Early in the twenty-first century, as the eCommerce sector grew swiftly, the need for a reliable platform for aggregating shipping and logistics arose. By enabling businesses to evaluate rates and services from several carriers, schedule pickups, track shipments, and handle all parts of the shipping process from a single platform, shipping aggregators make this process easier and even more effective.
Why would you need a shipping aggregator platform?
Shipping aggregators, also referred to as courier aggregators, are third-party logistics providers (3PLs) that bring together a variety of carriers on a single platform. These aggregators help in managing their shipping and logistics operations by making them easier and more efficient. As a result, it is advisable to determine the right courier partner that fits your shipping strategy. To help you find the right shipping aggregator for your business, we’ve put together a list of 10 factors to consider beforehand.
How Can You Choose the Ideal Courier Aggregator for Your E-Commerce Business?
Whether your level of experience in the eCommerce sector is that of a newcomer or a well-established brand, you require a comprehensive list of possible criteria to take into account when choosing a shipping aggregator. It includes:
1) Audience Reach
The easiest strategy to increase your order intake is to expand into newer, bigger, and better marketplaces that are crowded by a variety of demographics who might all benefit from the product or service your business provides. To assist you in reaching more customers, your courier service provider should cover as many pin codes as they can.
2) Customer Services
Any business must provide excellent customer service. Every buyer wants to purchase from a company that is easy to call and has pleasant customer service representatives to resolve any issues. Therefore, your courier partner must be ready to assist in an emergency.
3) Number of Courier Partners
Multiple courier partners are integrated with every logistics aggregator. They are thus a quick and easy solution for when there is a rush of requests to fulfill. Therefore, it is simpler to choose a few courier partners if an aggregator offers many.
4) Freight charges
The fact that logistics aggregators occasionally offer low costs for shipping fulfillment is one of the major factors influencing why most e-commerce businesses opt for them. While this could result in lower transportation costs, additional fees could be assessed in other areas or for services not covered by the base fees. Knowing your needs and the costs—that all of those needs must be encompassed—is the key.
5) Delivery Time
When choosing a courier service, quickness should be your top priority. Many businesses are trying to diversify their product offerings by expanding services like hyperlocal delivery, same-day delivery, and next-day delivery. Before assigning your day delivery to the provider, make sure they can guarantee a delivery deadline.
6) Tracking Efficiency
When discussing tracking efficiency, it’s important to keep in mind that the majority of logistics aggregators and shipping partners maintain systems that let e-commerce businesses track their orders across multiple partners. When an aggregator has cutting-edge technological skills and uses resources efficiently, visibility of orders is granted.
7) Remittance Cycle
Any successful entrepreneur understands how vital it is to always have money in the bank. The remittance cycle an aggregator uses is therefore a crucial consideration when signing up with them. A 14-day remittance period is maintained by some aggregators, although few companies have a consistent 7-day remittance period.
8) RTO%
While more orders are always welcome, they are also likely to be accompanied by an increase in RTOs. Every e-commerce business is focused on reducing its overall RTO as a vital goal. A few aggregators might even run their own NDR management systems, which can significantly reduce delivery exceptions.
9) NDR Management
NDR management, which was previously discussed, is extremely important in reducing RTO%. By doing this, you can get insights on how to reduce the likelihood of delivery exceptions, in addition to providing the courier partner with the information they require to complete the delivery.
10) Insurance and Security
Several aggregators offer customers the opportunity to insure their products and orders, so the value of the order is protected in case of any damage during transit. In certain industries, it may not be a top priority, but it can still help ensure that no products are damaged in transit.
In conclusion, eCommerce companies looking to automate their shipping and logistics procedures may find shipping aggregators to be a valuable tool. Companies may save time and money while giving their consumers a better experience by comparing rates and services from multiple carriers. Players like Shift Logistics have higher technology adoption and the best price-competitive services, making them a popular choice for most e-commerce businesses.
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