How you can include 2-day shipping for your customers
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Transcript of How you can include 2-day shipping for your customers
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O f f e r 2 - d a y s h i p p i n gTO YOUR CUSTOMERS
A S T E P - B Y - S T E P G U I D E
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TWO-DAY SHIPPING WILL GIVEYOUR BUSINESS A HUGE
COMPETITIVE ADVANTAGE.
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You maintaincustomer loyalty.
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People will be more inclined to buyfrom you because of fast delivery.
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This can be done for your businessin 4 steps.
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Step 1:Weigh your options
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You can work with Amazon FBA
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They’ll tell you where to send products sothey can offer 2-day shipping to their
Prime customers.
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This works great if you use Amazon services.
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Or you can try to replicate FBA. This is whereit gets tricky.
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Step 2:Ask yourself these questions before you DIY.
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What types of customers are most sensitive to2-day shipping?
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Where do your customers live?Figure out your top cities.
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What types of orders do you want to offer it?(e.g. orders over $35, orders going to major
cities, etc.)
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What are your top order profiles? Forexample, in our analysis of our
customers...
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...we found the top 5 profiles account for 70%+ ofall orders. Query your orders by SKU & quantity.
Figure out the top SKU/Quantity mixes.
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What percent margin do you wantshipping to account for? Or are you
willing to lose money on some orders tooffer 2-day shipping to every customer?
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Look at your volume over the courseof the year and show an estimate of
growth going forward.
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Once you’ve answered thosequestions, think about how you
want to store inventory.
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Step 3:Negotiate with your vendors
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Tell them you what you expect to growinto and the time frame for it.
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Ask your carriers about zone-skipping foryour top cities.
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So you can start shipping those volumesseparately and get even better pricing.
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Step 4:Expand your network to lower
costs
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Talk to warehouses near yourtop 3 cities.
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Have your main facility pre-pack the top 3–5order profiles.
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Send them to warehouses near thosecities to label and ship to your
customers.
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Most warehouses will be okay. There’slittle work and all they’re doing is label +
ship.
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Make sure the boxes are clearly marked. You canget branded packaging from places like Lumi.
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You know what to do now :)
If you have questions, ask uson Twitter! @ShotputInc