In the fast-paced world of ecommerce, Australian merchants are constantly seeking ways to optimise their operations and stay ahead of the competition. One often overlooked area with significant potential for improvement is shipping. By leveraging shipping metrics, you can enhance your performance, boost customer satisfaction, and ultimately drive growth for your business.

Why Shipping Metrics Matter

Shipping metrics provide valuable insights into the efficiency and effectiveness of your fulfilment process. By tracking and analysing these metrics, you can:

1. Identify bottlenecks in your shipping workflow
2. Reduce costs associated with shipping
3. Improve customer satisfaction through faster and more reliable deliveries
4. Make data-driven decisions to optimise your shipping strategy

Let's dive into the key shipping metrics you should be monitoring and how to use them to improve your ecommerce performance.

Essential Shipping Metrics to Track

1. Order Fulfilment Time

What it is: The time it takes from when an order is placed to when it's shipped.

How to improve it:

• Streamline your picking and packing process
• Use an exploded order view to quickly see all items in an order
• Implement barcode labels for faster item identification

2. Shipping Accuracy Rate

What it is: The percentage of orders shipped without errors (e.g., wrong items, incorrect quantities).

How to improve it:

• Double-check orders before shipping
• Use scales that speed up your shipping to ensure correct weights
• Implement quality control checks

3. On-Time Delivery Rate

What it is: The percentage of orders delivered within the promised timeframe.

How to improve it:

• Choose reliable shipping carriers
• Use Australia Post eParcel or MyPost Business for efficient domestic shipping
• Monitor orders in transit to proactively address any issues

4. Shipping Cost per Order

What it is: The average cost of shipping each order.

How to improve it:

• Negotiate better rates with carriers
• Use live shipping rates to compare options
• Optimise packaging to reduce dimensional weight

5. Return Rate

What it is: The percentage of orders that are returned by customers.

How to improve it:

• Provide accurate product descriptions and images
• Use secure packaging to prevent damage during transit
• Analyse return reasons and address common issues

You can easily calculate your return rate using our Return Rate Calculator.

Leveraging Technology to Track and Improve Metrics

To effectively monitor and improve your shipping metrics, consider using a comprehensive ecommerce management platform like Koi. Koi offers a range of features designed to help Australian merchants optimise their shipping processes:

1. Real-time tracking: Monitor orders in transit to stay on top of delivery timelines and proactively address any issues.
2. Integrated shipping labels: Generate eParcel shipping labels or Aramex shipping labels directly within the platform, saving time and reducing errors.
3. Automated carrier selection: Use live shipping rates to automatically choose the most cost-effective shipping option for each order.
4. Inventory management: Manage stock locations in your warehouse to improve picking efficiency and reduce fulfilment time.
5. Post-fulfilment tracking: Utilise post-fulfilment carrier tracking to keep customers informed and reduce support inquiries.

Analysing and Acting on Shipping Metrics

Once you're tracking your shipping metrics, it's crucial to analyse the data and take action to improve your performance. Here's a step-by-step approach:

1. Set benchmarks: Establish baseline performance levels for each metric based on industry standards and your historical data.
2. Identify trends: Look for patterns in your metrics over time. Are there specific days or seasons when performance dips?
3. Pinpoint problem areas: Use the data to identify which aspects of your shipping process need improvement.
4. Implement changes: Based on your analysis, make targeted improvements to your shipping workflow.
5. Monitor results: Continuously track your metrics to see the impact of your changes and identify new areas for improvement.

Case Study: Improving On-Time Delivery Rate

Let's look at a hypothetical example of how an Australian ecommerce merchant improved their on-time delivery rate using shipping metrics:

1. Initial situation: The merchant's on-time delivery rate was 85%, below the industry average of 95%.
2. Analysis: By monitoring orders in transit, they identified that delays were often occurring with interstate shipments.
3. Solution: The merchant implemented Australia Post eParcel for all interstate orders and used live shipping rates to select the fastest available option within their budget.
4. Result: After three months, their on-time delivery rate improved to 97%, leading to increased customer satisfaction and repeat purchases.

Conclusion

By focusing on shipping metrics and leveraging the right tools, Australian ecommerce merchants can significantly improve their operational efficiency and customer satisfaction. Remember, shipping is not just a cost centre – it's an opportunity to differentiate your business and drive growth.

Start by implementing a system to track these key metrics, then use the insights gained to make data-driven improvements to your shipping process. With platforms like Koi offering integrated solutions for ecommerce management and shipping optimisation, there's never been a better time to take control of your shipping performance.

Ready to take your ecommerce shipping to the next level? Explore Koi's features and see how we can help you optimise your shipping metrics and boost your overall performance.