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How to automate e-commerce shipping without hiring more staff
If you run an e-commerce business, you know that shipping involves many repeated, mundane tasks, which you’ve probably gotten frustrated doing.
From routing orders to the right carriers to printing shipping labels and updating customers on delivery statuses, there’s a lot of doing the same thing all over again. The good thing is that these processes can be automated with the right approach, and you don’t have to stress about repeated tasks.
How can you automate shipping processes without hiring much more staff as your business grows? Here’s a detailed guide for you.
Why automate e-commerce shipping processes?
As mentioned, shipping involves a lot of recurrent, mundane tasks, the type you naturally want to automate and free up time to focus on more challenging work.
The explosive growth of artificial intelligence (AI) tools has made this the best time to automate these tasks. AI automation tools are more affordable and accessible than ever, so using them to boost business productivity is the clear choice.
Automation reduces costs and saves valuable time. It helps your profit margin, which is a valuable need for e-commerce businesses operating in fiercely competitive niches. That 1% or 2% cost reduction can do a lot for your bottom line.
Automation also minimizes human error that eventually occurs when handling repeated tasks. For example, incorrectly labeled shipments can lead to significantly higher freight costs, and minimizing them helps your e-commerce business.
How to automate e-commerce shipping
1. Connect your store to a shipping platform
You don't necessarily have to write code to automate shipping. Shipping management platforms like ShipStation and Shipink have built the automation tools for e-commerce businesses, so you can quickly connect your store to begin the automation process.
If you use Shopify or WooCommerce to run your online store, connecting a shipping platform is very easy. The platforms already have Shopify and WooCommerce apps that you can quickly add to your store. If your store is custom-built, the platforms also have APIs that enable seamless code-based integration, but you might need technical help to implement the process.
2. Set up address verification
After connecting your store, address verification is the first automation to set up. Shipping management platforms offer tools to verify addresses and fix typos automatically. For example, a customer may have autofilled an old ZIP code from a previous address while typing their new address. The platform recognizes the new address and matches it to the right ZIP code, ensuring carriers don’t ship to an incorrect location.
3. Create shipping rules
The next step is creating automated shipping rules for your business. Based on conditional logic, you can route products to specific carriers and shipping methods. For example, set a rule like "If the order is above $500, use express shipping," "If the order is below $100, assign to a low-cost carrier,” or “If the order is below 1kg, route to [specific carrier].”
You can also configure the platform to compare real-time freight rates for every order’s characteristics (weight, type, dimension, price, etc.) and route it to the most affordable option. Shipping platforms have direct integrations with carriers like DHL, UPS, and FedEx, enabling them to access real-time shipping rates. You can then make shipping decisions based on real-time prices, saving considerable costs in the long run.
Shipping platforms have varying interfaces for setting shipping rules, but the process isn’t difficult. It’s based on conditional logic that you can quickly understand.
4. Enable bulk label processing
Generating shipping labels one by one gets stressful when processing dozens, hundreds, or thousands of orders. You can automate this process and reduce packing time from minutes to seconds per box.
Shipping platforms can select multiple orders at once and create labels based on each order's unique details. Then, if connected to your thermal label printer, the labels get printed out automatically, and you can quickly attach the right label to each package. Compare this to printing each label separately, and it means much more time spent on packing boxes.
5. Automate customer tracking and alerts
You always want to cut down on those “Where is my order?” inquiries that flood support inboxes, and you can do that by automating customer tracking. Shipping management platforms allow you to automatically track and push real-time tracking updates to buyers.
Via email or SMS, a buyer will be alerted when their product has been delivered to their doorstep or has arrived at a warehouse for pickup. You can also provide a module where a buyer enters their tracking code and sees the status.
Automating customer tracking takes away a lot of routine customer support inquiries, and you have more time to focus on unique support inquiries that require careful attention.
6. Outsourcing to a 3PL service
Some businesses choose to just automate shipping but outsource the process entirely to third-party logistics (3PL) providers. The 3PL provider stores, packs, and ships packages for the e-commerce brand, without the owner’s active involvement. This method has its pros and cons.
3PL providers make scaling easier for fast-growing e-commerce brands, as you wouldn't have to rent more space and hire more people to handle increasing orders. The 3PL provider takes care of shipping for a fee.
However, using a 3PL provider means losing some control over packaging, quality checks, and inventory. Your brand reputation becomes significantly attached to the 3PL provider's services, and any mistakes can reflect negatively. If you want to go the 3PL route, choose a trusted provider with a good track record. You can do some trial runs before committing long-term to a 3PL provider.
Choosing the right shipping management platform
When comparing shipping management platforms, always look at their automation features, as this helps you scale your business without necessarily hiring more staff.
Also, prioritize platforms with multi-carrier integrations, as this lets you compare real-time freight rates and choose the most cost-effective option. Ease of use, analytics & reporting features, and customer support are other important factors to consider.
With the right shipping platform, you can automate key parts of running an e-commerce business and boost profit margins, so evaluate thoroughly to make the best choice.
