How do internal eCommerce warehouses operate and what are dispatch cut-off times? Why are they important and how do the affect online sales for your brand?
Understanding this shipping process matters when considering 3PL services. Brands know that partnering with a third-party logistics provider is convenient and automates the logistics extension of your brand, right? However, not all 3PLs deliver the same fulfilment service experience you need to grow your brand and retain customers efficiently.
Dispatch cut-off times have an adverse effect on delivery times, which directly affect customer loyalty and retention. Let’s discuss.
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What is 3PL dispatch for eCommerce fulfilment?
3PL dispatch is one of the steps in the logistics process for shipping products to customers. It’s actually the last step a third-party logistics provider performs in the warehouse – which becomes a holding place between the warehouse and the courier.
After an order is completed online, it is picked by a warehouse worker, packaged, and then distributed to the dispatch area, referred to as “ready for dispatch.” This is a specific area of the warehouse where scheduled pickups happen by the courier. Throughout the regular work cycle and scheduled pickups, if an item is not ready for dispatch, then it won’t be collected and shipped by the courier. Therefore, if items ordered online at 2 pm online are not ready for dispatch at 5 pm when the courier shows up to pick up the packages, the item will most likely go the next day. This affects shipping speed, obviously. This is where the devil is in the details for efficient parcel shipping solutions.
38% of online retailers are worried about meeting fast delivery expectations for customers
Hyperfocus on this process makes the difference between 1 – 2 day delivery and 3 – 4 day delivery, or more. You need experts you can rely upon.
What is shipping speed in eCommerce?
Shipping speed is the time it takes for a package to reach its final destination. There are two parts to this, one being processing and the second being shipping. The processing phase (in the warehouse) is where the product has been picked, packaged, and then has been “made ready for dispatch.” The second part is when the packages are then picked up by the carrier and shipped. It’s important to distinguish processing time (I.e. warehouse work) from shipping with your customers. Some brands even choose to add these details to their website for transparency – a smart idea.
Processing can be done within minutes to an hour with a good 3PL. The quicker the processing – the quicker the shipping.
How does shipping speed affect online sales?
Shipping speeds affect final checkout conversions with customers. Customers have higher expectations in 2022 when it comes to shipping speed – so much so that 83.5% are unlikely to shop with a brand again after a poor shipping experience (I.e., waiting too long). Not only do brands need to be more efficient in their shipping, but they should also be transparent in their shipping times.
Customers like to be informed when their packages will arrive in 1 – 2 days, 3 – 5 days, etc. They are more likely to make a purchase this way. Add it to your FAQs on your website and include a separate detailed shipping page.
Approximately £16 billion in sales revenue are lost each year because of cart abandonment. The average cart abandonment rate across various industries is 69%. There are many reasons for this; however, the facts remain shipping speed is one of the most valued customer touchpoints.
Slow delivery time is responsible for 26% of all shopping cart abandonment
Expensive and unexpected shipping costs are also an increasing factor for UK shoppers to ditch their carts. Look into offering free shipping and absorb the cost of delivery into your product charges. 88% of consumers are more willing to purchase from an eCommerce store that offers free shipping.
Making sure orders go out and are ready for dispatch quickly is what differentiates businesses and competition in the eCommerce industry. So, what are the peak online shopping hours for most online orders?
Peak online shopping hours are between 5 pm and 9 pm, Monday through Friday. Why is this? People are home from work, and they are on their phones – ready to make purchases.
Industry-standard in the 3PL eCommerce warehousing industry is between 2 pm and 5 pm. So, if peak shopping times are between 5 pm and 9 pm, why would a 3PL have cut-off dispatch times at 2, 3, or even 5 pm? Doesn’t make sense, right? This is a missed opportunity – leaving cash on the table. Next-day delivery should be a critical focus for your business and your customers.
49% of shoppers say that next-day delivery makes them more likely to shop online
Injecting orders into the courier network later into the evening ensures that products are being processed faster and that deliveries get to customers quicker. When 3PLs process orders the next day after an order was placed online, it’s more likely the package will arrive 72 hours or more later after purchase. If you’re a brand that wants to wow your customers, then have higher expectations when it comes to your logistics provider.
Selazar 3pl fulfilment shipping
In an effort to be a leader in the eCommerce fulfilment industry, we offer later dispatch times into the evening. Any order placed online with Selazar is guaranteed same-day dispatch by 10 pm. On top of this efficiency, our average picking speed is also 37 seconds on average.
Picking is the part of the process where a worker physically travels to where your stock is stored in the warehouse. This happens when the online order is processed and assigned for picking. Because we use tech-first strategies and digitally map our warehouses, we’re more efficient in this process than most 3PL services.
A higher service level always matters, which is why most orders are processed within 30 minutes of the online order being made. A recent survey concluded 45% of consumers expect a maximum delivery window of 2 days – a standard that should be expected from your 3PL service provider.
3PL dispatch cut-off times summary
The writing is on the wall. Understanding dispatch cut-off times and understanding network injection matters. Slow shipping speeds have a negative adverse effect on your sales. In the modern age of eCommerce, quicker gratification is important as online shopping has increased. Automating your logistics increases your chances of a better shipping experience for customers. As experts in our field, we ensure rapid and efficient shipping, raising retention for brands and increasing loyalty. Contact Selazar today to set up a free no, obligation discovery call so we can learn about your business and priorities.