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Front and Center

The Future of Luxury E-commerce
‍In a joint press release on Wednesday, two mega corporations from distinctly seperate industries announced a first-of-its-kind strategic partnership that may define the future of luxury e-commerce.

French luxury goods giant, LVMH, has entered into a 5-year deal with Google Cloud to leverage artificial intelligence and machine learning technologies to sell products for their elite brands like Louis Vitton, Christian Dior, Tiffany, Marc Jacobs, and top-shelf alcohol brands like Moët and Hennessy.

Will this make it more affordable?
‍HAHAHAHA. HAHAHA. LOL. Good one, no. But the AI will be used to collect customer data and deliver personalized experiences to their high-end customers when they shop online. Not only that, the technology will also be used to update their IT infrastructure, improve their demand forecasting, and optimize their inventory management across stores.

Take a page out of their golden book.
‍This partnership brings new-age data analytics capabilities to a historically white-glove, high-touch market. The pandemic-fueled lockdowns have accelerated the need for luxury brands to execute their e-commerce shopping model and help their consumers adapt to changes; for instance, not being able to touch and see their high-priced items before they buy.

LVMH Managing Director Anonio Belloni said, “The last 18 months have been transformational,” and made clear the “need to leverage data.” The goal is to make a customer’s experience “more fluid.”

Without this sort of in-person interaction and added customer service, luxury brands must compensate with a smooth and considerate online retail experience. This includes making sure the logistics and supply chain consistently and reliably pulls through on delivery.

Back of the Packet

Freedom!
‍This week, both the Senate and the House passed a bill that would make Juneteenth (AKA Freadom Day) a national holiday, and now just needs one more signature from the President. This holiday commemorates the day in 1865 when slavery officially ended in the US, and would be the first federal holiday added to the US calendar since 1983. Many organizations like Mastercard, the NFL, and others have embraced the holiday by giving employees the day off.

A Peloton of Creepers
‍On Wednesdaya, McAfee warned that the Peloton Bike+, along with other public bikes in gyms and hotels, could be compromised with a USB to allow hackers access to forward-facing cameras. All hackers need is physical access to the bike to install fake Netflix or Spotify apps. Peloton then issued a software update and press release to prevent this type of unauthorized access, but if anyone wants to actually watch me sweat/cry/spin to Adele, I’ll allow it.

Generally Electric Motors
‍General Motors announced increases to its electric and autonomous spending to $35B by 2025, a 30% increase from targets announced last November.

ShipHero News

Convenience Vs. Carbon
‍Expedited shipping and last mile delivery grew with the pandemic-led convenience craze. Now that consumers are returning their focus to sustainability, brands and 3PLs must balance convenience vs. carbon footprint. But how? The answer… read our latest blog to discover why carbon-neutral shipping is changing the e-commerce industry, and how your brand can offer it today.

How E-Commerce Brands Thrive In the Chinese Market
‍Despite China’s developing economy and huge population, their market is notoriously difficult for foreign businesses to survive, particularly those with a physical presence. Popular companies like Walmart, Home Depot, and Mattel have tried and failed to create a steady business in China, due to conflicts with the government, failing to understand their customers, or just bad luck. With 48% of foreign businesses failing in China within their first two years, these tips might save your business when entering the Far East markets.

You may have a fully stocked makeup bag with brushes, powders, glues, creams, pencils, primers, and more, but still struggle to get the LATAM look. That’s why ShipHero customer, ILOVEPINCH.com, solves your cosmetic challenges with their 9-step, 10-minute makeup routine for the perfect look, every time.

When their breakthrough cosmetic line and application system first came to market, the ILOVEPINCH.com team struggled to keep up with initial demand. They could only pick, pack and ship 100 orders per day, and the costs from mis-picked products and supply chain errors were adding up. After a trip to a fully functioning fulfillment center, they knew it was time to give their fulfillment operations a complete makeover.

“With ShipHero, we now have a replicable ecommerce fulfillment model that allowed us to grow 3X (300%) during the pandemic, and base our whole business model on an e-commerce distribution channel. Nowadays, it is easy for us to expand our operations, faster and with less investment, to other cities and allow our ecommerce to grow exponentially.” -- Alfonso Atencio, CEO and Co-founder of ILOVEPINCH.com

With the pandemic-led boom in e-commerce, especially for beauty and cosmetics brands, we had to sit down with ILOVEPINCH.com CEO and Co-founder, Alfonso Atencio and learn more about his business and supply chain operations. Read more about our journey together in this case study.

Alfonso, please introduce us to yourself and your business.
‍My name is Alfonso Atencio, and I'm the CEO and cofounder of ILOVEPINCH.com. We are a DTC cosmetics e-commerce business aiming to disrupt the LATAM beauty industry by making affordable yet high-quality beauty products for Millennials.

All of this, while committed to being cruelty-free and having a sustainable supply chain. We currently have operations in Colombia, USA, Canada and Puerto Rico, and this year we are expanding our operations and fulfillment centers to Mexico and Perú.

What was your fulfillment model before switching to ShipHero?Before ShipHero, logistics was a major pain point for our operations. We handled each order informally, and our logistics department generated a considerable amount of back-office and duplicate activities.

On our best day, we could pick and pack at most 100 orders. We also had more than 5% mistakes on product allocation for orders, and this generated an even more cost due to returns.

What was the moment you knew it was time for a switch?
‍During the pandemic, online purchase behavior skyrocketed, and we were forced to open a new warehouse and fulfillment center in another city in our country, Bogotá.

Besides the growth, just before COVID started taking over in February 2020, we visited one of Amazon’s FBA centers. Instantly we knew we had to take our logistics to the next level.

It was important for us to control operations, mitigate logistics pain points, and reduce overhead costs for the new warehouse. We wanted to implement technology and achieve efficiency for our inventory management, picking, and packing processes. That was when ShipHero came into the picture, and we were able to take our ecommerce to the next level.

It was easy when you started with such a solid foundation. Why did you choose ShipHero? (besides the sweet puns)
‍Simply put, easy integration with our e-commerce platform, a user-friendly interface, and a complete order and warehouse management system.

What really set ShipHero apart, was the "coolness" and how seamless the tasks looked on the Endeavour App. We knew we had to pick a platform and WMS that understood and could adapt to the new e-commerce trends, integrations, and mechanics.

Also, another key factor was the ability to create specialized rules and interpretations, so that we could make tailored order fulfillment processes that took into account our own conditions and warehouse setup.

What advantages have you seen since switching to ShipHero?
‍Since integrating with ShipHero, we have boosted our efficiency. We surpassed our previous maximum of at most 100 orders daily, now being able to pick 250-300 orders a day just with one picker.

ShipHero allows us to virtually control a new warehouse with a small team in another location, which generates considerable savings by decentralizing our operations and reducing freight costs per order.

From an operations perspective, we also drastically reduced our product allocation mistakes, returns and logistics overcharges.

The operational advantages have been numerous, namely:

• Reduced freight cost due to efficiencies
• Reduced product selection mistakes (AKA mis-picks), therefore fewer returns
• Complete traceability with more automation, by integrating directly with our ecommerce and updating order status. (Before, we had a dedicated person that updated manually each order status).

With ShipHero, we now have a replicable e-commerce fulfillment model, which allowed us to grow 300% during the pandemic and base our whole business model on an e-commerce distribution channel. Nowadays, it is easy for us to expand our operations to other cities faster and with less investment, allowing our e-commerce to scale exponentially.

Follow Alfonso and ILOVEPINCH.com on social media and check out their websites below.

‍https://shopilovepinch.com/

‍Want to be featured in our case study? If you would like to share with us stories about your ecommerce experiences, whether it’s how you started your business, what opinions you have on the stories we share, or if you just feel like venting… we’re here for you.

Shoot us an email and you could be featured on an upcoming Case Study, our critically-acclaimed weekly news segment The Packet, or if you’re lucky, you could be invited to join one of our many Podcast episodes!

Despite China’s developing economy and huge population, their market is notoriously difficult for foreign businesses to survive, particularly those with a physical presence. Popular companies like Walmart, Home Depot, and Mattel have tried and failed to create a steady business in China, due to conflicts with the government, failing to understand their customers, or just bad luck.

This is actually pretty common across the board. In fact, 48% of foreign businesses fail in China within their first two years, according to the 2013 Australia-China Business Week conference.

China is a bureaucratic one-party state, which means that the lines separating private and public enterprises are very blurry. For this reason, the government tends to own and heavily support Chinese companies, which is one of the reasons why most foreign businesses fail so quickly. They have to jump through bureaucratic hoops, jockey against local competition for market share, and often compete directly with the Chinese government itself.

Getting Started

Despite the fact that e-commerce is estimated to be a $250 billion market for U.S firms in China, in an unexpected twist, smaller DTC companies have had more success in the Chinese market, compared to the likes of major retail brands such as Walmart.

To capture their fair share, international and local companies across industries are partnering up with Chinese e-commerce platforms like JD and TaoBao to create deals that allow the e-commerce platforms to sell their products directly to Chinese consumers. Chinese third-party logistics (3PL) companies are then contracted to help e-commerce companies keep up with their delivery or logistics.

The products are also usually held in Chinese warehouses, waiting for distribution or last-mile delivery from gig workers or delivery companies. In China, order fulfillment must be flexible to keep their customers satisfied. When a customer purchases the product, they only have to use one account due to the e-market's level of integration, and they typically receive it within just a few hours or days.

Accessibility

With 800 million residents in China using internet services, China is the most connected country in the world. As a result, these users are finding the adaptability and accessibility of DTC businesses to be particularly alluring. These businesses, unlike foreign ones, can distribute their products at a moment's notice using local resources and marketplaces, which makes them difficult competition for foreign businesses.

Millions of users visit e-commerce sites like Tmall, JD, and TaoBao to do their daily shopping. It’s become a staple of their everyday life. By leveraging these companies' existing logistics networks, foreign competitors are better equipped make use of China's regional infrastructure.

A New Strategy

More and more companies prefer to let local Chinese companies sell their products, rather than investing in the treacherous retail markets. If the customer wants to avoid especially crowded commercial districts, online markets are their best alternative. Most e-commerce companies are using customer behavior data to enhance website layout, presentation, and product lines to make their business more appealing to their customers.

E-commerce is the future of shopping in China, and many other countries as well.  In 2019, e-commerce sales in China were estimated to be 36.6% of total sales, which is a huge jump from 12.4% in 2014. By 2023, e-commerce is expected to make up over half of all sales, at 64%.

There still exists a rather large demand for foreign products in China, given their elevated status symbol and expectation of high-quality. However, finding these products can be difficult for Chinese consumers because of the consistent failure of foreign businesses to establish their presence in the Chinese market. Using e-commerce and online shopping, customers can get connected to products they want, which is a win-win for the DTC company, the e-commerce site, and the customer.

Read on to learn some important tips from the most successful DTC brands about what makes their businesses so successful.

3 Tips From The Experts on Entering the Chinese Market

1. Utilize Existing Infrastructure

Don’t be afraid to use third-party platforms as opposed to your own. Customers in China prefer shopping through platforms like WeChat and Tmall. There is a surprising amount of freedom for brands to make their own space on these platforms.

When asked by Adweek, Allbirds International president Erick Haskell said “It’s not like being on other third-party platforms where it’s hard to control brand presence and pricing. We can run our own retail, have our own ecommerce site [on Tmall].” His statement reflects how, despite popular western perception, Chinese platforms allow plenty of freedom for brands to experiment and express themselves.

2. Adapt to a Younger Audience

Chinese consumers are 10 to 15 years younger than consumers for the same brands in the west. This has a pronounced effect on not just marketing, but how brands present and behave themselves in general. Christina Fontana, the Head of Fashion and Luxury for Tmall, said this about how Chinese customers differ from westerners, “Consumers are very young and demanding. They want to know about brands and their craft. It’s important to tell that story.”

In general, brands will go to great lengths to demonstrate the quality of their products by including extra information about their manufacturing process, materials, location, and work conditions.

3. Take Feedback From Customers

Chinese consumers can be very vocal about their purchases. In fact, Fontana says that 80% of all customers on the Tmall platform leave feedback. Feedback has become so vital that the platform now includes a feature that lets brands directly take the feedback they receive and use it in their product development.

The takeaway from all of this is that customers want to be engaged directly with the brand from which they are buying. They want to know that they have a voice in how the product is shaped.

Wrap It Up

E-commerce brands that want to grow their global empire should find alternate routes in difficult markets like China. With their accessibility, adaptability, and huge inventory of in-demand products, it’s easy to see why more and more brands want to establish an online presence overseas. The question now becomes, will your brand be next to join the success of these DTC businesses?

Front and Center

How the internet got broked :-P~
‍If you were to be perusing the interwebs early Tuesday morning, you would have immediately noticed something awry. Websites like Amazon, Reddit, Spotify, eBay, Twitch, Pinterest, many news sites, and even government service pages were showing Error: 503 messages, which typically appear when a website is under maintenance. Many took to message boards to find the cause, and even though service was restored before people started hoarding toilet paper again, it wasn’t until 24 hours later that a root cause was identified -- and it turns out that it was a single, Fastly customer… imagine being that person.

No. What’s Fastly?
‍Fastly is a San Francisco-based cloud computing service provider that effectively makes loading times faster for websites (ah, Fastly, got it.) Yeah, it also optimizes images, videos and other large content to show up quickly when you load a web page. It does this by storing some website data from international websites in local data servers, instead of having to fetch them from faraway host servers every time. This “edge computing” method, which can be thought of as distributed fulfillment but for information, also performs various cybersecurity functions.

So who fudged up? I want names.
‍Okay psycho. Fastly sits between back-end web servers and the front-facing internet that we see, so any error in their system can cause entire websites to be unavailable.

On June 8, one UNNAMED customer (but pictured at the end) accidentally triggered a bug during a “valid configuration change”, which caused 85% of the company’s network to display errors. Within 60 seconds, the Fastly team identified and disabled the configuration, and within 49 minutes, 95% of the network was operating as normal. Quick work.

Could it happen again?
‍Fastly announced that it will be taking several steps to avoid outages in the future, including root-cause analyses and a complete evaluation of their bug-fix and deployment processes.

If you feel stressed by more and more companies falling victim to ransomware attacks and now the internet is going down, it may help to step away and take a breather this summer.

Want a free getaway?
‍Use code SHIPHERO123 at your front door to walk outside and enjoy the roses. Check out this botanical garden directory for roses near you, and tell them ShipHero sent you if you want to confuse the staff.

Back of the Packet

????Heard it Through Pipeline????
‍On Monday, the Justice Department announced that federal officials had recovered most of the Bitcoin ransom paid out for the recent Colonial Pipeline ransomware attack. While they did not specify how exactly they were able to track down the funds, feds said that they had recouped 63.7 of the 75 bitcoins ($2.3 million of the $4.3 million), exposing a common misconception that Bitcoin payments cannot be traced.

Ready Player 2
‍Meet Matt Furlong and George Sherman, Gamestop’s new CEO and CFO respectively, and they’re both Amazon-executive alumni. This move continues to signify the Reddit-obsessed gaming company’s efforts to completely level up their e-commerce business.

Amazon’s Privacy Fine
‍The Luxembourg data protection commission, the CNPD, has proposed a fine of more than $425 million against Amazon.com for violations against the General Data Protection Regulation (GDPR), which allows these privacy regulators to fine company’s up to 4% of a company’s annual revenue. This fine in particular would represent roughly 2% of Amazon’s reported net income ($21.3 billion), due to the violation being administrative in nature.

The Bezos Bros
‍TO THE MOON!???? (we’ll stop using this one day)

ShipHero News

Relaaaax
‍Shipping CBD products is now legal across all 50 states, but beware! Companies that want their share of this growing $2.8 billion market must comply with the FDA’s shipping regulations. That’s why we grind up the industry’s best practice and FDA guidance and roll it into this latest how-to guide to grow your CBD business!

Take a ride on the information superhighway!
‍Did you know: KPIs allow you to organize your company’s data and set specific and actionable goals against them. From social media to shipping logistics, you can use this information to track marketing trends, warehouse inventory, and customer service interactions. Dive into our latest blog for 16 must-track KPIs in 2021!‍

Best Print-on-Demand Companies of 2021
‍Whether you hope to make a business out of print-on-demand, want to sell merchandise to spread brand awareness, or think it’d be cool to sell your self-designed “Pfizer Gang” shirts, you must pick the print-on-demand company that’s right for you. In this blog, we explain print-on-demand and identify the top five print-on-demand services as of 2021.

Fleets of cargo planes grow larger, drones soaring the skies replace bike carriers on the ground, and delivery trucks weave through city streets in hectic routes. Why? All for the sake of convenience and speed of delivery for your e-commerce goods.

Recent estimates indicate that e-commerce sales will rise to $5.4 trillion by 2022. At first glance, the carbon-intensive shipping and delivery associated with e-commerce, especially expedited shipping and last mile delivery methods, may seem to contrast our collective value of environmental sustainability. But that doesn’t have to be the case.

In this post, we’ll explore how shipping companies are pursuing new strategies for carbon-neutral shipping and explore what that may mean for the future.

What Is Carbon-Neutral Shipping?

In recent years, terms like “carbon-neutral” and “carbon footprint” have become part of our common vocabulary. But what do they mean? What is carbon-neutral shipping, and why do you need it?

The Definition of Carbon-Neutral

“Carbon” is shorthand for the greenhouse gases associated with climate change; namely, carbon dioxide and methane. A company’s “carbon footprint” refers to the amount of greenhouse gases it puts into the atmosphere. Recent green initiatives have prompted many corporations to reduce their carbon footprint by mitigating their emissions.

Carbon-neutral shipping is an essential strategy for reducing a company’s carbon footprint. On one hand, it’s impossible to eliminate all carbon emissions from the shipping process. But companies can pursue carbon neutrality through various methods.

Why Consider Carbon-Neutral Shipping

Carbon-neutral policies protect the environment, but they also offer some immediate, practical benefits to companies who pursue an eco-friendly business strategy. First, many customers prefer to rely on a company that embraces sustainable business practices. That is especially true of millennials and young adults. By some estimates, 87% of customers prefer a company with sustainable business practices.

Additionally, the same sustainable practices that reduce your carbon footprint also work to eliminate waste. So while carbon neutrality may seem like a heavy commitment, it can ultimately help you cut costs while maintaining an eco-conscious customer base.

How to Achieve Carbon-Neutral Shipping

Currently, it’s simply not feasible to completely eliminate all greenhouse gases that your shipping method produces. But that doesn’t mean it’s hopeless. There are several steps that you can take toward carbon neutrality.

Step 1: Determine Your Emissions
‍First, you need to determine the impact your company is already having on the environment. The Carbon Fund provides a helpful Business Emissions Calculator that you can use to determine your company’s carbon footprint. You can also break down your carbon footprint by category, which may help you pinpoint the impact your shipping process has on your company as a whole.

Step 2: Re-evaluate Your Packaging
‍Shipping supplies are essential for protecting e-commerce products during transport. But some of these products do little more than make waste. Did you know that between 1950 and 2015, less than 10% of the world’s plastic was recycled? The rest still clogs our landfills.

Consider investing in recyclable and biodegradable materials, such as the following:

• Custom-made shipping boxes to eliminate wasted packaging
• Biodegradable air pillows
• Sealed-air packing peanuts instead of Styrofoam
• Reusable refrigerant gel packs instead of dry ice

These materials may be an initial financial investment for a shipping company or 3PL, but over time may prove to be more cost-effective than the products you’re currently using.

Step 3: Redesign Shipping Routes
‍Many logistics companies can help you analyze your shipping routes and find ways to optimize your efficiency. You may even be able to consolidate your shipping needs with third-party LTL carriers.

Step 4: Purchase Carbon Offsets
‍A carbon offset is any financial contribution to environmental projects and funds. These “carbon credits” can be used to offset the impact of your shipping process. However, this practice is often criticized as merely a financial escape hatch for a company that doesn’t want to make other changes toward sustainability.

Companies that Advertise Carbon-Neutral Shipping

Many e-commerce companies and 3PLs already advertise carbon-neutral shipping and delivery, but several notable shipping companies are committed to reducing emissions and pursuing sustainable shipping models.

UPS

When you use UPS, you have the option of purchasing carbon offsets to mitigate the environmental impact of the emissions used during the transport. The carbon-neutral option used by UPS is verified by SGS, an inspection, and a verification company, offering one of the most reliable systems for carbon offsets.

FedEx

FedEx is making a host of changes in the hopes of becoming fully carbon-neutral by 2040. Currently, the company offers carbon-neutral shipping envelopes, and their plans involve electric vehicles, energy-efficient aircraft, and other innovations to achieve sustainability.

ShipHero

ShipHero understands the fast-paced needs of the shipping industry, which is why we provide two-day ground shipping supported by advanced logistics tools powered by AI. Rather than rely on centralized hubs, ShipHero brings products directly to customers’ doorsteps in a shipping method known as distributed fulfillment, which is a proven strategy for minimizing emissions and reducing costs.

The Future of Eco-Friendly Logistics

Moving forward, we can expect several innovations in emerging technology to lead the way in the first half of the 21st century.

Electric Vehicles

Electric vehicles have already become standard fixtures on America’s highways, and we can imagine that soon these cars will be utilized as an efficient means of shipping. That will drastically reduce, if not eliminate, the carbon released into the atmosphere from combustion engines.

Advanced AI for Logistics

Logistics software will soon govern every company’s delivery route, providing real-time optimization based on traffic patterns, weather conditions, and other considerations relevant to the delivery route.

Emphasis on Warehousing Facilities

While many innovations will focus on the trucks and routes themselves, there will be an increased emphasis on the carbon emissions and environmental impact of warehousing facilities. We might even expect federal regulations to stipulate the kinds of packaging and waste produced by shipping facilities, prompting managers and others to pursue sustainable practices at every level of the shipping process.

Wrap It Up: A Sustainable Now, a Better Tomorrow

These innovations may seem like significant investments, but these carbon-neutral strategies are essential for maintaining our environment for future generations. By embracing change today, we leave our children a brighter tomorrow. Cue the American flag… and scene.

Relaaaaax! CBD users can get their vapes, tinctures, lotions and more sent right to their doorstep as shipping stress-reducing CBD products have become legal across all 50 states. But suppliers, take heed: supplement and pharmaceutical companies that want their share of this growing $2.8 billion market must comply with the U.S. Government’s CBD shipping regulations, specifically regarding how much THC can be present in their products.

Companies must closely adhere to CBD shipping guidelines if they want to operate long-term. So if you don't want your CBD business to go up in smoke, be sure to build a detailed strategy for your business, from payment processing to marketing and shipping.

In this article, we get into the nitty-gritty of shipping hemp-based products, including the current state of the market, how to package and ship CBD products and the types of products you can ship out.

Is CBD Legal to Ship? Factors to Keep in Mind

Yes, it's legal to ship CBD oil and other CBD products, but only under certain circumstances. These are the main factors to keep in mind:

CBD and THC levels

CBD oil is only legal to ship if it is derived from the hemp plant, a type of cannabis plant that contains less THC than marijuana.

Do keep in mind that, according to US federal law, CBD products can only contain up to 0.3% of THC. Any higher and you're sure to raise red flags.

Selling CBD or other products derived from the marijuana plant is still illegal at the federal level in the US.

If you're wondering what the differences between hemp, marijuana, CBD and THC are, don't fret. Here's a quick explainer:

Marijuana and hemp are essentially the same plants. However, hemp has higher levels of CBD and lower levels of THC, while marijuana has higher levels of THC and lower levels of CBD. THC or tetrahydrocannabinol is the psychoactive agent that is found in cannabis. In short, it's what gets people high. On the other hand, cannabidiol (CBD) is purported to provide relief for depression, anxiety, and PTSD, as well as help users fall asleep.

Growing licenses

All hemp products containing cannabidiol oil must be bought from a licensed grower. Each state has its own rules and guidelines on issuing licenses to growers, so make sure you or your supplier are able to secure a license from your state before selling any CBD-based products.

Testing

Before you can ship out your CBD products, you must first bring them to a third-party tester to identify the product's chemical makeup. This will allow you to make any claims on the CBD and THC levels in your product.

The CBD Market in 2022

As CBD sales hit $4.6 billion in 2020, experts forecasted the CBD market to reach $12.64 billion by 2026.

The major growth drivers, according to one report, are rising government approvals of CBD products, increasing cases of chronic pain issues, anxiety, and depression (which CBD is purported to help alleviate), and rising popularity in the cosmetics industry.

One major market trend is the rise in online sales of cannabidiol oil and CBD-containing products. This means more and more people are choosing to have their CBD products delivered straight to their doorsteps rather than going out to buy them at a dispensary.

eCommerce businesses can take advantage of this trend and start catering to those who are reliant on eCommerce to get their CBD products.

The Types of CBD products

Legalized CBD products come in a few different varieties. The market is currently divided by how the supplement is derived from the plant, as well as the method of consumption. For the former, there are three choices available to consumers:

1. Hemp
2. Marijuana
3. Other pharmaceuticals

Hemp-derived CBD products are the most in-demand category for e-commerce retailers, driven by hemp’s various healthcare applications.

As medicinal CBD products become more widespread, more research will lead to more uses for it.As for the method of consumption, CBD can be inhaled like traditional marijuana products, or consumed orally through edibles and other consumables. It can also serve as the main ingredient in health and wellness products, such as skin lotion, shampoo, candles, or animal-care solutions.

Shipping CBD Products Domestically And Internationally

When shipping CBD products locally, keep the following considerations in mind:

Be Careful When Shipping Internationally

Although shipping CBD products is legal in the United States, keep in mind that not all countries classify CBD as a legal substance. Some countries may even press charges or damage products beyond usability. So, not only will you be risking legal action, but you'll likely see your products go to waste as well.

As such, make sure to check each country's laws and seek legal advice before conducting business globally. eCommerce retailers need to be mindful of this complex legal landscape and adhere to these laws if they don't want to lose their business.

Employ a Legal Team

If you're committed to selling CBD products, make sure to keep a legal team close by to review all your statements and advise you on what you can and can't do in certain localities. Remember that CBD and hemp-based products are not accepted in all US states despite not being federally-controlled substances.

Screen Your Suppliers

If you will merely be distributing CBD products, you need to be diligent about making sure your suppliers follow state laws and shipping regulations. Most carriers are stringent about having both products and suppliers meet their rules on shipping CBD.

How to Package and Ship CBD

When figuring out how to package your CBD products, it is best to find packaging that is odor-resistant, leak-proof, tamper-resistant, and compliant with state regulations. Vacuum-sealed bags and air-tight plastic containers may be your best bet here. To protect your packages from damage during transport, wrap items in thick, cardboard packaging.

When it comes to shipping, bear in mind that each carrier has different guidelines on shipping hemp-derived CBD products via mail.

USPS Shipping

When shipping through the USPS, you need to meet the following requirements:

• A signed self-certification statement printed on your company's letterhead stating, "I certify that all information contained in this letter and supporting documents are accurate, truthful, and complete. I understand that anyone who furnishes false or misleading information or omits information relating to this certification may be subject to criminal and/or civil penalties, including fines and imprisonment.”
• Your industrial hemp producer is a licensed producer recognized by the USDA in the state where the post office is located.
• The THC concentration of your product is no higher than 0.3%.

UPS Shipping

To ship via UPS, you must have the following information on hand:

• The state where the industrial hemp was grown
• The manufacturing process that resulted in the end-product

UPS has clear guidelines stating that it will refuse shipment of any marijuana-containing products or CBD products from shops that also sell marijuana products.

DHL

DHL allows shipping of CBD products so long as sellers can provide records on state law compliance, laboratory test results indicating THC contents, government licenses, and compliance reports.

Another solution could be to use third-party logistics or fulfillment providers to handle every aspect of your CBD shipping, from storage to shipping. Fulfillment centers reduce the need to rent warehouses out to store your CBD products and take care of state and federal law compliance when shipping.

How to Market CBD Products

The CBD market is booming, and eCommerce retailers need to stay ahead of the curve. With so many competitors in this industry though there are still plenty of ways you can get your products noticed! Here are some online marketing tactics you can deploy to smoke your competition.

‍Note: Pay close attention to FDA guidelines on marketing CBD products.

Leverage SEO to Market Your Products

Search Engine Optimization (SEO) is a vital aspect of marketing CBD products. While it can appear complex and technical at first, SEO can still be more affordable and effective than other, more traditional approaches to marketing.

Building informative and entertaining content is the best way to gain traction in the CBD market. Some examples of CBD content marketing could include:

• Outbound posts on social media channels.
• Hashtags to maximize your reach by showing up in more people's interest feeds.
• Creating a sense of community on social platforms to grow your company’s positive reputation in the industry.

Word-of-mouth and affiliate marketing

Word-of-mouth and affiliate marketing are important tools for eCommerce retailers. Affiliate marketing allows you to build relationships with third-party websites that entice clicks back towards your site, while also paying only when someone buys something because of them!

Influencer Marketing

Somewhat related to affiliate marketing, Influencer marketing is another fruitful channel for spreading product awareness. This is mainly carried out on social media platforms and video. With products such as CBD-related goods, the role of influencers is heavily regulated by the FDA to avoid the unintentional spread of misinformation. The influencer needs to be open and transparent about their commercial connection to the CBD manufacturer and retailer.

Email Marketing

Finally, email marketing still attracts some of the highest conversion rates of all the digital marketing channels. The customers that have subscribed to your updates are quite possibly the easiest pickings for your company to convert sales, so reward your loyal fanbase with discounts, free shipping, and more to generate quick sales.

Wrap It Up

The billion-dollar market for CBD products in the US is still expected to grow 10x its current rate by 2025. For eCommerce retailers that deploy a tight marketing and shipping strategy, the growth opportunities are immense, as long as you follow the FDA guidelines and avoid potentially business-ruining shipping infractions.

Run a tighter ship for your CBD online shop – consider outsourcing your fulfillment to a third-party fulfillment center like ShipHero.

The days of slow shipping are over. ShipHero has a quicker delivery speed than other 3PLs and you'll be able to spend less money on it, too! Contact us to find out how the pros get their products into satisfied customers' hands quickly and without breaking your budget or sacrificing quality of service in the process!

Shipping CBD Products FAQs

Can you mail hemp legally?

Yes, you can mail hemp legally as long as its THC concentration does not go any higher than 0.3%.

Can you ship CBD oil internationally?

You can ship CBD oil internationally to countries that recognize CBD as a legal substance. Not all countries do so, however, and may confiscate or destroy your products.

How do I know if my supplier’s CBD can be shipped legally?

To know if your supplier's CBD is legal to ship, request a license to grow and produce CBD. You can also conduct third-party lab testing to see if their product's THC levels meet the maximum standard.

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‍About ShipHero: We make it simple for you to deliver your eCommerce. Our software helps you run your warehouse, and our outsourced shipping solutions eliminate the hassle of getting your products to your customers. With over 5,000 brands and 3PLs relying on us daily, we’re here to help with all your logistics needs.

Let us know how we can help you today by scheduling a call HERE.

Front & Center

Kings vs. Pirates - The Battle for European E-commerce

Epic much? As we reported back in February, dirty porch pirates have been running rampant during this e-commerce boom, with 43% of Americans reported having a package stolen, and two-thirds of those victims say they've had packages stolen more than once.

In Europe however, these theft figures are much lower because carriers do not leave parcels unattended on stoops, and mostly require parcel recipients to sign for packages at the door. GASP! And what’s more, if they miss their expected delivery, they must go all the way to the post office to retrieve their item. DOUBLE GASP!

So finding this delicate balance between security and convenience in Europe has been an ongoing battle, until one brave man who would be king threw his hat into the ring. Enter: Poland’s Parcel King.

The Rise of Poland’s Parcel King

In a true rags to riches story, Rafal Brzoska has gone from near-bankruptcy to billionaire by not delivering packages to individual houses; rather, his company InPost sets up automated e-commerce lockers the size of refrigerators for convenient pickup. As the legend goes, one of these parcel storage units can do the work of 24 trucks, and Brzoska says: “That’s why lockers are the future.” So it will be done.

Because these storage lockers cost only ~$20,000 to install, InPost wants to put one within “slipper distance” of every home and office in Europe. Storage costs $2 per parcel, and makes pickup quick and easy for shoppers as an easy alternative to home delivery.

The Fight Rages On

Europe’s postal services, UPS, and Amazon all took a different approach in Europe, by recruiting convenience stores and bodegas to handle package pickups and returns. However, without specific infrastructure for parcel delivery, the pandemic-led ecommerce boom has crowded aisles and jammed up these corner stores. And don’t even get them started on product returns.

Who Will Reign Supreme?

In January 2021, InPost went public on Amsterdam’s stock exchange, valuing the business at $9.7 billion and giving the Parcel King a net worth of $1.1 billion. His business model has so far proven that lockers are a cheaper, greener alternative to fleets of last-mile delivery trucks. Let’s see if that model has any grounds in busy U.S. metropolitan areas.

Back of the Packet

Etsy Buys Depop

Etsy has announced a deal to acquire Depop, the seconhand fashion app that has been considered the “resale home for Gen Z consumers'' since its founding in 2011. Etsy and Depop agreed to a $1.62 billion deal primarily consisting of cash. Let’s just hope the shoe fits.

No More Headaches

On Thursday, the FDA granted approval for migraine medication, Nurtec, the first drug to recieve such approval for both migraine treatment and prevention. Nurtec’s creator, the Connecticut-based pharmaceutical company Biohaven, hopes to “change the way the whole field treats migraines”, according to Biohaven CEO Vlad Coric.

A$AP’s Rocky Road

On June 1st and only on June 1st, A$AP Rocky served as the CEO of the “buy now, pay later” software company, Klarna, after announcing a new partnership with the Swedish company. During his day-long tenure as Chief Executive Officer, Rocky worked on curating exclusive content for the Klarna app, focusing on upscaling vintage fashion.

ShipHero News

ALWAYS PROTECT THE GOODS

1 in 100 packages shipped annually by UPS or FedEx are reported as lost or damaged... that’s almost 8 million packages on the receiving end of some extra tough love. Learn how you can Avoid Damaged Goods And Customer Returns in our latest blog.

Summer Shoppin’ Happened So Fast

Ecommerce shopping habits change with the seasons, so are you prepared to handle the new customer experience in Summer 2021? From mobile optimization to voice search, check out our latest blog to learn this summer's customer experience trends.

Introduction

The era of ecommerce runs on data. On a daily basis, terabytes upon terabytes of information are collected and analyzed. Although these data stores hold the key to ecommerce success with valuable insight for those that can find them, there is no way that the average person can break down and understand all that sales and order fulfillment data in a reasonable amount of time. That is where Key Performance Indicators (KPIs) come into play.

KPIs allow you to organize your company’s data and set specific and actionable goals against them. From social media to shipping logistics, you can use this information to track marketing trends, warehouse inventory, and customer service interactions. By breaking your KPIs down into categories as seen in this article, you can get a better idea of which tools might help you take the next step with your business.

Here are some of the KPIs that are worth exploring for ecommerce businesses:

Ecommerce Sales KPIs

If you want to track your ecommerce sales effectively, these are some of the most helpful KPIs.

Conversation Rates

When it comes to managing your marketing output, you need to know how many consumers interact with your advertising material. These conversations give you a better idea of how well your marketing campaigns are performing and which ones may need a little bit of improvement.

Cost of Goods Sold

The cost of goods sold lets you know how much your business spent manufacturing the products or services you’ve released into the world. These KPIs are ideal for revenue calculations and can help you to identify places in which to cut your production costs, should the need arise.

Lifetime Value

Repeat customers are the lifeblood of a business. Lifetime value KPIs help you track how many times particular customers return to your business and how much they’ve spent. These customers tend to cost you less to acquire, as they already have some awareness of your brand.

Revenue Per Visitor

Instead of identifying how much repeat consumers have spent at your storefront, these KPIs will instead calculate the average amount that a generic consumer may spend on your ecommerce platform.

Customer Acquisition Cost

Wooing consumers isn’t cheap. If you want to get a better idea of how much you’re spending to win sales from your consumers, though, this KPI can run the calculations for you. That way, you can have a better idea about which advertising campaigns are pulling their weight and which ones you may need to adjust.

Ecommerce Marketing KPIs

Want to understand the impact of your marketing? Take a look at these KPIs.

Site Traffic

A site traffic KPI lets you know how many people come to your platform, along with what their demographics are, whether they made any purchases, and which platforms they found your ecommerce website on.

Return on Ad Spend

Your advertising ROI is one of the factors that influences your success. A return on ad spend KPI lets you know how your consumer revenue compares to the amount of money you spent on a particular advertising campaign. These ratios will give you a better idea about which campaigns are performing well and which may need to be fine tuned.

Bounce Rate

Bounce rate KPIs let you know how a consumer interacts with your website and what ratio of visitors are leaving your site right away. These KPIs are ideal for identifying bot behavior, too, if you think a competitor may be spamming your site.

Newsletter Subscriptions

If you run a consistent email marketing campaign, it’s important to know just how well your campaigns are doing. Newsletter subscription KPIs keep track of new and retained newsletter subscriptions, ensuring that you have a better idea of who you’re talking to when you send out your newsletter each week.

Social Media Engagement

Social media is the lifeblood of the digital business. Engagement KPIs let you know who is interacting with your content online, either via comments, shares, or likes. These KPIs also let you keep track of which platforms you perform well on and how far your content has been shared by unaffiliated consumers.

Ecommerce Customer Service KPIs

Want to know how your customers feel about your products and service? Take a look at these customer service KPIs for ecommerce.

Customer Satisfaction Score

Like ROI, customer satisfaction score is an important variable that can impact your company’s success. Your KPIs generate this score based on the answers consumers provide on post-purchase or post-experience surveys.

While it isn’t always easy to get consumers to participate in these surveys, the ones that do can still provide you with valuable information about your company’s success. You can compare your existing KPI scores against the national average to determine what you could be doing more effectively.

First Response Time

Want to keep track of the amount of time it takes your HR team to respond to a customer’s concerns? First response time KPIs track just that. With this data at hand, you can improve your HR guidelines, specifying faster response times to cultivate improved relationships with your customers.

Customer Resolution Time

In a similar vein, there are KPIs available that let you know how long it takes your HR team to address and resolve a consumer’s product-related concerns.

Ecommerce Shipping and Logistics KPIs

A customer has made a purchase. Now what? Take a look at these KPIs for shipping and logistics.

Order Fulfillment and Accuracy

No one likes to receive an order that isn’t theirs. This KPI lets you know how many packages you’ve shipped that have successfully arrived at the appropriate destination. If the order fulfillment values start to dip, then you’ll need to consider the influence it can have on customer opinions about your business.

Order accuracy data will also let you know whether your 3PL delivery line needs to be improved. If you’re sitting on an unusually low percentage of accurate orders, then there may be line errors at your warehouse that you need to address.

Inventory Levels

Whether you have invested in warehousing solutions or store your own inventory, you need to know where your inventory levels stand on a day-to-day basis.  Rely on inventory level KPIs to replenish your stock when necessary and to calculate your business’s average supply-to-demand ratio.

Order Volume

If you’re manufacturing products several months in advance, you need to know how much of your inventory goes out per month on average. Order volume KPIs calculate your sales by day, month, or quarter, depending on your needs. You can use year-out estimates to track the ebb and flow of your sales and to pre-produce inventory for each month.

Wrap It Up

With the collection and tracking of the above KPIs, you’ll keep your finger on the pulse of the health and success of your ecommerce business. From marketing KPIs that gauge the success of your advertising efforts, to shipping and logistics KPIs that illustrate how efficiently you get products to customers, an effective KPI reporting strategy gives your company’s decision-makers all the information they need to make informed choices.

Summer is a great time for margaritas and digital marketing. By focusing on the digital platforms that people visit most frequently in the warm months, your ecommerce business should be marketing the summer vibe with sizzling deals and scorching offers. Sunny weather makes people happier in general, so ecommerce business owners, especially in the dropshipping domain, need to be on the ball when it comes to customer experience. If you are not up-to-date on the latest trends in customer experience, your competitors will be.

With ecommerce margins already stretched thin for small to medium sized businesses, it is vital to capitalize on the latest tech and tools to win and retain customers. Especially during summer months, because customers spend less time looking at their devices as they do in the cold depths of winter.

It’s necessary to put in some extra work to grab the already limited attention span of your audience. Once you have it, how do you convert the sale? This article details the main customer experience trends in ecommerce going into the summer of 2021.

Create a Summer 2021 Strategy for Improved Customer Experience

The latest ecomerce trends for improved customer experience are the following:

• mobile optimization,
• micro-influencers,
• email marketing, and
• voice search.

The commonality found here are summer-savvy, ‘on-the-go’ styles of consuming information. From looking at a shopping app on the beach or checking email by the pool, your company should intelligently spend resources where people are looking.

Strategy 1: Mobile optimization

When people are on holiday, camping, or out sunbathing beside a swimming pool (must be nice), the summer months tend to be downtime for PC usage, and uptime for mobile devices, smartphones, and tablets.

Increased mobile usage also draws more people to social networks such as Facebook, Snapchat, and Instagram, which creates added opportunity for ecommerce merchants to sell or advertise on those platforms and makes it easier to reach your target audience. Depending on the age demographic of your products or services, create optimized ads and campaigns to suit summer buying behaviors.

Also, don’t be afraid to churn some marketing budget on running promotional campaigns geared specifically for the summer months. You can run these in isolation or try some re-targeted ads to your email database subscribers. Hitting people with the same message on multiple platforms is a proven approach to generating more attention and conversions.

Strategy 2: Utilizing the power of Micro-influencers

If you run a new company or are launching a new product, people usually require more convincing to buy, compared to a big brand or known entity. With ecommerce specifically, customers need to trust in what they’re buying to be convinced to open their wallets. The younger the potential customer, the more important it is to find a way to show them your product in all its glory.

Enter: Influencers. Showing people how things work is even more effective when the person doing the demonstration is someone they know.

Some surveys show that influencers or bloggers promoting your product can increase sales by upwards of 30%. This doesn’t mean you have to spend tens of thousands to enlist a d-list celebrity on Cameo. In fact, many survey respondents indicated that they respect and associate with micro-influencers more than celebrities that are just in it for the paycheck.

Beyond their effectiveness, another advantage of micro-influencers is that they are a lot more cost-effective than traditional online advertising channels. Some influencers will even agree to be paid in different ways than just cash, like free or discounted product.

Try negotiating with these influencers to give them product samples in return for promoting your products. Also, you could consider an ambassadorship, offering a percentage of sales instead of a flat fee agreement.

Strategy 3: Email marketing

Summer is not the time to overlook your hard-earned database of email subscribers. In fact, it’s the ideal time to catch people checking emails on the go, during an idle moment in an airport, ferry, or at their hotel.

While social media may create a buzz of activity and noise, it doesn’t come anywhere near email marketing regarding conversion rates. Email marketing is one of the best-performing of all digital channels in terms of creating conversions. More than 65% of users polled indicated they had purchased the back of an email campaign. That rate is more than double that of the combined social media platforms.

Email marketing is highly targeted since it enables you to send specific messages to people that have already expressed an interest in your products. Utilize a basic CRM and email marketing tool to track what your subscribers are interested in. You can update their preferences and send them only the most relevant products.

Ensure your email marketing campaigns show a clear ‘call-to-action’ button at the end. Summer sales, discount codes, and personalized recommendations are particularly effective. You can also use email marketing to clear overstocked products or discontinued seasonal lines.

Strategy 4: Turn up the volume on voice search.

Voice search accounts for around 50% of searches, by some reports. This varies by country, but there is no denying voice search is a growing trend.

Virtual assistant devices are present in an increasing number of homes. This creates a new opportunity for ecommerce retailers: Voice search optimization. Voice search does not directly compare to search engines optimization (SEO) and must have specific content.

Ensure that your website, and especially your product listings, are optimized for voice search. Voice search responds more to search phrases than it does to traditional keywords, so you should customize searches based on answers to questions.

Wrap It Up

Successful ecommerce retailers need to be leaders in customer experience along the shoppers’ journey. Creating a smoother customer experience means making it easier for people to buy from you wherever possible.

Position your products where people will see them during the summer months, mainly mobile devices, smartphones, and social media. When you’ve piqued their interest, ensure that the buying or decision-making experience is a smooth one. From showing color options to tech specs, your potential customers should locate and see more information quickly.

Always protect the goods! 1 in 100 packages shipped annually by UPS or FedEx are reported as lost or damaged. Considering together the two carriers ship almost 8 billion packages per year, that’s almost 8 million packages on the receiving end of some extra tough love.

In general, the main risks that cause damage to goods are:

1. Getting dropped
2. Heavy vibration from conveyor belts and trucks
3. Getting compressed (i.e., squished) from stacking or sudden movement
4. Humidity and temperature changes

Depending on the fragility of your goods, you should first evaluate what is required for full protection. Take into account the type of box material, packaging materials (e.g., styrofoam aka ‘packing peanuts’), etc., and compare that to the cost of repair/refund for a damaged item. Note that while you can save some money using cheaper alternatives for packing, you may pay more in the long run if items are frequently damaged on their way to customers.

Tips to Avoid Damaged Goods

Whether it’s thrown around in transit, dropped down chutes and conveyors, or subject to the harsh elements, retailers must consider these packing tips to avoid the headaches of customer refunds and returns caused by lost or damaged goods.

Tip #1 - Fragile Product? Double Up.

Fragile products must not have room to shift around during transportation. To prevent fragile products from breaking, we recommend one of the following:

• Use ample amounts of packaging materials (see below) in a right-fit box,
• Ship multiple items in one box using compartments
• Box-in-a-box packaging for added protection and branding opportunities

Consider the following packaging materials for impact protection:

• Polybag: Cheap, sealed plastic bag. Prevents water damage, but no structural strength.
• Jiffy bag: Like a polybag with added cushioning
• Bubble wrap and air cushions - although it can get expensive, bubble wrap and air cushions provides total coverage
• Brown paper and void fill materials - the cheaper alternative, brown paper and styrofoam packing peanuts are easily scrunched up to fill voids in packaging; however, it can collapse easier than bubble wrap on long journeys
• Single-ply corrugated roll - Line thin cardboard boxes and wrap bottles with this to increase impact resistance

Tip #2 - Heavy Products? Wall Up.

Heavy products could deform or collapse weak boxes when stacked. That’s why it’s important to know a box’s ECT (Edge Crush Test) rating, which is the amount of weight that can be stacked on a box wall before it deforms and collapses. When shipping small and medium sized products, single-walled boxes provide enough support. As for larger, heavier products, only use double- or triple-walled corrugated boxes depending on the fragility and value of your items.

Tip #3 - Shipping Liquids? Bag up.

For liquids, perfumes, aerosols, especially those that come in easily breakable containers, most carriers advise that they are shipped separately when possible, using padded poly bags or jiffy envelopes.

Tip #4 - Take a Picture of Your Package Contents Before You Ship

Before handing off any package to a carrier, we recommend taking a picture of the package contents and condition. That way, you have proof in case a carrier tries to shift blame to your warehouse processes.That’s why ShipHero created a feature that allows warehouses and fulfillment centers to seamlessly take snapshots of packages before completing the packing and shipping. Simply set up a camera and scan a barcode, and the image is automatically uploaded to the order. It fits right inoto your pick and pack processes and gives you the liability protection you need.

Tip #5 - Create a Best Practices Guide

Depending on the item value and size, create a playbook for your warehouse workers and pick-and-packers so they can use the correct packaging every time. This ensures that products aren’t damaged in transit and also saves you money from over-packing.

Wrap It Up

By following these 5 tips, you’ll effectively reduce the likelihood of your goods getting damaged in transit from your fulfillment center or warehouse. This will not only help your bottom line, but will also avoid complications from returned products. Goods, protected.