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January 26, 2022

Order Consolidation: What Is It and How Can It Enhance Your Customer Experience?

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Flexport Editorial Team

September 26, 2022

This blog post was originally published by Deliverr, which is now Flexport. The content has been adjusted to fit the Flexport brand voice and tone, but all other information remains unchanged. With the merging of Deliverr’s services (DTC fulfillment, B2B distribution, and Last Mile delivery) into Flexport’s existing international freight and technology services, we’re now able to provide merchants with true end-to-end logistics solutions spanning from the factory floor to the customer’s door.

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 boxes” 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 Flexport, and increasing sales with customer satisfaction. 

Step 1 (Get Started): Connect your listing tool or shopping cart in just a few steps, and preview costs for each item in your catalog.

Step 2 (Send Inventory):  Pick the items you want to send to us and we'll guide you through the shipping process. You can even use our discounted shipping rates.

Step 3 (Activate Delivery Badges): Turn on fast shipping badges and delivery dates and we’ll take care of the rest. You’ll soon see listings transform across your sales channels.

Step 4 (Start Selling): Once Flexport receives your inventory, we'll sync with your sales channels so that orders automatically start flowing in.

How to Best Get Your Business Setup to Consolidate Orders

Using a 3PL like Flexport 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 Flexport has multiple warehouses, we 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, our team 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.

The contents of this blog are made available for informational purposes only and should not be relied upon for any legal, business, or financial decisions. We do not guarantee, represent, or warrant the accuracy or reliability of any of the contents of this blog because they are based on Flexport’s current beliefs, expectations, and assumptions, about which there can be no assurance due to various anticipated and unanticipated events that may occur. This blog has been prepared to the best of Flexport’s knowledge and research; however, the information presented in this blog herein may not reflect the most current regulatory or industry developments. Neither Flexport nor its advisors or affiliates shall be liable for any losses that arise in any way due to the reliance on the contents contained in this blog.

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This is Flexport's mark (alternative). It's the Flexport mark with white.
Flexport Editorial Team

September 26, 2022

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