Module 23

Fulfilment, shipping and returns

7 lessons, 43 stepsOne instruction at a time, each with the result to expect. Tick steps as you go; Helix remembers.

Outcome: orders leave on time and you know shipping costs before you set prices. Delivery problems have a plan, and returns cost you less each month. You know when to hand packing to a warehouse partner and how to move without losing orders.

In plain words

Stage: Grow (keep more of every sale, then scale). Every lesson below is tagged with its stage; see Attract, Convert, Grow.

What it is: How orders get packed, shipped and returned without eating your profit.

Why it matters: Shipping and returns are often your biggest costs after the product. Late or lost parcels lose customers for good.

Do this:

Work out your true cost per order and get three warehouse quotes when packing takes over your week.

Know your shipping cost per order, show delivery times and keep a second carrier ready.

Track your return rate and top return reason, and fix the biggest one first.

Words to know:

3PL: Third-party logistics: a warehouse company that stores your stock and packs and ships your orders.

Return rate: The share of orders that customers send back.

Shipping protection: An optional fee at checkout that covers lost, stolen or damaged parcels.

Lead time: How long it takes from ordering from your supplier to having stock ready to sell.

All words are explained in the glossary.

Lesson 23.1: Do you need a 3PL yet?Grow

In short

Packing orders yourself is cheap at first and expensive later, because your hours stop going into growth.

Do this now

Step 1: For one normal week, write down how many orders you sent.

Why this matters

Packing orders yourself is cheap at first and expensive later, because your hours stop going into growth. A 3PL is a warehouse company that stores and ships for you. It makes sense when packing takes more of your week than selling does.

Step 1 of 70 of 7 done

For one normal week, write down how many orders you sent. Note the hours spent packing, labelling and dropping off.

Expected result

You have orders per week and packing hours per week.

Lesson 23.2: Moving to a 3PL without losing ordersGrow

In short

Most moves to a warehouse go wrong in the handover week.

Do this now

Step 1: Give every product and variant its own SKU (your product code) and a barcode.

Why this matters

Most moves to a warehouse go wrong in the handover week. Stock counts do not match, barcodes are missing or orders get stuck between systems. A careful switch avoids all three.

Step 1 of 70 of 7 done

Give every product and variant its own SKU (your product code) and a barcode. Do it before anything ships (see Module 22).

Expected result

Every variant has a SKU and barcode.

Tips

Open: Module 22

Variant: One option of a product, like a size or colour, with its own stock and price.
SKU: Stock keeping unit: a short code you give each product option so you can track it.

Lesson 23.3: Shipping rates, carriers and delaysGrow

In short

Shipping is often one of your biggest costs after the product itself.

Do this now

Step 1: Weigh and measure your 3 most common parcels.

Why this matters

Shipping is often one of your biggest costs after the product itself. Know it before you set prices and free shipping rules, and have a plan for delays.

Step 1 of 70 of 7 done

Weigh and measure your 3 most common parcels.

Expected result

You know the size and weight of each. Carriers charge by size as well as weight (cubic or dimensional weight), so smaller boxes can save money. See Australia Post: cubic weight and USPS: size and weight.

Tips

Open: Australia Post: cubic weight, USPS: size and weight

Lesson 23.4: Shipping protection and lost or damaged parcelsGrow

In short

Some parcels will go missing or arrive broken.

Do this now

Step 1: Track lost and damaged parcels for one month: how many, what they cost and which carrier.

Why this matters

Some parcels will go missing or arrive broken. Decide early who pays and how fast you fix it. Also decide if you offer shipping protection: a small fee the buyer can choose that covers loss or damage.

Step 1 of 60 of 6 done

Track lost and damaged parcels for one month: how many, what they cost and which carrier.

Expected result

You know the monthly cost of lost and damaged parcels.

Lesson 23.5: Returns and exchanges that cost lessGrow

In short

Every return costs you twice: the refund and the handling.

Do this now

Step 1: Work out your return rate : returned orders divided by orders for the last 3 months, by product.

Why this matters

Every return costs you twice: the refund and the handling. The aim is fewer returns and more exchanges, while always meeting the law.

Step 1 of 70 of 7 done

Work out your return rate: returned orders divided by orders for the last 3 months, by product.

Expected result

You have a return rate per product.

Tips

Return rate: The share of orders that customers send back.

Lesson 23.6: When a spreadsheet stops working for stockGrow

In short

A spreadsheet works for a handful of products.

Do this now

Step 1: Start with the Helix Suppliers and stock page.

Why this matters

A spreadsheet works for a handful of products. It breaks when you have many variants, more than one location, or purchase orders in transit.

Step 1 of 50 of 5 done

Start with the Helix Suppliers and stock page. It shows reorder points, stock-out dates and order-by dates (see Lesson 14.9).

Expected result

Each product shows when to reorder.

Tips

Open: Suppliers and stock, Lesson 14.9
Shortcut: Open suppliers and stock.

Lesson 23.7: Customer service that keeps customersGrow

In short

Most questions are the same few.

Do this now

Step 1: Read your last 50 customer emails and messages and group them by question.

Why this matters

Most questions are the same few. Where is my order? Can I change my size? How do I return this? Fast, friendly answers turn a worried buyer into a repeat buyer. Good automation takes most of the work off you.

Step 1 of 40 of 4 done

Read your last 50 customer emails and messages and group them by question. Count the top five.

Expected result

A list of your five most common questions, with how often each comes up.

Words to know in this module

GST: Goods and services tax. Each country sets its own rate, such as 10% (Australia) or 15% (New Zealand). Registered businesses add it to most sales.
Sales tax: In the US, a tax set by most states (and many local areas) that the seller collects at checkout.
Duties: Taxes charged by a country on goods coming in from overseas.
Profit: Usually means contribution profit: what is left from sales after product cost, shipping, payment fees, discounts, refunds and ads. Net profit also takes off fixed costs.
Return rate: The share of orders that customers send back.
3PL: Third-party logistics: a warehouse company that stores your stock and packs and ships your orders.
Shipping protection: An optional fee at checkout that covers lost, stolen or damaged parcels.
Lead time: How long it takes from placing an order with your supplier to having stock ready to sell.
Flow: An email or text series that sends by itself when something happens, like a new sign-up.
Variant: One option of a product, like a size or colour, with its own stock and price.
SKU: Stock keeping unit: a short code you give each product option so you can track it.
Test order: A pretend order you place yourself to check payments, emails and tracking work.
Landed cost: What one unit really costs once it reaches your warehouse: product, freight, duties and fees.

All words to know