There are many things that can help your ecommerce business succeed. Among them are investing in market research, focusing on consumer needs, and leveraging data and analytics when developing new products. SEO and social media are also important components of an online business, especially since the internet is such a vast playing field.
Another important factor in the success of an ecommerce business is fulfillment. After all, fulfillment companies are what facilitate the receiving, packaging, and shipping of hundreds or even thousands of orders, wherever these orders may be headed. Without a good fulfillment partner, an ecommerce business can quickly lose customers and money.
On the other hand, if a fulfillment company doesn’t evolve and offer convenient, cost-saving services, they can also lose their partners. Thus, these companies are always working to provide the best services, finding solutions to get packages delivered in the most cost-effective ways. One of these solutions is package consolidation.
What is Package Consolidation?
There are a lot of shipping and ecommerce fulfillment companies like Red Stag Fulfillment that practice and offer package consolidation to their clients. The service is self-explanatory when you look at its name: your chosen fulfillment company will combine multiple orders in one box or package while retaining the original packages. This way, the shipping cost is reduced and monitoring the package is easier because there will only be one tracking number.
Note that package consolidation doesn’t combine packages with different destinations. It only applies to orders made by the same individual and that will be delivered to the exact same address. For example, a customer bought two tubes of lipstick and two pairs of jeans. Shipping these separately will entail two different pouches and two different tracking numbers. Package consolidation combines these two packages into one box, which essentially transforms the two orders into one. There will be a single shipment that contains the two purchases, which is easier to track.
How Does Package Consolidation Benefit Ecommerce Businesses?
Now that you have a clearer picture about package consolidation, the next question is: why is it important to your ecommerce business? To better appreciate package consolidation, below are just a few of its benefits.
- Cost Savings. Couriers and other fulfillment companies have a minimum cost per shipment, which increases depending on the weight of the package. If you have two separate packages, you’ll pay for the minimum for both. Conversely, if you consolidate the package, you’ll only pay one fixed rate. Consider, for example, that a 5-pound package costs $10 to ship. Shipping two 5-pound packages separately will cost $20. If you opt to consolidate into a single 10-pound package, however, the cost would be around $7 or so, depending on the fulfillment company. It’s a small amount when you look at it this way, but your savings will increase if you consolidate more packages. When you factor in multiple separate orders, the cost savings will be much easier to appreciate.
- Speed of Delivery. Package consolidation helps cut down delivery times, especially since not all orders are dispatched at the same time. Consolidating packages will mean that everything will be sent out in one shipment, and it will reach the intended recipient in one go. However, do note that if you have multiple service providers, it might not be ideal to consolidate packages. This is because different companies have different hours and policies regarding the release of items for delivery.
- Protection. Package consolidation can add a certain measure of protection for fragile items, although there are some products that are still recommended for individual shipping. In general, however, small and fragile items are usually safe in a consolidated package as long as the box’s contents are properly arranged.
If you often receive multiple orders from the same customers, perhaps it’s a good idea to consider package consolidation. It’s easy, cost-effective, and time-saving—everything that both a customer and a business owner could want!
