Rapidly advancing technology has opened up a whole new world for smaller retailers, but after landing the sale, many find the distribution process overwhelming. How can small-business owners use shipping as an advantage rather than a hassle?
I’ve been with FedEx for 18 years. While I’ve moved around to various parts of the enterprise during this time – including different operating companies – I’ve always worked in marketing and communications. I love how my job allows me to create new connections every day, whether between a customer and a new opportunity, or an employee and a new career path.
I view my own journey as a great representation of the FedEx mission to connect people and possibilities. We are more than a transportation provider. The work we do every day makes a difference – from moving temperature-controlled artifacts to museums and the first COVID-19 vaccines to hospitals, to vulnerable pandas from China to the U.S. and professional football championship trophies from the creator to the football stadium.
Connections for Small-Business Success
I’ve seen all of this in real time, and more importantly, I’ve witnessed FedEx take an active role in helping small businesses thrive. After starting out as a small business that shipped just 186 packages on our first night, we remember our roots and have invested substantially in incubators that support small businesses, including underrepresented entrepreneurs. We’ve realized that when small businesses grow, we grow.
Every day, we’re building more connections between FedEx and our small-business customers. The FedEx Small Business Center has valuable information on solutions, sharing from fellow entrepreneurs and industry-leading experts, plus details on our annual Small Business Grant Contest that awards thousands of dollars to small businesses each year.
FedEx has also listened closely to our small-business customers to learn what services are the most important to them. For example, we’ve recently launched Picture Proof of Delivery (PPOD) for all residential deliveries, which reduces the number of “Where’s my package?” inquiries by customers and recipients and offers added peace of mind.
FedEx Delivery Manager® allows package recipients to set delivery instructions and request to reroute items or hold packages at a FedEx Office or other retail location – reducing the chance of porch piracy. And our brand-new FedEx Sustainability Insights tool allows environmentally-conscious small businesses to estimate the emissions of a shipment by entering their account number, the shipment weight, and its destination to evaluate the emissions impact of various shipment methods through our network.
One connection FedEx has with its small-business customers that I’m especially proud of involves packaging consultation. I feel that it’s critical to help business owners carefully consider the message they want to send with their packaging. Our FedEx Packaging Lab tests boxing for stability (by smashing or dropping the test package from a height, for example) and advises on decisions such as whether to include a custom branded box or thank you note with a shipment. Not only does this process reduce damage to shipments, but also it can help our small-business customers make a solid first impression.
Connections for E-commerce Expertise
For small businesses that are new to the e-commerce space, I recommend that you start by knowing your costs and ways to save. For example, if you’re running a perishable business, use ground for shorter distances and faster speeds for longer distances, and don’t forget to factor in the cost of keeping the item cold if that is required.
Always think about the unboxing experience, or the moment your customer will open your package. What will they see? Touch? A good experience will create a higher likelihood of a return customer, so it may be worthwhile to consider custom packaging or inserts.
Don’t make the mistake of believing that a mass online marketplace is the only way to sell or get customers. We’ve seen that they eat away at any margin you would have had on the sale and you’re not in control of the experience the customer is having with your brand.
There are particular shipping challenges unique to small-business e-commerce. Meeting customer expectations with respect to shipping time is probably the biggest one, followed by adhering to packing guidelines for freight shipments, understanding options to keep products safe for consumption and free from damage, and choosing the appropriate automation platform. Fortunately, the FedEx Small Business Center has guidance on all of these topics and more.
Connections for Holiday Prep
Our small-business customers are kicking into gear for the inevitable holiday shipping rush and potential post-holiday returns.
Although there were a lot of supply chain challenges the last few years, many businesses now have excess inventory. I recommend using the period of mid-November to mid-December to get customers to shop and ship as early as possible, pulling sales forward and smoothing out the season. Don’t forget to clearly communicate your shipping deadlines to meet certain holiday dates.
Lay out your returns strategy and invite customers to return an item by including a ready-to-go label or a QR code to activate a label. You can use a slower method to ship back to you to keep costs down.
Incidentally, many merchants don’t fully comprehend how valuable returns are to customers because they view them as, well, a pain. We suggest being thoughtful on the front end, because the easier you make it to return something, the more likely the customer is to do business with you in the future. We can help by allowing package drop-offs to one of our 60,000 FedEx retail locations.
Whether you’re a seasoned retailer or an entrepreneur trying e-commerce for the very first time, FedEx is excited to work with you on connecting your products with your customers in new and innovative ways. Instead of thinking of shipping as a burden, view it as an opportunity to showcase your creativity and drive your business’s growth.
As told to Alexandra Levit
Photo: Courtesy of FedEx