Shipping Automation: What Is It and How to Use It for Your E-commerce

Joao Vieira

CRO at CARRIYO

Last Mile Automation

May 6, 2024 - 8min read

ARTICLE

Shipping Automation: What Is It and How to Use It for Your E-commerce

Shipping is a critical part of any ecommerce business, but it can also be a time-consuming and complex process. Fortunately, shipping automation software can help you streamline your shipping operations and save time and money. In this article, we'll explore what shipping automation is, how it can benefit your ecommerce business, and how to use it effectively. We'll also provide tips for choosing the right shipping automation software for your needs and discuss the future of shipping automation.

Shipping automation: what it is

Shipping Automation: What It Is

Shipping automation is the process of using software and technology to automate various aspects of the shipping process. This includes tasks like order fulfillment, inventory management, and shipping label creation. By automating these tasks, businesses can save time and money, improve accuracy and efficiency, and scale their operations.

Benefits of Shipping Automation

There are many benefits to using shipping automation software, including:

* Reduced costs: Shipping automation can help businesses save money by streamlining the shipping process and reducing the need for manual labor.

* Improved accuracy: Shipping automation can help businesses improve accuracy by reducing the risk of human error.

* Increased efficiency: Shipping automation can help businesses improve efficiency by automating tasks that would otherwise take up a lot of time.

* Enhanced customer service: Shipping automation can help businesses improve customer service by providing real-time tracking information and faster shipping times.

* Scalability: Shipping automation can help businesses scale their operations by automating tasks that would otherwise require additional staff.

How Shipping Automation Works

Shipping automation software works by integrating with a business's existing systems, such as their ecommerce platform, inventory management system, and shipping carrier. Once integrated, the software can automate various tasks, such as:

* Order fulfillment: Shipping automation software can automatically generate and print shipping labels, pack orders, and ship orders.

* Inventory management: Shipping automation software can automatically track inventory levels and reorder products when necessary.

* Shipping label creation: Shipping automation software can automatically create shipping labels for orders, based on the customer's shipping address and the selected shipping carrier.

* Real-time tracking: Shipping automation software can provide real-time tracking information to customers, so they can track the status of their orders.

Challenges of the e-commerce shipping process

The e-commerce shipping process can be fraught with challenges that can lead to lost time, money, and customers. Here are a few of the most common challenges that e-commerce businesses face:

Inaccurate shipping information: One of the biggest challenges of the e-commerce shipping process is ensuring that shipping information is accurate and up-to-date. This includes information such as the customer's address, phone number, and email address. Inaccurate shipping information can lead to delays in shipping or, worse, lost packages.

Shipping costs: Shipping costs can be a significant expense for e-commerce businesses, especially for those that ship large or heavy items. Finding ways to reduce shipping costs without sacrificing quality of service is a challenge that many e-commerce businesses face.

Slow shipping times: Customers expect fast shipping, and slow shipping times can lead to lost sales and negative reviews. Finding ways to speed up shipping times without sacrificing accuracy is a challenge that many e-commerce businesses face.

Lack of visibility into the shipping process: Many e-commerce businesses lack visibility into the shipping process, which can make it difficult to track packages and resolve shipping issues. This can lead to lost packages, delayed deliveries, and frustrated customers.

Manual errors: Manual errors are a common challenge in the e-commerce shipping process. These errors can occur at any stage of the process, from order fulfillment to shipping label creation. Manual errors can lead to delays in shipping, lost packages, and inaccurate shipping costs.

Benefits of shipping automation

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Shipping automation can offer a wide range of benefits for businesses of all sizes. Let's explore some of the key advantages of implementing shipping automation:

1. Save time and money: Shipping automation can significantly reduce the time and cost associated with processing and fulfilling orders. By eliminating manual tasks and automating repetitive processes, businesses can free up valuable resources and redirect them to more strategic tasks. Automated systems can efficiently handle order processing, inventory management, and shipping label creation, leading to increased productivity and reduced labor costs.

2. Improve efficiency and accuracy: Shipping automation enhances operational efficiency by streamlining the shipping process. Automated systems ensure that orders are processed accurately and efficiently, reducing the chances of errors and delays. Real-time inventory updates prevent overselling and stockouts, ensuring that customers receive their orders promptly. Automated shipping processes also minimize the risk of human error, such as incorrect shipping addresses or mislabeling of packages.

3. Provide real-time tracking: Shipping automation provides customers with real-time tracking of their orders. This transparency builds trust and confidence, as customers can easily monitor the status of their shipments. Automated tracking systems send notifications and updates to customers, keeping them informed about the progress of their orders.

4. Offer flexible shipping options: Shipping automation allows businesses to offer flexible and diverse shipping options to their customers. Customers can choose from various shipping methods, including standard, expedited, or international shipping. Automated systems seamlessly integrate with different shipping carriers, providing real-time rates and ensuring efficient package delivery.

5. Manage inventory and orders: Shipping automation helps businesses effectively manage their inventory and orders. Automated systems provide real-time updates on inventory levels, enabling businesses to optimize their stock levels and prevent stockouts. Integrated systems ensure that orders are fulfilled accurately and efficiently, reducing the risk of errors and customer dissatisfaction.

How does it works

How does it work?

The first step in shipping automation is to integrate the platform with your e-commerce store. This can usually be done through an API or plugin. Once the platform is integrated, it will automatically import your orders and customer information.

Next, you will need to set up your shipping rules. This includes specifying the shipping methods you offer, the shipping rates, and the handling time. You can also set up automation rules for specific scenarios, such as free shipping for orders over a certain amount.

Once your shipping rules are set up, the shipping automation platform will take care of the rest. When an order is placed, the platform will automatically generate a shipping label and send it to the carrier. The platform will also track the shipment and provide real-time updates to your customers.

Shipping automation can also be used to manage your inventory. The platform can track your inventory levels and automatically reorder products when they are running low. This can help you avoid stockouts and keep your customers happy.

In addition to saving you time and money, shipping automation can also help you improve your customer service. By providing real-time tracking information, you can keep your customers informed about the status of their orders. You can also use shipping automation to send automated shipping notifications and updates to your customers.

Popular shipping automation tools

There are several popular shipping automation tools available on the market that can help businesses streamline their shipping operations, including ShipStation, ShippingEasy, Ordoro, and EasyShip. These platforms offer a variety of features to help businesses automate various aspects of the shipping process, from order fulfillment and inventory management to shipping label creation and tracking.

ShipStation is a popular shipping automation platform that offers a wide range of features, including multi-carrier shipping, order tracking, and inventory management. ShipStation integrates with major e-commerce platforms and marketplaces, making it easy for businesses to manage their shipping operations from a single platform.

ShippingEasy is another popular shipping automation platform that offers a variety of features, including discounted shipping rates, order tracking, and address verification. ShippingEasy also integrates with major e-commerce platforms and marketplaces, and it offers a free plan for small businesses.

Ordoro is a shipping automation platform that is designed for high-volume shippers. Ordoro offers a variety of features, including multi-channel order management, inventory management, and shipping label creation. Ordoro integrates with major e-commerce platforms and marketplaces, and it offers a variety of plans to meet the needs of different businesses.

EasyShip is a shipping automation platform that is designed for small businesses. EasyShip offers a variety of features, including discounted shipping rates, order tracking, and address verification. EasyShip integrates with major e-commerce platforms and marketplaces, and it offers a free plan for small businesses.

Top tips for using shipping automation

Shipping automation can be a game-changer for e-commerce businesses, but it's important to use it effectively to reap the full benefits. Here are some top tips to help you optimize your shipping automation strategy:

1. Automate repetitive tasks: Shipping automation is ideal for handling repetitive tasks that take up a lot of time and effort, such as order fulfillment, inventory management, and shipping label creation. By automating these tasks, you can free up your team to focus on more strategic and customer-facing activities.

2. Integrate your shipping software with your e-commerce platform: Integrating your shipping software with your e-commerce platform ensures a smooth and seamless shipping process. This integration allows for automatic data transfer, such as order details, shipping addresses, and tracking information, eliminating the need for manual data entry and reducing the risk of errors.

3. Choose the right tool for your needs: There are various shipping automation tools available in the market, each offering different features and capabilities. Take the time to research and select the tool that best fits your business needs and requirements. Consider factors such as the size of your business, shipping volume, and budget.

4. Set up rules and triggers: Effective shipping automation relies on well-defined rules and triggers. These rules determine how orders are processed, packed, and shipped. For example, you can set rules based on order value, shipping destination, or product type. Triggers can be used to automate actions based on specific events, such as order confirmation or shipment delivery.

5. Monitor and analyze your shipping data: Shipping automation platforms typically provide detailed analytics and reporting capabilities. Use these insights to monitor your shipping performance and identify areas for improvement. Analyze metrics such as shipping costs, delivery times, and customer satisfaction to make data-driven decisions and optimize your shipping operations.

By following these tips, you can effectively leverage shipping automation to streamline your e-commerce fulfillment process, reduce costs, improve efficiency and accuracy, and deliver an exceptional customer experience.

The future of shipping automation

is bright, with the potential for increased sophistication, integration, affordability, sustainability, and customer service. As technology advances, we can expect to see even more automation in the shipping process, from the moment an order is placed to the moment it is delivered to the customer's doorstep.

Shipping automation software will become more sophisticated, with the ability to handle more complex tasks and make decisions that were once only possible for human workers. This will allow businesses to streamline their shipping operations even further and free up their employees to focus on other tasks that add more value to the business.

We can also expect to see greater integration between shipping automation software and other business systems, such as e-commerce platforms, inventory management systems, and customer relationship management (CRM) systems. This will create a more seamless shipping process and allow businesses to track their orders and manage their inventory more effectively.

Shipping automation will also become more affordable, making it accessible to businesses of all sizes. This will level the playing field and allow small businesses to compete with larger companies on shipping costs and efficiency.

In addition, shipping automation can help businesses reduce their environmental impact by optimizing routes and reducing fuel consumption. As the world becomes more environmentally conscious, this will become an increasingly important factor for businesses to consider.

Finally, we can expect to see improvements in customer service as a result of shipping automation. Automated systems can provide customers with real-time tracking information and allow them to easily manage their orders online. This will lead to a better overall customer experience and increased customer satisfaction.

Conclusion

Shipping automation is a powerful tool that can help businesses of all sizes save time, money, and improve efficiency. By automating repetitive tasks, integrating with other business systems, and choosing the right tool for their needs, businesses can streamline their shipping operations and improve their bottom line.

As the e-commerce industry continues to grow, shipping automation will become increasingly important. By investing in shipping automation software, businesses can gain a competitive advantage and meet the demands of their customers.

Here are some additional tips for using shipping automation effectively:

- Choose a shipping automation software that is easy to use and integrates with your existing systems.

- Set up clear rules and triggers to automate your shipping process.

- Monitor and analyze your shipping data to identify areas where you can improve.

- Use shipping automation to provide your customers with real-time tracking information and flexible shipping options.

By following these tips, you can use shipping automation to improve your e-commerce business and provide your customers with a better experience.

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Faisel Azeez

Faisel Azeez

Co-Founder & CTO

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Joao Vieira

Joao Vieira

CRO at CARRIYO

03

Joao Vieira

Joao Vieira

CRO at CARRIYO

Automate shipping operations and elevate post-purchase customer experience

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