service: To see all of your options in one place, we’ve put together PDFs of all of the options available through Shopify Shipping in the US, in Canada, and in Australia.

Carrier delivery times are impacted by increased volumes and COVID-19

In “normal times,” carriers have standard delivery times and windows. However, as COVID-19 has driven more online shopping, merchants and carriers alike are facing unprecedented spikes similar to what you see during the holiday shopping season. As a result, many carriers have been unable to guarantee delivery times. You can check our shipping carrier status page to get updated information about rates, delivery times, delays, and more.

United States Postal Service (USPS)

If you’re shipping from the United States, USPS is the most economical way to ship lightweight and less-urgent orders through Shopify Shipping.

✓ Economical

✓ Government post office

✓ Lightweight items (under 70lbs)

✓ Domestic and International Shipping

✓ Tracking information (for most mail classes)

You can use six domestic mail classes and three international mail classes with USPS in Shopify Shipping, and some of them offer tracking information and insurance. You can ship packages weighing up to 70 lbs, and you can create return shipping labels for domestic orders in Shopify as well. When you ship with USPS, all delivery timelines (with the exception of Priority Mail Express) are estimated, not guaranteed.

Regardless of the mail class you choose, USPS doesn’t charge surcharges for fuel, residential delivery, or Saturday delivery. USPS offers both domestic and international shipping options. Here’s an overview of the mail classes available to you in Shopify Shipping with USPS.

Domestic USPS Mail Classes

First-Class Package Service

Delivery time: 2-5 business days

The most affordable way to ship small packages.

Priority Mail

Delivery time: 1-3 business days

Best for fast domestic delivery.

First-Class Mail

Delivery time: 2-3 business days

Best for lightweight items like greeting cards, stickers, and postcards.

Priority Mail Express

Delivery time: 1-2 business days, guaranteed

The fastest and most premium domestic delivery option.

Parcel Select Ground

Delivery time: 2-8 business days

Slower, economical way to ship heavier packages. Only available online.

Media Mail

Delivery time: 2-b business days

Only eligible to ship media like books, records, and DVDs

International USPS Mail Classes

First-Class Package International Service

Varied delivery timelines

The most affordable way to internationally ship small packages.

Priority Mail International

Delivery: 6-10 business days

Offers fast international delivery to 190 countries.

Priority Mail Express International

Delivery: 3-5 business days, guaranteed

The fastest and most premium international delivery option to 190 countries.

United Parcel Service (UPS)

UPS is a reliable and premium way to ship both regular and time-sensitive orders in Shopify Shipping in the United States.

✓ Guaranteed delivery

✓ Premium shipping carrier

✓ Tracking information

✓ Insurance coverage (up to $100)

✓ Lightweight and heavy items (under 150 lbs)

✓ Domestic and International Shipping (220 countries)

There are six domestic mail classes and five international options available with UPS in Shopify Shipping, all of which offer guaranteed delivery. Their premium offerings include tracking information on all shipments, time-definite and day-definite deliveries, and international shipping to 220 countries and territories. You can ship packages up to 150 lbs, making UPS the carrier of choice for shipping larger or bulkier items.

Domestic UPS Mail Classes

UPS Ground

Delivery: 1-5 business days

The most affordable domestic delivery option.

UPS 3 Day Select

Delivery: 3 business days

Best for shipments that need to arrive in a shorter timeframe.

UPS 2nd Day Air

Delivery: 2 business days

Best for shipments that do not require overnight service, but still need to arrive quickly.

UPS Next Day Air Saver

Next business day (afternoon)

Best for shipments that must arrive the next business day. The most affordable of the “next day” services.

UPS Next Day Air

Delivery: Next business day

Best for shipments that must arrive the next business day.

UPS Next Day Air Early

Delivery: Next business day (morning)

Best for shipments that must arrive early the next business day. The fastest and most premium domestic delivery.

International UPS Mail Classes

UPS Standard

Delivery: Day definite by date scheduled

Ships to Canada and Mexico only. The most affordable international delivery for less-urgent shipments.

UPS Worldwide Expedited

Delivery: 2-5 business days

Best for less-urgent small packages to 220 countries.

UPS Worldwide Saver

Delivery: 1-3 business days (end of day)

Best for express international shipments.

UPS Worldwide Express

Delivery: 1-3 business days (morning)

Best for express international shipments to 120 countries.

UPS Worldwide Express Plus

Delivery: 1-3 business days (early morning)

Best for the most time-sensitive international shipments to 55 countries.

DHL Express

DHL Express is a premium way to ship time-sensitive international deliveries from the US in Shopify Shipping.

✓ Premium shipping carrier

✓ Fast international delivery

✓ Tracking information

✓ Lightweight and heavy items (under 150 lbs)

✓ International Shipping (220 countries)

Through Shopify Shipping, DHL Express offers one mail class: DHL Express Worldwide, which provides flexible delivery options for the buyer, tracking information on all shipments, time-definite deliveries of 2-5 business days, and international shipping to more than 220 countries and territories. The maximum weight allowed is 150 lbs.

Canada Post

Canada Post is the most economical way to ship packages from Canada in Shopify Shipping, and offers both domestic and international shipping options.

✓ Economical

✓ Government post office

✓ Lightweight to medium-weight items (under 66 lbs)

✓ Domestic and International Shipping (220 countries)

Canada Post offers three domestic shipping services, four international shipping services to the United States, and six international shipping services to more than 190 countries in Shopify Shipping. You can ship orders weighing up to 66lbs, and some of Canada Post’s services offer insurance, tracking information, and delivery guarantees.

Canada Post’s Domestic Shipping Services

All of Canada Post’s domestic shipping services offer guaranteed delivery.

Expedited Parcel

Delivery: 1-7 business days

The most affordable domestic delivery option.

Xpresspost

Delivery: 1-2 business days

Best for fast shipping for documents and parcels.

Priority

Delivery: Next business day

The fastest domestic delivery for time-sensitive documents and parcels.

Canada Post’s International (USA) Shipping Services

Small Packet™ USA – Air

5-8 business days

The most affordable delivery option to the United States. Ideal for small and lightweight items (under 1 kg).

Tracked Packet™ – USA

Delivery: 4-7 business days, guaranteed

Best for shipping small and lightweight items (under 1 kg). Ideal for e-commerce shipping due to online tracking and insurance coverage.

Expedited Parcel™ – USA

Delivery: 4-7 business days, guaranteed

Best for bigger parcels (under 30 kg).

Xpresspost™ – USA

Delivery: 2-3 business days, guaranteed

The fastest and most expensive delivery option for international shipments.

Canada Post’s International (Rest of World) Shipping Services

Small Packet™ International – Surface or Air

Air delivery: 6-10 business days

Surface delivery: 1-3 months

The most affordable international delivery for less-urgent small and lightweight items (under 2 kg).

International Parcel™ – Surface or Air

Air delivery: 12+ business days

Surface delivery: 1-3 months

The most affordable international delivery for less-urgent larger parcels. Also ideal for shipping to countries that don’t offer Xpresspost™ – International.

Tracked Packet™ – International

Delivery: 6-10 business days, guaranteed

Best for small and lightweight items (under 2 kg) to 31 countries. Ideal for e-commerce shipping due to online tracking and insurance coverage up to $100.

Xpresspost™ – International

Delivery: 4-7 business days, guaranteed

The fastest and most premium delivery option to 70+ countries.

Sendle

Sendle is the best way to ship packages from Australia in Shopify Shipping.

✓ Free pickups

✓ $300 AUD of cover against loss included on all shipments

✓ Request free signature confirmation

✓ 100% carbon neutral

✓ Domestic and International Shipping (200+ countries)

Sendle offers both domestic and international shipping services. You can ship orders weighing up to 20 lbs. All Sendle shipments through Shopify include $300 AUD of cover against loss, tracking information, and 100% carbon neutrality.

How to ship with Shopify Shipping

Once you’ve selected the carrier and shipping service you want to use, getting started with Shopify Shipping is simple.

If you’re going to offer multiple options for your customers to choose from, and pass on the direct costs to them, make sure to select and enable the shipping service you’ll offer in Shopify Shipping. You’ll also want to ensure your product weights and dimensions are accurate, to make sure your shipping price estimates are too.

Shopify Shipping can automatically calculate carrier shipping rates based on cart weight, box size, and the shipping services you want to offer. It’s important to make sure you add weights to each of your products and measure the size of the box you’ll use for shipping.

You can also set up free shipping for minimum order thresholds or other parameters of your choice. Shopify will automatically set the shipping rate to $0 when customers with a qualifying purchase hit checkout.

When you’re ready to fulfill an order, here are the steps to ship with Shopify Shipping:

  • Select the order(s) you want to fulfill
  • Add package details and select carrier
  • Review and print labels
  • Affix labels to packages
  • Drop them off at the carrier or dropbox or schedule a pickup in the admin (UPS,DHL Express, and Sendle only)

Take the next step with Shopify Fulfillment Network

It takes time and energy to make sure every delivery is part of an on-brand and positive customer experience. If you ship more than five packages in a day, it quickly starts to eat away at the time you could be focusing on your business.

If you find yourself spending too much time on shipping and fulfillment, it might be time to look for outsourced fulfillment services from a logistics partner. When working with a 3PL partner, they’ll handle all the coordination with carriers to get products shipped out to customers. Plus, you’ll get more space to hold your inventory in their facilities and warehouses.

And you can outsource all this through Shopify too. Shopify Fulfillment Network is an addition to our suite of shipping options, allowing you to automate fulfillment so your orders get picked, packed, and shipped as quickly as they come in. Shopify has a network of distributed warehouses across North America so you can strategically distribute your product closer to your customers, reducing the shipping times and costs.

Though your product might be spread across multiple warehouses, Shopify still gives you a centralized view of your inventory so you can see where all your products are and connect you with a main point of contact, your own dedicated logistics expert — and your eyes in each warehouse.

Working with a 3PL can help you take back your time, so you don’t have to spend it worrying about shipping. Learn more about fulfillment here.

Explore local options

While Shopify Fulfillment Network helps you expand your reach and serve a large geographical area, there are also ways to take local fulfillment into your own hands. These “shipping” options not only give you more control over shipping and deliveries, but also eliminate the need to pay for a carrier or 3PL. This is because local options offer low or no cost options for customers to get their products. The benefits are that this makes it easier for your business to deal with the holiday rush, and omit worry around potential shipping delays as you won’t have shipping carrier holiday cut off dates, and it’s a good way for you to connect with your local communities and attract local sales.

Local delivery allows customers to buy your products online and have you deliver them straight to their home. Local and curbside pickup allows customers to buy your products online and visit your store, warehouse, or other designated pick-up location to pick them up.

Though local delivery and local pickup options may have spiked in popularity due to social distancing measures for COVID-19, they’re shaping consumer behavior in ways that will last well past the pandemic.

Moving forward with Shopify Shipping

Shopify Shipping takes one of the complicated, tedious aspects of your business and streamlines it so you can focus on more impactful tasks. With Shopify Shipping, you can save up to 90% on shipping and send your products with confidence using simplified tools that scale with your business.

Shopify Tutorial

Product Packaging: How Top Brands Design Memorable Unboxing Experiences to Delight Their Customers

Apr 30, 2021 , by 露露

This article is from Shopify, and was republished and shared through Elksourcing with the permission of Shopify.
Original link:https://www.shopify.com/blog/ecommerce-packaging

The market for ecommerce goods has changed drastically over the last decade. The demand for product packaging solutions to handle shipping and logistics, as well as to create a unique customer touchpoint, has grown alongside it, with a total market value of $61.55 billion dollars expected by 2025. 

For ecommerce businesses, shipping and fulfillment represents the most direct touch point and connection with a customer. It also happens to be one of the most underused marketing opportunities.

Packaging came out of a need to protect products during the shipping process, but focusing solely on function means you might be overlooking the potential marketing impact of your packaging. Done well, a branded packaging and unboxing experience is a chance to deliver a functional product and create a memorable moment for your customers.

  • What is product packaging?
  • Importance of product packaging
  • Types of product packaging
  • How to create a custom packaging experience
  • Product packaging costs
  • Best product packaging examples
  • Make your unboxing experience worth remembering
  • Product packaging FAQ

A primer on product packaging

Product packaging refers to all the activities related to designing, evaluating, and producing a container for your products. Many online retailers create a branded packaging experience to delight customers and improve profitability. 

In total, a branded packaging experience is a thoughtful selection of shipping and packaging materials in addition to the way you choose to present your shipped products. Its purpose is to provide additional value for your customer and your business by way of creating a positive first impression of your brand—ideally, one that’s both memorable and shareable.

Importance of product packaging

Online retailers have fewer touch points to deliver delight compared to physical retail. The advantage of the efficiency of online shopping can come at the cost of the tactile, hands-on experience with a product before making a purchase. That’s why it’s important to pay special attention to the touch points you do have available to create a memorable brand experience for customers and set yourself apart from competitors.

A recent survey from Dotcom Distribution found 40% of consumers are likely to make repeat purchases from an online merchant with premium packaging. The same study also found that premium packaging makes a brand feel upscale, as well as builds anticipation for delivery.

Packaging has become an extension of your brand for online retailers. Take Apple, for example. The brand is known for high-end, glossy, and refined products, just like the package it is shipping. While not every business has the budget of Apple, you can incorporate different, less costly ways to delight customers at every stage of the journey.

Seed, a direct-to-consumer retailer selling probiotic supplements, uses simple yet delightful packaging made from mushrooms that dissolves underwater—an excellent touch for its target audience of eco-conscious buyers. 

Seed uses eco-friendly custom boxes for it’s product packaging. Photo courtesy of: The Marketing Geek Tweet

Fundamentally, people like sharing great experiences they’ve had. Search for “unboxing” on Google and you’ll find countless blog posts, images, and videos. Many of those pieces of content were created by customers, further helping a brand launch and get its name out to more people.

Building a long-term, growing brand means bringing customers back time and time again. Repeat customers will spend more with your business, and investing in retention and customer loyalty can move you off of the acquisition treadmill where you’re always trying to find new customers.

Types of product packaging

Before you can ship your products, you’ll need to package them for safe transport. There are a few common options for utility focused packaging:

  • Corrugated boxes
  • Padded mailers
  • Bags and envelopes
  • Custom product packaging

Unless you’re shipping a very small or ultra durable item, most products will require some type and size of box to protect the order for safe transport, as well as some form of stuffing or product cushioning.

Some types of ecommerce packages are:

1. Corrugated boxes 

These are still the most typical type of product packaging used by retailers. They’re sturdy, don’t add weight to your packages, and can be recycled. You can also use double-walled corrugated boxes to provide extra strength and durability for heavier weight items. 

Here are some examples of mailing boxes retailers can use to ship products:

Photo courtesy of: Uline

2. Padded mailers

These packages are best for shipping smaller, flat, or delicate items such as jewelry, handcrafted goods, books, or electronics. You can add extra protection with recyclable paper or bubble wrap, though the latter is a less eco-friendly option for packing. 

OWA Haircare Sustainable Padded Mailer. Photo courtesy of: Pinterest

3. Bags and envelopes

If you sell more light but not fragile products, you can use poly mailers, Tyvek envelopes, or plastic mailing bags to ship your goods. They are lightweight, strong, easy to store, and self-sealing, which makes shipping small orders or boxes easier, whether from home or a warehouse. You can also easily customize them to fit your brand and use zero-waste alternatives through companies like Hero Packaging. 

Custom matte black poly mailer. Photo courtesy of: Pinterest

4. Custom product packaging 

Custom boxes are a great way to create a unique unboxing experience and show customers what you value. There are tons of options for printing and customizing on everything from the tissue to gift wrap, packing slips, and more. Plus, you can print all over your box to present your brand in new ways and create a satisfying experience for your customers.

PYM Chews uses custom ecommerce packaging with brand messaging on the delivery box. Photo courtesy of: @OliviaJune Tweet

East Coast Packaging is a popular choice for packaging materials, offering over 1,300 sizes of boxes, bubble mailers, and package cushioning. There are also apps like Arka on the Shopify App Store you can use for your custom packaging needs. We’ve also provided many more resources for boxes and cushioning later in the resource section of this chapter. 

How to create a custom packaging experience

Many elements must work in tandem when creating a well-designed branded packaging and unboxing experience, but you don’t have to include every available option.

Rather, decide which packaging solutions for small businesses deliver the best experience and most value for your customers. Strategically investing in a handful of these product packaging supplies can go a long way in creating an unboxing experience your customers won’t soon forget.

Note: Shopify Fulfillment Network puts your brand first. Businesses can send in packing instructions, including your custom packaging and products inserts, and warehouses will ensure a consistent unboxing experience. 

1. Packaging

The most significant element to consider is the main shipping container. Depending on your product, this might be a box, bag, or poly mailer. White and brown corrugated packaging options once ruled as the sole option because they’re cheap, sturdy, and get the job done, but they may not create the first impression you’re looking for.

Is your brand eco-friendly? You can opt for biodegradable packaging alternatives using compressed fibers from mushroom filament and coconut. For example, you could use compostable mailers made from corn rather than plastic poly mailers.

While the actual package represents the most significant opportunity to create a “wow” experience, it can come at a comparatively high price.

2. Tissue paper

Wrapping your products in tissue paper adds an extra level of excitement by building another layer of anticipation into the unboxing experience. Custom-printed tissue or colored tissue paper are both solid options to consider.

3. Filler

Traditional filler types included Styrofoam packing peanuts, foam inserts, air pillows, or bubble wrap. Although popping bubble wrap is a long-cherished pastime for some of us, it isn’t visually appealing and won’t provide a premium feel. Other forms of packing filler worth considering include crinkle paper (colored or brown) and excelsior (wood fibers).

4. Stickers

Stickers are a useful option, as they’re versatile and fairly inexpensive. If you use tissue paper, a branded sticker can also seal the paper together. Or, instead of custom printing on your box, try using stickers as a way to brand your packages on a budget.

You may also want to include a few extra stickers, paired with a short note, as a way to thank your customers for their purchase.

5. Promotional material or a business card

Business cards offer a cost-effective way of adding small promo pieces to your package. Remember, they don’t have to mimic the aesthetics of corporate business cards.

For example, Haus sends packaging inserts, such as printed newsletters, in its shipments. Because of the nature of its product, this printed content serves as reading material that deepens the brand’s relationship with customers.

You can also include a personal note or special instructions to help customers get more value out of your product—the possibilities are endless and relatively inexpensive.

6. Packing slip

It’s standard to include a receipt or packing slip in your package, but many businesses don’t use this as a branding or marketing opportunity.

At a high-end restaurant, for instance, the receipt is delivered at the right time, usually presented to the diner in an elegant way or inside a closed folder. Place the receipt and packing slip in the package at a point that makes sense, as it’s not the first thing a customer necessarily wants to see when they open the package.

When you print a packing slip on Shopify, you can customize its contents and design by adding or removing elements, like your logo or product images, using Liquid, a template language created by Shopify. You might also consider including a coupon code on your packing slip to encourage repeat purchases.

7. Custom note

Though handwritten notes may be tricky to scale, new businesses are fighting to earn every customer. Connecting with shoppers through a personal, genuine note or card can make all the difference—handwritten messages, like the following one from Journ, show customers you care and that there are real people powering your brand.

Skincare brand Journ sends handwritten notes with its shipped products

8. Educational materials

If you sell products that need a little “how-to,” add instructions inside your packaging. You want to make sure your customers understand exactly how to use the product for their specific needs, so getting started is easy. Looking at Journ again, it really nails this with the helpful instruction sheets it includes for each product. 

Journ also sends instructions for how to use their products in the package.

When we’re unsure where to start with something, we tend to put it off. We stick to what’s comfortable and routine. To become that routine, your product needs to be the easy go-to option for your customer.

Kristen LaFrance, Head of Resilient Retail

Sharing educational materials with customers shows that you care about their experience, builds trust, and communicates that you support your product even after purchase.

9. Tape

Pick the clear packaging tape and keep moving, right? Not necessarily! These days, you have a variety of colorful tape options to complement your custom packing. You can also create branded tape, à la Amazon, for instant brand recognition.

10. Sample or gift

Based on the customer’s current purchase or purchase history, you may also consider including a free sample of another product. Ideally, you’ll choose something your shopper is likely to be interested in. For example, if they purchased shampoo, throw in a small sample of complementary conditioner. This tactic can help you cross-sell by introducing a customer to new products.

Resources for custom branded packaging

If you’re looking for custom packaging material to create a great branded unboxing experience for your customers, take a look below at our shortlist of some great suppliers of various types of packaging:

Boxes

  • Fantastapack
  • Arka
  • Custom Boxes Now
  • Any Box Today
  • Refine Packaging
  • Box Geek
  • Custom Boxes And Packaging
  • Inke (Australia)
  • InstaBox (Canada)

Tissue

  • noissue
  • Digiwrap

Tape

  • Tape Jungle
  • Arka

Envelopes and Mailers

  • Envelopes
  • Hero Packaging

Stickers

  • Sticker You
  • Sticker Giant
  • Sticker Mule

Promotional material

  • Overnight Prints
  • Vista Prints

Product packaging costs

A downside to a custom branded packaging experience can be the associated cost. These expenses include both time and price.

You’ll need to decide based on your average order size and profit margins what options are financially feasible, along with which present the greatest value to your business and customers.

Custom boxes and mailers tend to be the most expensive costs involved in creating a custom branded unboxing experience. 

To have your own custom printed boxes, you may be looking at a minimum order of 500+ and a cost of $5–$25 per box. Poly mailers will range from $0.25–$3 per printed mailer, depending on your order size—but you can order as few as 10 at a time with some suppliers. On top of that, consider that ecommerce boxes will add more total weight to your shipment than a poly mailer.

If your products don’t need the protection of a box, it can be worth opting for lighter packaging to save on the total cost. You can also opt for sustainable packaging and shipping solutions, from using compostable mailers and reducing packaging size to lower costs and align with more eco-conscious consumers. 

Being creative can help you save on costs and achieve similar results. Consider pre-designed colored ecommerce boxes from places like Arka to help with your packaging needs. These shipping boxes come with much lower minimum orders and prices—as little as 25 boxes, and prices vary depending on size.

Another option is to search AliExpress, where very similar colored boxes can be purchased with a minimum order of 50 units for sometimes less than $0.39 each (depending on size) and free shipping to most countries.

If you wanted to further customize the experience, you can consider adding printed stickers with your logo from a service like Sticker Giant or a similar service.

In almost every case, the greater your order size for the various packaging materials, the cheaper the cost. Strategically plan which items to use and place larger orders to bring costs down. Additionally, consider the impact of any weight discrepancies when looking at the overall cost of your packaging. Higher weights mean higher costs to ship, which can impact your shipping strategy as a whole.

Best ecommerce packaging examples

To improve your ecommerce packaging design, we’ve highlighted some creative ideas for shipping you can steal from top ecommerce brands. 

Caraway

Caraway Home is a direct-to-consumer retailer that sells well-designed, non-toxic ceramic cookware online. So it’s natural it focuses on sustainable packaging practices. The brand uses recycled materials with zero-plastic bags, low-impact print dyes, and 100% biodegradable cork trivets to package and ship goods. 

Cookware brand Caraway Home Starter Kit unboxing experience.Photo courtesy of: Caraway Home

Caraway also includes a welcome booklet with orders, made from recycled paper, along with messages printed directly on the packaging that help customers experience each lid, pan, and storage unit that come in the box.

Caraway Home using messaging on custom box to guide customers through unboxing.Photo courtesy of: @bzises Tweet

Overall, what stands out about Caraway’s ecommerce packaging is how organized and on-brand the experience is. Considering its main cookware set goes for $395, once you receive your package, you know you made the right investment for your kitchen.

TrunkClub

TrunkClub is a subscription-box company that takes the customer unboxing experience seriously. To start, instead of choosing a standard box sealed with clear packaging tape, it opted for a custom printed box with a handle that resembles a trunk, closely matching and accentuating its brand.

From the moment a trunk from TrunkClub arrives at your doorstep, you know you’re in for a great experience—and one you can’t wait to open.

Excellent product packaging example from clothing subscription box brand Trunk Club. Photo courtesy of: Trunk Club

Inside the trunk, the contents are thoughtfully laid out to create a presentation and experience. To further build a custom branded experience for its customers, all orders include a handwritten card from a personal stylist explaining the selection of products. It truly makes you feel part of something special and exclusive.

Haus

In a time where ecommerce packaging trends are colorful, vibrant, and larger than life, Haus does the exact opposite. It strips down its packaging to a simple white cardboard box with a newsprint insert that gives customers insight into how the product is made, cocktail recipes, and frequently asked questions. 

Haus Starter Kit package. Photo courtesy of: My Subscription Addiction

This let Haus focus on developing packaging and product with an aesthetic-first vision. Helena Hambrecht, Haus’s co-founder, tells Forbes in a recent interview, “We were able to rethink the bottle’s whole purpose. We decided we wanted to go with the home decor angle and break from tradition to create something that would really blend in with peoples homes.”

If you look at Haus’s Twitter feed, you’ll notice a variety of customers posting pictures of both the product packaging and the unboxing experience. 

Twitter user @emily_singer Tweets about Haus product packaging. Photo courtesy of: @emily_singer Tweet

Otherland

Otherland is an up-and-coming startup known for its selection of beautifully packaged and fragranced candles. Otherland’s founder, Abigail Cook Stone, the former art buyer for Ralph Lauren stores, understands the importance of visuals in our lives and built one of the most noteworthy ecommerce packaging boxes on the market. 

Otherland Mother’s Day seasonal collection box. Photo courtesy of: Business Insider

Some Otherland boxes, like the Mother’s Day example above, are only available for limited promo periods—which keeps customers engaged and excited by the brand. But whether you get a seasonal or base collection box, you’ll always experience familiar bright pops of color and delicious candle scents upon opening. 

Otherland always uses quality materials and a striking presentation to create a memorable branded unboxing experience for its customers. 

Allbirds

Allbirds is an ecommerce brand selling comfy shoes made from environmentally sound products, like tree fiber and sugar cane. It goes the extra mile in its packaging boxes to add product value and personality that reflects its eco-friendly footwear. 

View of Allbirds sustainable ecommerce package from the outside. Photo courtesy of: Allbirds

There’s a lot to love when opening up a pair of Allbirds:

  • Cool printed illustration 
  • Packaging insert with brand messaging
  • Made from recyclable materials and soy inks
  • Molded shoe inserts with a smiley face
  • Holes for carrying handles
  • On-brand, whimsical package design

Aerial view of Allbirds unboxing experience. Photo courtesy of: Allbirds

All the details in the Allbirds unboxing experience are focused on creating a seamless experience, from the shipping label to inks and pulp shoe inserts. It’s playful and functional, just like the Allbirds brand, and creates an experience customers won’t forget. 

Unwrapped Life

Unwrapped Life sells sustainable for your hair, body, and home with a mission to get as close to zero-waste as possible. They go against the grain to offer packaging that is minimal and compostable to align with their values.

Plastic-free, zero-waste packaging from Unwrapped Life, with compostable craft paper wrapping. Photo courtesy of: Unwrapped Life

Unwrapped’s signature conditioner and shampoo bars also come wrapped in compostable paper, so there’s virtually no waste. Plus, the natural brown colors bring a sense of warmth, strength, and comfort to the unboxing experience, with a little extra touch of sophistication. 

Unwrapped Life’s zero-waste, craft paper wrapping that can be composted. Photo courtesy of: Unwrapped Life

The company’s entire packaging process is completely paperless, taking orders by phone or tablets without any packaging slips. They continue working to find fulfillment centers that commit to their zero-waste and no-plastic policies to lower the brands carbon footprint.

We wanted to ensure that any products from our company have very limited to no impact at their end of life.

Arden Teasdale, Cofounder of Unwrapped Life

Make your unboxing experience worth remembering

Creating a memorable unboxing experience can be the competitive edge your business needs to not only generate repeat purchases but also attract new customers. Andy Dunn, the founder of Bonobos says it best:

“At the end of the day, you’re not building an ecommerce company, you’re building a brand that has ecommerce as its core distribution channel.”

Take the next few days to reassess your packaging. Consider how much you’re currently spending, your return policy, your average order size and profit margins and assess what you can do to deliver a better customer experience. 

As you prepare for the upcoming BFCM shopping season, make sure you have sufficient supplies on hand, appropriately sized boxes, and enough labels, stickers, notes, etc. It may also be a nice touch to add holiday-themed thank you notes or cards or stickers in your packaging to delight your customers. For more tips, check out our holiday shipping guide to survive and profit during the seasonal rush.

FAQ: Ecommerce packaging

What is ecommerce-ready packaging?

Ecommerce-ready packaging refers to packaging guidelines set by warehouses (including Amazon) that regulate a package’s size, efficiency, and how it protects a product. 

What is the concept of packaging?

Packaging refers to enclosing or protecting products to keep them safe during distribution, storage, shipping, and sales. Packaging is also the art and science of designing and producing packages for your brand.

What are the best packaging types?

  • Poly bags
  • Corrugated boxes
  • Paper bags
  • Paperboard boxes
  • Plastic boxes
  • Padded mailers
  • Rigid boxes
  • Custom boxes
Shopify Tutorial

International Shipping: Everything You Need to Know to Deliver Beyond Your Borders

Apr 30, 2021 , by 露露

This article is from Shopify, and was republished and shared through Elksourcing with the permission of Shopify.
Original link:https://www.shopify.com/blog/international-shipping

If you’re looking to grow your ecommerce business, expanding beyond your borders could be a great next step—but that means you need to figure out how to ship internationally.

To do international shipping right, you’ll need a strategy that works for you and your business. You don’t need to know everything about shipping, but you do need to understand the available options, and find an approach that will work again and again.

There are a lot of reasons you might not be shipping internationally right now. Maybe you’re just starting to consider it as an option. Or maybe you’ve even tried once or twice and you’d rather stick to your local or domestic market.

Selling beyond your borders can be an important growth area for your business, even if you only ship some products internationally, so it’s worth tackling the logistics head-on. Consider these figures:

  • According to Oberlo, one out of every four people you see is an online shopper.
  • Statista reports that retail ecommerce sales is going to grow from $3.53 trillion USD to $6.54 trillion USD in 2022.
  • Statista has the average order value of an international sale at $147 USD. That’s 17% higher compared to an average domestic sale.
  • Retailers who offer premium international shipping grow 60% times faster than those that don’t.

These figures show that online shoppers have come to expect international shipping, and ecommerce businesses are increasingly meeting that expectation. Shipping internationally creates an opportunity for stores like yours to sell to a larger audience.

Here’s what we’ll cover in this post so you can make better shipping decisions and expand your business on your terms.

  • Building an international shipping strategy
  • Shipping internationally through Shopify
  • What to charge international customers for shipping
  • Finding country regulations
  • Preparing packages
  • Working with multiple carriers
  • Pricing out your shipping

Building an international shipping strategy

While it’s difficult to give a definitive list of best practices that apply to every business, there are a few central decisions you’ll need to consider for your international shipping strategy.

Where and what you’ll ship

You’ll first need to identify where in the world you’ll ship to and which products you’ll ship.

Unsure which markets you should expand to first? Here’s a few indicators that can help narrow it down.

  • Start small. And close. By keeping the shipment close to home, you can set realistic expectations for customers on delivery times and rates. Starting small and close also allows you to get a feel for what it takes to expand your shipments.
  • Track current demand. Check out your shop’s traffic analytics and see which markets or countries are already visiting your online store. You can also gauge interest by direct customer requests to sell to their market. Repeat visits or high traffic could show interest in your products or offerings.
  • Consider the main languages of any market for expansion. Communication is essential when dealing with customers. If you’re fluent in a few languages, consider expanding into the countries that speak those languages first. If you only speak one language, find other countries or markets where that language is prominent.
  • Ensure there’s product-market fit for your target country. Are there markets around the world that you feel suit your business better than others? Some research may be required here. Checking into ecommerce penetration could be a good first step (explore that data here). Dig into the consumer trends and tastes of those markets. An item that’s a celebratory gift in the US may mean something different in South Korea, for example.

You’ll now need to consider what to ship. You may want to offer your entire product line. However, before you start shipping all over the world think about these aspects of your products and your business.

  • Building on the points above, are there items that would appeal to the international market(s) you’re looking to ship to?
  • Lightweight and smaller items will be more cost effective to ship and easier to package.
  • The more durable the packaging, the better. Shipping fragile products that may be damaged in transit if not packaged properly may increase the chances of a less-than-satisfactory delivery. If you decide to ship them, invest in sturdy product packaging.

Get familiar with country rules and regulations

Once you have an idea of what regions offer the most immediate opportunities, and which products you’ll be sending, it’s time to check into country-based rules and regulations.

Some countries prohibit items outright; others may limit them. Being informed on the rules and regulations that exist and which may impact your shipments can help ensure a smooth delivery.

There are a few ways you can get this information:

  • UPS has a tool that shows country-specific rules and regulations by origin and destination countries.
  • Check and see if your products are eligible to be imported into a given destination country. For example, the shipment of artwork from the US to Saudi Arabia is prohibited.
  • Check and see if any of your products—or components of your products—are listed as “dangerous goods” while being shipped. In general, a “dangerous good” is defined as a product that may cause harm during transit. The best place for this info would be a country’s government website. Canada and the UK provide great examples.

How to ship internationally with Shopify Shipping

Shopify offers merchants in the United States,Canada, and Australia access to discounted rates with USPS, UPS, DHL Express, Canada Post, and Sendle so you’re already set up to compare their rates.

When you purchase international shipping labels through Shopify, the correct customs forms and documentation are automatically generated for you and can be printed on any standard printer. When you use DHL Express to ship from the US, this documentation is electronically transmitted to customs–no additional paperwork necessary.

When you’re ready to get your shipments out the door, you also have the option to schedule a free or discounted pickup for any UPS,DHL Express, or Sendle shipment or link out to schedule one directly with USPS.

When considering which shipping carriers you may use, there are four factors to consider.

Costs

Using multiple carriers is one way to reduce your shipping costs.

Postal carriers are often more affordable, but may not offer many options for package types and speeds. Express carriers tend to be faster, can accommodate heavier or larger packages, and provide more service options, but can be more expensive.

Do your research and price out postal, regional, and express carrier options. We’ll cover how to charge for international shipping below, but it’s good to know what’s available for your international shipping strategy.

Delivery options

Some customers will want their purchases right away, and others will be more willing to wait.

To best serve your customers, offer a good mix of delivery options. Providing a range of choices gives them the option to balance the tradeoff between timeline and price, and that might be the difference between a sale and an abandoned cart.

Tracking and insurance

Most carriers provide shipment tracking, so you and your customers can easily see up-to-date shipment statuses. You can also add ePacket tracking to give customers end-to-end tracking options.

If you’re worried about a package becoming lost or damaged, insuring your shipments is the way to go.

Insurance is offered by most global express carriers and if it isn’t automatically included in the cost of shipping, it’s relatively affordable and straightforward to add.

If you are a merchants in the US, you can add Shipsurance shipping insurance to any shipment, regardless of shipping method or order destination.

When using postal carriers like USPS or Canada Post, some shipping services are available that include insurance in the price of shipping. You can use mail classes like Priority Mail International and Priority Mail Express International for USPS or Priority Worldwide, Xpresspost – USA, or Xpresspost – International for Canada Post, to get automatic coverage. You can always pay for coverage using a different shipping service—usually a few dollars per $100 USD of declared value.

Whatever you choose, consider adding insurance to any package over $200 being shipped to another country. Doing so will add some peace of mind to both you and your customer.

Be transparent about fees

This might be the most important part of any international shipping strategy: Be as transparent and communicative as possible with your customers about shipping costs. Don’t surprise your customers with an unexpected total cost at checkout.

According to the Baymard Institute, nearly 50% of the cart abandonment they surveyed on ecommerce sites in 2020 was due, in part, to extra shipping fees and costs:

Our own research studies how customer trust develops during the purchase journey of shoppers who buy from a new online store. The study reveals that when shipping internationally, a store’s shipping policy that clearly states who pays duties and taxes is a must-have to build trust and win a sale with a brand new shopper.

One place you can communicate these costs is on your policy pages. Clearly lay out how and where you ship products internationally, and what costs may be associated.

You can also do something as simple as adding flags to your top navigation to show your shipping availability, like Pure Cycles did here.

Letting your customers know where you deliver to doesn’t have to just be about costs. A tool like the Free Shipping & Hello Bar can help you promote your shipping and rates to a global audience.

It’s best to use all options available to communicate shipping costs—or potential costs—to a customer, whether it’s on your homepage, product page, or on a policy page. It’ll set expectations for you both, which can help give the customer added confidence to complete their purchase.

What to charge for international shipping

There are four key components for deciding on the cost to ship your products internationally. All four contribute to how effectively you’ll ship around the world.

Packaging

Before you ship anything, you’ll need to get packaging supplies. You may need a few sizes of boxes to accommodate different sized shipments. You might also need cushioning, like bubble wrap or stuffing. You can get your packaging both online and at post offices or office supply stores.

In general, it’s best to keep your packaging sturdy but simple. No one wants to deal with three boxes of varying sizes when getting a single product from your business.

Trying to strike this balance of sturdy packaging and low cost may require some homework. Look for deals where you can. For example, if you use USPS as a business, you can order boxes for free.

Working the cost of packaging into your total product cost should be pretty straightforward. Depending on the size and quality, most packaging should cost somewhere around $1.00 – $5.00 each.

Cost of shipping

Building the cost of shipping into your pricing approach is an essential part of correctly setting your prices. You don’t want to lose money on shipping or overcharge your customers. To make sure your approach works, think through these steps:

Consider and compare

Do you ship a lot of similarly sized products? Or maybe a few sizes or weights of packages? This difference, naturally, affects how you’d price a shipment.

Here’s one way to find the costs of shipping internationally:

  • Using a rate calculator for the carriers you’ll use, take your average domestic order and price it out as if you were shipping internationally.
  • Then use the rate calculator for your smallest domestic sale.
  • Now run the costs for your largest domestic sale.

With these three figures in place, you’ll have a sense of pricing for international shipping. It’ll also help you determine which shipments may cost more than others.

If you’re in the US, see how much it will cost to ship internationally with Shopify in our shipping calculator.

Here are two examples of this approach:

Merchant A

  • Smallest domestic sale cost $5.33 to ship internationally
  • Average domestic sale cost $15.47 to ship internationally
  • Largest domestic sale cost $124.55 to ship internationally

Merchant B

  • Smallest domestic sale cost $1.33 to ship internationally
  • Average domestic sale cost $2.75 to ship internationally
  • Largest domestic sale cost $3.25 to ship internationally

Merchant A has a broader range of shipping costs to cover. And Merchant B’s range is relatively narrow. Merchant A may be selling heavier and more varied products, while Merchant B’s offerings seem more consistent in size and cost.

Once you’ve determined your range, you’ll need a pricing structure that’s a good fit for you and your customers.

Structure your pricing

There are three main pricing structures when shipping around the world: Free shipping, carrier rate shipping, and flat rate shipping.

  • Free shipping: Free shipping is an excellent option for customers. If your profit margins allow for international orders to be shipped for free, consider offering it. If you’re not sure, check out this post on calculating order thresholds for free shipping.
  • Carrier rate shipping: Shopify already integrates with a few carriers (like USPS, DHL Express and UPS in the US, Canada Post in Canada, and Sendle in Australia) and gives customers shipping options and real-time pricing. Carrier calculated shipping can be very friendly since it allows your customer to choose and does the math for you. Plus, your customer will be charged the same rate that it will cost you to ship their order with Shopify Shipping.
  • Flat rate shipping: If your international shipping is consistent, in both the size/weight of your packaging as well as the cost of shipping (like Merchant B above), it may be worthwhile to consider flat or manual rate shipping.

Handling charges

Along with the cost of your packaging and materials, consider adding a handling charge.

International shipments pass through many more additional facilities than the typical domestic order. You should be packaging these shipments with more care, and that’s included in your handling. To determine your handling charges, ask yourself:

  • What’s your minimum hourly wage when preparing and packing shipments?
  • How long does it take you, on average, to prepare an order for shipment (from reviewing the order to sending it out)?

Now you can determine your handling costs. Here’s an example:

It usually takes 10 minutes to prepare an order for shipment. And at $11/hour to prepare these packages, you would add a $1.83 handling charge to cover the cost.

(10 min/60 min) x $11 = $1.83 is the handling cost

Again, adding in a handling cost is entirely up to you, and you need to do what’s best for your business. Keep in mind that international orders are typically a bit more expensive, and international customers usually expect to pay a bit more for quality shipping. A big part of a quality shipment is how it’s handled and packaged.

Duties and taxes

International shipments can be subject to duties and taxes depending on a number of factors. It’s important to do your research and factor any duties and taxes into your pricing strategy especially for any key international market you are targeting. You can use this duty calculator to get an idea what duties and taxes may apply to your products per destination country.

Taxes are based on a fixed percentage per destination country (and sometimes state or province). Duties, on the other hand, depend on a number of factors such as: 

  • The value of the items being shipped.
  • The country of origin or where items were manufactured.
  • The type of the items being shipped and attributes such materials used to make them.

By default, the importer (i.e your customer) is responsible for any taxes or duties on the shipment and will need to pay them before they can receive their order. This is called Delivered Duty Unpaid (DDU) or, more officially known as, Delivered At Place (DAP). It’s very important to be transparent with the buyer about additional fees to manage their expectation and avoid returns and chargebacks. Make sure to set up a clear return policy on your website.

To provide a smoother and surprise-free buying experience to your customers, you can choose to be responsible for paying these fees, this is called Delivered Duty Paid (DDP). In this case, you need to collect these fees upfront. 

From a logistical standpoint, you will buy the appropriate shipping label DDU/DAP or DDP and include customs documentation with your international shipment. Check with your domestic postal service as a local resource to make sure you know which documents you need to ship internationally. They’ll typically have these documents for you.

When you buy your shipping labels through Shopify Shipping, you’ll be provided with the necessary customs documentation needed to fulfill international shipments.

The correct customs paperwork required for an international shipment can vary by country. But typically these two documents will be required: a commercial invoice and an export packing list.

Commercial invoice

This is the bill for the shipped product from the seller to the buyer that helps prove ownership and payment. Used to determine the true value of the product(s) being shipped, this document helps the country assess customs duties and taxes. Here’s some essential information that should be included:

  • The merchant and customer’s names and addresses
  • The price, descriptions, and quantity of the products included
  • How the sale was made and the terms of the payment 
  • Shipping method

Depending on the carrier you are shipping with, the customs information may be embedded in the shipping label. DHL Express provides Paperless Trade to most countries, reducing the need for extra printed documents.

Export packing list

The typical detail on a packing list is on this form (buyer, seller/shipper, invoice number, date of shipment, etc.) but it also includes more extensive information like:

  • The mode of transport
  • Carrier info
  • Weight and dimensions of the packages (usually in metric measurements)
  • The type and quantity of packages
  • Package marks

Time to ship internationally

The first step to ensuring international shipping success is to have a strategy in place. From what and how you’ll ship, to where and at what cost—giving these factors some thought and research will better prepare you to grow your business around the world.

As well, remember to try out new approaches and techniques. Shipping is a fluid and seasonal industry. Be sure to re-apply and refine your strategy as new offers or changes take place.

Shopify Tutorial

How to Implement a Return Policy That’s a Win for Both You and Your Customers

Apr 30, 2021 , by 露露

This article is from Shopify, and was republished and shared through Elksourcing with the permission of Shopify.
Original link:https://www.shopify.com/blog/return-policy

Returns, refunds, and exchanges are all a part of doing business online. Just in the United States, Statista estimates return deliveries will cost businesses $550 billion by 2020—a 75.2% increase from four years earlier. Plus, nearly 41% of shoppers buy with the intent of returning.

Customers might be unsatisfied with their order for a number of reasons—it arrived damaged, they ordered the wrong size, or it simply didn’t meet their expectations. So they ask for a replacement or for their money back.

But without a proper system for handling them, these requests can eat up a lot of time, energy, and money with hours spent on customer service emails and spikes in shipping expenses for replacement products, especially after the holidays.

The good news is that it’s never too late to address the problem. With a great return policy and the right system in place, returns and exchanges can be transformed from a dreaded aspect of commerce into an opportunity that actually generates new profits for your business and increases customer loyalty.

But before we dive into how to write a return policy for your store and implement a system to handle requests, let’s talk about why it’s so important to get returns and exchanges right.

Table of Contents

  • What is a return policy and why do you need one?
  • Setting up an RMA system for returns and exchanges
  • How to write a return policy (+ free return policy template)
  • Where to put a standard return policy
  • Tools to power your return and refund policy
  • Strategies for more profitable returns and exchanges
  • Making the most of your return and refund policy
  • Return policy FAQ

What is a return policy and why do you need one?

Return policies are the rules a retailer creates to manage how customers return and exchange unwanted merchandise they purchased. A return policy tells customers what items can be returned and for what reasons, and the timeframe over which returns are accepted.

Why have a return policy? Getting a return request can be painful both financially and emotionally.

Refunding a customer’s order can result in a loss of profitability, and knowing that someone disliked your product can be disheartening for business owners who strongly believe in the benefits of what they sell.

For these reasons, it can be tempting to ignore the reality of returns and exchanges and leave the mounting problem unaddressed.

The pitfalls of a poor return policy

Over time, however, customer complaints about your return policy can start to filter onto social media, showing up as comments under your ads or even in Google searches about your business. This is where a poorly implemented returns system starts to negatively affect your overall reputation as a business. If bad sentiment about the buying experience starts to spread online, it is likely you will see a drop in conversion rate.

Processing every return manually and dealing with customers on a case-by-case basis can also be expensive for your business operations and exhausting for customer service staff. If the time and expense to process a return or exchange isn’t monitored and optimized, it can even prevent you from scaling your business.

At some point, most businesses will need to figure out a solution for returns and exchanges that benefits themselves and their customers.

The advantages of a customer-centric return policy

Many innovative businesses have recognized that a customer-centric return policy is a powerful marketing tool.

According to UPS, 68% of shoppers check a website’s return and exchange policy before making a purchase. That’s why many brands now advertise “free,” “easy,” and “no-hassle” returns and exchanges to increase conversion rates and online purchases.

A return policy that benefits the customer is often the differentiator between businesses with a strong repeat purchase rate and those that rely on one-time purchases only. As the cost to acquire customers rises, many businesses are looking at how to retain customers and increase their lifetime value.

Although a return or exchange may not make a business profitable on first purchase, the better customer experience is more likely to lead to a higher retention rate and long-term revenue growth.

Lastly, your reputation will benefit most from offering easy returns and exchanges to customers. According to Nielson’s Global Trust in Advertising Report, 66% of people surveyed trust consumer opinions posted online. These positive customer reviews and word-of-mouth recommendations about the buying experience will pay off as free marketing for your business that will allow it to thrive in the long-term.

Setting up an RMA system for returns and exchanges

If you’re running an ecommerce business, you’ll want to put a return merchandise authorization system (RMA) in place to manage returns in your store. Having an easy returns process can take the pain out of returns and exchanges for both the business and its customers. 

Whether you’re receiving your first return request or are trying to repair a flawed returns process, your RMA system can immediately help cut down the customer service hours spent on returns and exchanges.

What is an RMA system?

A return merchandise system helps you handle returns for your customers. It lets customers initiate a return, receive a pre-paid label with an RMA number, and ship the return without taking up your time. An RMA system also helps you manage and track your returns by relisting approved items back into your inventory and monitoring the financial impact of returns on your bottom line.

What is an RMA number?

RMA stands for return merchandise authorization. An RMA number is given to any service order created when a customer needs a repair or if they believe the product isn’t working properly. 

The difference between returns and exchanges

In ecommerce, the customer usually decides independently if they want a return (which signifies a refund) or an exchange (usually for a gift card or a replacement product of equal value).

If a customer wants a return, they are communicating that the product did not meet their expectations for one reason or another and want a refund. An exchange on the other hand, could mean they just chose the wrong item or the product was broken or ripped. 

It is important to distinguish early on in your system which of the two categories the customer falls into, so you know how to process their request. Whether a product is eligible to be returned or exchanged, or both, should be considered before it is sold and clearly stated on your website’s return policy page.

How do you set up an RMA system?

Fortunately, retailers today can set up a returns management portal on their websites quickly and easily. You can use a Shopify app like AfterShip Returns Center to manage returns and auto send return labels for free. 

With AfterShip, you can also:

  • Create a self-service returns process. Customers can submit returns by themselves in just a few clicks without contacting your support team.
  • Set up automated notifications. Send customers updates about their return promptly. You can choose from pre-set notifications or create your own.
  • Send shipping labels. You can set returns rules that match your return and refund policy, auto-generate shipping labels, and even offer discounted USPS labels if you sell in the United States. 

A good RMA system not only takes the hassle out of managing return requests, it also creates a delightful post-purchase experience that builds loyalty and turns returns into sales for your business. 

How to write a return policy (+ free return policy template)

Given that 96% of people would shop with a retailer again based on an “easy” or “very easy” return experience, let’s look at how to write a great return policy. 

The first step to setting up a system to handle returns and exchanges is formalizing your policy so you can communicate it clearly to your customers. A written return policy allows you to treat all requests the same and avoid the tendency to handle things on a case-by-case basis, which is often less productive and more expensive.

Policies will vary depending on the logistics of your ecommerce business and the products you sell, but every policy should cover the following basics:

  • What items can be returned
  • What items can be exchanged
  • What products are “final sale” (i.e., non-returnable, non-exchangeable)
  • When things can be returned or exchanged (i.e.. 30, 60, or 90 days past purchase date)
  • In what condition can items be returned (i.e., lightly worn, with tags still on, original packaging, original condition, etc.)
  • What products can be returned for (i.e., store credit, refund, a product of equal value, etc.)
  • How to initiate a return or exchange (i.e., an email address to contact or a web page to visit)

Note If your store is using Amazon, eBay, or Etsy as a sales channel, be mindful that these marketplaces have their own returns policies. What you state in your retail return policy may not apply if using these channels.

Ecommerce return policy template

Below is a basic template for a return policy that can be adapted to fit your business. Just replace the bolded text with your own policy and use the lists as a guide to ensure you don’t forget to include any important information:

If you’re looking to return or exchange your order for whatever reason, we’re here to help! We offer free returns or exchanges within 30 days of purchase. You can return your product for store credit, a different product, or a refund to the original payment method.

Please note the following exceptions to our return and refund policy:

Below are some examples of common exceptions: 

  • Discounted items are final and cannot be returned or exchanged
  • Returned items must have tags still on and be returned in original product packaging
  • Returned items must have no visible signs of wear or use

To initiate a return or exchange, please complete the following steps:

Your steps should be laid out clearly, linking to relevant pages, such as your online portal.

  • Login to our online return portal using your email address and order ID.
  • Choose the products you wish to return or exchange from your order.
  • Print the prepaid shipping label that you will receive by email.
  • Send all items back to us using the label provided.

Additional Information:

The following are add-ons with more information that you may want to include:

  • How long it takes to receive your refund, replacement product, or store credit
  • Any shipping fees the customer will need to pay
  • Any return restocking fees the customer will need to pay
  • How you handle lost or damaged returns
  • Contact information for your business if the customer has more questions

Where to put a standard return policy

It’s not enough to have a well-written return and exchange policy—you must also make sure customers see it before they buy. When talking to a frustrated customer who is trying to return an item marked as final sale, simply telling them it’s their fault for not reading the policy is unlikely to resolve the issue.

Include links to your policy in several hard-to-miss places throughout your website to save time going back-and-forth with customers who did not see the policy. A few key places to list your policy include:

  • Your website footer
  • FAQ page
  • Product page
  • Cart
  • Checkout
  • Website chat

One great return policy example comes from Chubbies, an online clothing retailer. The brand includes return and exchange questions in its website chat window. You can also start a return with one click. 

If the return and exchange policy is clearly outlined on your website so it can’t be missed by customers, the right expectations will be set before the purchase is made. There will likely be some customers who are unsatisfied with your store’s policy, but hiding the policy in fine print only leads to a lack of trust. 

Tools to power your returns and refund policy

Just like having a formal return and exchange policy will help eliminate some of the hours spent on customer service, using the right services for processing returns and exchanges will save you both time and money on the shipping and fulfillment and operations sides.

Shopify Shipping and Returns

Returns can be managed directly in Shopify with an easy step-by-step workflow, which includes creating a return request, identifying the return reason, tracking return shipping, and sending notifications to your buyer. You can even use Shopify Shipping to generate and email a return shipping label to your customer, making the process even more seamless. Merchants who use Shopify Shipping also benefit from discounts with carriers for both outbound and return shipping. Return labels are “pay on scan”, which means return labels are only charged once they’ve been used.

Return and exchange apps, like the ones below, are another option. These apps make processing returns and exchanges more self-serve for customers by offering a portal where they can make a return request, download a return shipping label, or choose products they want to exchange an item for.

Return Magic

Used by over 2,000 ecommerce stores, Return Magic is a return and exchange solution that easily integrates with your existing logistics system.

Return Magic also uses Shopify product tags to allow businesses to set up customized rules for returning and exchanging certain products:

For businesses that sell a wide variety of products with different return rules, being able to customize your policy with these triggers can save valuable time going back and forth with customers.

Advanced features like these prove that return and exchange rules don’t need to be one-size-fits-all. Special circumstances, like buying during a flash sale, can still be taken into consideration within an automated system.

Returnly

Returnly is one of the larger self-service returns providers for ecommerce stores. The app provides online stores with their own customizable “Returns Center,” which customers can sign into using their order number or email address to access their past purchases and select items they wish to return.

On the merchant side, Returnly offers the option to purchase pre-paid shipping labels through the app and get access to its shipping rates, or the ability to upload your own shipping labels to send to customers. This customization extends to almost all other aspects of the return flow, where you can decide what products customers can return or exchange, who pays for the shipping label, and whether they are given a store credit or full refund.

One of Returnly’s main differentiators is its Instant Refunds feature, which offers customers a store credit they can use to reorder before sending back their original purchase. If the customer does not return the product but uses the Instant Refund credit, Returnly covers the cost. 

By providing an immediate store credit, Returnly found that shoppers were three times more likely to purchase again from the store. This feature helps transform returns and exchanges into repeat purchase opportunities.

Build stronger relationships with Shopify Ping

Shopify Ping connects to the messaging apps you already use to bring all your conversations into a single mobile location, making it easier to respond to questions and build relationships with customers—even when you’re on the go.

Strategies for more profitable returns and exchanges

An unavoidable consequence of offering returns and exchanges to customers is that it’s not cheap. Although you can cut down on customer service hours with an app, the shipping fees associated with returning a product and restocking it can still threaten your profitability.

However, there are a few ways to minimize your losses while still offering returns and exchanges to customers.

1. Turn returns into exchanges

The difference between returns and exchanges is most prominent when looking at profitability. When a customer returns a product for a refund, the business usually loses money on the customer acquisition and return shipping costs, plus it needs to refund the customer any profit made on the original order.

With an exchange, the loss is often less impactful. With strong product margins, offering a replacement product instead of a full refund can keep your business cash flow positive.

A common way to encourage exchanges over returns is by only offering to cover the cost of return shipping if the customer chooses to exchange the product.

When presented with the three options above, the choice to get a store credit or new product may be more appealing to those who have not fully sworn off your brand. Convincing customers to give your brand a second chance with a new order can also help improve lifetime value, as they are more likely to come back and purchase again if they are satisfied the second time around.

Chubbies takes this extra value-add for exchanges a step further, by offering an additional $10 in purchase value if customers decide to buy a new product with their return credit:

By only making the exchange option more valuable, and not penalizing customers who just want to return, Chubbies creates a positive customer experience for everyone, while encouraging more customers to choose exchanges instead of returns.

2. Sell product warranties

When a customer chooses to return a product for a refund or exchange, one risk a company often takes on is whether or not it will be able to resell the item. 

It can sometimes take up to two weeks for a product to re-enter stock after a return is initiated, and the time spent in transit and unpacking can often leave it damaged. If the product is expensive, replacing it might not be an affordable option.

For more expensive items, companies may want to consider selling product warranties to customers. Warranties protect businesses against paying to replace damaged products and avoiding disputes over who is to blame.

Warranties can be sold through an app like Clyde, which can be added to your website to put the decision to protect the order back in the customer’s hands:

Photo courtesy of: Clyde

Warranties like this can also have the potential to unlock a new revenue stream for your business, since the providers often offer a commission on all premiums sold. That way, your customers are protected for a longer term and your business collects a little extra revenue instead of paying for damaged goods.

3. Upsell or cross-sell on exchange requests

One ecommerce returns best practice is to upsell or cross-sell on exchange requests. Although exchanges are usually more profitable than returns, their profitability can be narrow depending on the product and its margins. If exchanges are still costly, it might be a good idea to look at upselling or cross-selling on exchanges.

When a customer comes back to your website to use their store credit, there is an opportunity to show them new products they did not purchase the first time around that compliment what they’re exchanging for.

Various Shopify apps can be used to show customers related products at checkout.

Make sure to adjust your shipping policy for returns and exchanges. In cases where customers cover the cost of shipping on an exchanged item, it may make sense to allow them to add more products to their cart to reach a free shipping threshold. Upselling is also possible when you know the reason for the exchange and can make a personalized recommendation for a higher priced item that addresses the specific needs that weren’t satisfied on their first purchase.

For example, if a customer is exchanging a digital camera because they found that it was too heavy, you can recommend a lighter-weight version that might have a higher purchase price but resolves the issue they had with their first order.

Looking at every exchange as a new opportunity to increase order value by upselling or cross-selling, the incentive to convert more returns into exchanges becomes clear.

Making the most of your return and refund policy

No matter how much effort you put into your product and customer experience as you grow your business, chances are you will still encounter a few unsatisfied customers along the way.

How small businesses decide to deal with these unsatisfied customers is an important factor in the staying power of your brand. A company that figures out a relatively painless shipping strategy to handle return and exchange requests is more likely to retain its customers and have them come back and purchase again or, better yet, tell their friends.

Writing a clear return policy that feeds into a well-thought-out return and exchange system—and regularly optimizing it to make it more efficient—is a powerful way to cut costs and potentially turn a bad customer experience into a net positive outcome for your business.

Return policy FAQ

Is a return a refund?

No. A return is when a customer sends an item back to your store or warehouse. They usually have to return an item before they get a refund. A refund means giving the customer all or some of their money back for an unwanted item.

What is a return and refund policy?

A return and refund policy is an agreement between customers and your business regarding returns and refunds. It can include the following information:

  • How many days they have to return a product
  • How you give refunds, whether through credit card, debit card, or replacement
  • Who pays the shipping charges for returns
  • What you offer refunds for
  • How many business day it takes to receive a refund

Are refunds legally required?

Depending on your country and state laws, you can technically have a no refund, no return policy. But a no return policy can make customers distrust your brand and abandon a purchase. 

How do I make a return policy?

  • Create a return policy that builds trust with customers.
  • Be clear and concise when writing your return policy.
  • Don’t demand things from your customers.
  • Make your return policy easy to find and access on your website.
  • Make sure your teams know your return and refund policy.
  • Take responsibility for mistakes.
  • Give examples of your policy in action.
Shopify Tutorial

How to Create and Communicate Your Shipping Policy (With a Template and Examples)

Apr 30, 2021 , by 露露

This article is from Shopify, and was republished and shared through Elksourcing with the permission of Shopify.
Original link:https://www.shopify.com/blog/shipping-policy

“How much will shipping cost?”

“When will my order arrive?”

Some of the most common questions you get as a store owner will inevitably be related to shipping.

A well-thought-out shipping policy not only helps you proactively set the right expectations around shipping times and costs, but it also becomes an asset whenever customers come with questions about their orders.

Your shipping policy is a living document for your business, one that you update and adjust as your operations and circumstances change—especially when the unexpected forces you to adapt.

Whether you’re creating a new shipping policy from scratch or updating your existing policy to curb customer support inquiries, we’ve put together this resource to help you cover and communicate the right details—with a template to get you started along with examples you can borrow ideas from.

  • What your shipping policy should include
  • Shipping policy examples
  • Free shipping policy template
  • Where to communicate your shipping policy 

What your shipping policy should include

What you cover in your shipping policy and how you communicate it will be highly dependent on your current business operations and supply chain. The goal is to be transparent with customers.

As 2020 brings unforeseen shipping delays and increased carrier costs, it’s more important than ever to keep your shipping policy up to date with the following key points in mind:

  • Essential shipping details are easy to find. While it is common practice to keep a link to your shipping policy page in the footer of your website, consider how you can also surface important shipping details in the right place at the right time (e.g. on your product page or website banner).
  • Clear and concise presentation. Don’t make customers comb through your shipping policy page for the information they need. Whenever possible, make it easy to navigate with clear subheadings, tables, bolded text, and links to learn more. 
  • Order processing times. After an order is placed, how many days will it take to get it ready to ship? It’s worth communicating if you’re excluding weekends and/or holidays, and if you have certain cutoff times for processing orders (e.g. orders received after 5pm will be processed the next business day). If changes occur within your supply chain, due to peak periods or as a result of COVID-19, you should update your processing times to reflect it. 
  • Domestic and international shipping options. What are the qualifying regions for your domestic shipping options? International shipping can be broken down in its own section where you list the countries you ship to and estimated delivery timelines. If you offer several shipping options, you can list them in a table so the information is easy to scan.
  • Shipping costs. Break down your shipping costs for the customer. If you have a free shipping threshold, you can communicate in various places as an incentive for customers. Any potential surprise fees should be surfaced too, such as duties and taxes the customer may incur.
  • Local delivery and buy online, pickup in-store. If you offer local shipping options, such as local delivery or buy online, pick up in-store, you can explain the steps customers will need to follow after ordering and clearly communicate your local delivery coverage.
  • Transparency around returns, changes and cancellations. On top of accommodating returns through a dedicated return policy, you can also summarize how your business evaluates refunds, order edits, exchanges, and what your process is in the event of a lost or damaged order.
  • Potential service interruptions. Orders may take longer to arrive due to variables outside of your control. Your shipping policy page is where you can communicate approximately how much longer and explain to customers why.

It is not uncommon to update your shipping policy every few months, especially whenever you add new shipping options or carriers, expand your fulfillment network, or anticipate delays.

? PRO TIP: Communicating shipping speeds at checkout to your customers can help improve cart conversion, provide clarity and transparency, and increase consumer confidence.

Shipping policy page examples you can learn from

The following shipping policies can serve as examples of some of the ways you can formalize your own policy on your online store. We’ve included various shipping contexts so you can see how different circumstances translate into different policies.

A shipping policy geared towards local customers 

Due to the pandemic and social distancing safety precautions, many brick-and-mortar stores have embraced local shopping through local delivery and buy online, pickup in-store shipping options.

These local options each come with their own unique set of steps that must be clearly communicated to ensure a smooth customer experience. 

As an example, Merchant of York, a store that sells home goods and houseplants, started prioritizing local sales amidst the pandemic and has updated its shipping page with clear bullet points about how each option works.


Source: Merchant of York

The store provides the approximate timing of when local deliveries will arrive and establishes a window of availability for when orders can be picked up.

If you’re relying heavily on business from your local customers, you can also list the ZIP/postal codes you service, or borrow inspiration from Storyteller Beverages and embed a map on your shipping page to communicate your local delivery ranges visually.

Breaking your shipping policy down over multiple pages

Billy! is an apparel and accessories brand that splits its shipping policy across multiple shipping pages. Their main shipping page is designed around the needs of the majority of their customers in a simple two-part FAQ. But this page also links out to supporting pages where customers can get more details about order processing and international shipping. 


Source: Billy!

Using tables to clearly communicate shipping options and expectations

In some cases, such as if your products are frequently purchased as a gift or for an event, delivery timelines need to be made especially clear for the customer. Timely arrival is paramount to customer satisfaction.

Kigurumi, a company that sells animal onesies, is one such business, and they break down their delivery timelines by states for both their standard and priority shipping options.


Source: Kigurumi

A shipping policy template to help you create your own

Every shipping policy is different and there is no one-size-fits-all approach. But this template should help you design your own.

We highly recommend you do not use it as is. Instead, cut, adapt, expand, or rearrange the following sections to suit your business’s unique needs. If you want to learn more about building your shipping strategy, check out How to Choose an Ecommerce Shipping Strategy.

Text that is italicized and bolded like this is meant to provide guidance on how to approach each section of the template. You can delete it from the template when you copy it.

Shipping policy

It’s important to start by clarifying to customers that your order processing times are separate from the shipping times they see at checkout. 

All orders are processed within X to X business days (excluding weekends and holidays) after receiving your order confirmation email. You will receive another notification when your order has shipped. 

Include any other pertinent information towards the beginning, such as potential delays due to a high volume of orders or postal service problems that are outside of your control.

Domestic Shipping Rates and Estimates

For calculated shipping rates: Shipping charges for your order will be calculated and displayed at checkout. 

For simple flat rate shipping: We offer $X flat rate shipping to [list countries]. 

You can also emphasize any free shipping thresholds you offer (e.g. free shipping for orders over $75). For multiple shipping options, you can list carrier options, prices, and delivery times in a table.

Shipping optionEstimated delivery timePrice
Option 1X to X business days$X
Option 2X to X business days$X
Option 3X to X business days$X

Local delivery

If you offer local delivery or in-store pickup to customers in your area, you can dedicate a section of your shipping policy page to explain the process or create a separate shipping page specifically for local customers. 

Free local delivery is available for orders over $X within [area of coverage]. For orders under $X, we charge $X for local delivery.

Deliveries are made from [delivery hours] on [available days]. We will contact you via text message with the phone number you provided at checkout to notify you on the day of our arrival. 

You can list out the ZIP/postal codes you service and/or consider embedding a map here so customers can easily see if they are within your local delivery range.

In-store pickup

You can skip the shipping fees with free local pickup at [list the locations where in-store pickup is available]. After placing your order and selecting local pickup at checkout, your order will be prepared and ready for pick up within X to X business days. We will send you an email when your order is ready along with instructions. 

Our in-store pickup hours are [store hours] on [available days of the week]. Please have your order confirmation email with you when you come.

International Shipping

We offer international shipping to the following countries: [list of countries]. 

If relevant you can also include countries you don’t ship to: At this time, we do not ship to [list of countries]. 

If you’re using calculated shipping rates: Shipping charges for your order will be calculated and displayed at checkout. 

If you offer multiple international shipping options, you can list them in a table as well. You can include broader delivery timelines (e.g. 8 to 20 days) for international shipping since expectations can vary greatly depending on the destination.

Shipping optionEstimated delivery timePrice
Option 1X to X business days$X
Option 2X to X business days$X
Option 3X to X business days$X

Your order may be subject to import duties and taxes (including VAT), which are incurred once a shipment reaches your destination country. [Your Company] is not responsible for these charges if they are applied and are your responsibility as the customer.

How do I check the status of my order?

When your order has shipped, you will receive an email notification from us which will include a tracking number you can use to check its status. Please allow 48 hours for the tracking information to become available. 

If you haven’t received your order within X days of receiving your shipping confirmation email, please contact us at [email protected] with your name and order number, and we will look into it for you.

Include a link for customers to track their order if available.

Shipping to P.O. boxes

Some carriers have limitations around shipping to P.O. Boxes. If one of your carriers falls into this group, you should look up their policy and communicate it to your customers here. 

Refunds, returns, and exchanges

Summarize your return policy here and link out to your full return policy page if you have one. 

We accept returns up to X days after delivery, if the item is unused and in its original condition, and we will refund the full order amount minus the shipping costs for the return. 

In the event that your order arrives damaged in any way, please email us as soon as possible at [email protected] with your order number and a photo of the item’s condition. We address these on a case-by-case basis but will try our best to work towards a satisfactory solution.

If you have any further questions, please don’t hesitate to contact us at [email protected].

Where to communicate your shipping policy to customers

Your shipping policy doesn’t only need to live on your shipping policy page. You can make it easier for customers to find key points by communicating your policy wherever shipping questions may make customers hesitate about making a purchase.

The following are just some ideas of where you can highlight your shipping policy to make it easier for customers to decide to place an order.

Website announcement bar

Many online stores reserve their website banner for high-priority shipping-related information, such as shipping price incentives, disclaimers about potential delays, or alternative shipping options like local delivery

When you’re anticipating shipping delays or a higher volume of orders, one of the most effective ways to be transparent with customers is by communicating this through your website announcement bar. These banners that typically appear at the top of an online store are built into many Shopify themes, but can also be added to your store through one of these Shopify Apps.

Otherwise, you can also use this real estate on your website to highlight any shipping incentives that might compel customers to make a purchase—whether it’s free shipping for orders over $75 or $5 flat rate shipping to the US and Canada. 

Source: Billy!

A link in your website footer

Your footer is likely the first place a customer will look to find your shipping policy, along with other links to access self-serve customer support.

If shipping is a particularly important concern for your customers, you can consider incorporating your shipping page into your website navigation’s dropdown menu to ensure it is more discoverable.

However, in most cases, a link in your footer should suffice. 

Source: Healthish

Product page

Questions about shipping often come up as customers are browsing your product pages, making them another place to surface key aspects of your shipping policy.

Consider a simple line about your free shipping offering or a dedicated product page tab for more detailed shipping info. 

Source: ärtskül

FAQ page

Your FAQ page is another place where you can repeat your shipping policy alongside other common questions that customers might have.

Remember: An FAQ page isn’t just for troubleshooting customer problems but handling objections customers may have when making a purchase. It’s a great place to highlight aspects of your shipping policy that might win over uncertain customers, such as your return policy or your free shipping threshold.


Source: Tattly

Delivery option labels

While not always necessary, you can label your shipping options to include your delivery times, making it easier for customers to select the correct option for them.

This might be especially useful if you offer delivery timelines that are longer than a week and want to reduce the number of customers who reach out asking about their orders.

Your shipping options at checkout are hard to miss, making these labels a great opportunity to communicate specific delivery details.

Deliver the right expectations with your shipping policy

Trust is the cornerstone of running a successful business and your shipping policy ensures both you and your customers are on the same page. 

Being transparent and upfront when setting expectations helps customers decide to buy from you, and when the unexpected happens and your business operations change, your shipping policy helps you maintain that hard-earned trust.

Shopify Tutorial

What Is Dropshipping?

Apr 30, 2021 , by 露露

This article is from Shopify, and was republished and shared through Elksourcing with the permission of Shopify.
Original link:https://www.shopify.com/blog/what-is-dropshipping

 

  • Defining dropshipping
  • Benefits of dropshipping
  • Disadvantages of dropshipping
  • Common questions about dropshipping
  • Is dropshipping worth the effort?

Defining dropshipping

Dropshipping is a retail fulfillment method where a store doesn’t keep the products it sells in stock. Instead, when a store sells a product using the dropshipping model, it purchases the item from a third party and has it shipped directly to the customer. As a result, the seller doesn’t have to handle the product directly.

The biggest difference between dropshipping and the standard retail model is that the selling merchant doesn’t stock or own inventory. Instead, the seller purchases inventory as needed from a third party—usually a wholesaler or manufacturer—to fulfill orders.

Want to get started quickly? Join our free hands-on training session and learn how to set up an online store, step-by-step, using dropshipping to fulfill orders. You’ll learn how to find profitable products you can quickly import and begin selling. Can’t make it today? Register to get the recording after the event goes live.

How does dropshipping work on Shopify?

Two of the most common approaches for dropshipping on Shopify are to seek out a supplier located in North America, or anywhere else in the world, using supplier databases or to seek out a Shopify app that connects you and your store to thousands of suppliers.

For the latter, we recommend Oberlo, a marketplace developed by Shopify that helps independent business owners find products to sell. With Oberlo, you can browse AliExpress and import the products that pique your interest directly to Oberlo—which is connected to your Shopify store—with the click of a button.

Once a customer buys a product, you’ll be able to fulfill their order in the Oberlo app. Fortunately, Oberlo automates this process. As the store owner, all you have to do is check that the details are correct and click the “‘order”’ button. The product is then sent directly from the AliExpress dropshipping supplier to the customer—wherever in the world they may be.

Benefits of dropshipping

Dropshipping is a great business model for aspiring entrepreneurs to start with because it’s accessible. With dropshipping, you can quickly test different business ideas with limited downside, which lets you learn a lot about how to choose and market in-demand products. Here are a few other reasons why dropshipping is such a popular model.

1. Less capital is required

Probably the biggest advantage to dropshipping is that it’s possible to launch an ecommerce store without having to invest thousands of dollars in inventory up front. Traditionally, retailers have had to tie up huge amounts of capital purchasing inventory.

With the dropshipping model, you don’t have to purchase a product unless you’ve already made the sale and have been paid by the customer. Without significant up-front inventory investments, it’s possible to start sourcing products and launch a successful dropshipping business with very little money. And because you’re not committed to selling-through any inventory purchased up front, like in a traditional retail business, there’s less risk involved in starting a dropshipping store.

2. Easy to get started

Running an ecommerce business is much easier when you don’t have to deal with physical products. With dropshipping, you don’t have to worry about:

  • Managing or paying for a warehouse
  • Packing and shipping your orders
  • Tracking inventory for accounting reasons
  • Handling returns and inbound shipments
  • Continually ordering products and managing stock level

3. Low overhead

Because you don’t have to deal with purchasing inventory or managing a warehouse, your overhead expenses are quite low. In fact, many successful dropshipping stores are run as home-based businesses, requiring little more than a laptop and a few recurring expenses to operate. As you grow, these costs will likely increase but will still be low compared to those of traditional brick-and-mortar businesses.

4. Flexible location

A dropshipping business can be run from just about anywhere with an internet connection. As long as you can communicate with suppliers and customers easily, you can run and manage your business.

5. Wide selection of products to sell

Since you don’t have to pre-purchase the items you sell, you can offer an array of trending products to your potential customers. If suppliers stock an item, you can list it for sale on your online store at no additional cost.

6. Easier to test

Dropshipping is a useful fulfillment method for both launching a new store and for business owners looking to test the appetite customers have for additional product categories, e.g., accessories or wholly new product lines. The main benefit of dropshipping is, again, the ability to list and potentially sell products before committing to buying a large amount of inventory.

7. Easier to scale

With a traditional retail business, if you receive three times the number of orders, you’ll usually need to do three times as much work. By leveraging dropshipping suppliers, most of the work to process additional orders will be borne by the suppliers, allowing you to expand with fewer growing pains and less incremental work.

Sales growth will always bring additional work—especially related to customer support—but businesses that utilize dropshipping scale particularly well relative to traditional ecommerce businesses.

How to Get Started with Dropshipping in 2021

Learn how to find high-margin products, add them into your store, and start selling — fast.

Disadvantages of dropshipping

All the benefits we mentioned make dropshipping a very attractive model for anyone getting started with an online store, or for those looking to expand their existing product offerings. But like all approaches, dropshipping has its downsides, too. Generally speaking, convenience and flexibility come at a price. Here are a few shortcomings to consider.

1. Low margins

Low margins are the biggest disadvantage to operating in a highly competitive dropshipping niche. Because it’s so easy to get started, and the overhead costs are so minimal, many competing stores will set up shop and sell items at rock-bottom prices in an attempt to grow revenue. Since they’ve invested so little in getting the business started, they can afford to operate on minuscule margins. If start dropshipping on Amazon alongside your Shopify store, your margin on that sales channel will be much thinner.

Typically, these sellers will have low-quality websites and poor (if any) customer service, which you can use to differentiate your business. But that won’t stop customers from comparing their prices to yours. This increase in fierce competition will quickly hurt the potential profit margins in a niche. Fortunately, you can do a lot to mitigate this problem by selecting a niche/vertical that’s well suited for dropshipping. We’ll discuss how to do exactly that in Chapter 4.

2. Inventory issues

If you stock all your own products, it’s relatively simple to keep track of which items are in and out of stock. But when you’re sourcing from multiple warehouses, which are also fulfilling orders for other merchants, inventory can change on a daily basis. Fortunately, these days, there are a handful of apps that let you sync with suppliers. So dropshippers can “pass along” orders to a supplier with a click or two and should be able to see in real-time how much inventory the supplier has.

Oberlo also lets merchants take automated actions when a supplier’s stock hits zero. For example, when a product is no longer available, you can automatically unpublish the product, or keep it published but automatically set the quantity to zero.

3. Shipping complexities

If you work with multiple suppliers—as most dropshippers do—the products on your online store will be sourced through a number of different dropshippers. This complicates your shipping costs.

Let’s say a customer places an order for three items, all of which are available only from separate suppliers. You’ll incur three separate shipping charges for sending each item to the customer, but it’s probably not wise to pass this charge along to the customer. And even when it does make sense to include these charges, automating these calculations can be difficult.

4. Supplier errors

Have you ever been blamed for something that wasn’t your fault, but you had to accept responsibility for the mistake anyway?

Even the best dropshipping suppliers make mistakes fulfilling orders—mistakes for which you have to take responsibility and apologize. And mediocre and low-quality suppliers will cause endless frustration with missing items, botched shipments, and low-quality packing, which can damage your business’s reputation.

5. Limited customization and branding

Unlike custom-made products or print on demand, dropshipping doesn’t give you a lot of control over the product itself. Usually, the product dropshipped is designed and branded by the supplier.

Some Alibaba dropshipping suppliers can accommodate your business’s product changes, but even then, the supplier has the most control over the product itself. Any changes or additions to the product itself usually require a minimum order quantity to make it viable and affordable for the manufacturer.

Common questions about dropshipping

Throughout the rest of this book, we’ll cover all of the necessary steps to start a profitable dropshipping business. But before we continue, it’s worth answering a few common questions we receive about what dropshipping is and how it works.

How much do I need to invest to start dropshipping?

Though it’s hard to predict the exact costs for any individual business, there are a few items every dropshipping business will need to spend money on in order to get started. Here’s a quick summary of the essential costs.

Online store

Estimated cost: ~$29/month

You’ll need to find an ecommerce platform in order to create and host your online store. We obviously recommend starting a Shopify store. You’ll be able to effortlessly sync with the Oberlo marketplace to source products, and you’ll get access to our full selection of themes and free branding tools so you can get your business up and running quickly.

Domain name

Estimated cost: $5-20/year

It’s hard to build trust with customers without your own domain name. While there are a number of top-level domains available (e.g., example.shop, example.co), we recommend looking for a .com that fits your brand, if one is available. Use our domain name generator to get started, or learn more about how to come up with a catchy business name.

Test orders

Estimated cost: Varies

Although dropshipping lets you have minimal involvement with handling your overall product catalog, you should set aside money, as well as a little bit of time, to test out the products you plan to sell. If you don’t, you risk listing a product with too many shortcomings or defects, which will result in unhappy customers and a lot of time spent dealing with returns.

Online advertising

Estimated cost: Scales with your business; we recommend budgeting at least $500 to get started

Every ecommerce business should look for ways to reduce their average cost to acquire a customer through organic channels like content marketing, SEO, and word of mouth. But to get started, advertising is usually an essential channel for most product-based businesses. The most common channels include search engine marketing (SEM), display ads, social media ads, and mobile ads.

How do dropshippers make money?

Dropshipping businesses act as product curators, selecting the best dropshipping products to market to customers. Remember, marketing is a cost you incur, in both time and money, helping potential customers find, evaluate, and buy the right product. You’ll also have to include the cost of providing customer support whenever there’s a product or shipping issue. Last but certainly not least is the original price that your supplier sells the product for.

With all of these costs to account for, dropshipping businesses mark up individual products in exchange for distribution. This is why suppliers are OK having dropshippers market their products for them—dropshipping stores drive additional sales that the supplier would have otherwise missed out on. In order to make a profit with your dropshipping business, it’s a good idea to find out how much it costs for you to “acquire” a customer, and price your products with that in mind.

Is dropshipping a legitimate business?

Dropshipping is merely a fulfillment model, one used by many global retailers, and is perfectly legal. Like with any business, satisfying customer expectations and building a brand that resonates with the right audience is still key to long-term success.

This question usually comes up due to a misunderstanding of how dropshipping works. Most retail stores you shop in are likely not selling products they personally manufacture. Dropshipping takes this curated approach and turns it into a fulfillment model fit for an online business.

There are, of course, the more fundamental things you need to do in order to run your business legally. Consult a lawyer who specializes in these matters to ensure you’re conducting business legally in your region.

So, is dropshipping worth it in 2021?

As we’ve mentioned, dropshipping isn’t a perfect, stress-free way to build a successful online business—hard work is always required to start a dropshipping business. The model has some definite advantages, but comes with a number of built-in complexities you’ll need to address.

We’ll be examining these challenges, and how to best address them, in future chapters. The good news is that with some careful planning and consideration, most of these hurdles can be resolved and need not prevent you from building a thriving, profitable dropshipping business.

Shopify Tutorial

What is Shopify?

Apr 30, 2021 , by 露露

This article is from Shopify, and was republished and shared through Elksourcing with the permission of Shopify.
Original link:https://www.shopify.com/blog/what-is-shopify

Shopify is a subscription-based software that allows anyone to set up an online store and sell their products. Shopify store owners can also sell in physical locations using Shopify POS, our point-of-sale app and accompanying hardware. If you’re a Shopify merchant with both an online and physical presence, your inventory and stock get synced so you can manage your store(s) from one account, on any device.

But this is only scratching the surface. 

To properly answer the question “what is Shopify?” it’s helpful to first understand that Shopify is not a singular product—it’s not just a store builder or a tool to sell your products. Shopify is a commerce platform that offers a way to quickly launch your dream business and start selling to your customers, wherever they are. And if you want to customize your store or even build it from the ground up, the Shopify App Store and our APIs make that easy to do. 

Whether you need to get a simple store up-and-running today or you want to go under the hood yourself and build a unique shopping experience, Shopify is built to be versatile and to grow with you. 

If you’re still wondering what you actually get when you sign up for Shopify, keep reading. 

A guided tour of Shopify

  • Understanding Shopify’s commerce platform
  • Out of the box: what you get with Shopify’s core product
  • Unlock access to exclusive Shopify products and services
  • Wait, there’s more: the Shopify App Store
  • Choose your own adventure: custom code and beyond
  • Get started with Shopify

Understanding Shopify’s commerce platform

On any given day, a business owner needs to showcase products, engage with customers, get paid, ship a product, and manage their day-to-day finances and operations. Some businesses use different tools to manage each of those activities—and spend a lot of time and money stitching the disparate systems and data together.

Alternatively, a commerce platform groups those technologies together and becomes the base upon which other applications, processes, or technologies are developed. In other words, Shopify’s commerce platform offers all of the business tools you’ll need in one, familiar place. And then we ensure that you can easily access and integrate any other business tools you want or need to make Shopify work for your business. 

Think of Shopify’s product as layers you can choose from to build the right stack for your business:

Layer 1: Shopify’s core product

This is what you get as soon as you buy any Shopify plan. It includes everything you need to turn your idea into a business and start selling: templates for the look and feel of your store, tools to sell in multiple places online and in-person, integrated payment processing, the best-converting checkout on the internet, SEO and marketing tools—these are all part of Shopify’s core product. This is the foundation upon which our other products and applications are built.

And for those who want to fine-tune their store and experience, you get access to Shopify APIs and development tools to customize your store’s capabilities even further.

Layer 2: Shopify’s additional products and services

Every independent business is unique. And as businesses grow, their needs evolve accordingly. That’s why we offer our customers powerful upgrades to help them grow their business on our platform. From easier access to capital to accelerated payments options, these products and services are exclusive to Shopify customers and are designed to help independent business owners have a leg up in the market. 

Layer 3: Apps built by trusted partners

Shopify’s App Store has thousands of apps and features built by third-party developers to customize your store without ever once touching the code. Anything you can dream up, there’s an app that can help make it a reality. You’ll find the most cutting-edge tools to grow your business in the App Store, whether it’s the latest SMS app or the hottest new social media network’s ad tools.

There’s also a marketplace of Shopify Experts that you can hire to build custom solutions for your business. And if you want to dabble with the code yourself, you can do that, too!

Out of the box: what you get with Shopify’s core product

Think about the last time you bought a smartphone. Right out of the box, your smartphone can take photos and videos, connect to and browse the internet, offer navigation services, tell you the weather, and so on. In other words, out of the box, your smartphone allows you to do everything you need your handheld device to do. 

Shopify’s core product—what you get on every Shopify plan—works the same way. Out of the box, Shopify is your one-stop-shop to run your business: you get a storefront, a payment processor, a shipping partner, a back office, and marketing headquarters, all in one. These are the core functions of running a business.

More precisely, this is what you get when you sign up for Shopify: 

Storefront

  • Hosted online store. You instantly have a hosted online store where you can create web pages, upload blog posts, and of course, sell products. You can customize the look and feel of your store by changing the website template, or theme.You can find the right theme for your business in the Shopify Theme Store. (Note: Shopify offers free web hosting with all plans. A hosted platform means our servers work hard around the clock to get—and keep—your website up and running. We handle everything from your site’s security to software updates, so that you don’t have to.)
  • POS Lite. Shopify POS is a point-of-sale app that you can use to sell your products in person, including brick-and-mortar stores, markets, and pop-up shops. Every Shopify plan comes with a free POS Lite plan. All you have to do is register a store in your admin and order your accompanying hardware.

Payment processor 

  • Payment processing. You can choose from over 100 payment gateways, or opt for Shopify Payments, which eliminates the hassle of setting up a third-party provider and saves you transaction fees. Whatever you choose, you’re set up to accept all major payment methods and sell in 133 currencies. 
  • Shopify Checkout. Whether you’re selling on your own store or through sales channels like Instagram, you’ll be able to use Shopify Checkout. With over 2.5 billion orders processed, Shopify Checkout is constantly optimized for speed, conversion, and customer experience–giving you the most powerful checkout in the world.

Shipping partner 

  • Shipping. You can create the shipping setup that works for you, from fulfilling orders in bulk, to creating USPS SCAN Forms, to arranging pickups with UPS and DHL. If you’re in Canada, the United States, or Australia, you can offer live order tracking, quick shipping, and discounted, pre-negotiated carrier rates with Shopify Shipping. You can also offer curbside pickup and local delivery options.

Back office 

  • Mobile app. Download and use the free Shopify app to manage your business from your mobile device. You can do everything you’d do at your computer from your phone, so you can keep up with your business from wherever it takes you.
  • Analytics and reports. See store activity in real-time, gain insight into your visitors, and analyze your business performance. You also get detailed insights and reports about your business, so you can optimize your store’s activities.
  • The Shopify App Store. The Shopify App Store is a collection of free and premium apps that extend the functionality of your online store. It’s a great way to add more specialized features and functionalities to your store, whether that’s a full-featured marketing app stack or connecting with local shipping suppliers.
  • Support. Get the help you need with 24/7 customer support, comprehensive documentation, and educational resources on our blog. 

Marketing HQ 

  • Marketing platform. Shopify’s marketing platform lets you reach more customers through the built-in blog and SEO tools, as well as create Facebook and Google Shopping campaigns. You can track your campaign performance across all channels in one dashboard, and you retain full control over your customer data.

Unlock access to exclusive Shopify products and services

We’re always looking for ways to give independent business owners a fighting chance in the market. That means giving you access to the same tools that big brands use—at prices you can afford. So when you sign up for a Shopify plan, you also unlock access to powerful upgrades built by Shopify exclusively for Shopify stores. 

These additional products and services are optional, but they’re designed to augment any (or all) of your core business functions: selling, shipping, marketing, and operating. And most of them can be activated with a click of a button and managed from the same place that you run your online store. 

You can add and subtract features as you see fit and as your business changes, or tap into services on a one-and-done basis. Our ethos is simple: business owners should be able to level-up their business whenever and however they want, and it should be easy to do.


Here’s a quick breakdown of some of the functionalities you can choose from when you become a Shopify merchant, and we’ve indicated where there may be restrictions (

Shop Pay

Shop Pay is an accelerated checkout that lets customers save their email address, credit card, and shipping and billing information so that they can complete their transaction faster the next time they’re buying something from your store. A Shopify study showed that checkouts going through Shop Pay have an average checkout-to-order rate of 1.72x times higher than those going through regular checkouts.

Social media and marketplace selling

You can use Shopify to promote and sell your products on other channels as well. Connect your Facebook, Messenger, Instagram, and TikTok to promote and sell your products on social. You can also sell where your buyers frequently shop, like Etsy, Amazon, and Walmart.

Shopify Fulfillment Network

With a dedicated network of fulfillment networks across the United States, qualifying merchants can use Shopify’s Fulfillment Network. Once you’ve been approved, all you have to do is select the orders that need to be fulfilled, and we pick, pack, and ship them from the nearest warehouse to improve your delivery time.

Shopify Capital

Shopify Capital is a funding option for merchants who are looking to scale their business. Shopify Capital offers cash advances and loans to eligible businesses based on their store sales. It’s currently available in the United States, Canada, and the United Kingdom. 

Email marketing

Shopify Email is our very own email marketing tool that allows you to create professional-looking emails to communicate with your customers, and campaigns to help you sell more products. You can track their performance from the same place you manage your products, customers, and other digital marketing campaigns—and you’ll see the exact dollar amount of sales each email delivered for your business.

Conversational marketing

Shopify Ping is a free messaging app that lets you chat with shoppers and collaborate with your team. Use it to drive sales and build customer relationships. We found that customers were 70% more likely to convert when using Shopify Ping to chat with brands. 

POS Pro

If you have a permanent brick-and-mortar location, you’ll want to upgrade from POS Lite to POS Pro. Shopify POS Pro gives you access to advanced inventory management, unlimited store staff accounts, and analytics.

Wait, there’s more: the Shopify App Store

Remember our smartphone analogy? Out of the box, your smartphone has all the necessary features. But that’s not all it can do. Your smartphone also allows you to download apps—like social media, music streaming, email, and fitness apps—that make it more enjoyable and effective to use on a regular basis. And those choices are deeply personal.

Shopify’s commerce platform works the same way. Commerce is so diverse. What a business owner needs depends on what products they’re selling, who they’re selling to, the size of their business, where they are in the world, and so on. 

With over a million independent businesses selling every type of product in markets all around the world, solving for every single business need is a tall order. And trying to include every possible feature a business might need on Shopify’s platform only makes the product harder to use for the majority of new business owners. 

Instead, we prioritized making our platform flexible—first and foremost—with the ability to be modified easily to address the ever-evolving complexities of running a business. Then we enlist the help of every single developer around the world to join us in our mission, empowering them to build apps, themes, and other integrations specifically for Shopify’s platform. 

That’s how the Shopify App Store came to be. With more than 6,000 apps to choose from, Shopify store owners have even more options when it comes to tailoring their store to meet their business needs. Whether you want to add customer reviews, manage your accounting, or add virtual try-ons to your store, there’s definitely an app for that.

We’ve built a powerful search and classification system that organizes apps by what they do and what merchant problems they solve, so that even the most niche of apps will be discoverable by the merchants who need them.

Merchants can find exactly what they need for their store, and new developers can build their business supporting those entrepreneurs. It’s a win-win. 

Choose your own adventure: custom code and beyond

Shopify’s mission is to make entrepreneurship accessible to everyone. That means we designed our platform to be easy to use so that folks with no design or development expertise can build their business. 

But this doesn’t mean you’re limited to the templates or features we offer out of the box. Or even the applications on our App Store. If you want to dabble with the code (or hire someone from our Partner ecosystem to), Shopify makes it possible to customize every aspect of your business and shopping experience. You can fine-tune just one aspect of your business, or create a one-of-a-kind store from the ground up. The choice is entirely yours.

For those who want more control over their business, here are some of the ways you can customize your store:

  • Customize your theme or build a theme from scratch
  • Build custom apps for your store using developer tools and Shopify’s APIs
  • Use APIs to power custom experiences, like selling products in a video game 

The bottom line is: you don’t have to trade ease-of-use for customization and control. With Shopify, you can get your store and campaigns up-and-running quickly, while also creating rich, unique experiences that you see from big brands.

Get started with Shopify today

Shopify isn’t just a piece of software or a singular product—it’s an all-in-one commerce platform. More than that, it’s a rich ecosystem that creates value for business owners by bringing together developers, business experts, and shoppers in the shared pursuit of making commerce better for everyone.

By doing so, Shopify also makes entrepreneurship more accessible to anyone seeking independence. Whether you’re a scrappy trailblazer finding your footing or a heritage brand reaching customers around the world, Shopify is built for you.

And getting started has never been easier! Start your free trial, kick the tires, and come have a look for yourself.