Retail organizations must invest more in distribution centers to meet the rising demand from modern e-commerce channels. An investment of this magnitude will also help to accelerate the design, development, and implementation of commercial shipping and supply chain procedures.
Recent technologies, such as automation, artificial intelligence, data analytics, and machine learning, are assisting shipping companies in staying competitive, satisfying client expectations, and lowering operational expenses.
According to the Statista reports, the Indian logistics and shipping market was worth around USD 250 billion in 2021. This market is expected to grow to 380 billion dollars by 2025, with a compound annual growth rate of 12%. Compared to the BRICS average of 11 percent, India has a higher shipping cost percentage of GDP at 14 percent.
Since there has been a lot of talk about commercial shipping in the logistics sector, let’s try to understand the term better.
What Is Commercial Shipping?
Commercial shipping is a type of distribution used by businesses that typically involves a bigger number of merchandise. In this scenario, a shipping provider will deliver business products to customers at a company address rather than a household. For example, a store, a medical center, or a non-residential building could be used for delivery.
This shipment is typically used for bulk orders or refilling a product at a retailer’s location. For example, one may sell the products to shops that order in large numbers rather than single units. In addition, businesses benefit from bulk savings from carriers due to the cargo size.
Business, retail, and other commercial destinations receiving regular commercial shipments already have procedures and practices to ensure timely deliveries. Professional processing and meticulous record-keeping at the receiving end ensure that the goods you export are paid for on time. As a result, the brand-client relationship improves.
When it comes to commercial shipping, one might get quite confused between freight brokers and 3PLs. Therefore, it will be better to first clear the difference before looking at the functioning of a shipping provider organization.
What Is the Difference Between a Freight Broker and a 3PL Company?
| Freight Broker | 3PL Company |
| A freight broker performs activities connected to specific events throughout the shipping process. | 3PL includes loading, dispatching, same-day delivery, commodity delivery, commercial shipping, and more. |
| The ability of a freight broker to convey products between shippers and carriers is limited. | 3PL is a one-stop shop for all parts of the shipping process. It is dependable and capable of developing long-term relationships while also achieving objectives. |
| Freight brokers are merely part of the overall cargo process, from origin to final destination or consumer. | With the wide range of services provided by 3PL, they will be able to create long-term relationships with their clients. |
Since the difference between freight brokers and 3PLs is clear, let’s dig deeper into how a commercial shipping company works.
How Does Commercial Shipping Work?
A commercial transporter will pick up the products from the storehouse once the orders are ready for transportation. For example, when a D2C brand ships pallets of goods, it will deliver them to the customer’s loading dock, making delivery easier. The receiving person will confirm receipt of the cargo and confirm that an order is complete.
After the brand has made a sale, how will it manage delivery that can impact future transactions? The consumers will be pleased if the shipment arrives safely and on time.
On the other hand, late or damaged items reflect poorly on the company, even if the incident was not the brand’s fault.
Therefore, working with a reputable commercial shipping company or 3PL is necessary to manage the shipment.
Benefits of Using a Commercial Shipping Provider
Working with a shipping company is a dependable, cost-effective, and efficient option for many ecommerce businesses to keep products—and profits—flowing. Although the brands may believe that their company is large or busy enough to consider collaborating with a shipping company, doing so can help the organization improve sales and growth.
Shipping companies handle order delivery from origin to destination. Looking at the proficiencies of today’s commercial shipping providers, more commercial b2b companies are relying on these service providers to handle their logistics and shipping. As a result, the brands will gain several advantages, including
- Consolidating all of the shipping costs into a single, predictable monthly bill
- Negotiating lower expenses with a third-party logistics provider
- Providing scalable capacity for high-volume periods such as the holidays and business expansion
- Allowing the company to focus on more skill-dependent duties such as marketing and innovation
- Assuring that your things are safe in transit and arrive in perfect condition
- Tracking and implementing the most recent prices and rules for international shipping
Best Practices for Commercial Shipping
The best practices for commercial shipping can be determined by considering several factors. These practices include the following:
Offer Free Shipping
Customers always look for free shipping because it implies cost savings. However, you must also make it less expensive for your company. Incorporating shipping expenses into your pricing structure and/or establishing a minimum purchase threshold for free delivery make it a win-win situation for both parties.
Maintain Strict Quality Control
If the product is on sale, never ship it if it is outdated or defective. To develop a trustworthy brand, every item should meet your company’s stringent quality and value criteria. When outsourcing commercial shipments, find a vendor with sufficient warehouse space for your products. Ask your consumers if their orders arrived in good condition.
Consider Few Things For Preparing Shipment
First impressions are crucial in building trust. Ensure your products are properly wrapped to ensure their safe arrival at their destination. Customers notice and appreciate your company’s attention to detail before opening the boxes.
Working With a 3PL
The simplest approach to adhere to these best practices is outsourcing shipping operations to experts. Pickrr, for example, streamlines the business shipping process by shipping B2B (and B2C) orders via the quickest and most cost-effective route and carrier.
How Pickrr Helps In Commercial Shipping?
Pickrr is a SaaS-based logistics solution provider that automates the shipping process from brands to brands and customers. It provides you with 29000+ pin codes serviceability and 30+ courier partners across India. In addition, the company offers a consolidated dashboard for managing your logistical activities across multiple locations. In terms of providing you with the best experience, the dashboard also offers detailed courier performance data, a shipping cost calculator, quick customer service, and many more features.
Conclusion
Commercial shipping has become one of the most important aspects of the growth of an online business. The more conveniently the product has been appropriately shipped, it will enhance the customer experience. Additionally, the safety and security of the orders provided by the commercial shipping partner offer a unique post-purchase experience to the end consumers. A commercial shipping service provider enhances the brand-customer relationship, resulting in better growth for the seller. Connect with Pickrr if you want an efficient shipping solution for your D2C brand.
