The Big Logistics Problem Facing eCommerce Subscription Companies this Year (and 3 Ways to Solve It)

2018-10-22T17:31:18+00:00

How important are ratings and reviews for eCommerce subscription companies?

A PEW research poll found that more than half of all adults check an online store’s rating before they make a purchase, and millennials are the most rating-sensitive generation. They’re also the biggest market alive today, and they love to shop online.  

Yes, the future of your business in their hands… and it all comes down to ratings!

 

Why It’s Harder for eCommerce Companies These Days

Back in the day of brick-and-mortar retail stores, you could impress customers with an in-store experience. That’s how companies like Apple, Nike, and Nordstrom inspired that cult-like loyalty—with helpful customer service reps and gorgeous displays.

Unfortunately, eCommerce companies don’t have that luxury. The first real impression customers have of your brand (beyond your website) is the package they receive on their doorstep. And if that package doesn’t arrive on-time and intact, they’ll probably punish you with a bad review.

 

How Logistics Managers Can Protect Their Company’s Ratings

The two most important factors in an eCommerce company’s rating tend to be on-time delivery and accuracy (in terms of product description and photos).

Now, accuracy in advertising is up to the marketing department… but seamless delivery? That’s where Logistics Managers come in.

So, what can you do to boost those ratings and keep them high?

  • Stay on Top of Lost or Damaged Packages: It’s no surprise to Logistics Managers that delivery services lose packages. After all, you’re the ones who have to clean up after them. But the average customer has no idea how common this is, and they take it personally when it happens to them.

    The good news is that customers aren’t likely to judge you for UPS or FedEx’s mistakes, as long as you reach out to them when something goes wrong, send them updates, and prove you’re on their side.
Shameless (but helpful) Plug:

Refund Geeks
(our company) is an online platform that helps Logistics Managers stay on top of lost or delayed UPS and FedEx shipments, and there’s no monthly fee (in fact, you’ll get money back).

Our system flags late or lost shipments, and it automatically contacts UPS and FedEX to request a refund. Then we take a 25% commission from any refunds we recover—money you wouldn’t normally get back because it’s too time consuming to track down yourself, and your staff has more important things to do.  

You can try Refund Geeks out at no cost (you keep all the refunds – fee-free!) for 30 days.

  • Keep Your Delivery Schedules Consistent: Customers love consistency, and when you switch things up on them, they get confused (like moving your dog’s dinner bowl).

    Do your best to keep your deliveries consistent, and if you need to change things up, communicate those changes clearly.
  • Update Incorrect Addresses Right Away: Do you have a system in place for updating incorrect addresses? If not, you’ll want to get on that.

    See, incorrect addresses mean one of two things—the customer either entered the wrong address, or (mostly likely) they’ve moved since the last time they placed an order. If they have moved, then that means they’re repeat customers, and you should do whatever you can to keep them happy.

    Why? According to the Harvard Business Review, it costs between 5 and 25 times as much money to acquire a new customer than to retain an existing one. Repeat customers are a goldmine, and they keep your business afloat.

 

In the end, a consistent, accurate delivery process (with systems in place to address the occasional mistakes) will go a long way toward keep your ratings high and helping your eCommmerce business thrive.