Descubriendo los secretos de las empresas DTC exitosas
- 3 ejemplos de marca para impulsar tus ventas online
- 2 consejos prácticos para obtener resultados más rápidos
- 1 sorpresa especial
que ya lo estoy disfrutando.
E-commerce trends
10 Best E-commerce Podcasts to Boost Your Sales
Who doesn't need a little inspiration to grow their business? Whether you're launching your e-commerce website or looking for new hacks to increase your sales, it's always useful to get inspiration from experienced entrepreneurs in your field.
E-commerce podcasts are an excellent way to learn from the source. They are an opportunity to discover interviews of emblematic personalities of online sales, or more generally of entrepreneurship.
The cherry on top of the cake! Thanks to the practical and asynchronous format of the podcast, you can listen to valuable advice, best practices, and even failure stories they experienced before becoming successful whenever you want: during your commute, in the gym, or even while polishing your product descriptions!
We asked our clients and Digital Native Club members what their favorite podcasts were to stay on top of new trends in e-commerce, marketing... Or simply the ones that inspire them the most in their entrepreneurial journey! The list below is a compilation of their top 10.
For each podcast, you will discover the pitch and the reasons to listen to it, as well as our favorite episode.... We hope this list will help you find inspiration and new ideas!
1. Le Panier : the most famous e-commerce podcast in France
Let's begin with the most listened e-commerce podcast in France. Launched by the digital agency Cosa Vostra, Le Panier is hosted Laurent Ketz. After several personal experiences in e-commerce, he makes us discover wonderful brand stories. The interview format is both feel good and inspiring. A real source of good practices for French e-commerce founders.
Our favorite episode -> The episode with Edouard Caraco from "The Bradery", in which he explains how he generated a turnover of €10 million in 2 years on social media.
2. Génération do it yourself
Another podcast powered by Cosa Vostra, this time with a slightly broader scope than e-commerce. Created in 2017 by Matthieu Stefani, Generation Do It Yourself focuses, on those who have built “themselves” from the scratch. Experts in their field, be it business, sports, culture or even politics.
Its long format (each podcast runs for an average of 2 hours) requires a little more time on your hands. But the valuable advice they share is worth it!
Our favorite episode
The interview with Sacha Poignonnec from Jumia. An ultra inspiring episode, in which Sacha shares the keys to his success, starting with his determination and audacity.
3. Entreprendre dans la mode
This e-commerce podcast is specifically made for fashion entrepreneurs. Adrien Garcia, designer and co-founder of his own brand, welcomes fashion makers. Designers, journalists, but above all entrepreneurs and retailers who share their experiences and their strategies to innovate and grow their brand.
Our favorite episode
The episode with Domitille & Angélique, co-founders of the brand Soeur. They explain how they went from a teenage clothing store to a premium and international brand!
4. Serial entrepreneurs
Created in December 2017 by François Allet, Serial Entrepreneurs, hosts doers, and makers. Its intimate conversation format is particularly pleasant to listen to. It allows us to discover different sides of well-known personalities from the business and e-commerce ecosystem.
Our favorite episode
Episode #35 with Reynald Naulleau of Vite Mon Marché. The founder shares his inspiring journey from growing up in a farm in the Vendée region to creating his online store. He also reveals how he reached over 3.5 million in sales in 2020, and discusses the importance of excellent service to boost sales.
5. Nouvel œil
An inspirational podcast in which Victoria, 22 years old, meets well-known personalities to share their advice for millenials. Discovering what we are not taught in school results in very educational conversations full of best practices.
Our favorite episode
The interview with Pauline Laigneau, founder of Gemmyo. She shares her first failures, and how she turned them into strengths to launch her own jewelry brand.
6. Les Digital Doers: an in-depth e-commerce podcast
Hosted by Cyril du Plessis, The Digital Doers collects the experiences of entrepreneurs and service providers in e-commerce. The topics covered are often very specific, ranging from the execution of their operations to the acquisition of new customers, logistics, customer service, CRM ... A very specific e-commerce podcast, but highly recommended for entrepreneurs who seek actionable advice in their field.
Our favorite episode
The one recorded during the 7th edition of Lengow Day with representatives from Pinterest, Facebook, but also Joom, Alibaba or Cdiscount. A real anthology of e-commerce stars!
7. Le Gratin
The ambition of this podcast is to make you discover success stories to build your own. In the classic interview format, its creator, Pauline Laigneau, invites listeners to discover the failures, successes, tips, and even philosophies of personalities with extraordinary careers. All this with the primary objective of taking action! Listen without moderation, regardless of your profile...
Our favorite episode
The interview with Karine Schrenzel, the entrepreneur and investor at the head of the ShopInvest fund (which includes a dozen pure players) and CEO of 3 Suisses.
8. The Storyline
To boost sales in e-commerce, you have to make your brand desirable and tell a story that speaks to consumers. Noémie Kempf introduces us to the subtle art of storytelling. In each episode, she talks to entrepreneurs to unravel the secrets of a good content strategy and the creation of a powerful brand universe.
Our favorite episode
The episode dedicated to the cosmetics brand Nidé.co. An inspiring example, which reveals the best practices of product co-creation. Simon, CEO of Nidé.co, tells how he made his customers the best ambassadors of his brand.
9. Ecommerce Fuel: the e-commerce podcast for English speakers
If you are an English speaker, Ecommerce Fuel is a great resource for all entrepreneurs in the online business industry. Its host, Andrew Youderian, is himself a big name in this field. He and his guests discuss the trends in online sales and the most effective levers for growth.
Our favorite episode
The annual episode that shares Andrew's predictions for the coming year. The 2021 episode recorded with Bill D'Alessandro of ElementsBrands.com.
10. 2X Ecommerce
Hosted by Kunle Campbell, this e-commerce podcast is a conversation with successful entrepreneurs and marketers. Each guest on the podcast shares their secrets for getting their business off the ground, as well as strategies for growth, in simple, digestible steps. An ideal source of information for intermediate to advanced levels (the jargon can be a bit technical).
Our favorite episode
Episode 4 of season 3, in which Kunle shares the fundamental pillars for generating rapid growth for DTC (Direct to Consumer) brands.
E-commerce trends
How to Set Up Your Ecommerce Email Marketing
If you are an e-merchant, you know it: e-mail is one of the cheapest tools to build loyalty and communicate with your customers. But how do you set up an e-mail marketing strategy on your site? How do you acquire, leverage, and clean up your e-mail base?
In this series of EmailClub and Bigblue articles, we'll go over the essentials of e-mail marketing, so that you too can maximize this channel.
For the next 5 weeks, we'll be bringing you an article every week. At the end of this series of articles, we will compile all these tips in a white paper called "Everything you should know if you have one day to spend on e-mail marketing".
1. Back to basics: the principles of e-mail marketing for e-commerce
Setup and attribution
Whether you're using Klaviyo, Omnisend, Sendinblue, it's important to understand and set your attribution window.
You want to make sure to control the attributions so that you can be confident in the accuracy of your performance, and draw conclusions based on data.
What is the attribution window? It is the period of time during which a conversion will be attributed to one of your emails.
For example, the default Klaviyo attribution is set to 5 days opens or clicks: a conversion will be recorded if the recipient of an email places an order within 5 days after the email was sent, as long as they have interacted with the email in the meantime.
We strongly advise you to set this to two days. For example, if you send an e-mail on Saturday morning, a conversion that takes place on Sunday afternoon will be attributed to it. On the other hand, a conversion taking place on the following Tuesday will not be attributed to this e-mail.
Mobile first
As with your website, you obviously need to think mobile when preparing your e-mail marketing. With almost 50% of the French consumers shopping online on their mobile, you can't afford to miss out on a mobile-optimized email marketing experience.
We recommend you start on mobile, then make sure your emails are compatible on desktop (by optimizing creatives for example) rather than the other way around. This way you will get a smoother result on mobile.
No lies
As with all of your communication channels, your customers will appreciate an authentic approach and truthful communication, especially when it comes to email promotions.
If you use a CMS that has an integration with your CRM tool (for example the Shopify Klaviyo couple), you have the possibility to automatically generate limited-time discount codes, which will allow you to offer limited-time offers without deceiving the consumer.
Imagine a customer who finds out the day after a limited time offer that the code is still working, you risk losing their trust. On the contrary, a customer who would not be able to use an expired discount code will be all the more reactive to your future promotions.
Be rigorous
Once your messages have been sent, you will not be able to modify them.
Remember to make sure that your links work, that your messages are coherent and without mistakes or typos...
Your brand image is at stake: prevent errors before sending your message.
A little tip: a cold reading often allows you to detect errors that you might have missed. Also, remember to systematically click on all the links in your e-mails.
2. E-mail acquisition
In general, you have 3 main ways to collect emails on your site:
- During a cart abandonment
- With a form in the footer of your site
- With a Pop-Up, displayed during the navigation on your site
In Europe, the acquisition of e-mails must be done in accordance with the European Data Protection Regulation in force. This includes ensuring that you collect (and respect) users' consent to e-mail marketing messages.
In exchange for subscribing to the newsletter, it is often recommended to offer a discount on the first order.
We will come back to this subject in more detail next week in a special PopUp and welcome series article, as well as in our white paper that will be released at the end of this series. You can pre-register here to receive it as soon as it is released.
3. Marketing automation
Marketing automation concerns all the messages that will be sent following the action of a prospect or customer on your website.
Whether it's about converting your prospects or retaining your customers, a good marketing automation strategy will help you boost the performance of your marketing strategy, and at a lower cost.
In general, and in order not to make your subscribers regret having taken an action on your site, we recommend relatively short sequences of 2 to 4 emails. The exception to this rule is post-purchase flows such as customer onboarding or order anniversaries, which can involve a larger number of e-mails.
Sequences that must be put in place to maximize your performance:
A. Welcome Series: 2 to 3 welcome emails following the registration to your newsletter. Do not forget :
- Welcome promo code if you have one
- Remind the vocation of your site (to propose quality cat food)
- Present your entire range (with an integrated product feed)
B. Shopping-cart abandonment: 2 to 3 emails following a cart abandonment on your site
- 15mn/2h/1day is a good sequence (right after, a few hours after, the next day)
- No promo code on the first email
- If code afterwards, keep the same format (%vs€) and propose a better one on the last one
- Think of specifying on the last e-mail that it is the last one, to reassure your prospect that he will not be contacted indefinitely, and increase the urgency effect of your last offer
- Think about personalized coupon codes: unique and limited in time, they will have a positive impact on the conversion and will reinforce your authentic speech
- Couple this sequence with 2 sms (30mn - 2 days for example) if you send sms.
C. Post-purchase: repeat
- 2 to 5 in the first few weeks after ordering to maximize the customer experience and increase repeat business
- If you have a maintenance product, send an email about maintenance
- In general, the objective of this sequence is to bring value to your customers and to offer them complementary products and/or a discount on their next order at the end of the sequence
From newsletter registration, through shopping cart abandonment, to more advanced strategies such as loyalty programs, there is an infinite possibility of sequences to set up on your site.
We will come back to automation in more detail in dedicated articles, as well as in our white paper. You can pre-register here.
4. Newsletters
Newsletters are the ideal opportunity to communicate with your base at a lower cost.
Informative or transactional, they allow you to maintain your relationship with your customers, and to maximize the lifetime value of your customers.
Newsletters will be discussed in more detail in the last article of our series (as well as in our white paper ndr).
Find below your checklist to maximize this channel:
A. Anticipate
Prepare your editorial calendar 1 month in advance to be sure not to miss anything: commercial events, product launches, etc.
B. Segment
Select an active segment:
- Include: opened an email in the last X days (depending on your sending frequency)
- Exclude: bought in the last X days (the time to receive his order, very little thanks to Bigblue...!)
- Exclude: is in an automation sequence (so as not to confuse the performance of those)
C. Test
As always in e-mail marketing, tests will allow you to maximize your performance.
Tests to plan: day and time of sending, objects, formats, type of CTA, etc.
D. Alternate
Consider rotating content and promotion to ensure that you continue to provide value to your customers, and thus maintain their interest in your emails.
To sum up!
As you can see, there are many ways to maximize this exciting channel.
If you are an e-merchant and you are starting to do some volume, consider contacting a specialist to help you maximize this channel.
This article was co-written with EmailClub, an e-mail marketing agency for 7 and 8 figure e-merchants, you can contact them here.
Corporate News
Bigblue's commitment to greener logistics!
Since 2020, e-commerce has consistently broken all growth records. Last year, more than 42 million French consumers bought online. This means that 4 million packages are delivered every day! And online sales account for 13.4% of retail. Good news, partially, for the environment. Indeed, ordering from an e-retailer is an efficient way to reduce car travel.
Storing products in warehouses also limits the energy consumption of physical stores. But the growth of e-commerce raises legitimate questions about its impact on the environment. The GHG (greenhouse gas) emissions of FedEx, UPS, and USPS carriers are equivalent to the pollution generated by 7 million cars in one year. That is why it is essential to work towards a greener approach to logistics and environmentally sustainable brands.
And to meet tomorrow's logistics challenges, we have implemented tangible actions that we hold close to our hearts! In this article, we would like to share with you our commitments to sustainable logistics and green fulfilment.
Launched the Collectif for Sustainable Logistics
Bigblue teamed up with Hipli, Lizee, PickMe, and Coursier.fr to launch the Collectif pour une Logistique Responsable (Collective for Responsible Logistics) is a community of logistics professionals who are committed to working towards a smarter and more sustainable logistics industry in their respective fields. They have a shared vision, which they have articulated in their Manifesto.
Through this collective, they aim to facilitate dialogue between different stakeholders in the industry and collaborate to rethink the logistics chain in order to make it more responsible.
Green certification for our warehouses
With the boom of mega warehouses, storage spaces are often under the scrutiny of environmentalists. The buildings themselves are responsible for air pollution from increased truck traffic and loss of farmland.
To transition towards greener logistics, Bigblue's warehouse in Tigery was audited and obtained the Ecocert certification. By doing so, we comply with the European regulation for reception, storage, preparation of orders (picking), and shipping. The Ecocert organisation, which operates in more than 80 countries, validated our operations based on the strictest ecological requirements to obtain the certification.
A strong commitment that allows us to offer sustainable brands working with Bigblue, environmentally friendly logistics!
Plastic-free packaging for greener logistics!
Consumers are increasingly becoming more exigent when it comes to environmental impact. More and more buyers are also choosing eco-friendly brands that privilege plastic-free packaging. More than half of them now say that recyclability, durability, and biodegradability of packaging are important factors in their purchasing decisions.
To meet buyer expectations, we work to eliminate plastic from our parcels. We are replacing it with recyclable materials, with an eco-design approach: minimising energy consumption, transportation and favouring sustainable materials. Our wish is not to "eliminate" a source of pollution and generate a new one - by choosing an alternative that consumes a lot of water or does not meet the hygiene and safety requirements, for example-, but to transform the delivery chain positively.
Logistics: 100% of our servers powered by green energy
Data servers (or data centres) are essential in the network infrastructure, but they are also the Achilles heel of green logistics. They remain large consumers of energy... To reduce their impact on the environment, we have been thinking about solutions that consume less power.
Among the solutions available to us: making our equipment consume less energy by limiting their need for air conditioning, which represents one-third of a data centre's consumption. For example, "free cooling" allows us to cool them from existing sources (outside air or heat removal at night).
100% of our servers are powered by renewable energies, which reduce the impact on the environment. A photovoltaic power plant or heat generated by horticultural greenhouses are among the avenues we will explore to achieve this goal very soon!
Teaming up with sustainable partners
Our commitment to green logistics also includes the companies we work with. Among the partners who push us to the top in terms of ecological impact, we wanted to introduce you to:
- Hipli: a company that offers eco-responsible packaging, for an additional cost of only 2 euros. Fully reusable, your customers simply cut the seal, pick up their order, fold the package and slip it into any mailbox for free so that it can be picked up and sent to a new address;
An algorithm to avoid delivery errors and optimise packaging
We have developed a packaging optimisation algorithm. Bigblue calculates the ideal packaging to reduce the size of the parcel. Therefore, reducing the shipping costs and the carbon footprint of your deliveries. On average, the algorithm allows you to reduce the packaging volume of your orders by 22%.
And to avoid delivery failures due to errors in the customer's address (autocorrect, typos, wrong postcode). We have created an algorithm that will warn you, with notifications or emails, if there are any problems with the address to avoid unnecessary return trips.
Highlight the environmental commitment of your brand with Bigblue
More than ever, French consumers choose merchants who are committed to the environment. Indeed, more than 60% of them are concerned about the environmental impact of their online purchases.
To attract and retain these consumers, you need to highlight the sustainability of your brand, and communicate the efforts you are making to transition to green logistics. Bigblue will help you in this endeavour by sharing this commitment.
Choosing us as your logistics partner is also joining our mission to work towards a more sustainable e-commerce.
Logistics
E-commerce logistics: 7 common mistakes to avoid
E-commerce logistics are a real challenge for most brands. The goal is to wow consumers with an outstanding delivery experience at every touchpoint: the promise of a fast delivery, real-time tracking of their package, an unforgettable unboxing experience, and simple product returns in case they are not satisfied with their purchase.
As an e-commerce seller, you know it is easier said than done. So, what are the 7 most common mistakes to avoid in e-commerce logistics? How can you turn shipping into a delightful customer experience that increases your revenue?
1. Poor stock management, a challenge for e-commerce logistics
Proper stock management is a critical success factor for e-tailers. Estimates vary, but inventory can represent between 30% and 40% of total assets for e-commerce brands. Whereas stock management errors accounted for over €255 billion in losses in revenue for e-tailers, representing 12% of their total sales.
A good organization must be in place to avoid :
- Overstocking: keeping too many products generates costs of immobilization and returns to suppliers;
- Under-stocking: running on a just-in-time basis is a good bet as long as you are sure you won’t run out of stock. Nothing is more disturbing for buyers than not being able to buy something they want during Black Friday or Christmas because it is out of stock.
The key to finding the right balance is to study the ratio between the customer acquisition efforts for each product and the sales volume. Your goal? Identify your best-selling products to avoid running out of stock, and exclude underperforming items.
2. Order processing errors
A diminished customer experience
When a customer orders an item from your e-shop and receives the wrong product, their first physical interaction with your brand is disappointing. On top of it, they need to put on additional work:
- notify you of the mistake;
- return the products;
- wait for the right product to arrive or getting reimbursed.
Depending on the situation, the customer has to reschedule the delivery with the carrier or go back to a relay point. This can undermine the trust between the customer and your brand. They will remember the quality of the product but mainly the fact that the delivery was painful.
Order processing errors are a waste of time not only for the customer but also for the brand.
The impact on revenue
As you can imagine, order processing errors impact your business. Delivery issues cost e-tailers more than €250 million during the holiday season and over €1.2 billion in potential lost revenue from shoppers who will not return after a poor experience.
One WMS company estimates that the average error rate is between 1 and 3%. With an average error rate of 2%, the estimate takes into account several factors:
- The cost of order fulfillment - whether done correctly or not it requires human work;
- Order mistakes dissatisfy customers, and it may impact retention;
- The cost of returning the products is your responsibility, which cuts into your margin.
- The cost of shipping the correct item ordered necessarily adds extra logistics cost;
- The packaging costs double because you two products to be packaged (one for the wrong product shipped and another for the new product shipped);
- The commercial gesture to apologize for the mistake is sometimes necessary to keep the customer's trust.
E-commerce logistics comprehends several stages, each of which involves difficulty. It is up to you to monitor the quality of the delivery which is ultimately as important as the product itself.
3. Scalability: a real challenge for e-commerce logistics
The challenge of scalability for an e-tailer
Scalability is your ability to handle the sudden peaks of growth of your business.
This means that when faced with growing demand, such as for holiday periods or sales, you must be able to put in place the appropriate e-commerce logistics to deliver, in time, a large number of goods.
Therefore, the volume of requests also means the risk of additional errors: out of stock, wrong orders, missed deliveries, etc. All these elements are costly for your company.
E-commerce logistics facing scalability: some thoughts
First of all, with experience, you already know the periods of more intense purchases. Similarly, if you are developing a brand with a media spotlight on you, you should also be prepared for an order boom.
Then, as a business owner, it is up to you to make strategic choices to save time. For example, hiring a logistician is an excellent way to optimize order taking, packaging, and shipping. You can also hire temporary workers to whom you will have to devote enough time to train them properly.
Finally, if everything is done on the web, pay attention to your hosting. It's essential that your site can handle a lot of traffic during busy times. There is nothing more harmful to you than losing ordered baskets or having your website down because your traffic exploded.
4. Lack of real-time visibility: an opportunity for improvement
The importance of visibility for the end customer
For the consumer, having a "sense of control" over their purchase is reassuring. This requires letting track their package in real-time.
Thus, provide a place in his personal space that informs him of the progress of the order: the success of the purchase, preparation of the package, the shipment, the delivery etc.
You can also do this via a mailing that informs him about the preparation of his order and its delivery.
Real-time visibility: an effective lever for e-commerce logistics
The real-time vision of your company allows you to optimize your logistic operations. It is clear that you can do it in-house but working with a logistics partner specialized in e-commerce, gives you global visibility on :
- the stocks ;
- the best-sellers ;
- the immobilized products ;
- the orders placed ;
- the status of delivery ;
- delivered orders;
- delivery failures and complaints;
- the generated turnover.
A well-built dashboard is a real way to identify the gaps and strengths of your organization and make strategic decisions based on them.
5. Hidden costs: the downside of e-commerce logistics
A lack of transparency on shipping costs weakens your brand's image. When you order a product, what could be worse than to find yourself with a bill that you didn't expect.
You then have the double mission to be precise on the delivery costs and to minimize their amount. High shipping costs discourage people from buying.
Your goal? Find a balance between efficient delivery and reasonable shipping costs. The most important thing is to offer customers an informed choice. It's even more important because 59% of online buyers abandon their orders because of delivery options that are deemed unsatisfactory.
Therefore, offering several options to your customer is a good solution:
- fast delivery ;
- standard delivery;
- delivery in relay points and lockers.
In each case, clearly indicate the price to be paid in black and white.
From a commercial point of view, free delivery costs, for standard and relay points, are highly appreciated by the consumer. But this is only possible if you can afford it and depend on the product ordered.
Dans chacun des cas, indiquez bien noir sur blanc le prix à payer.
6. The choice of a logistics partner: an objective analysis of existing solutions is required
If you've decided that "in-house" logistics management is becoming too messy, it may be time to professionalize your e-commerce logistics. Spending your time dispatching orders is not your core business. And, it would be more useful to devote your time to developing your business!
The first thing to do is to benchmark the logistics providers on the market. At Bigblue, we are here to help you grow your e-commerce with an outstanding delivery experience.
Laure Babin, founder of Zèta Shoes, spends 20 minutes in the morning, and 20 minutes at night to manage her logistics through Bigblue’s platform. We have helped her scale from 100 monthly orders to 10 000 with automated logistics.
Ready to turn your logistics into a growth lever? Let’s talk!
7. Returns management errors
Let’s start with the bad news: you will not be able to avoid reshipment. However, they can become an opportunity! If correctly implemented, a returns policy for e-commerce offers you the chance to prove to your future clients that you care about their needs and address their concerns. This is particularly important, knowing that most e-tailers don’t meet the expectations of their customers.
A well-thought product returns weigh in more heavily than we could imagine in the success of a brand. Even more so, knowing that 92% of buyers indicated they would buy again on the same e-shop if the returns processes are simple.
Being slow to meet customer’s demands concerning returns can negatively impact your revenue. Buyer dissatisfaction will quickly show on client’s ratings and reviews about your e-commerce. This will also be the case for negative comments on your social media.
f left unattended, your brand image will suffer, and you’ll struggle even more to convince new clients to trust you. A vicious circle to avoid…
Operationally, an inefficient e-commerce returns policy will make you waste a lot of time. And thus, it will distract you from growing your business. In this blog article, we tell you how to build an effective returns policy.
Logistics
Black Friday 2024: Optimise Your Logistics for Peak Periods
Black Friday and Cyber Monday (BFCM) have become consumer staples, with 51% of UK adults planning to spend during the Black Friday weekend.
In 2022, consumers set a record, spending $9.12 billion online, as reported by Adobe Analytics. For e-commerce companies, it's the most favourable and profitable period, especially for shoes, fashion, and accessories.
Due to the high demand, be prepared to optimize this period. Here are some logistical tips for managing peak periods.
With an average budget of £190 for Black Friday, UK consumers intend to make the most of it! At Bigblue, we've seen some brands multiply their sales by 4X during this period.
1. Anticipate stock shortages
Your challenge? Identify your best-selling products and make sure you have enough available units in stock. There's nothing more frustrating for a customer than to search for the right product, only to find that it's not available.
For brands, stock-outs mean lost customers and lost sales. According to Veeqo, 70% of consumers would buy from a competitor if the product they are looking for is out of stock in your shop.
1.1 If you manage your logistics in-house, prepare to pack a high number of parcels.
Faced with a peak of orders and shipments, define an optimal organisation to avoid errors and delays in delivery. Indeed, it is very likely that you will spend your days preparing the packages and shipping them via Royal Mail or your carrier partner.
Remember that 84% of buyers say they are unlikely to buy from a company again after a bad delivery experience.
1.2 Externalised logistics in peak periods: communicate with your logistics partner
Outsourcing your omnichannel logistics is an effective strategy. It frees up your time to focus your efforts on your business, customer acquisition, and loyalty.
But during peak periods such as Black Friday Cyber Monday period, you should provide a precise brief to your logistics provider so that he is, in turn, armed to face the rush.
Bigblue Tips
Gain full control of your inventory with Bigblue: receive proactive alerts to prevent stock shortages during BFCM, and monitor orders, returns, and inbound shipments in real-time for efficient problem-solving. Start with Bigblue today!
1.2.1 Make sure your logistics partner is ready
Make sure that your logistics partner can manage the peak periods and alert him on the arrival of your goods at the warehouse, your promotions, and the avalanche of orders he will receive.
Allow an extra month for the arrival of your products at the warehouse and make sure that the merchandise is in stock.
With accurate data, your logistics partner will be able to anticipate his needs in staffing, storage, and transportation.
1.2.2 Share your stock planning forecasts.
In the end, it's all about organisation and passing on information.
We advise you to share your schedule with your logistician. He will be better prepared to organise receipts and stock entries. Above all, he will inform you as soon as possible of any possible gaps in quantities and delivery delays.
2. Delivery options
Customers have a lot of expectations about delivery speed. Since Amazon Prime started offering express delivery, consumers have become very demanding.
To meet customers' demands, we advise you to offer several delivery options: express delivery, free delivery, pick up point delivery, and standard delivery.
2.1 Master the delivery time
BFCM periods are known for longer delivery times.
To avoid unpleasant surprises for the customer, be transparent on your cutoffs. Inform them about shipping times as soon as they place their order.
Also establish a scrupulous tracking of the parcel and indicate the status of their purchase in their client space or by e-mail:
- preparation of the parcel;
- delivery of the package to the carrier;
- last-mile delivery tracking.
This way, the customer will have a real-time view of the package, and above all, good communication will take away the stress of the delivery.
2.2 Offer multiple delivery options
2.2.1 Express delivery
Part of Amazon Prime's success is their fast 1-business day delivery on about 2 million items. Consider offering your customers at least an express delivery option.
During Black Friday, play the game. You can take a cue from CAVAL, which offers several options:
- delivery in a pickup point: free, 3 days delivery
- home delivery: 6 euros, 2 to 3 days
- express: 12 euros, 24 hours
What do consumers appreciate the most? The choice on the delivery time and the transparency on the prices.
2.2.1 Opt for an environmentally friendly approach for your express deliveries
You have the option of choosing less polluting transportation.
At Bigblue, we partnered with different carbon neutral carriers like Colissimo for their carbon-free option with their electric fleet.
Working with this type of company is good for the planet but also for your brand image. You gently sensitise your customers without falling into greenwashing.
2.2.2 Standard delivery
Express delivery, although much appreciated by customers, pollutes 30% more than standard delivery.
To limit the craze for express delivery, propose alternatives by explaining the benefits for the consumer:
- standard delivery, which is the least expensive for the customer;
- delivery in pickup points is free and allows the customer to pick up his parcel whenever he wants.
2.2.3 Free shipping
We don't recommend passing on the cost of shipping to your customer. In fact, according to the Baymard Institute, 53% of consumers abandon their shopping carts because of high shipping costs.
Most of your customers will expect free shipping. So it's part of the norm...
We can say that it is an essential lever to sell your items. But, don't lose out either! You can encourage spending a certain amount before offering free shipping.
Bigblue Tip
The most important variable to take into account is the ratio between your expedition costs and your revenue. We advise our clients to offer free shipping for purchases equivalent to 10 to 15% superior to the average shopping cart.
3. Limit waste and promote eco-friendly packaging
The packaging, and the phenomenon of over-packaging that results from it, are polluting. Unfortunately, Black Friday and the holidays accentuate this phenomenon. What can you do to reduce your impact?
3.1 Opt for eco-friendly packaging
According to Hipli, Bigblue's eco-friendly packaging partner, delivery represents 218 million tons of delivery package waste per year. In response to this, Hipli proposes to use the same packaging several times.
It’s pretty simple:
- You buy reusable packages on their platform;
- You send the order to your customer;
- Your customer sends the empty parcel by post, free of charge for him, to the Hipli centre, which will reuse the packaging.
At Bigblue, we do not use bubble wrap or polystyrene. To achieve zero plastic, we choose suppliers who pay attention to the composition of the packaging and its recyclability.
Moreover, consumers are increasingly sensitive to the ecological cause. Favour a customer experience that takes this new value into account.
In 2022, approximately 80% of UK consumers expressed a preference for eco-friendly packaging materials. Additionally, the same proportion of shoppers, 80%, perceived that online deliveries included excessive amounts of packaging.
3.2 Customise your packaging
Personalisation is an essential element if you want to offer an optimal and very differentiating experience to your e-commerce customers. Therefore, it is crucial to find a logistics provider who can help you personalise your packages with your brand's image to anchor it in the minds of your consumers!
Think about adding a thank you letter in your packages, small gifts, and promo codes for the upcoming activity peaks. This will help you create the best unboxing experience possible and encourage your customers to come back to your site for more purchases in the future. This way, you will build loyalty and create a long-term relationship with your buyers.
Customers well perceive this approach. Companies like Sézane or Lush have understood this since they integrate the quality of the packaging in their marketing strategy.
3.3 A commercial gesture: Gift notes!
Peak shopping times like Black Friday and Cyber Monday often align with gift-buying occasions, particularly Christmas. These purchases are more than just items, they represent feelings of affection and care.
Bigblue Tip
The little extra: allow your customers to add a personalised note for their gifts purchased in your e-commerce. If you wish to offer them this option, book a demo with our team.
4. Returns management: Black Friday’s hangover!
4.1 Managing product returns
Mass promotions during Black Friday make consumers particularly euphoric. 72% of them want to get "good deals" for their Christmas shopping, which leads people to buy products they don't want.
This is even more true for ready-to-wear, as the return rate for clothes and shoes is 18.8%.
We can therefore say that order returns are now an integral part of the user journey.
4.2 Peak Periods: how to manage returns?
4.2.1 An efficient customer support
The 2022 Zendesk Customer Experience Trends report reveals that 93% of consumers are inclined to spend more with companies that avoid making them repeat information. One of the most substantial frustrations is the difficulty of reaching customer service.
One of the keys to getting through Black Friday is to plan for more robust customer service. But, there are other tricks to avoid e-mails and phone calls explaining the return policy:
- Prepare a FAQ with all the most basic questions: how do I return my package? What is the return period? In how many days will I be reimbursed? The objective here is to anticipate the customer's pain points and to relieve you of an information service.
- Use personalised tracking e-mails to reassure your customers. 60% of brands do not inform customers of the status of the package during the return. Yet, returning packages is always a stressful moment for the consumer.
- Describe your products in detail and take realistic photos of your products. For example, for clothing, it is crucial to be precise about the sizing. It is the same for the colour.
4.2.2 Be prepared for the avalanche of returns
Package returns are an integral part of the shopping experience. And, there's nothing more unpleasant than being stuck with an item that doesn't fit and that you can’t return.
During peak periods, strengthen your teams and make the return experience easy for customers by implementing :
- free of charge;
- the already prepared shipping label ;
- return from a pickup point which is the preferred way of return;
- extension of the return date.
Logistics
10 excellent e-commerce return experiences and why they work
Returns are a fact of life for any business. No matter how hard you try to accurately describe your items or help customers choose the right size/model, you'll still have to deal with returns. That's why having a well-thought-out return policy is so important - it shows your customers that you care about their satisfaction and makes their shopping experience with your business a positive one.
To avoid returns harming your profitability or brand image, you need to be as accommodating and flexible as possible. Remember that 6 out of 10 customers will read your terms and conditions of sale and return before placing their order online.
Don't worry. You don't have to start from scratch! We've compiled 10 inspiring examples of successful product return policies for you. Plus, we've included tips for adapting them to your business. Take a look and find the perfect return policy for your brand.
1. Asphalte's excellent product return policy
Asphalte's return policy is just as impressive as their best-selling "the perfect sweater." Launched less than 5 years ago, they go the extra mile to make returns easy for their customers.
What's unique about Asphalte's innovative return policy? They send a courier to pick up products to be exchanged or returned directly from the customer's home or workplace. This saves customers time and hassle but is only available to Parisians and residents of the inner suburbs.
Bigblue tips
Asphalte's return policy is an excellent example for clothing brands to follow. By offering this service, they can reduce the number of returns and make the most of their investment. If you're in the clothing industry, consider implementing a similar strategy to improve your customer's post-purchase experience.
2. Tediber: simplifying product returns, even for bulky items
Delivery and returns of bulky products like mattresses can be a challenge. That's why Tediber's return policy is so impressive. The French sleep essentials brand gives customers 100 nights (instead of the mandatory 14 days) to decide if they want to keep their mattress. They also make it easy to return the product by scheduling a pickup at the customer's home.
Bigblue tips
Follow Tediber's lead and ensure that the products you'll take back for free and at pick up directly from the client's home are in good condition. The brand asks clients to send photos of the mattress or box spring before approving the refund request. Another good practice they follow is that returned products are reconditioned and donated to charities. It's a win-win for everyone involved.
3. Adidas: size exchanges without headaches
Adidas' return policy is designed to address the most common problem their customers encounter -choosing the right shoe size! After carefully analyzing customer feedback, they've established a policy that makes it easy to exchange shoes for a different size. No more headaches when trying to find the perfect fit!
Thanks to their detailed customer feedback analysis, Adidas has made it easy to exchange shoes for a different size.
They don't require customers to print out a return label and have even created a platform dedicated to tracking orders and managing returns. This helps preserve their brand identity and gives customers confidence. Plus, they're refunded in less than a week - talk about fast service!
Bigblue tips
Learn from Adidas and be proactive in preventing returns. They give accurate sizing advice to keep returns to a minimum. For example, they let customers know which models run small and suggest the correct size based on the pairs the customer usually buys. By providing this information, they can help customers make the right choice and avoid the need for returns.
Even better, use Bigblue's returns solution to win customers for life. Offer store credit to retain revenue, hassle-free and printerless returns!
4. Zalando: send back your article in the same package
Zalando's returns policy is designed to make the process as simple and painless as possible: "there are no risks when you buy from us". They allow customers to return products in the same packaging and even provide the necessary scotch tape to close it. Aditionally, orders are shipped within 48 hours, making the whole experience smooth and seamless. This encourages customers to shop with them again and again.
Bigblue tips
Boost your sales by removing any barriers to purchase that buyers may encounter online. Zalando's tried-and-true strategy lets customers order items, try them on at home, and only pay if they fit or like them. However, this can also result in more return requests. Be prepared with a transparent and fair return policy to handle these situations and keep customers satisfied.
5. Sézane's product return management
Sézane, like all successful online clothing stores, had to create a strong product return policy. Even though they only offer a few extra days beyond the legal time limit for returns (15 days instead of the 14 required by European law), they allow customers to return items directly in-store (when applicable).
Bigblue tips
Make returns as easy as possible for your customers by simplifying the process. Sézane, for example, provides the return label in the package and refunds the order within 10 working days. Making returns quick and painless will keep customers happy and encourage repeat business.
6. Asos: avoid returns abuses
When it comes to returns, it's important to be generous but not too generous. Asos learned this the hard way when they had to deal with a high volume of returns. Now, customers can return items up to 45 days after their purchase. However, if they start a return after 28 days, customers will receive a voucher for the same amount instead of a refund. This helps balance customer satisfaction with managing returns.
The brand has also set up a blacklist of customers with too many return requests (using an algorithm system). And has added large, flashy tags that can't be removed to prevent returned pieces from being worn.
Bigblue tips
Balancing customer satisfaction with profitability is key when it comes to managing returns. Be flexible with your customers, but be careful to maintain your profitability. Consider what actions will generate the most satisfaction while minimizing your operating margin.
7. Allbirds: transparent return management
Allbirds is a great example of how to manage product returns effectively. The brand is transparent about its return policy (30 days without having to justify the request). It keeps customers updated on their order status with automatic notifications at every step. Providing clear information and regular updates, Allbirds keeps customers happy and builds trust.
Bigblue tips
Allbirds provides an excellent model for managing product returns. Returns are free online and in-store; customers can choose their carrier to pick up their packages at home. By making the process simple and convenient, Allbirds maximizes customer satisfaction and increases its chances of retaining customers.
8. Moea: reconverting customers who wish to return items
Moea's return policy is designed to maximize customer loyalty without cutting into margins. Customers can receive a refund within 30 days if they want to return an item. But after that, instead of losing the customer, Moea offers them store credit to use on their site. This clever strategy keeps customers happy and loyal!
Bigblue tips
Moea's return policy is a great way to retain customers and avoid losing them to the competition. By offering store credit for returned items after the 30-day refund period, Moea can win back customers. With the help of Bigblue for logistics and returns management, Moea makes the process seamless and stress-free for customers.
9. Amazon marketplace product return: a detailed and flexible return policy
Amazon is known for having one of the friendliest product return policies in the e-commerce world. In particular, we recommend that you use it to:
- Make return and refund information easily accessible. Amazon has a dedicated area on its site, where consumers can browse a considerable amount of resources and find answers to almost any question they have;
- Offer quick and easy returns. When users click on the "Returns and Replacements" link, Amazon gives them an accurate step-by-step overview of the process. The e-commerce giant also guarantees that they won't have to contact support for the most straightforward requests;
- Define a reasonable refund policy. To build customer loyalty and improve their experience, Amazon is making its conditions more flexible. Refunds vary depending on the state of the item, the time it took to place the order, and the method of purchase used;
- Assume full responsibility (even for third-party sellers). The A to Z guarantee protects the platform's customers, even for a product purchased from a third-party seller;
- Think in terms of customer satisfaction (and retention). An unpleasant product return experience automatically affects retention rates. Amazon ensures that even unhappy consumers continue to order from the site by making it as simple as possible!
10. Jimmy fairly
To facilitate the return of its products, the eyewear manufacturer Jimmy Fairly has created a dedicated portal. This "return portal" allows customers to enter their order number and organize its forwarding via Colissimo. The procedure remains available on the website to keep users on the platform and offer them a branded, more qualitative experience.
They facilitate returns in-store (within 30 days) and from abroad!
Bigblue tips
The simplicity and transparency you facilitate product returns on your online store will have a powerful, persuasive effect on your future customers. Your policy will encourage them to validate their cart since, if they need to, it will be easy for them to return their order and get a refund.
Among the good practices we have just presented, remember to :
- Refund your customers as quickly as possible to improve their experience and prevent any potential damage to your brand;
- Communicate as effectively as possible in the event of a return request. Good customer service avoids frustration and protect your reputation.
Explore Bigblue's returns management portal to streamline the e-commerce brands' return process.A branded returns portal to offer a seamless and hassle-free experience for their customers. Want to know more? Get in touch with our team for a demo.
Logistics
E-commerce return policy: how to get it right
When it comes to providing a seamless post-purchase experience for their clients, e-retailers tend to focus solely on shipping: free or very low shipping costs, shorter delivery times, proactive package tracking. Everything aims to reassure buyers about receiving their package on time.
And rightly so, the delivery experience is a crucial step in any consumer journey. But what about sending the products back? Even if it’s an unfortunate situation, your company will certainly deal with customer returns. And faster than you thought, your e-commerce return policy can highlight problems.
From the deadlines to return an item, to the terms and reshipment conditions, including who will pay for it... The conditions for returns, exchanges, or refunds of an order placed on your site must be as transparent as possible.
Put the odds in your favor with 6 best practices to optimize your reverse logistics. Maybe you’ll turn your e-commerce return policy into a highly effective conversion lever!
1. Why is your e-commerce reshipment policy so important?
Let’s start with the bad news: you will not be able to avoid reshipment. However, they can become an opportunity! If correctly implemented, a returns policy for e-commerce offers you the chance to prove to your future clients that you care about their needs and address their concerns. This is particularly important, knowing that most e-tailers don’t meet the expectations of their customers.
According to a recent study, 54% of consumers said that free returns are important when purchasing from specific a e-commerce. And 34% of them will not buy if the reshipment costs are not free.
In contrast, only 14% of e-commerces offer free returns. While 60% of them aren’t ready to put in any effort to help buyers return the products.
Such a gap is an opportunity for your brand to stand out from the competition! It is even more urgent, knowing that 92% of buyers indicated they would buy again on the same e-shop if the returns processes are simple.
2. The risks of a sloppy designed returns policy
E-commerce return policies weigh in more heavily than we could imagine in the success of a brand. While this is the case across all sectors, not all of them are impacted equally. For instance, the fashion industry averages a return rate of 25%.
Being slow to meet customer’s demands concerning returns can negatively impact your revenue. Buyer dissatisfaction will quickly show on client’s ratings and reviews about your e-commerce. This will also be the case for negative comments on your social media.
If left unattended, your brand image will suffer, and you’ll struggle even more to convince new clients to trust you. A vicious circle to avoid…
Operationally, an inefficient e-commerce returns policy will make you waste a lot of time. And thus, it will distract you from growing your business.
Continue reading, and don’t panic. We’ll explain step by step how to avoid the most common mistakes.
3. Which are the main components that you should definitely include in your e-commerce returns policy?
Before jumping into optimizing your e-commerce returns policy, you must understand your obligations. If you sell within the European Union, you must respect the current legislation. It stipulates that all online purchases can be returned to the merchant within 14 days following the acquisition. This is known as the right of withdrawal.
The latter applies without requiring the client to justify their decision. They must be reimbursed for the product or given store credit for the same amount. You must also pay for the initial shipping costs, but you are not obliged to pay for reshipments. After 14 days, the clients may exchange the product if it doesn’t match your description.
The same applies if the package is damaged. According to studies, replacing a damaged product can quickly become expensive: up to 17 times the initial shipping cost. On average, during the shipping process, a parcel is dropped or falls 17 times. And unfortunately, damaged goods are responsible for over 34% of returns.
For additional information on your legal obligations concerning returns, visit the European Consumer Center France.
4. Good practices to optimize your e-commerce returns policy
You are aware now of the rules you must follow when implementing an e-commerce returns policy. However, that is the bare minimum! You need to push the legal frame and convince online buyers visiting your website to buy from you, eyes closed!
Here are 6 best practices that will allow you to stand out from the competition and boost your conversion rate. Putting them into practice will ease the returns management process and enable you to focus on the core of your business.
Calculate your reshipment rate (and limit it as much as possible)
First things first! You need to calculate and analyze your current returns rate. How to do it? Just divide the number of returns by the total number of orders on a given period. For example, if you sold 1000 units this month and 100 of them were returned by your clients, your return rate would be 10%.
This will enable you to think of a strategy that responds to the specific needs of your business. The goal, avoiding establishing return policies that could put your shop in a complicated economic situation.
Do whatever you can to limit your returns rate. You can achieve this by writing precise and detailed product descriptions. For example, a size equivalence tool will be more than welcome if you have a fashion brand. And why not test augmented reality tech to enable online shoppers to try on your clothes before purchasing?
Your e-commerce return policy must be easy to find
Often, merchants fear that making their reshipment policy too visible will encourage clients to return articles. However, they also risk making their purchasing experience online frustrating! Hiding information damages brand trust. We must remember that 20% of online shoppers will not go through check-out if the returns policy is not transparent.
The easier it is to find and the more explicit it is, the more time you’ll save your customer care team!
Use straightforward language
Your e-commerce return policy technically states the legal conditions of exchange, of course. However, avoid using technical jargon that could confuse potential customers. Keep it simple, so they don’t have to read several pages to understand the conditions related to their purchase.
We recommend you opt for a detailed description of your return policy in your site's terms and conditions while giving customers a concise, step-by-step summary of your returns management process.
The main things you should mention are:
- The delays to accept returns;
- The process to follow to make the return request;
- The cases in which items are not reshipped (defective or damaged products, for example);
- The terms of refund and exchange;
- Who will have to pay the return shipping costs.
Another best practice is to provide them with a return label directly in their package. Or, make it as easy as possible to download or print it from your website!
4. Give them more time to return the products
Giving extra time may seem counterproductive or even likely to encourage returns. However, many e-merchants find that their return rate slightly decreased after they applied this best practice. Moreover, this decision allows them to boost their conversion rate.
The more consumer-oriented your e-commerce return policy is, the more they will be encouraged to buy. Transparent and accommodating conditions have a positive psychological effect on buyers. This is demonstrated by the example of Zappos, which offers a 365-day return policy.
5. Make it easy to track the packages
In the same way that clients appreciate tracking their package when they purchase from you, they will also be reassured if they can track returned items. Carriers such as Chronopost, Colissimo, or Mondial Relay provide a tracking number in case of problems or disputes. Be sure to offer several options to your buyers, from the return from the post office to the return via a relay point.
Another easy way to stand out is to create personalized tracking emails. Rather than relying on your carrier, personalize your tracking messages for a smoother, more readable experience. You can (and should) also match these emails to your brand colors. Our customers who have done this have a 75% open rate!
6. Re-engage your customers following a return
Just because a buyer returned a product, it does not mean you lost them for good. Don't forget that acquiring a new customer is 7 times more expensive than retaining existing ones. You might as well focus your efforts on keeping your existing customers to maximize your results.
Following a return, send the customer an email thanking them for their trust and a discount for future purchases. It is also an opportunity to ask for feedback. Who knows, you may discover new ways to improve your customer experience? This will help you refine your e-commerce return policy, update your FAQ and improve your product descriptions.
The more efficient your returns management is, the better impression you will leave on the consumer. This way, you will reinforce their trust in your brand and maximize your chances of turning them into loyal customers!
5. E-commerce return policy: key takeaways
The success of your business depends almost entirely on the experience you provide to your customers. So consider optimizing your return policy by making sure it's as clear, precise, and transparent as possible.
This will help you limit the potential logistical or legal problems that an unhappy customer could cause. Moreover, your e-commerce return policy will also become a real asset to differentiate you from your competitors. And at the same time, you will reinforce your brand image and the trust that Internet users give you!
Logistics
Master International logistics: Your Global Expansion Guide
International logistics remains one of the most significant challenges for e-tailers growing their business at a worldwide scale.
The regulations for specific goods crossing the border are more or less complicated, depending on their final destination.
When preparing for international growth, it is essential to understand the complexities of global logistics. Which territories are concerned by specific regulations? How is transportation outside the European Union regulated? What is the applicable VAT?
1. International logistics: Which territories are concerned?
Countries of the European Union and the European Union Customs Union (EUCU)
If you want to export your products to the European territories, you are in luck.
You benefit from the free movement of goods, a fundamental principle of European law. If you are exporting from France, it being part of the European Union (EU), you will ship to 26 EU member countries without undergoing any administrative export formalities.
This rule is also applicable within the Customs Union, including all EU members and four other countries: Turkey, Monaco, Andorra, and St Martin.
In other words, if you send a package to one of these countries, no customs duties will be applied. And even better, this allows shorter delivery times. A customs control delays the delivery from 12 hours to several days.
Non-European territories
What happens when you venture beyond European borders?
The first obstacle to overcome is customs. Once the package is on foreign territory, it can be controlled, opened, and handled carelessly.
To avoid that, your best bet is to make your customs declarations correctly.
Finally, the most significant disadvantage when shipping outside the European Union is the customs fees. They vary according to the country of origin mentioned in the customs declaration, the type of product determined by the HS code, and even the invoice value of the shipment. Would you like to estimate the customs fees? You can use a simulator.
The same applies to overseas countries and territories. Even if they are part of an EU Member State, their ultraperipheral nature subjects them to specific customs duties.
The particular case of the United Kingdom
We cannot talk about international logistics without discussing our British neighbors. The Brexit has complicated the logistics for e-tailers who want to sell in this territory.
The re-establishment of EU-UK borders
As any country that is not part of the EU or the Customs Union, the merchandise must cross a customs border. You guessed it: forget about the free movement of goods principle.
The United Kingdom is setting up a "smart border.” The goal is to offer a "simplified" administrative process for goods entering the British territory.
It is a logistics envelope that allows transportation companies to group several customs declarations - for both import and export - under a single document to save time when crossing the border, especially at the Calais/Dover Strait.
How does it impact e-tailers? The re-establishment of customs means more paperwork, and your carrier may charge you about 5€ extra to handle this new administrative formality.
Customs fees and VAT
The good news? There are no customs duties or VAT on entry into the UK. Therefore, goods entering the territory are not taxed as such.
However, the VAT applies:
- When the goods are worth less than £135, the customer pays the VAT (20%) to the merchant. The e-tailer must have made the necessary arrangements with HMRC to obtain a UK VAT number. This number and the EORI number will appear on the invoice. It is the responsibility of the e-commerce to remit the VAT to the UK authorities.
- When the goods are worth £135 or more, e-commerces do not pay the VAT directly. Parcel Force recovers the VAT from the final customer.
There are two scenarios:
- If the shipment falls under the DDP incoterm, the sender pays the buyer’s customs fees and the VAT. It is fully transparent for the latter.
- If the shipment occurs under the DAP incoterm. Then the customs fees are paid by the buyer, and the sender is charged about €6 / package. It covers the administrative costs of processing the parcel while waiting for the payment of the customs fees of the recipient.
2. International logistics outside the European Customs Union
HS Code + EORI number: the basic requirements for international logistics
1. EORI (required)
What is the EORI number?
EORI stands for “Economic Operators Registration and Identification number.” It is a unique reference number attributed by a customs authority to identify the economic operators within the EU.
The EORI is listed on all customs declarations.
You can request an EORI number at the customs website. Then fill in this CERFA and return it by mail or online to the customs authorities of the EU country you are established.
2. Harmonized System (HS) Codes
It is also mandatory. Developed by the World Customs Organization, it is an international product nomenclature that describes the type of shipped goods.
How to get an HS Code? You will have to be patient, and look it up on RITA, the French customs application.
3. Specific process for exporting to the United Kingdom
Do you plan to ship to the UK? Then you should get familiar with the specific requirements:
- You must have a UK EORI. Visit this website to request it.
- Be registered on the HMRC, the British authorities, and obtain a UK VAT number
To master the post-BREXIT rules, we encourage you to read this guide.
International logistics and which documents to submit
1. Invoices, three printed copies
If shipping a package were just a matter of obtaining international HS and VAT references, it would be so simple!
Unfortunately, this is not the case. When shipping abroad, you will have to print three copies of the invoice on your company letterhead. Some carriers digitize invoices, but this is not a widespread practice yet.
2. CN23; 4 printed copies
The internationalization of a business requires compliance with certain formalities. For example, the CN23 is a mandatory document to inform authorities about the contents of a package.
It includes describing the products contained in the package, their value, who are the sender and the buyer, and the parties involved in its transportation.
The CN23 only concerns commercial shipments. A SAD (Single Administrative Document) must be completed and attached, for all parcels valued over €8,000, instead of the CN23.
3. The packing slip
The packing slip, or shipping label, contains the delivery instructions. It indicates to whom and where the package must be delivered. It is, therefore, different from the invoice.
Once the packing slip is printed, you stick one outside the package and leave one inside it.
As you can see, international logistics requires expertise in customs law. Bigblue makes it easy to ship abroad by providing and placing all the necessary documents on the package.
3. International logistics and VAT: the rules to master
Reclaiming import VAT in France on consignments valued at 1€ or more
Until July 1st, 2021, consignments valued at 22€ or less were exempt from import VAT.
This exception was removed, and all products entering the French territory are subject to it. This change responds to the EU’s ambition to regulate dropshipping and consequently reduce unfair competition from companies that used to ship directly from China, under-declaring the value of their products to avoid import fees.
There is a new process for imports of less than 150€ to simplify VAT collection. If the supplier is registered in the IOSS (Import One Stop Shop) system, they are no longer required to register with the tax authorities of each Member State. With this one-stop-shop system, VAT is declared and paid to a single Member State.
It is the responsibility of the marketplace to collect, declare and pay the VAT on behalf of the merchants. The goal is to prevent any risk of fraud.
Uniform VAT thresholds for intra-Community trade
The EU-wide threshold of €10,000
- If the sellers’ revenue from distance selling within the EU is less than €10,000 (excluding VAT), then the VAT is due to the sellers’ country. For example, imagine a transaction of €65 for a pair of jeans bought from a French e-commerce shop by clients in Spain. If there are 139 similar transactions made, the total sales value of €9,035 will be subject to 20% VAT in France.
- If the sellers’ revenue from distance selling within the EU surpasses €10,000, the VAT is due to the final clients’ country. Imagine a transaction of €65 for a pair of jeans bought from a French e-commerce shop by clients in Germany. If there are 231 similar transactions made, the total sales value of €15,015 will be subject to 19% VAT in Germany.
How to declare the intra-community VAT
The One-Stop-Shop System (OSS-IOSS)
As mentioned before, this one-stop-shop system is available for distance selling within the EU of goods worth less than €150, coming from another EU Member State or a third country.
The rationale is that transactions are taxable in the Member state where they are purchased.
To simplify VAT payment by the vendors, the One-Stop-Shop makes it possible to simplify the procedures by declaring and paying the VAT via a unique portal.
Risks in case of error
We do not mess around with fiscal matters! VAT errors generate penalties for up to 240% of the tax and block access to OSS-IOSS for two years.
You will have to file for re-registration in all the countries in which you are selling.
BtoB: handling the VAT
How does it work when you have a BtoB model?
For clients outside the EU Customs Union, you do not need to invoice the VAT. For customers within the Customs Union, if they have a valid VAT number, you are not required to invoice the VAT. However, special notice must be in the invoice.
Nevertheless, let's imagine that your BtoB customer is exempt from VAT. You will have to invoice him for the latter.
4. International logistics: the importance of reassuring your international clients
Checkout: an educational approach
Depending on the country of destination, international clients will be subject to additional customs fees. Your job is to inform them beforehand, the exact amount to avoid unpleasant surprises.
The Shopify apps allow you to estimate the customs fees at checkout.
To demonstrate your professionalism, you can offer the same shipping options abroad and France: express, standard, or relay.
To reduce transportation costs related to international shipping and encourage greener deliveries, use the least polluting and cheaper option. Promote relay or standard delivery.
The package: prepare it carefully for shipment abroad
International shipments must comply with strict formalities. So make sure that all customs documents are up to date to prevent the package from being opened or blocked at the border.
Additionally, shipping abroad can be chaotic due to the distance involved. We advise you to use double flute packaging and additional protections according to how fragile the goods are.
The key difference when sending orders internationnally:
Actual weight (Gross weight):
- This is the physical weight of your package as measured by a scale. It's the most straightforward concept – the heavier the package, the more it costs to ship.
Volumetric weight (Dimensional weight):
- This is a calculated weight based on the package's dimensions (length x width x height). It considers the space a package occupies in a plane or ship, even if it's lightweight.
Why volumetric weight matters:
- International shipping costs often consider both actual and volumetric weight. Whichever is higher is used to calculate your shipping fee.
- This is because airlines and shipping companies have limited space, and a bulky, lightweight package takes up just as much space as a denser, heavier one.
Here's an example:
- Imagine you have a box of clothes that weighs 2kg (actual weight). However, the box measures 50cm x 40cm x 30cm.
- Using the volumetric weight formula (often provided by the carrier), you calculate the volumetric weight as: (50 x 40 x 30) / divisor (divisor varies by carrier, let's say 5000). This gives you a volumetric weight of 12kg.
- Since the volumetric weight (12kg) is higher than the actual weight (2kg), the shipping cost will be based on the 12kg weight.
Make sure to choose optimized packaging to reduce the volumetric weight and consequently reduce the shipping costs.
Follow-up: Reassuring the customer
It is not easy for a foreign customer to place an order for a product that is in a country other than their own.
To reassure them, be very transparent about the shipping of the package. Try to anticipate questions to remove all purchase objections.
It is even more critical when you are a small brand. The post-purchase service must be flawless. The follow-up must reassure international clients: keep them informed on each of the shipping stages.
Returns: Be transparent about the conditions and customs fees
45% of buyers say that the return policy was a determining factor in their online purchase.
The return process must remain straightforward. The most important thing is that they know, from the moment of purchase, how they can return the products if they are not satisfied:
- Clarify the conditions for international purchases on your T&C and at checkout.
- Publish an FAQ explaining all the steps to return a package in their native language if possible.
- Offer reasonable return costs. High prices will dissuade customers from purchasing.
- Facilitate the return, set up a process on your website, either directly from the client account or the follow-up emails;
- Make sure you can arrange for transportation within the specified geographic area. Failure to do so can make the return process difficult, which can ruin the customer experience.