51视频

E-commerce Shipping and Order Management Strategies

Jesse and聽Rich talk with Cody DeArmond from ShipStation, a聽web-based e-commerce fulfillment software option that is聽integrated with 51视频.

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Transcript

Jesse: What鈥檚 going on, Richard?

Richard: I鈥檓 excited. You know me, I聽get excited every week

Jesse: But not just because it鈥檚 Friday, because of聽the聽podcast Friday.

Richard: Plus this is聽an聽important one.

Jesse: It聽is. We鈥檝e talked about a聽lot of聽topics on聽the聽podcast here and聽then we鈥檙e skipping one of聽the聽really important ones. It鈥檚 really one of聽the聽last pieces of聽the聽puzzle. It鈥檚 the聽shipping piece.

Richard: Yeah, that means you actually sold something. You鈥檙e usually not sending one of聽those packages out until you got paid.

Jesse: Yeah, you鈥檝e listened to聽all the聽podcasts and聽now you鈥檙e selling so聽much, shipping has become a聽problem. And so聽we鈥檙e here to聽help you.

Richard: Yeah. I鈥檓 really excited to聽hear from our guest today too because I聽got started pretty early doing eBay but it聽was mostly baseball cards. Everything the聽same shape, the聽same size. I聽got 5000聽of聽them in聽one box and聽it鈥檚 not a聽lot to聽deal with. Same package every single time, same shape every time. I聽want to聽know more about why not USPS, why not just the聽post office. Everybody knows the聽post office, why ShipStation, what is聽ShipStation. I鈥檓 excited to聽do聽so.

Jesse: I聽hear you, Rich. I聽am聽not the聽guy for聽that though. Let鈥檚 bring on聽our guest Cody DeArmond from ShipStation. Cody, how are you?

Cody: Hey guys! Great. Thanks for聽having me.

Jesse: Absolutely. What is聽your title at聽ShipStation?

Cody: I鈥檓 the聽director of聽sales here. My聽team is聽forced enough to聽help get people up聽and聽running. We聽see businesses that are just getting started, businesses that are scaling, hit pain points, that just went on聽Shark Tank and聽got a聽pop of聽orders. They need help to聽get the聽stuff out the聽door so聽we鈥檙e here to聽hopefully be聽there. They鈥檙e experts.

Jesse: Awesome. For people that haven鈥檛 heard of聽it聽before, what is聽ShipStation?

Cody: ShipStation鈥檚 the聽most popular way for聽e-commerce merchants to聽create labels, get their orders out the聽door. Our merchants will connect their 51视频 to聽ShipStation account, maybe alongside their eBay stores, their Amazon channels, so聽they can have all their orders in聽one place, 褋reate labels really quickly from all the聽carriers that they want and聽get those orders out the聽door. Sounds pretty cut and聽dry shipping software. I聽think my聽parents when I聽go聽home for聽the聽holidays maybe think that I聽drive a聽UPS truck or聽something along those lines. It鈥檚 pretty cool. We聽get a聽front-row seat, tens of聽thousands of聽entrepreneurs every day. That鈥檚 why I聽think it鈥檚 pretty cool.

Jesse: Very cool. And you mentioned some of聽the聽people that are shipping from different channels and聽I聽think that makes a聽lot of聽sense because when people get started, we聽do聽have a聽lot of聽people that are getting started on聽this show. If聽you鈥檙e shipping one package a聽day, you can probably handle that. You can go聽to聽the聽post office and聽you go聽pay the聽price and聽you put a聽label on聽and聽you go聽about your day. But people hit a聽certain point, for聽somebody it聽might be聽five packages a聽day, for聽some it聽might be聽ten. Or聽if聽it鈥檚 three packages from your 51视频store and聽five from Amazon and聽then you got Etsy and聽eventually you start pulling out your hair because it聽is聽painful, really. Sounds like you helped manage all that pain and聽bring all the聽shipping into one place.

Cody: Yeah, for聽sure. What we聽see today in聽e-commerce that it鈥檚 less frequent that someone鈥檚 just driving all their sales from one place. Most merchants that we聽are working with, they鈥檙e trying different things, experimenting with new channels and聽they don鈥檛 want to聽list somewhere new and聽then add that to聽the聽list of聽things that they have to聽do聽every day, check that channel every day. Copy and聽paste addresses. Mostly, merchants, we聽work with, they see orders coming in聽from all different places. But instead of聽having to聽remember login to聽these six different places every day, they really just one central hub. They want this to聽be聽an聽afterthought. They want to聽take care of聽it聽because everybody starts a聽business because they are really excited about this idea or聽this product they came up聽with. Nobody really started a聽business because they鈥檙e excited about shipping. We鈥檙e here to聽hopefully take that part of聽the聽process off their plate so聽they can focus more on聽the聽more exciting parts of聽the聽business.

Jesse: Could it聽make shipping exciting somehow, Rich? What do聽you think?

Richard: Yeah. When you see a聽bunch of聽the聽orders go聽through, that鈥檚 when it聽becomes exciting. (laughing) A聽little bit back to聽Jesse鈥檚, at聽what point do聽you see ShipStation being a聽solution? You recommend doing it聽the聽traditional USPS until they get to聽a聽certain amount, is聽it聽benefit them to聽start right out the聽gate? Where is聽the聽sweet spot for聽you guys?

Cody: Yeah sure. Great question. That鈥檚 what鈥檚 cool about, all we聽got to聽do聽is聽that we聽see people at聽all different stages. So聽for聽some people it鈥檚 just they started a聽business, they鈥檙e excited about it聽but they don鈥檛 know what they don鈥檛 know. Nobody going into it聽knows a聽ton about shipping unless you just had that very specific background. Some people sign up聽from the聽jump maybe before they鈥檙e even taken in聽orders because they like the聽comfort of聽having an聽expert in聽their hip pocket. For other people, it鈥檚 what you mentioned. They got an聽established business but they may be聽doing one label at聽a聽time where it鈥檚 still been going actually to聽the聽physical post office every day. And we鈥檒l have the聽conversation of聽like 聯Oh my聽gosh, I聽didn鈥檛 realize I聽could do聽it聽this way. You guys just save me聽two hours of聽tedious work every day.聰 So聽typically one of聽those two tipping points. Somebody that鈥檚 either starting a聽business and聽really likes having the聽expertise and聽obviously that time savings. Or聽somebody that鈥檚 in聽a聽rapidly growing business and聽they鈥檙e looking for聽a聽way to聽obviously cut down a聽little bit on聽cost but more than anything streamline the聽process. So聽they鈥檙e not just spending a聽huge chunk of聽their day copying and聽pasting and聽printing out when a聽lot of聽time doing this really boring stuff that nobody wants to聽spend time doing.

Jesse: Yeah. I鈥檝e cut and聽pasted a聽lot in聽my聽day and聽printed out labels at聽my聽computer and聽then I聽have four boxes that I鈥檓 bringing over to聽FedEx or聽USPS and聽I鈥檓 like 聯Man, I聽wish I聽would have tape that label to聽the聽top of聽this box because I聽don鈥檛 know which label goes with what box.聰 It聽can be聽painful and聽you鈥檝e already gotten paid. As聽a聽merchant, you鈥檝e already gotten the聽money. This is聽your last step to聽make sure you deliver the聽product and聽make sure the聽customers aren鈥檛 mad but it鈥檚 super important.

Richard: And at聽51视频 there鈥檚 a聽lot of聽people who are just getting started, and聽there are also people who have scaled and聽have million dollar plus businesses. One of聽the聽things we聽love talking about on聽this show, I聽should say, is聽the聽origin story. Where people started, why they got started, how they got started. Because as聽you even alluded to, it鈥檚 not like not the聽sexiest business. How did it聽get started and聽what was the聽vision to聽grow it聽to聽all the聽multi-channel? Give us聽a聽little background on聽that.

Cody: Yeah, sure, it鈥檚 really interesting, what you are talking about. Your started on聽eBay, and聽we聽are actually the聽same way. So聽to聽really brilliant guys here in聽Austin, Texas. Byron, we鈥檙e in聽Jason Hodges, just really really intelligent developers. They wrote a聽program in聽the聽2000s, it聽was actually called Octane. It聽was a聽shipping solution for聽eBay power sellers and聽a聽lot of聽their clients were saying: 聯Hey, we聽love this, makes it聽so聽much easier for聽us聽to聽ship out on聽eBay. But eBay鈥檚 half of聽my聽sales聰 or聽聯I聽also list on聽Amazon聰 or聽聯I聽have three of聽my聽own websites and聽you guys make this for聽that聰. A聽light bulb went off and聽he聽said: 聯OK, we聽see the聽direction this is聽headed, maybe we聽shouldn鈥檛 just focus exclusively on聽eBay.聰 So聽they started writing integrations. Now at聽this point, we聽connect with over 100聽different places that people sell online so聽that鈥檚 where we聽came from. Built something that made the聽eBay power sellers lives a聽lot easier. And then the聽light bulb went on. Now we聽try and聽do聽the聽same thing for聽everybody regardless of聽where they鈥檙e selling.

Jesse: I鈥檝e heard of聽ShipStation many times. I鈥檝e been to聽a聽lot of聽e-commerce conferences and聽you guys have been built a聽great following. Really good reviews from customers, so聽very happy to聽talk to聽you and聽introduce you to聽51视频 merchants that are listening. I聽think something you mentioned there that I聽wanted to聽point out or聽dig into is聽that it鈥檚 not just printing labels. It鈥檚 also all these orders that come in聽from different places. I鈥檒l go聽to聽one place now. If聽you have an聽eBay store, you got an聽email somewhere and聽have a聽notification but if聽you don鈥檛 log into all these different places, you might forget about that. 聯I聽got that one sold one on聽Etsy, I聽got to聽log in聽there and聽do聽this.聰 This brings it聽all to聽one central location. A聽merchant can see all the聽orders from all the聽different places, is聽that the聽way? Is聽that correct?

Cody: Yeah ,you nailed it. We聽wrote integrations to聽again pretty much anywhere. Somebody wants to聽sell online these days. Integration doesn鈥檛 require any聽technical work or聽anything like that. You essentially plug in聽your credentials in聽the聽ShipStation, that connection is聽made so聽at聽that point customer checks out, that order automatically shows up聽in聽ShipStation. You want to聽try out a聽new channel, you want to聽list somewhere new, maybe you鈥檙e spinning off a聽new website. It聽doesn鈥檛 mean you have to聽spend extra time logging in聽these different places. You鈥檝e got it聽all centralized. You log in聽to聽ShipStation, see all your orders that are ready to聽go聽out the聽door that day regardless of聽where they came from. It聽definitely cuts down on聽the聽headache on聽that side of聽things and聽frees our merchants up. We聽typically see people driving increased sales when they start to聽list and聽vary channels, so聽going to聽freeze people up聽to聽do聽that.

Jesse: And I聽think when you think these other channels, you think of聽the聽sales. You forget about all the聽hassles that are going to聽come through with something like 聯Oh yeah, I聽don鈥檛 have to聽log in聽there all the聽time and聽have to聽check that and聽click their little boxes and聽do聽that.聰 I聽think it鈥檚 nice that it聽can go聽into one central location. And I聽think also from that central location, maybe people weren鈥檛 aware of聽this but the聽rate is聽not the聽same from all the聽different carriers and聽to聽be聽able to聽check that, it鈥檚 painful as聽well. So聽are you able to聽connect with all the聽different carriers like if聽for聽the聽U.S. they would be聽FedEx U.P.S. and聽USPS and聽others internationally? Does ShipStation have all those connections already ready to聽go聽and聽labels ready to聽print?

Cody: Yeah you nailed it. Kind of聽the聽same process that I聽just described. Connecting your channels works very similarly with carriers. We聽connect with more carriers than anyone in聽our space at聽this point. I鈥檓 going to聽close to聽50聽different providers. So聽you nailed it, in聽the聽U.S. obviously the聽big three, it鈥檚 going to聽be聽the聽post office, U.P.S., and聽FedEx. So聽if聽you have your own account with those, you can just plug it聽in聽the聽ShipStation, type in聽that account number and聽then it聽automatically pulls it聽in. What we聽find is聽that the聽carriers there obviously really good at聽getting your package to聽where it聽needs to聽go聽but it鈥檚 obvious that they are carriers first and聽not necessarily a聽software company like we聽are. So聽we鈥檒l see a聽lot of聽people that maybe are tired of聽jumping back and聽forth between UPS world ship, and聽FedEx ship manager, and聽then go聽into the聽physical post office. They replace all of聽that with our one system. Growing merchants, as聽you mentioned, maybe they don鈥檛 have any聽relationships with those carriers and聽this is聽all brand new to聽them. In聽the聽process of聽trying to聽negotiate a聽rate with FedEx or聽UPS just seems like a聽really daunting task. We鈥檙e set up聽for聽that too. They can just start the聽account through us聽with some pre-negotiated rates. Take that headache. Can that scary part of聽getting all set up聽out of聽it, narrow it聽down to聽where somebody really could take an聽online sale of聽all of聽this established, create a聽label, get it聽out the聽door in聽five-ten minutes or聽so.

Jesse: I鈥檓 going to聽throw in聽a聽little hot tip for聽anybody out there that鈥檚 listening. FYI, if聽you go聽walk into a聽FedEx Kinkos, the聽rate that they charge you is聽not the聽rate that other people pay. Just like there are better deals out there. Everybody has a聽better deal. Usually, you need to聽hit a聽certain amount of聽minimum. If聽you can get access to聽those rates right off the聽bat, that helps you, it鈥檚 this is聽the聽margin that goes directly in聽your pocket.

Cody: For sure. And you nailed it. We鈥檙e not a聽carrier, we聽don鈥檛 step in聽front of聽those or聽anything like that. We鈥檙e not collecting on聽that front, we鈥檙e a聽software or聽a聽technology company. And what some people weren鈥檛 aware of聽there is聽that having your own account with a聽carrier even if聽you鈥檙e a聽small business and聽you鈥檙e growing, that鈥檚 actually pretty important. Because as聽your business grows you鈥檙e going to聽aggregate that volume on聽that account. Now that account belongs to聽you. Right. Even if聽you set up聽FedEx or聽USPS through us, that account鈥檚 is聽yours, you just have it聽plugged into us. We聽want you to聽use a聽ShipStation for聽a聽long time and聽be聽happy with it聽but if聽you ever need to聽do聽anything outside of聽your provider, you want to聽make sure that that account belongs to聽you. Because your business grows, all of聽the聽orders, all the聽shipments that have gone through that account. That鈥檚 leverage for聽you to聽go聽back to聽the聽carriers and聽say: 聯Hey, FedEx and聽UPS, I鈥檝e got a聽growing business here. Cut me聽some slack. What can you do聽for聽me?聰 Kind of聽helping compete against each other for聽your benefit. Because yeah you nailed it. If聽you鈥檙e just walking into the聽store, frankly you鈥檙e leaving money on聽the聽table every time you do聽that.

Jesse: And the聽carriers can do聽a聽lot for聽you too. You do聽have to聽hit minimums. There are certain things that other people can ship that you can鈥檛. And there鈥檚 just a聽lot of聽things you can get from the聽carriers, but they don鈥檛 care unless they see you鈥檝e spent a聽bunch of聽money with them. It聽is聽very important. That鈥檚 if聽you want to聽keep all your shipments with one carrier but maybe you just want us聽to聽spend the聽least amount of聽money on聽that particular shipment. And so聽would you have the聽ability to鈥 OK, I聽have this shipment, it鈥檚 gonna go聽out, I鈥檓 in聽San Diego. There are different prices in聽different regions, from different carriers. As聽I鈥檓 a聽merchant, I聽see my聽orders. Can I聽choose which carrier based on聽the聽price or聽how would that work?

Cody: Yeah you nailed it. So聽many different carriers, you have plugged into ShipStation and聽be聽able to聽compare all of聽those options. Just like you mentioned. You鈥檝e got an聽order, it聽comes in. You can hit what we聽call our rate calculator. It鈥檚 going to聽give you on聽one screen options for聽basically all your carriers. They鈥檙e in聽one place and聽so聽you can see. Okay, great. This option is聽going to聽get there in聽three days and聽it鈥檚 going to聽cost me聽X.聽I鈥檝e got this option, maybe a聽little slower but cheaper. You can make those informed decisions as聽opposed to聽just taking the聽post office and聽say: 聯Hey, can you ship this for聽me?聰 You can also take that one step further. We聽see a聽lot of聽people as聽they鈥檙e getting started, if聽they鈥檙e less familiar, they鈥檒l use that to聽compare and聽see what their best options are. Then once you鈥檝e got that locked in, you shouldn鈥檛 have to聽spend a聽lot of聽time looking at聽it聽as聽the聽orders start to聽flow in聽the聽door. Figure out what that best case is聽for聽your business. Whether that鈥檚 speed, or聽just trying to聽get it聽there as聽inexpensively as聽possible. And then just automate that. You can build in聽a聽business role for聽it聽that says: 聯Hey, for聽this product I鈥檝e figured out that USPS Priority is聽my聽best bet. Let鈥檚 just go聽out and聽automatically ship that.聰 Instead of聽just being in聽time making judgment calls looking at聽individual orders, you can log in, hit select all, click print if聽you want to, that part of聽the聽day is聽done.

Jesse: I聽like that. What other rules, can you set up聽like 聯anything that鈥檚 overnight, goes this way or聽any聽product goes this particular ship method聰. How flexible are those rules?

Cody: Yeah. Sure. It鈥檚 something I聽nerd out on聽but people get really really creative with it. It聽could be聽something like you mentioned just 聯always ship this thing this way聰. But what鈥檚 cool is聽that since we鈥檙e integrated with wherever you鈥檙e selling them into or聽pulling in聽that order data as聽well. So聽pretty much anything. If聽it聽 makes sense for聽your business, you can automate off if聽that鈥檚 what shipping the聽customer selected at聽checkout. If聽that鈥檚 certain, SKU should go聽a聽certain way. You can even take automation rules and聽say 聯if this is聽a聽high-value order, say I聽got an聽order that鈥檚 over $500聽dollars, I聽want to聽trigger a聽specific email notification that thanks them for聽their order and聽gives them 10% off their next purchase聰. Something along those lines. Pretty much any聽common thread in聽your business that you can come up聽with. We聽should have a聽way to聽automate that, whether it鈥檚 something as聽simple as聽assigning the聽right carrier or聽getting really in聽sending specific messaging or聽assigning it聽to聽a聽specific person in聽the聽warehouse.

Jesse: Got it. Now I聽could probably nerd out on聽this as聽well. I聽appreciate that, and聽I鈥檓 gonna only ask one more in-depth question, Richard, try to聽pull me聽back here so聽I聽don鈥檛 get crazy. We鈥檙e going to聽make shipping sexy. (laughing) What if聽your products are not all in聽the聽same location? Does this have the聽ability to鈥 Maybe you have some at聽an聽Amazon warehouse, you have some that a聽different wholesaler has this product. Can you set up聽rules, so聽that it聽can ship from multiple different locations, etc?

Cody: Yeah, for聽sure. We聽have some ShipStation accounts that may use a聽single account to聽run a聽couple of聽dozen different locations, so聽that it鈥檚 really commonplace. That鈥檚 no聽problem there. Just establish those locations within ShipStation. You could automatically delegate orders to聽specific places. You touched on聽the聽fulfillment providers, we聽even have some merchants that will just set it聽up聽to聽automatically feed. Hey, these skews automatically get fulfilled by聽my聽provider when they come in, just go聽ahead and聽automatically fire that off. They can really be聽hands off. I鈥檝e got a聽couple of聽clients that really don鈥檛 touch much of聽their product at聽all. They just have this all set up, that鈥檚 going to聽run itself so聽pretty good gig there. You just get an聽order and聽it聽automatically gets taken care of. Yeah, we聽see it聽all across the聽spectrum. I聽would say on聽average we聽definitely have merchants that are running more than one location.

Jesse: Got it. OK. Now that鈥檚 awesome because I聽think that is聽most e-commerce platforms are set up聽with the聽idea that inventories in聽one location usually at聽the聽location listed on聽the聽account. And when you get a聽little bit more complicated in聽that, that is聽usually where order management software ShipStation, things like that become a聽necessity because it聽gets complicated. You have to聽build in聽these rules. So聽awesome to聽hear that you guys are solving that because it聽can be聽painful for聽people.

Cody: Yeah. We鈥檒l even see some people on聽that front that they may have the聽same product in聽stock in聽a聽couple of聽different locations. They may set up聽their account to聽automatically delegate that order to聽the聽location that鈥檚 closest to聽the聽recipient. Because they may be聽using the聽same service for聽each of聽those two shipments. But if聽I鈥檓 here in聽Texas and聽they鈥檝e got a聽warehouse that鈥檚 right down the聽street. Shipping is聽going to聽get to聽me聽a聽lot faster and聽probably even cheaper so聽they may set it聽up聽that way as聽well. If聽it鈥檚 closest to聽this location, go聽ahead and聽automatically assign it聽there. You can get really in-depth with it. But at聽the聽end of聽the聽day, obviously, trying to聽save some money, save a聽lot of聽time.

Richard: It聽sounds as聽if聽it鈥檚 easy once it鈥檚 all set up聽and聽it聽might not be聽too challenging to聽set up. But you鈥檙e reading between the聽lines here. They鈥檙e gonna have to聽come up聽with the聽fixed price for聽the聽customer that shipping is聽going to聽be. We聽can check and聽say 聯Oh, it鈥檚 a聽little cheaper over here聰. You run it聽and聽you find out you鈥檇 rather ship it聽from this location and聽get your margin back like you guys are alluding to. But there鈥檇 be聽just a聽little bit of聽extra setup in聽the聽beginning right. You鈥檇 have this is聽what it鈥檚 gonna be聽charged based on聽these rules in聽your e-commerce provider or聽marketplace or聽wherever and聽then separate rules in聽ShipStation or聽do聽you set all that up聽in聽ShipStation?

Cody: Yeah, sure. Great question. We聽have a聽lot of聽conversations around. Basically, pricing strategy, when it聽comes to聽shipping in聽the聽cart. We聽give them the聽tools to聽make an聽informed decision. You could run hypothetical shipments through your account. You don鈥檛 have to聽wait on聽an聽order to聽come through and聽then get surprised by聽how much you鈥檙e going to聽pay for聽it. A聽lot of聽merchants will put this in聽place. They鈥檒l start running some hypothetical orders through the聽system, get an聽idea that 聯Hey, on聽average this is聽going to聽cost me聽five seventy-five to聽ship out.聰 Of聽course, for聽card conversion purposes, if聽you can offer free shipping, obviously, the聽end of聽the聽day that鈥檚 going to聽be聽best for聽your sales. Who doesn鈥檛 love that? We聽know especially for聽growing merchants, newer merchants, maybe that seems a聽little scary. But what we聽recommend on聽that front, where we聽educate is聽that a聽lot of聽people are getting started. They just have this idea that a聽customer needs to聽pay me聽exactly what I聽paid the聽carrier. You can really get more creative than that because we聽just see it鈥檚 all psychological. I聽know I鈥檓 the聽exact same way. I聽may have two hundred dollars worth of聽stuff in聽my聽cart and聽I聽get to聽the聽very end and聽I聽get surprised with an聽eight dollar and聽twenty-five cent shipping charge that I聽wasn鈥檛 expecting. And I聽just abandoned the聽whole thing because I聽feel like somebody tried to聽pull one over on聽me. For most of聽the聽merchants聽鈥 free shipping when possible. If聽not they鈥檙e using our data to聽make informed decisions about setting flat rate shipping. Just being upfront maybe and聽using that as聽a聽marketing tool. Hey, place X聽dollars worth of聽orders and聽we鈥檒l give you free shipping or聽we鈥檒l give you a聽flat rate five dollars shipping. In聽turn, we鈥檙e gonna get that data in聽the聽order. A聽lot of聽our merchants may say: 聯Hey, it鈥檚 a聽free shipping order, just get that out the聽door as聽inexpensively as聽possible聰. Because we聽know the聽customer is聽happy they got free shipping, they鈥檙e not too concerned about it聽being here. Day after tomorrow, on聽the聽other hand, if聽somebody paid extra for聽expedited shipping, let鈥檚 go聽and聽not immediately assign. You priority mail express or聽FedEx today or聽whatever the聽case may be. And so聽that customer expectations are met. Then obviously whenever possible you鈥檙e getting out the聽door with as聽much margin in聽Texas possible. They use our information to聽make informed choices to聽set up聽their cart and聽then we聽read that information back and聽off.

Jesse: Love it. Good question, Rich. I聽forgot about that one. I鈥檓 on聽the聽聯always go聽free shipping if聽you can and聽then try to聽set.聰 Don鈥檛 get crazy on聽shipping, it鈥檚 my聽philosophy on聽that. Just don鈥檛 try to聽charge to聽the聽penny, you鈥檒l pull your hair out. Frustrating.

Richard: We鈥檝e been trained to聽buy that big company for聽everything shipping. Price it聽into your product when possible.

Jesse: I聽liked the聽advice there Cody as聽well about for聽new merchants. You don鈥檛 really know what it鈥檚 going to聽cost. Don鈥檛 just go聽to聽FedEx and聽UPS and聽all that, just plug it聽into ShipStation. You can use a聽free trial, these different hypotheses and聽then maybe that will inform you what you鈥檙e shipping prices. You want to聽go聽free shipping on聽if聽you sell a聽10聽dollar product. Let鈥檚 not be聽crazy. If聽you sell a聽ten dollar product, how much does it聽cost you to聽ship, and聽you can decide whether to聽include shipping or聽build that into the聽price of聽the聽product. My聽recommendation.

Richard: Cody even mentioned in聽that earlier聽鈥 try to聽offer it聽whenever possible. He聽said it鈥檚 all psychological and聽for聽the聽most part is. I鈥檝e literally paid more for聽a聽product and聽got free shipping than I聽would have if聽I聽had just paid the聽least for聽the聽product and聽had to聽pay for聽shipping it. It聽happens all the聽time.

Jesse: I聽hear you. We鈥檙e just trying to聽help people. All right. Just trying to聽get free or聽some sort of聽free-ish shipping so聽maybe they meet a聽minimum. That鈥檚 good. What about for聽international shipping, we聽talk mostly about the聽US. We鈥檙e all happy to聽be聽in聽the聽US聽but a聽lot of聽people listening that are overseas or聽want to聽know about cross-border. What can you do聽to聽provide solutions there?

Cody: Yeah, sure. What we聽see there most frequently is聽that it聽seems like this big scary thing. A聽lot of聽the聽new or聽growing merchants that I鈥檓 working with, they maybe just forego it聽altogether and聽we聽really try and聽educate them. If聽you鈥檙e closing that part of聽your business off, you鈥檙e leaving sales on聽the聽table because international shipping really is聽not that much scarier than in聽doing domestic. The first thing that probably comes to聽people鈥檚 mind, is聽this going to聽cost a聽lot more? And what do聽I聽do聽with customs coming into a聽new business? A聽lot of聽people have no聽idea or聽no聽background when it聽comes to聽customs. They think it鈥檚 this really scary thing. They鈥檙e going to聽have to聽go聽and聽fill out by聽hand every time they want to聽ship something out of聽the聽country. Really not the聽case with tools that are out there now like ShipStation you can really just run your international shipping similar to聽how you do聽domestic. Obviously, it聽is聽going to聽be聽different services, USPS international versus just first class mail, things along those lines but set it聽up. Use a聽tool that can automate that for聽you. That鈥檚 what we聽do. We聽automatically generate customs forms and聽even electronically transmit them whenever it鈥檚 applicable automatically sign it. Anything that you find yourself just doing manually repetitively over and聽over, I聽promise there鈥檚 a聽way to聽automate it聽out there today. Basically, don鈥檛 be聽afraid because it鈥檚 not that bad. And then to聽find a聽tool that will do聽it聽for聽you because most of聽my聽clients that I聽work with that are shipping internationally, they really don鈥檛 even know much of聽the聽difference. They log in, they see, 聯Ok, cool, I鈥檝e got these 10, 20, 200聽orders that need to聽go聽out the聽door here.聰 They鈥檙e typically a聽mix of聽domestic and聽international. They鈥檒l hit select all, click Create label to聽have all of聽those go聽out at聽the聽same time. They don鈥檛 even really have to聽handle them differently if聽they鈥檝e set it聽up聽correctly. I聽promise, not that scary.

Jesse: Wow. Now good to聽hear. Yeah, I鈥檓 a聽little afraid of聽international shipments personally so聽hopefully, I聽can get over that fear because there are customs and聽there are duties. I鈥檝e talked to聽customers that have bought for聽me聽internationally and聽I鈥檓 like 聯Well, there might be聽some customs that you have to聽pay, I聽don鈥檛 know. Good luck with that.聰 It聽has been my聽answer that鈥檚 probably not a聽very good answer. I鈥檝e actually done a聽wide in聽checking out on聽that one because that would have made some sense. All right. Note to聽self for聽real. You can learn something new every day. I聽learned something new. I鈥檓 happy. All right, we聽talked about international. What about another thing for聽new merchants, returns can be聽a聽painful thing. You鈥檙e afraid of聽it. What assistance can you guys provide for聽new merchants with returns?

Cody: Sure. That鈥檚 another one. We聽have a聽lot of聽conversations around the聽same thing. It聽seems like this really scary thing. It聽just seems like sunk costs. You did all this work. You got the聽sale, you got it聽out the聽door and聽now it聽almost feels like a聽personal insult right there. They鈥檙e sending it聽back to聽you. It鈥檚 tough to聽take a聽higher view approach of聽it. What we聽really try and聽educate on聽what we聽ran the聽data on聽interestingly enough is聽that merchants that provide really goo customer experience, when it聽comes to聽the聽returns process actually see an聽uptick in聽sales with those same customers over one and聽two year period. I聽know especially in聽your growing business that every dollar definitely counts and聽you can definitely feel that pain if聽you fought really hard and聽got 10聽orders out the聽door and聽two of聽them are going to聽come back. You feel like you鈥檙e really just taking that one on聽the聽chin. But there are a聽lot of聽different ways to聽go聽about it. And we聽really try and聽educate that. It鈥檚 really an聽investment in聽future sales, not just an聽expense for聽you that you鈥檙e going to聽eat. A聽lot of聽different approaches. Every business is聽different but we鈥檝e got really three main ways. We聽see some merchants that take the聽Warby Parker approach and聽they include a聽prepaid return label at聽every box. If聽they want to聽set it聽up聽that way they can have that totally automated. They create an聽outgoing label and聽a聽return label just spits out with it. They put it聽in聽the聽box with no聽extra effort. Definitely, a聽popular approach but also not for聽everybody. Then in聽the聽middle ground that we聽see is聽some people, they do聽want to聽offer returns but they want to聽talk to聽the聽customer first. That works no聽problem. Make it聽really easy to聽pull up聽that order and聽create a聽return label. The only thing we聽see here is聽that as聽the聽business scales in聽that starts to聽become a聽bit of聽a聽headache. Are you adding headcount just for聽customer service to聽field these calls? What are your hours? It鈥檚 not going to聽be聽a聽good customer experience if聽they need to聽get in聽touch with you and聽you鈥檙e closed. We聽came up聽with what鈥檚 been one of聽our most popular new features over the聽last couple of聽years what we聽call self-service returns. Keep it聽a聽really consistent experience. Really good experience for聽the聽customer. Instead of聽you having a聽fill that call, look up聽that order, you鈥檒l create a聽return label, send it聽to聽that whole process and聽have a聽really simple landing page. Your logo, your businesses social media, all of聽that really consistent branding. A聽customer just plugs in聽their order number and聽validates it聽and聽they鈥檙e able to聽generate a聽return label there without having to聽hassle you, without having to聽reach out to聽you. You can set rules of聽course around that. Maybe you accept it聽for聽seven days, 14聽days, or聽30聽days, whatever makes sense for聽your business. You still have that control. Then what鈥檚 really nice is聽it聽actually includes reporting. I聽hit this link, I聽generate my聽return label, ask 聯Hey, why are you returning this? What items that is聽where are you returning?聰 And so聽instead of聽just paying for聽that return label and聽losing that sale, you鈥檙e actually getting some valuable data. We聽pretty consistently see that this particular SKU is聽getting a聽return for聽being the聽wrong size. This particular product keeps on聽getting a聽return for聽being defective. Maybe I聽need to聽take that information on聽my聽manufacturer and聽see what鈥檚 going on聽so聽here鈥檚 a聽little more insight into the聽process. At聽the聽end of聽the聽day, it鈥檚 all about customer experience because that鈥檚 what鈥檚 going to聽determine whether or聽not somebody comes back to聽the聽next summer.

Jesse: You鈥檙e also saving that phone call too. I聽like that. I聽get it聽as聽a聽merchant. When people want to聽return stuff. I聽already spent that money and聽I聽already paid for聽the聽advertising to聽get that sale and聽now I聽gotta pay to聽ship this back to聽me聽and聽sell it聽again, man.

Cody: Really niche story there, but on聽that front, we聽heard from a聽lot of聽our clients especially in聽the聽earlier days that they kept getting a聽ton of聽customer service phone calls when the聽tracking email goes out. 聯Hey, your order is聽shipped, here is聽your tracking information.聰 We聽do聽that too automatically and聽customer clicks that link because the聽label was created but then they didn鈥檛 see any聽movement on聽it聽right. And people freak out. They want their stuff. They鈥檙e calling: 聯Hey, you sent me聽a聽tracking number. It鈥檚 broken. What鈥檚 going on? Which that?聰 I聽mean for聽a聽business that鈥檚 just a聽total waste of聽time. It鈥檚 not doing anything for聽you. You can even specify that fires off on聽a聽delay so聽that when they get that tracking number, there鈥檚 actually some movement on聽it. Just little things like that that people maybe don鈥檛 put much thought into, when they鈥檙e starting their business. Again we鈥檙e here to聽hopefully be聽the聽experts and聽educate on聽that a聽little bit because there are all these little tips and聽tricks that don鈥檛 seem like much when you鈥檙e going into the聽business. But it聽really starts to聽add up聽to聽time savings, monetary savings but then ultimately repeat sales. This is聽what you鈥檙e trying to聽get out of聽this. So聽shipping seems to聽be聽cut and聽dry but there are a聽lot of聽different parts of聽the聽process you can leverage to聽hopefully continue growing the聽business.

Richard:: I聽was gonna say that鈥檚 a聽great point that goes back to聽that psychological comment from earlier that the聽only ways that I鈥檝e seen a聽business grow are either get more customers, get a聽higher average order per customer, and聽or聽get those customers to聽come back and聽buy more. I聽haven鈥檛 really seen another way to聽do聽that yet. Now obviously if聽they have a聽good customer experience to聽your point now, they鈥檙e potentially sharing it聽with their friends and聽they鈥檙e doing it. Seen some interesting stats come out lately. I聽don鈥檛 have them exactly off the聽top of聽my聽head but I鈥檝e seen sometimes increasing the聽length of聽time for聽the聽return actually makes returns go聽down. If聽you鈥檙e saying for聽instance in聽your 7-14聽day, how many days and聽then you make it聽be聽six months. If聽I鈥檝e just thought of聽it聽from a聽psychological standpoint, you鈥檇 think 聯Oh, no, giving them six months聰 but it聽might be鈥 If聽you鈥檙e saying 7聽or聽14聽days they might really be聽thinking about it. 聯Should I聽return this?聰 They鈥檙e thinking of聽because it鈥檚 that limited time. They get six months, they鈥檙e probably by聽the聽time they get to聽the聽fifth month 聯I聽know I聽like it, I聽keep it.聰 And again I聽don鈥檛 have the聽exact stats but I鈥檝e seen that actually a聽lot of聽companies, Zappos was one that was listed. Just making sure that a聽customer had a聽great experience. They want to聽share more. They want to聽come back with you more. They want to聽just buy more from you overall in聽the聽long haul and聽that鈥檚 what you鈥檙e going to聽do.

Cody:: Yeah, you nailed it. And what鈥檚 really interesting there. We聽actually did run some stats on聽this. Obviously, what you said is聽spot on聽about trying to聽get that repeat customer, because it鈥檚 basically the聽most engaged prospect that you鈥檙e gonna get. Somebody that鈥檚 already decided they like you enough to聽buy something for聽me聽there. But what we聽found is聽that a聽lot of聽merchants were throwing away the聽most guaranteed piece of聽traffic they could get. And it鈥檚 the聽tracking email itself. Think about it. Last time you bought something online. How many times have you ignored that tracking? I鈥檓 going to聽say never because I鈥檓 going to聽say you鈥檙e all like me. You get that tracking. You click on聽it聽right away. You click on聽it聽four times before that box actually shows up聽at聽your door. We聽ran the聽data and聽everybody is聽the聽same way. Engagement on聽your tracking email is聽over 100聽percent on聽average people are clicking at聽more than once before it聽gets there. And what we聽found is聽that merchants were getting opens on聽that email which is聽great. But then what happens is聽customer clicks that tracking link and聽then it聽opens up聽a聽new tab and聽takes them over to聽ups.com or聽takes them to聽FedEx.com. Which is聽fine, it聽gets the聽recipient their information but that didn鈥檛 really just do聽anything for聽you, the聽merchant. Just handed this traffic off to聽this old data carrier site. We聽actually turned that into a聽way to聽drive traffic back to聽your site. Customer can get the聽same tracking updates but it鈥檒l take them to聽a聽page with your branding, your logo, your social media links, to聽your website. All of聽that. Again just small things like that seem like an聽afterthought but you really add up. You did all that work to聽get that engaged customer. Why would you just throw that traffic away to聽another company at聽that point? Little things like that, we聽try and聽educate them.

Jesse:: Yeah, I聽love it. I聽get it, seems like a聽small thing but there could be聽hundreds of聽clicks per week. Now they鈥檙e looking at聽some FedEx screen and聽just complained about their package. But if聽it聽were your site with your a聽little special deal or聽a聽little social media contest. Get your help your branding for聽free.

Cody:: Yeah. I鈥檓 not going to聽guarantee that this branded tracking page is聽going to聽drive your sales through the聽roof. But I聽am聽going to聽guarantee that you鈥檙e going to聽get more sales out of聽a聽page that鈥檚 linked to聽your site near social media than you are from ups.com.

Jesse:: Yeah, for聽sure. Sometimes it鈥檚 all just a聽series of聽little things that make the聽difference. That鈥檚 awesome. Cody, it聽seems like you鈥檝e talked to聽a聽lot of聽different merchants, you鈥檝e seen a聽lot of聽different stores. Are there any聽tips or聽advice you could have for聽growing merchants in聽any聽area?

Cody:: Yeah, for聽sure. I聽guess it鈥檚 don鈥檛 be聽afraid of聽what you don鈥檛 know because you don鈥檛 have to聽be聽an聽expert on聽this stuff. Your job is聽to聽be聽the聽expert on聽your business and聽your customer experience. You鈥檒l look for聽tools out there that can automate all of聽this. My聽rule of聽thumb is聽that if聽you spend the聽time of聽your day doing anything repetitively, you probably shouldn鈥檛 be. If聽you鈥檙e doing something manually over and聽over. Whether that鈥檚 copy and聽paste and聽tracking numbers or聽logging into different sites, anything that takes a聽chunk of聽your day, look for聽a聽way to聽automate shipping or聽otherwise. But obviously in聽our world where we鈥檙e thinking around how can you streamline the聽process of聽the聽customer checks out to聽the聽point they get that box on聽their door. If聽you鈥檙e spending more time which pretty much means are you spending any聽time on聽that. Nobody wants to聽be聽spending time on聽shipping. Look for聽a聽tool that can cut that time down because you want to聽be聽spending time growing your business, getting the聽word out about your next product, or聽coming up聽with your next campaign. You don鈥檛 want to聽be聽spending time copy-pasting addresses back and聽forth all day every day. Look for聽ways to聽cut the聽boring parts out of聽your days you can spend more time doing what you actually want to聽do.

Jesse:: Perfect. Rich, any聽last questions here?

Richard:: No, just I聽guess where can customers go聽to聽learn more about you?

Cody:: For sure. Make it聽really easy to聽get started. shipstation.com, all here in聽Austin Texas. We鈥檒l link this up聽to聽try for聽you, just fix an聽email address. You can do聽everything that we聽talked about today. Even if聽you鈥檙e just getting started and聽you want some expertise when it聽comes to聽shipping. Start that again. Somebody from my聽team will give you a聽call. We鈥檒l walk you through everything and聽teach you what we聽know to聽hopefully get you up聽to聽speed. For today we聽actually set it聽up聽to聽where somebody signs up聽for聽ShipStation, they like it, they can use code 51视频19聽at聽sign up, it鈥檒l give them an聽extra free month. Again whether your new business is聽getting started or聽your business seeing a聽lot of聽growth and聽now things are just crazy. Check it聽out. I聽think we聽can save you some time. shipstatiom.com, try to聽free, we鈥檇 love to聽talk to聽you.

Jesse:: All right. And so聽guys that code was 51视频19聽and聽so聽for聽51视频 users as聽well you can find ShipStation through the聽51视频 app market as聽well. You can connect the聽stores and聽get started. Sounds great. I聽mean if聽you鈥檙e cutting, pasting, looking to聽save some money on聽shipping or聽a聽ton of聽other things, this seems like a聽perfect place to聽go聽and聽check it聽out. Cody, really appreciate you being on聽the聽show. Rich, last question?

Richard:: No. That鈥檚 it.

Jesse:: All right. Get out there and聽make it聽happen.

About The Author
Kristen is a 褋ontent creator at 51视频. She finds inspiration in sci-fi books, jazz music, and home-cooked food.

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