The world of e-commerce is evolving faster than ever, and brands need to adapt to remain competitive. One of the biggest challenges facing e-commerce brands is the complexity of shipping. With so many carriers, rates, delivery times, and regulations to consider, managing the shipping process can be time-consuming, frustrating, and costly. Fortunately, the rise of AI-powered shipping automation is transforming the industry, making it easier than ever for brands to optimize their multi-carrier and parcel rate shopping strategies. While at some level, much of the modern shipping process is automated, at FenixCommerce we help streamline decision making for your e-commerce brand. Using our AI, we can simplify your carrier rate shopping by providing the most accurate cost and delivery predictions. In this blog post, we'll explore the benefits of shipping automation and how Fenix’s software can help e-commerce brands optimize their shipping process through our AI decision making model. Benefits of Automation One of the primary benefits of shipping automation is that it can help e-commerce brands select the most cost-effective carrier rate option meeting customer delivery expectations. With so many different carriers to choose from, selecting the right one can be a challenge, especially for brands that are new to the industry. Shipping automation uses AI algorithms to analyze a range of data points, including package dimensions, weight, destination, carrier surcharges, and delivery time, to recommend the best carrier rate option for each shipment. By automating this process, brands can save time and reduce shipping costs, which can help increase their profitability and competitiveness. Simplify Your Brand’s Shipping Another advantage of shipping automation is that it helps brands consider delivery times and tracking. Customers expect accurate and reliable information about their orders, as Chain Store Age indicates 85% of shoppers will not revisit a webstore after a poor delivery experience. With shipping automation, brands can optimize their shipping processes to ensure fast and reliable delivery, which can help improve customer satisfaction and loyalty. Additionally, automated tracking and notifications can help brands keep customers informed about their order status, further increasing transparency and improving the customer experience. Managing the complexities of shipping regulations and requirements can be a significant challenge for e-commerce brands. Shipping automation can help by automating compliance checks and ensuring that packages meet all relevant regulations and requirements. This can help brands avoid costly fines and delays and improve their reputation with customers and regulators alike. Automate Your Brand’s Decision Making One of the significant benefits of FenixCommerce's software is that it automates decision-making to optimize carrier and parcel rate selection, pre-purchase AND post-purchase. "There is no reason to just use Fedex or just use UPS, you got to really be open to all the carriers,” said Shawn Singh, Founder/CEO of FabricWholesaleDirect.com, in a recent interview. “Businesses should be carrier-agnostic and really prioritize the carrier [service] that is best-fit for each shipment." Selecting the optimal carrier service for each shipping option pre-purchase, offers the shopper the most accurate estimated delivery date (EDD) at Checkout, increasing conversion and incentivizing upgrades to a faster delivery option, increasing shipping revenue. Then, post-purchase, Fenix can optimize each order and select a less costly Carrier service that meets the same delivery date promised to the shopper at Checkout. On-Time Delivery is the Goal Several WMS/TMS packages offer Rate shopping post-purchase. However, with Fenix, the two-step method of pre- & post-purchase automated carrier service selection provides the highest delivery accuracy at the lowest possible shipping cost to the Retailer, while increasing order fulfillment efficiency. This capability can easily extend to a Brand’s 3PL or WMS/TMS partners to lower the 3PLs overall shipping costs while increasing the Brand’s satisfaction by delivering ON TIME; not early or late. Additionally, shipping automation can help brands make data-driven decisions, which can help them optimize their shipping strategies over time and adapt to changing market conditions. Be More Accurate than Carriers Shipping automation can also help increase transparency with customers and improve EDD accuracy. This is especially true as more e-commerce brands utilize inexpensive shipping services like UPS Sure Post or FedEx Ground Economy, for their Free or Standard shipping. These are the hardest to predict as after order confirmation even the Carriers’ own EDD’s are accurate less than 70% of the time. Don’t rely on Carriers to build trust with your customers. By automating the shipping process, brands can offer highly accurate EDDs (94%+) pre-purchase, for all services and provide real-time tracking information to customers, allowing them to monitor their package's progress and receive updates about any delays or issues. Work With Fenix Today In conclusion, shipping automation is a powerful tool for e-commerce brands looking to optimize their shipping process. By using AI to automate shipping decisions, brands can save time, reduce costs, improve efficiency, and increase transparency with customers. FenixCommerce's software is an excellent example of how shipping automation can help e-commerce brands stay competitive and adapt to changing market conditions. FREE Assessment And Fenix backs up this claim with a FREE Assessment of Multi-Carrier Parcel shipping spend, offered to any Retailer/DTC Brand with at least 10K shipments/month. Recently, Fenix’s proprietary Rate-simulator decision-engine revealed 18% savings in Carrier costs ($2.56/shipment for affected orders) for a large Shopify DTC footwear apparel brand, from just one month’s worth of shipping data history. Take advantage of this free assessment to see how automating carrier-service shipping decisions can reduce costs. As e-commerce continues to grow, brands that embrace shipping automation will be better positioned to succeed in the years ahead.
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