As a business owner, your responsibilities extend far beyond sourcing and selling products—you must ensure those products reach your customers’ hands. That’s where your shipping strategy comes into play, and it can make or break your customer experience and your bottom line.
Getting your products to your customers is a complex process that involves navigating a labyrinth of logistics, taxes, customs, and potential pitfalls. Even before youship your first package, you might find yourself drowning in paperwork, desperately trying to decode a matrix of regulations and requirements. Once your packages arrive, you face new challenges, from hidden fees to out-of-control shipping costs that eat away at your profits.
Shipping issues can quickly escalate from minor inconveniences to significant headaches that damage your reputation and cost you valuable customers. To help you tackle your biggest problems head-on and stop customer complaints from spiraling out of control, we’ve compiled a collection of the nine most common shipping issues and the practical tactics you can use to solve them once and for all. By the end, you’ll have a powerful toolkit of solutions to help you navigate the complex world of shipping with confidence and ease.
9 most common shipping problems
- Supply chain disruptions
- Rising shipping costs
- Delivery delays
- Damaged goods
- Lost shipments
- Customs and regulatory changes
- Environmental concerns
- Customer service problems
- Technology integration challenges
Supply chain disruptions
The supply chain industry is notoriously volatile. Take the 400-meter-long container ship stuck in the Suez Canal for six days in 2021. It forced cargo ships to redivert and blocked $9.6 billion of global trade daily.
Though it’s unlikely there will be a repeat of the Suez saga, there are still huge risks associated with global political tensions, environmental factors, and pandemics—disruptions that can lead to delayed shipments and increased costs.
Diversification is the best way to insulate yourself against supply chain disruptions. Spread your inventory across multiple locations so that if one goes down, you can still deliver goods from another. Similarly, if a shipping carrier cannot deliver (like if they’re facing high volumes or staff shortages), you can divert your packages to another carrier that isn’t facing the same shipping issue.
Rising shipping costs
With fluctuations in fuel prices and changes in trade agreements, shipping costs can unpredictably increase, impacting your bottom line. If you don’t research multiple shipping options, your fees can balloon out of control and either eat into your margins or be passed onto your customers.
Here are some quick tips for keeping your shipping costs low and your margins high—without compromising your quality of service.
- Buy and print discounted labels through Shopify Shipping. With Shopify Shipping, you can buy and print shipping labels through USPS, with discounts of up to 50%.
- Compare shipping rates between carriers. Every carrier has a unique set of services and prices, so it’s important to compare prices to ensure you’re getting the best possible deal for your business. Shop around and research until you find a carrier whose services and pricing fit your store’s needs.
- If possible, use carrier-provided packaging. Many carriers offer packaging tailored to their specific requirements. If it’s possible for your products, using the packaging materials provided by your carrier can be an easy way to avoid unnecessary costs.
- Invest in flat-rate shipping. Some major mail carriers provide envelopes and packaging for fixed-rate shipping based on the distance a package travels and its destination. Flat-rate shipping might be more cost-effective if your business frequently ships packages to specific locations.
- Outsource to a third-party logistics provider (3PL). A 3PL will deliver your products with an out-of-box experience—some 3PLs can even handle returns. You can outsource part or all of your distribution and fulfillment services to a 3PL like the Shopify Fulfillment Network, which will connect your online store with Flexport to pick, pack, and ship orders directly to your customers.
Delivery delays
In July 2023, Statista reported that just 64.2% of container ships reached their destination on time. That means out of every 100 shipments, almost 36 were delayed. While there are many reasons why shipments might be delayed, including poor logistics planning and carrier mishandling, customers don’t have much sympathy for late packages. Studies have shown that 58% of consumers would stop buying from a brand after three shipping delays.
“You could get away with it a couple of years ago by saying, ’Hey, there’s postage problems because of COVID,’” says Michael Jankie, founder of The Natural Patch. “That’s no longer an acceptable excuse when consumers know that with an Amazon Prime membership, they can get something in the [same] day.”
So, what can you do to minimize the impact of delays and keep your customers happy? Start by asking potential carriers how long it wll take them to deliver a parcel and what happens if they fail to meet those guarantees. Some will refund the cost of shipping, while others will provide compensation for the delayed delivery. Knowing these details upfront can help you choose the right partner and set clear expectations with your customers.
Another critical strategy is shipment tracking to help customers self-serve instead of waiting for your customer service team to answer “Where is my order?”-style questions. Most major carriers have tracking numbers to add to your Shopify Orders page. This shipment tracking number and the corresponding link will appear in any email notification, making it a breeze for customers to locate their parcel without contacting your team.
If you really want to improve your tracking game, consider activating Track with Shop. When you do, customers who’ve downloaded the Shop app can see real-time order updates (including live-map tracking) and receive delivery notifications for every parcel. It’s a small touch that can make a big difference in how customers perceive your brand and their overall experience with your store.
Damaged goods
Sometimes, during the shipping process, things happen that are entirely beyond your control. The most frustrating? Packages that show up at a customer’s doorstep are bent and broken.
Damaged shipments aren’t just a headache for you as a business owner—they can also be an extremely frustrating experience for your customers. Waiting days or weeks for a product to arrive, only to have it show up in poor condition, can be enough to send some customers away permanently. In these scenarios, it often isn’t the incident that impacts your customers’ attitudes toward your business but how you handle it instead.
That’s where shipping insurance comes in. It’s a small investment that can save you time, money, and frustration in the long run. You’ll rest easy knowing you have a method for getting your money back if things go sideways.
Suppose you’re shipping your products through a major carrier. In that case, shipping insurance is usually relatively inexpensive and can give you peace of mind once you send out your first set of packages. Some carriers, like UPS, automatically include shipping insurance for deliveries under $100 in value. It’s a no-brainer to take advantage of this built-in protection.
Insurance aside, inadequate packaging or careless handling can result in damaged goods, leading to customer dissatisfaction and additional costs for returns and replacements. Invest in protective packaging and sturdy shipping boxes to safeguard your goods in transit. A little extra padding can go a long way in ensuring your products arrive in pristine condition.
Lost shipments
Items don’t have to arrive damaged for customers to be dissatisfied. You could’ve gone through the effort of packing their goods, only for the item to go AWOL in transit. Perhaps your package never even arrived on the delivery truck, or a handling error means it got lost in a sea of other parcels at the carrier’s sorting facility.
Some shipments are lost because the parcel has been stolen. This is more common in regions with less secure logistics networks. Make sure that any 3PL or shipping carrier you’re partnering with is reputable, has reliable customer support in case of missing shipments, and offers compensation in lieu of lost packages.
Sometimes, lost shipments are through no fault of your (or your partner’s) own. Parcels can go missing if the customer has entered an incorrect address at checkout. The carrier won’t be able to find the place of delivery, which is why address verification—such as enabling Google Autocomplete in your Shopify admin—helps mitigate this shipping problem. It’s a simple step that can save you a lot of hassle.
Customs and regulatory changes
International shipping can seem daunting at first—challenges like dealing with unfamiliar carriers and accounting for duties and taxes can make you want to avoid global shipping entirely. New regulations and customs procedures, especially post-Brexit or due to changing trade policies between countries, might also complicate international shipping processes.
Duties and taxes vary between countries based on various factors, including product value, origin country, trade agreements, and intended use. Your customers will cover these costs when your products arrive at their destination, so you should ensure they’re aware of the possibility of extra fees being added to their shipment.
To avoid unpleasant surprises for your customers, include a general warning on your shipping policy page notifying them that international shipments may be subject to local duties and taxes. It’s better to be upfront about additional costs than to have a customer feel blindsided when their package arrives.
International shipments can also take time to clear international customs, including any duties or taxes that must be paid in their destination country. Be sure to complete the proper documentation for your packages during order fulfillment to avoid shipping delays for your customers.
Most major mail carriers have resources to help you avoid customs delays for international shipping:
- FedEx Guide to Customs
- Canada Post Customs Forms
- Royal Mail Customs Guide
- Australia Post Customs Forms and Regulations
Take advantage of these resources to ensure your international shipments arrive smoothly without any unexpected hiccups. Your customers will thank you for it.
Environmental concerns
The supply chain industry is responsible for a staggering 60% of global carbon emissions, and consumers are becoming increasingly aware of how their purchase decisions contribute to climate change. Research has shown that 28% of US shoppers consider the environmental impact of delivery methods when making online purchases. It’s a growing concern that savvy business owners can’t afford to ignore.
Increasing pressure to adopt sustainable business practices can pose a challenge, particularly if eco-friendly shipping options are more expensive or less efficient. Thankfully, there are ways to combat this shipping issue and make your supply chain more sustainable without breaking the bank:
- Embrace eco-friendly packaging. Biodegradable plastics, plant-based polymers, and recycled materials are more environmentally friendly than traditional packing materials. Let your customers know about the switch and encourage them to recycle their packaging once they’ve opened their parcel.
- Reduce parcel sizes. Smaller packages require fewer materials and allow delivery partners to carry more parcels in one trip. Pack each item in a delivery box that best matches the size of the product. It’s a win-win: you save on packaging costs, and your carriers can be more efficient.
- Offset carbon emissions from deliveries.Shopify Planet allows customers to pay for carbon-neutral shipping. Online shoppers can donate less than 25¢ per order to offset the carbon emissions from their delivery. Any money raised goes directly toward vetted projects that future-proof the planet. It’s a simple way to show your commitment to sustainability and give your customers a way to make a difference.
Customer service problems
When things go wrong, you must focus on providing the best possible customer service to bring customers back to your store. Inefficient communication regarding shipping status, delays, or issues can cause poor customer satisfaction and deter people from purchasing through your online store again.
“Your customer is your biggest advocate,” says Eran Elfassy, founder of Mackage, in an interview with Shopify Masters. “Having a happy customer that comes back to buy again is the most important for me. As soon as we lose a customer, I feel sad.”
Be proactive with your ecommerce customer service and apologize for any inconvenience throughout the shipping process—even if it’s through no fault of your own. This might mean using Shopify Flow to get alerted when a customer’s parcel is delayed or missing and reaching out to the customer before they grow frustrated. A little empathy can go a long way in turning a negative experience into a positive one.
The best customer service is personalized, so use your judgment when determining the resolution. Some shoppers might be satisfied with an apology; others might need a partial refund or discount code to redeem on their next purchase before they’re happy. The key is to listen to your customers and find a solution that works for them.
Technology integration challenges
Shipping technology can be a game-changer when managing large shipment volumes. The problem most ecommerce business owners face, however, is incorporating advanced tracking systems into their existing tool stack.
Cybersecurity is also a concern when integrating ecommerce shipping technology. You’ll need to ensure that any software you’re using encrypts sensitive data and that the connection between integrations is secure. The last thing you want is a data breach that puts your customers’ information at risk.
Fortunately, Shopify integrates with a range of shipping apps to seamlessly merge Shopify data with your delivery information. These include 3PL companies such as ShipBob and ShipMonk and multichannel shipping software like Shippo, ShipStation, and Veeqo.
You can also buy discounted shipping labels through Shopify Shipping, which means all real-time delivery data is in one place: your Shopify admin. It’s a centralized hub for all your shipping needs, making it easier to keep track of your shipments and stay on top of any issues.
Mitigate these shipping problems for your online store
Shipping isn’t always easy, but with these solutions for your most common shipping problems, you’ll be ready to tackle whatever challenges come your way. From diversifying your carrier network to investing in eco-friendly packaging, these quick fixes can help you streamline your shipping process and keep your customers happy.
Of course, if you want to eliminate the hassle of shipping and offload these challenges, consider outsourcing fulfillment to a reputable service provider. Shopify Fulfillment Network, for example, pairs your store with Flexport, a leading shipping company that will pick, pack, and ship orders from any sales channel (including Amazon, Walmart, or eBay) directly to your customers.
You can turn shipping from a headache into a competitive advantage by proactively addressing these common shipping issues and finding solutions that work for your unique business needs. Your customers will appreciate the extra effort you put into ensuring their orders arrive safely and efficiently, and you’ll be able to focus on what you do best: growing your business and delighting your customers.
Read more
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- 6 Ways to Reduce Shipping Costs for Small Business
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- Customer Service 101- A Guide to Providing Stand-Out Support Experiences
- How to Expand Your Shopify Store to Multiple Countries
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- What To Do When Customers Force Refunds and Chargebacks
Shipping issues and problems FAQ
What shipping delays can I expect in 2024?
Rising fuel prices and inflation are putting pressure on carriers, shipping container shortages are causing backlogs and delays, global conflict is disrupting trade routes and supply chains, and poor weather conditions are slowing down transport and delivery.
What is the problem in the shipping industry?
The shipping industry is a volatile and complex ecosystem, with supply chain disruptions causing significant issues for retailers. From rising costs and environmental concerns to labor shortages and constantly changing regulations, businesses must navigate a minefield of challenges to keep their products moving and their customers satisfied.
What is causing the shipping issues?
Shipping issues can arise from a variety of factors, both within and outside of a business’s control. Extreme weather events, global conflicts, labor shortages, and container shortages can all contribute to shipping disruptions, causing delays and increased costs. Additionally, carriers themselves can also contribute to shipping issues if they’re understaffed, lack the necessary technology to manage large volumes of packages, or simply fail to meet their service level agreements.
How would you handle a major problem with a shipment?
When a major problem arises with a shipment, such as a parcel going missing, being delayed, or arriving damaged, the first step is to always apologize to the customer and acknowledge their frustration. Put yourself in their shoes and understand how disappointing it can be to have an eagerly anticipated order go awry. Next, offer them a resolution that shows you value their business and are committed to making things right. This could be a free replacement, a rescheduled estimated delivery date, or a discount code to redeem on their next order. The key is to be proactive, communicative, and empathetic throughout the process, keeping the customer informed and reassured that you’re doing everything in your power to rectify the situation.