Shipping As A Competitive Advantage

By Sharron Senter

I'm noticing an unfortunate marketing trend lately -- poor shipping habits.

As small business owners, we can't afford to be stingy on customer service. Instead, we must provide superior customer service. It's our bread and butter. Shipping is a form of customer service. Smart entrepreneurs use shipping, and its perceived benefits, as a competitive advantage. Ideally, you want customers to perceive your shipping methods as reasonably-priced, fast and reliable. Think about it, someone just paid you for your products and services, now deliver the goods!

In the past month I've ordered two hard-covered books online. Both authors used the United States Postal Service [USPS] "Media Mail" to ship their books. Media mail is thought to save an author money. However, the USPS writes, "If you are mailing merchandise, compare the costs and service between Priority Mail and Package Services. In many cases, the postage costs are very similar to Priority Mail but Priority Mail gets there faster and includes free forwarding and return."

Let's assume it's more cost-effective to use Media Mail. Unfortunately, it usually delays the arrival of products. In both instances, I didn't receive my book until 14+ days after I placed my order. This is unacceptable! USPS posts the following on their website, "Package Services [Media Mail] DOES NOT receive expedited service."

If you feel strongly that you need to ship via Media Mail, then make sure your customers realize your book ships in 2-3 weeks, which I personally find unacceptable. I'm very nervous for these book entrepreneurs and the like, particularly because the holidays are coming, and a gift-giver will not tolerate two+ weeks shipping timeframes. Frankly, you don't save very much using media mail, versus the positive impact you'll make delivering your customer their order within 3-4 business days. There are always opportunity costs of operating a business. In this instance, it's time versus money. Spend the few extra cents and maintain a satisfied customer.

What are reasonable shipping times? Three days is excellent, five is good, and seven is fair service. Anything longer than seven days and the delay does not reflect well on your business, worse the customer starts to get annoyed, wondering where their purchase is. This may prompt a call or email to you. The result, poor customer service.

Some Exceptions
There are some exceptions to allowing for slower than usual deliveries, such as custom-made products, i.e., decorative wreaths. You need to let your customers know that products usually arrive in 7-10 business days. However, turn this delay into a customer benefit. For example, your shipping sales/policy message could read, "All of our products are made in-house, by hand. We hand-paint every piece and tie each bow. We prefer to ship our products very carefully, bundling them just-right, so they arrive in perfect condition. Please allow for a little extra time for your package to arrive, usually 7-10 days, frequently sooner. Thank you for your business."

Shipping is a Competitive Advantage
Shipping can be used as a competitive advantage. For example, if your product is listed in a directory of similar products and services, offering a shipping promotion can help differentiate your business. Whatever you decide, you can be assured that whoever offers free shipping will sell more. This is particularly true if a prospect is searching a directory filled with highly-competitive businesses. When you list your business in a vendor directory, you often level the differences between you and your competitor. Don't misunderstand me. I think listing your business in directories is smart, but at times, you may send the message, "Me too." The key is to acknowledge this and include key message points that clearly differentiate your business from others in the directory. Using the words, "Free Shipping" or "Any Second Item 50% Off" would both work well.

What is Media Mail?
According to the United States Postal Service, Media Mail [often used to mail books] is a subclass of "Package Services." Package Services is a class of mail primarily intended for merchandise, catalogs and other printed material. The following is a direct link to more Media Mail details. http://www.usps.com/businessmail101/classes/packageServices.htm

P.S....Always contact the customer about potential delays BEFORE they contact you. Don't avoid announcing delays. Instead, let customers know. Most people are reasonable and will simply thank you for your proactive update.

About The Author
Sharron Senter is a New England-based marketing consultant, speaker, writer and founder of Senter & Associates, a marketing communications firm that helps small businesses deploy affordable online and offline marketing strategies. Sharron is well known for her free weekly emailed marketing tips, found at http://www.sharronsenter.com/fmt.htm. She's also the author of several marketing reports that illustrate affordable ways to grow a small or home-based business while spending very little, including “A Secret Marketing Weapon, How to Submit Expert Articles Online & Drive Qualified Leads to Your Inbox."

Looking for original marketing content, please email Sharron to discuss your needs.

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