Customer Experience | E-commerce on Toy Shipping

Author Name: Maya Wong – Marketing Analyst at FreightAmigo

In the late 2010s, e-commerce disrupted the traditional brick-and-mortar business, transforming the retail landscape. With projections showing global e-commerce sales exceeding USD $8 billion by 2026, it is evident that this shift in consumer behavior has had a profound impact on various industries, including toy shipping. This article explores the changing landscape of e-commerce, the top challenges faced by toy shipping companies, and the technologies driving the growth of e-commerce shipping.

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The Changing Landscape of E-commerce

The rise of e-commerce has revolutionized the way people shop, prioritizing speed and convenience. This shift has spurred rapid innovation in web-based technologies, transforming the e-commerce sector. Some notable technologies include:

Social Media Integration

Popular social media platforms like Facebook, Instagram, and Pinterest have integrated shopping features that allow customers to make purchases directly within the app. This seamless integration provides incredible convenience to customers, enhancing their shopping experience.

Augmented and Virtual Reality (AR/VR)

AR/VR technology enables customers to digitally try products before making a purchase. For example, virtual dressing rooms allow customers to try on clothing items, while AR can help visualize how furniture would look in their living room. This technology enhances the customer experience by providing a more immersive and interactive shopping experience.

Subscription Services

Subscription-based e-commerce has exploded in popularity, offering convenience and personalization to customers. From meal kits to mystery games, customers are willing to pay a premium for the convenience and curated experiences provided by these subscription services.

Artificial Intelligence (AI)

AI algorithms analyze individual shopper behaviors to provide personalized product recommendations. Customers now expect personalization more than ever before, and AI helps companies meet these expectations by understanding customer preferences and offering tailored suggestions.

In addition to innovations in the shopping experience, the popularity of e-commerce has also prompted shipping and logistics providers to find solutions to their most pressing challenges.

The Top 3 Challenges in Toy Shipping

Toy shipping companies, like any other e-commerce businesses, face specific challenges in their supply chain. Addressing these challenges is crucial for ensuring customer satisfaction and maintaining profitability. The top three challenges in toy shipping are:

1.Managing Returns

Returns are an unavoidable aspect of any business, including toy shipping. According to the U.S. National Retail Federation, returns accounted for as much as USD $816 billion in lost revenue in 2022. To reduce returns without compromising the customer experience, companies should collect and review return data to identify patterns and improve product quality. Advanced returns management solutions can help identify frequently returned products and the reasons behind them, enabling companies to make informed decisions to reduce returns and overall costs.

Enhancing the customer experience further, e-return capabilities simplify the returns process by providing pre-printed or proactive email shipping labels to customers. This simplification streamlines the returns process for all parties involved.

2.High Shipping Costs

Customers now expect cheap or free shipping, thanks to e-commerce giants like Amazon and Target. However, offering free shipping may not be feasible for all companies. To make free or reduced shipping available to customers, companies can consider implementing strategies such as:

Minimum purchase thresholds: Customers are often willing to buy more products to qualify for free shipping, helping offset shipping costs.
Subscription services: Charging a premium for a subscription service that includes shipping costs can help cover shipping expenses while providing additional value to customers.
Sales events: Limiting free shipping to major holidays and sales events with high order volumes can help cover shipping costs.

Reducing shipping costs by utilizing carrier-provided packaging or shipping in bulk can also make offering free shipping more manageable for companies.

3.Order Tracking

Customers value peace of mind when ordering online, and having the ability to track their orders is crucial. Implementing an accurate automated order-tracking solution not only provides customers with real-time updates but also alleviates pressure on customer service teams. With automated order tracking, customer service representatives can focus on more pressing tasks, improving productivity and customer satisfaction.

Shipping Technologies Driving E-commerce Growth

As e-commerce continues to grow, new technologies are emerging to meet the demands of the industry. These technologies have the potential to revolutionize supply chain management and enhance the customer experience. Three key shipping technologies driving e-commerce growth are:

1.AI and Automation

Automated technologies, such as automated warehouses and fulfillment centers, enable continuous operations even during labor shortages and supply chain disruptions. AI algorithms can process vast amounts of data to improve forecasting accuracy, ensuring timely deliveries and efficient supply chain management.

2.Blockchain

Blockchain technology simplifies complex shipping operations by utilizing smart contracts. Smart contracts are self-executing agreements that trigger actions when specific conditions are met. By using smart contracts, companies can automate payment releases upon successful delivery, improving efficiency and transparency.

3.Internet of Things (IoT)

The IoT enables real-time data collection and analysis by connecting internet-connected devices. RFID technology, for example, allows for real-time tracking and monitoring of shipments. By leveraging RFID sensors on shipping vehicles, companies can access accurate location data, improving order tracking accuracy and preventing spoilage of temperature-sensitive products.

Leveraging E-commerce Shipping Solutions

To streamline their e-commerce shipping operations, companies can partner with specialized providers like Purolator International. With an extensive network of delivery and pickup locations, Purolator International ensures fast deliveries and returns even in remote areas. Dedicated Client Relationship Representatives proactively manage accounts, providing attentive customer service and support. By leveraging proactive shipping solutions, companies can enhance their e-commerce strategies and meet the evolving needs of their customers.

In conclusion, e-commerce has revolutionized the toy shipping industry, prompting companies to adapt to changing consumer expectations and behavior. Managing returns, high shipping costs, and order tracking are key challenges that toy shipping companies must address. However, with the implementation of advanced technologies such as AI, blockchain, and IoT, companies can overcome these challenges and drive e-commerce growth. By partnering with specialized providers like Purolator International, companies can optimize their e-commerce shipping operations and provide exceptional customer experiences.