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Order consolidation: What is it and how can it enhance your customer experience?

Have you placed an order online recently and when you hit checkout you had the option to have all items delivered at once (and in one box), or separately? (Amazon, we’re looking at you). Enter order consolidation. 

Order consolidation is the process of shipping a number of individual orders together to help brands save on cost and time and to make the customer’s experience more enjoyable. While Amazon’s “ship in fewer shipments” strategy is what most think of, order consolidation can also look like a “buy one get one free” deal because you’ll get two items in one package (this is more of a consolidation benefit from the merchant side, but more on that later). Companies are starting to go this route for a few main reasons: 

  • It’s eco-friendly 
  • It’s budget-conscious for the consumer
  • It’s budget-conscious for the brand 

Consolidated shipping is a joint process between distribution companies and retailers. Below expands on these benefits and why they enhance the customer experience. 

1. Reduced Shipping Costs for Consumers

When companies use consolidated shipping, it reduces the dimensional weight and the actual weight of shipments since you’ll use less packaging and fewer boxes, which reduces the handling fees per package. So why do customers care? This in turn lowers the customer’s shipping cost as well! When thinking about a BOGO deal, you also save on picking prices.

2. Reduced Risk of Damage to Customer Products

Think about it: When you buy an individual item, it gets packed into a single package. This package can end up being tossed around from one corner to another on transit without any means to secure it, which could cause damage to the actual item itself. When shipments are consolidated, each item will require less handling and have less space to slide around while on transit, lowering the risk of damage.

3. Environmental Impact + Sustainability Benefits

When you use consolidated shipping, companies will use fewer packaging materials that can harm or have been taken from the environment (tape, foam, boxes, plastic, etc.). Less packaging means less waste and environmental impact. This also leads to square footage utilization on transit, meaning less fuel due to fewer transit means, and fewer carbon emissions in the environment. Fuel emissions affect the environment significantly, so anything to eliminate fuel emissions is probably the biggest game-changer.

4. Improving Customer Satisfaction

As mentioned above, customer satisfaction soars when improving efficiency, saving money, and saving the environment at the same time. Customers can receive their orders quickly and safely, products will maintain their high quality, and they’ll pay less for shipping—it’s a win-win-win. 

How a 3PL Can Help with Overall Shipping Costs

When utilizing order consolidation, partnering with third-party vendors can help make the process smooth and efficient. Companies can drive more sales with guaranteed 2-day delivery by partnering with Deliverr, and increasing sales with customer satisfaction. 

Step 1 (Get Started): Connect your sales channels for free in just a few clicks and explore cost previews for each item in your inventory (Deliverr provides transparent fulfillment and shipping prices compared to competitors!).

Step 2 (Send Inventory):  Pick the items you want to send to Deliverr (certain or all of your inventory) and Deliverr will guide the company on how to send the products to them in order to sell + ship.

Step 3 (Activate Fast Tags): Turn on fast shipping tags in Deliverr, and they’ll take care of the rest. 

Step 4 (Start Selling): Once Deliverr receives your inventory, they will sync with the sales channels that you sell on. Once orders begin to flow in, they will ship and deliver within two days.

Visit here to walk through the process step-by-step with our cost calculator.

Final Thoughts How to Best Get Your Business Setup to Consolidate Orders

Using a 3PL like Deliverr can guarantee fast delivery, so teetering back and forth on choosing one or multiple shipments on a multi-purchase isn’t even a question. Because major companies like Deliverr have multiple warehouses, they can ensure that your inventory is spread out so you can meet customer demand and be as efficient as possible. 

When an order is received, Deliverr takes the products ordered from the inventory that was provided, packs them, ensures that all items purchased are consolidated into one box, and then sends the order off to the customer! The customer gets fast and efficient shipping, all while being eco-friendly, sustainable, and providing great quality and services.

In short, order consolidation is the way to go for future orders in 2022. Happy packing!

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