As a company focused on the success of small businesses, we were delighted to present our Top Shipping Trends webinar to help customers understand the latest trends that will drive business growth in 2024.

Here’s a recap of the discussion between David Boyer from ShipStation, Ellie Degraeve from Go for Zero, and Sendle Australia’s Managing Director, Laura Hill. We took a deep dive into the latest innovations and emerging trends in the shipping industry and touched on the conversion factors driving consumer behaviour.


Provide flexible shipping options

David from ShipStation started off with insights from the ShipStation Ecommerce Delivery Benchmark Report 2024. As in previous years, the report revealed that great shipping experiences have a lasting impact on consumer loyalty.

David Boyer, ShipStation ANZ VP & General Manager ”83% of consumers said they are less likely to purchase from a retailer again after a negative delivery experience.”

~ David Boyer, ShipStation

And this was confirmed by Ellie who pointed out that Go for Zero customers are delighted when their parcels arrive quickly and very upset if they don't arrive within the expected time frame.

Online shoppers have come to expect a range of delivery options so they can choose the one that best suits their needs at the time of purchase. By providing that choice of more flexible shipping options, businesses can significantly reduce cart abandonment. Successful retailers will be the agile businesses that optimise their systems to provide more varied shipping services like express shipping, store pickup, and easy returns.

ShipStation’s research also found that roughly 55% of Australian customers expect an order to arrive within two days, but only one third of businesses give customers that option so there’s a great opportunity here for a quick win.

 

Consolidate fulfilment and shipping

Go for Zero diversifies shipping and uses Sendle for metro and same-city deliveries. Sendle works with a mix of carriers and that puts us in prime position to find the best route for every parcel booked with us. As Laura explained, we're constantly optimising for performance and quality on every route and that's a unique difference between us and other major carriers.

Diversification makes sense, but the team at Go for Zero found it cumbersome to be working with a number of dashboards to manage deliveries. ShipStation helps businesses orchestrate the connections between cart and delivery options, and since switching to ShipStation, Go for Zero has benefited by saving time and money.

Ellie Degraeve, Go for Zero
Founder ”Going with ShipStation simplified the process enormously. It saves time and makes the business more efficient.”

~ Ellie Degraeve, Go for Zero

 

Use right-sized packaging

In the early days of her business, a really painful lesson for Ellie was learning how to package goods so that they were paying the right price rather than paying extra for the dead weight that comes with wrong sized packaging. This is important because a small difference in weight can have a significant impact on the shipping cost. Why pay for 500g when you’re only shipping 200g.

Ellie’s best piece of advice for anyone keen to accelerate their growth, but grappling with the complexity of shipping, is to get expert advice about shipping options. Do your research first, but you won't find all the answers online because every business is unique. Just as Ellie learned about the potential waste in shipping boxes from Australia Post, a discussion with one of our specialists could help you as well.

 

Optimise shipping thresholds

With consumers feeling the pinch from cost-of-living increases, there's pressure on businesses to offer free delivery. Most online retailers offer free shipping above a certain threshold and it’s important to get this right.

In 2023, Go for Zero increased its free shipping threshold from $50 to $75. To determine the appropriate level, Ellie considered the optimum basket size because customers often add an extra item or two to get free shipping. And while Go for Zero aims to offer the best products, service and education, rather than the cheapest price, Ellie also looked at the competition because it’s important to have a good understanding of the marketplace.

This increase was introduced with much trepidation and concern about possible negative perceptions. But the reality was customers scarcely blinked and the only noticeable impact was an improved bottom line.

 

Find growth in new markets

In the most recent Sendle Small Business Survey, 37% of respondents said they expect a quarter of their revenue to come from international growth this year and that's a big jump year-on-year from 2022.

Ellie mentioned that it's important to do research before marketing overseas because some products can't be exported to certain countries. Laura also pointed out that understanding customs can feel daunting when opening up into new markets and Sendle has tools and lots of information on its website to help with that. See our International Shipping Guide for more information.

So, there you have it. In a nutshell, customers want free and fast shipping – in 2024 more than ever. It might sound impossible, but it isn’t if you employ strategies to manage and deliver upon customer expectations and take a smart approach to overseeing and controlling your shipping costs.

Want all the insights? Watch the full webinar.

 

Ship on the bright side

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