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Getting the package to the customer
In this "What Happens When You Click Buy" episode, we'll discuss the process of delivering orders to customers and its impact on their overall experience. We've previously covered warehouse order processing, including picking and packing items. Now let's focus on shipping options and their role in fulfilling customer expectations.
There are two main types of shipping: parcel shipping (e.g., FedEx, UPS, DHL, USPS) for small individual items; and LTL/TL (less than truckload/truckload) for larger shipments like furniture or containers full of goods. Most brands today deal with parcel shipping as they cater to individual customer orders.
Starting out, brands typically choose one carrier, such as UPS, for generating labels and tracking numbers directly through their system. However, this method becomes challenging at scale when dealing with thousands of daily shipments requiring efficient label printing and tracking management.
Exciting developments in the industry are last-mile delivery and using micro-fulfillment centers closer to urban populations that can quickly fulfill orders handed off to gig economy workers instead of traditional carriers. These changes the dynamic but offers new business models that enable faster deliveries.
Some companies also explore handling shipping themselves — particularly those dealing with food or perishable items who want more control over the delivery experience. After all, studies show that customers often associate negative delivery experiences with the brand rather than the carrier itself, making it crucial for businesses to consider how their chosen shipping method impacts overall satisfaction levels.
