Payments Blog

Shipping & Logistics Challenges for Startups

There are many different things that make a company successful but, for any business, the most important thing is successfully getting your products in the hands of your consumers, in a timely fashion. For startups, shipping can be an arduous task because of its relative importance to the success of the business, and because it’s something few startups have ever done before.

Since it’s often their first time dealing with this task, a lot of startups struggle to implement an effective shipping strategy, and can run into obstacles along the way.

Over time, shipping costs for the consumer have emerged as a serious concern for online merchants. This has been exacerbated by the presence of big-box online merchants, like Amazon, who can routinely offer their consumers free shipping. It’s likely that a startup company won’t be able to offer that same luxury right off the bat, but they should devise a plan to make shipping affordable for their consumers. If they don’t, consumers will find other merchants who can offer them reasonable shipping rates.

Especially early on, it’s essential for startups to build trust with their consumers by delivering products on time and in great shape. It can be difficult for startups to guarantee quick, easy delivery in the beginning because they have limited resources and have not yet built relationships with their shipping suppliers. If you can develop a reputation as a startup who can ship orders quickly and efficiently, it can grow your consumer base and your bottom line.

It’s already hard enough to worry about shipping, logistics and everything that comes with both these things, but startups also must be aware of international shipping if they intend to sell cross-border. If you’re based in the U.S., you may want to start by exclusively selling domestically, to simplify operations. Eventually, you will have to decide whether you want to expand your reach, and sell to consumers in other countries. Before doing so, you should do your homework on international shipping because shipping costs on these cross-border transactions will be higher, and the incidence of fraud could be too.

If you want to effectively engage in cross-border digital commerce, you should consider our patented authentication solution, Cardinal Consumer Authentication (CCA), since it lets merchants create their own rules that will assess the legitimacy of any consumer during a digital transaction. With One Connection to Cardinal, we can Drive your Digital Commerce.

Note: All brand names and logos are the property of their respective owners, are used for identification purposes only, and do not imply product endorsement or affiliation with Cardinal/Visa.

Posted by CardinalCommerce

Welcome to the CardinalCommerce blog. Cardinal is a global leader in authenticating digital transactions, with One Connection to drive digital commerce. Our goal for this blog is to provide a platform that will inform and educate our Customers and partners on consumer authentication, payments, mobile commerce, solution design and big data.

Topics: Shipping, Startups

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