Welcome to YourMarketingPodcast. This is Series One – How to Start a Successful eCommerce Business in Less than 30 Days. In this step-by-step guide, you will learn how to quickly launch an eCommerce store and start seeing those sales roll in! And here’s your host…Ishani DePillo.

Ishani: Hey, guys, we are so close to the end and yet have so much to go over still. Starting an eCommerce store is definitely for the strong-willed and uber-focused. But don’t lose heart, keep chugging along, we are going to get there. 

Today’s podcast goes over Operations – from package design to customer service options to shipping methods – we’ll take a deep dive into the necessary steps you need to take to have your store running at an optimal level.

There is so much more to running an eCommerce business than just throwing a product onto a website. You have to think about the Operations. How will you get your products into the hands of buyers? Who’s going to be picking and packaging your items? Where are you going to ship from? Who will handle customer service inquiries? Initiating returns?

Those are all solid questions, and you need to have the answers lined up before you start selling your product.

So let’s start with the first one – Shipping. How are you going to get your product out to the customer? There are a couple of common shipping options for eCommerce stores:

• Dropship. If you’re a reseller and shipping your product directly from the manufacturer, the manufacturer or supplier will likely have options where they handle the whole process of sending it out to the customer on your behalf. This is called dropship. How it works is an order comes into your website, you pass that order to the supplier who then ships the order to the customer.
  • The main advantage of dropship is that you get to keep  low overhead costs, since you don’t need to purchase the inventory yourself, and store it in a warehouse, hire people to pick, pack and ship your products etc. 
  • but the margins can be small. You will have less control over the shipping process and you’re at the mercy of the supplier to get items out on time and delivered well. 
  • You also need to look into integrations to automate the process of passing the customer order to the supplier so you are not doing it manually. There are a lot of prepackaged options available depending on your platform but you should do your research beforehand.
  • With dropship, it’s unlikely that you will be able to customize the packaging to your brand, unless they have what’s called private labeling or white-labeling options. So brand awareness might be lower when you use dropship method.
• Ok going back to other Shipping options… you could use a 3PL (also known as a “third-party logistic warehouse provider”), where your items are shipped from the manufacturer directly to a 3PL Warehouse to store and ship out of. Basically 3PL will handle your business’s distribution and fulfillment services. Always, do your research on the fees associated with this type of warehouse before you sign up. Fees can vary based on your product because bulky items will require a larger storage area and therefore cost more. Some companies we’ve heard positive things about are Whiplash and ShipBob.
  • What’s great about 3LPs is that you can typically hold inventory in multiple fulfillment locations like one on the West and East Coast, so you lower your transit time to the customer and save money on shipping costs.
• Renting space and starting your own warehouse is another option. But OMG this is going to be a HUGE undertaking and not recommended for businesses owners who are just starting out because the overhead costs can get pretty expensive. Think: warehouse rent, software costs, employee wages, equipment purchasing and/or rentals, etc. It’s a hefty list and we don’t recommend it for eCommerce beginners.
• The last option we will cover today is what most small eCommerce business owners will start off with. Fulfill the orders yourself. Okay, so let’s be brutally honest here, if you’re just starting out and you have the room for it – you’re going to probably ship the item from your home, garage, or storage unit. It saves you on storage costs and gives you complete control over the whole packaging and shipping process. But there are, of course, downsides to this, like you might die underneath the weight of it all. If you are getting an influx of orders, it’s going to take up your entire day to pick, pack, and ship orders. It can be quite a lot to take on yourself that’s why we recommend:
  • Researching 3LP options now. So you can quickly transition to a warehouse without wasting any downtime once the orders become too much (which is always a good problem to have). 
  • Run some numbers and come up with a plan. Like “If the daily orders reach an x amount, then I will move to 3LP option.”
  • Use Fulfillment software to print out shipping labels and track inventory. Shopify is great for beginners but there are others like ShipStation to help print your shipping labels, update inventory, and save you money on shipping rates. It’s good to shop around and see which Fulfillment software is most cost-efficient for you, since every cent saved in shipping helps your bottomline.

Okay, I’m going to take a gamble and say that you’re probably leaning on that last option – to ship the items yourself to customers – at least, to start. And that’s great news when it comes to your packaging because that gives you full control!

So why is packaging so important? Because first impressions matter! And it’s another opportunity to market yourself and create a unique experience for your customers. Building loyal supporters who purchase from you again and again is cheaper than getting new ones. Let’s put some thought into your packaging. I’m going to share some tips:

• Take a peek at what your competitors are doing. It will give you an idea of what is already out there and inspire you to take it to the next level when it comes to your packaging.
• Chances are that you are probably ordering a lot of items online these days. Take this opportunity to really pay close attention to the packaging. What do you like and dislike? Take note and maybe even photos of what you like, so you can easily replicate it. For instance, I’m not a fan of plastic wrap or boxes with a lot of writing on them, especially unrelated writing. The wrong packaging can easily cheapen your product.
• You don’t have to overspend on custom packaging. A sticker, thank you card, or even a stamped box can go a long way in making the packaging special and memorable for your customers. 
• There is a huge push for eco-friendly and sustainable packaging these days. So that’s an option for you to consider as well. Determine where you can cut and still send the product safely and with a little pizzazz. 
• There are a TON of options for packaging. Definitely think outside the box – like colorful bubble bags instead of cardboard boxes, a canvas bag instead of plastic bag, etc. Try to be different and cost-effective at the same time. Also, once you start narrowing your packaging options check the weight for shipping. Shipping is, unfortunately, one of the larger expenses that can really hurt an eCommerce store. And because of the “Amazon experience”, many customers expect free shipping nowadays.
• And lastly, include a thank you note. Including a thank you note adds a personal touch and really makes your brand shine. You could offer a returning discount, ask for a review, and/or include care instructions and/or return instructions. Hopefully you won’t see too many returns. But definitely squeeze in that “BIG THANK YOU!”

That leads into the last part of our episode that covers all things related to Customer Service. Your customers will give you positive feedback (this is preferable), requests for returns (hopefully not too many) and customer complaints (definitely not what we want). But this is just the nature of the eCommerce industry. We will cover customer complaints and returns in more detail in another episode, but let’s start thinking about it a bit now.

So who is going to handle your customer service? Like answer the phone, reply to chats, respond to emails, initiate returns, and monitor your brand’s social media activity. All of these channels need to be monitored regularly to offer stellar customer service.

Incredible customer service means repeat customers and referrals. Look at Amazon. The number one reason people use them is because of their customer service. They make everything so EASY! So don’t underestimate the power of great customer service. According to Forbes, instead of competing on price, more than two-thirds of companies now compete mostly on the basis of customer experience. Because it makes a difference! 

So what options do you have when it comes to Customer Service? You could:

• Hire a third-party company, like ModSquad or Helplama. There are plenty of Customer Service companies out there that charge by the number of customer service reps you need, or by the number of hours you need, or by channels they will be managing (and by channel I mean – phone lines, emails, chat, social media, etc). But make sure the fees are not too high and more importantly that choosing this route will NOT dilute your brand image and brand experience. The main benefit of using a 3rd party company is to give you some flexibility to scale, but not at the cost of your brand image.
• Hire a Customer Service rep. Hiring someone allows you to  train them to truly represent your brand and have more control over the customer’s experience with your company. The downside is that you will have to invest the time to train someone, and if that person leaves, you have to start all over again to hire and train another, payroll can be a headache, especially for a new company just starting out. On top of that, you’ll need to invest in a Customer Service software, like Zendesk, Gorgias, etc. to make it easier for your employee to stay on top of customer tickets, inquiries and returns.
• The last option is to Handle it yourself. Okay, so I know you’re juggling a lot. And customer service, although absolutely necessary, is a total timesuck. But, hey, if you’re just starting out, it’s definitely the cheapest option and can present some benefits. You learn more about your customers! You hear first hand what they like and dislike about your product. And although at times it hurts to hear someone saying they didn’t like your product, you do learn why so you can do better. So look at it as a way to improve rather than taking offense. Easier said and done, I know! Another benefit is to learn about the questions your customers have about your product. And you can lessen your customer service inquiries by providing the details on the product detail page or even creating a FAQs section on your site. In FAQs page includes ship time, tracking, return policy, and care instructions. By providing easy access to frequently asked questions, you will be saving your time from answering repetitive customer service inquiries.

Alright, that sums up Operations. Now to bigger and scarier things…: taxes, returns, and promotions, Oh my! On our next podcast, we’re going to cover all the details of sales tax, return policies, and how to run promotions. Don’t miss out!

In the meantime and if you haven’t already, we urge you to sign up at yourmarketingpodcast.com/letsgo to receive email alerts with check-ins. It’s so easy to get distracted and derailed on this path. And we want to see you launch your eCommerce store and crush your goals! These email alerts will keep you on task and come with even more resources because we can’t cover everything on the podcast. Thank you for listening to yourmarketingpodcast. See you next time!