When you share knowledge, the effect is to the Cubbo.
This is the phrase with which Josu Gurtubay, co-founder & COO of Cubbo , opened the conversation during the recent Shopify Plus Meetup in Mexico City. Set to tacos and a mezcal tasting, the event brought together fifty e-commerce business owners to cultivate logistics as a new marketing strategy.
Before moving on to the most important points to implement in an online store, here's what you should know:
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What is Cubbo?
Cubbo is a company that helps direct-to-consumer (DTC) e-commerce businesses deliver with the same logistical experience as marketplaces. From its inception, Cubbo identified that the main advantage of the marketplace duopoly over DTC businesses is their logistics infrastructure, which has earned them consumer trust in the region. Therefore, Cubbo has sought to provide DTC e-commerce businesses with the same logistical experience that a marketplace can offer, assisting them from product warehousing to delivery.
What does e-commerce marketing mean?
In short, e-commerce marketing is about boosting sales in an online store. Clearly, a solid online presence strategy is essential; you need to understand your audience, implement SEO strategies , and provide the best possible shopping experience. However, logistics is one of the key activities that must be considered.
How to create an e-commerce marketing logistics strategy?
In Josu's words, many would agree that logistics is essentially a back-office function for delivering orders. However, we can look to large companies like Amazon and Mercado Libre, which have built customer trust not only through their shopping experience but also by promoting (and delivering) their delivery times.
“For them [Amazon and Mercado Libre], logistics isn’t a back-office area, but a core area they’ve invested heavily in and have seen considerable success with. Both have significantly boosted e-commerce in Mexico and, of course, have raised the bar considerably,” Josu commented.
According to a study published in 2024 by Statista , the online shopping sector in Mexico is led by Mercado Libre, with 24% of total sales, followed closely by Amazon with 23%.
Plan delivery times
Instead of viewing the logistics approach as a back office area, it should be viewed as a marketing area.
As discussed at the event in question, seven-day deliveries were commonplace a few years ago; however, Amazon entered the market competing with next-day deliveries.
“If you offer same-day or next-day delivery, and clearly indicate this on your website, the numbers show that the conversion rate increases by 15% to 20%. Why? Customers may find your product through many channels, but what sets you apart is the delivery time; people appreciate fast delivery,” Josu explained.
Build trust
Furthermore, the co-founder of Cubbo mentioned that when you build trust in an e-commerce business through the entire shopping experience, from the moment the customer browses your website until the delivery to their doorstep, you encourage them to return and buy more. When they don't trust you, the average order value is bound to be lower. So, what will help you build and increase that trust? The logistics and its effective communication.
Keep your promises
What happens when you deliver quickly and build customer trust? You generate loyalty. You go from having a one-time customer to having a repeat customer. They'll want to come back and buy more products when they see that you meet the delivery times you promise.
What is the financial impact of logistics as marketing?
Josu explored the financial aspect of the logistics conversation, mentioning that the impact is achieved when you deliver quickly and promote effectively, as we discussed earlier. This helps achieve a 20% increase in sales, although each e-commerce business and sector is different. In this case, the conversion rate rises from 1.5% to 1.8%.
Market competition
“If you’re out of the market logistically, you’re not competing; you don’t have any other advantages and you’re not operating within the market conditions. We should all be interested in competing and providing the same shopping experience as the big players, like Amazon and Mercado Libre,” Josu added.
How to implement this strategy in your business
Cubbo is a great strategic solution when it comes to logistics. While some of its co-founder's key steps include real-time visibility into deliveries and updating shipping methods to build customer trust, you can implement these same principles in your e-commerce store. Whether you want to build it from scratch on Shopify , migrate it to this platform, or simply improve your strategy, Getmore is the ideal choice.
Don't hesitate to get in touch , as this is one of the best e-commerce agencies.
Conclusion
The conversation with Josu concludes that trust can be very easy to gain, but very easy to lose. As he mentioned, let's not forget that logistics provides that value. Fast delivery increases your sales by 20%; good delivery increases your purchase rate; and finally, having good logistics reduces support tickets by 80%. This way, you can free up your support team to do something other than answer customer questions about the location of their orders.
