As an e-commerce startup, you need to have the proper logistics to succeed in your online shop. After all, you may have brought your business idea to life, and you keep on growing despite the challenges you face. Also, with an e-commerce account, you can incorporate technology into your operations for the benefit of your business. However, how much are you spending on the logistics? What are some of the things you should know as you plan for the future of your startup? Please read on to find out.
E-commerce Logistics; What is It?
E-commerce logistics, also known as e-logistics, refers to the necessary steps or processes an online business or brand takes to ensure the products reach the needed destination on time without delay or damage. Therefore, if you want to run an online shop, you must have these measures and solutions in place.
Once an online buyer purchases a product, the logistics involved to get it to their hands include packaging, shipping, and delivery. At times, the product may be returned. Notably, e-commerce logistics vary from one online brand to the next. The components are discussed below.
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5 Components of E-Commerce Logistics
Getting a product from your e-commerce site to the doorstep of the customer involves various steps. The supply chain of e-commerce logistics comprises the following;
This is an important component as it deals with everything from when the product is in the warehouse to when it reaches the customer. Therefore, some of the activities taking place include warehousing, storage, packaging, and how the order is handled by the carrier.
It is at this stage that you decide the packaging to use, and whether or not to include free samples and the carrier to ship the order to the customer. In the end, the effectiveness of order fulfillment in e-commerce is determined by the experience the customer will get when unboxing.
Notably, if you want successful e-commerce logistics, you must focus on the fulfillment bit as it impacts the customer’s perception of your online business.
Before managing your inventory, do you know the amount you need? this is determined by the demand for your products. If you plan to sell through well-established e-commerce marketplaces that will help keep a sales history so you can plan well around demand. Don’t forget to keep up with the trends, especially when dealing with seasonal products.
Your e-commerce logistics should ensure the inventory is properly managed. This involves tracking the specific products and where they are stored in the warehouse. The beauty of properly managing your inventory is that it is time-saving. With this, you can ship products to customers faster without delays.
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A warehouse is necessary for your virtual business so you have extra space to keep your stock. This is especially important if your sales are continually increasing. Notably, you should maintain communication with other components of your supply chain for fast deliveries and reduced delays. Moreover, you should pick a proper location for the warehouse so you save the time taken to get the order to the purchaser.
Order Packaging and Shipping
Proper packaging in e-commerce involves having the right boxes for the orders. Once this is settled, your warehouse management or your customer can pick the most preferred means of shipping. Notably, you can offer the customers free shipping. After all, for almost 70% of online shoppers free shipping is one of the major conditions affecting their buying decision. Therefore, you may consider offering free shipping to your customers.
Alternatively, with the right e-commerce logistics, you can reduce shipping costs. If you opt to offer free shipping, be disciplined while at it so you meet the customer expectations such as fast shipping, and reduce the costs in the process.
Remember to properly label the orders when shipping to enhance accuracy in deliveries. Additionally, care should be taken when packaging and shipping fragile products. The good news is you can have an e-commerce logistics partner to help you handle any extra requirements such as personalizing the orders to the clients. A perfect example of a partner you can take advantage of is
Online shoppers returning products isn’t a new phenomenon. Therefore, your e-commerce logistics should cater to this too. This means you should have a process that hastens the refund. Also, to keep your customers satisfied, ensure you properly track the orders to avoid loss of orders. Notably, you will need a local address for all your returned products. Therefore, ensure that your logistics partner offers a return service.
Read: How Much Does it Cost to Start an Online Business?
Benefits of E-Commerce Logistics
The following are some of the benefits of having the right e-commerce logistics in place;
Increased Focus on the Business
If you outsource some aspects of the e-commerce logistics you can use online platforms such as 1fulfillment.com, you get the time to shift focus to your online business. This way, you can look at different ways of growing, expanding, and making it a success.
Help Reduce Costs
When you incorporate third-party logistics services in your e-commerce, you can enjoy their vast network with carriers. Also, they can do the shipping of orders in bulk thus saving on cost. Nonetheless, when you partner with such services, you don’t need to have the manpower, technology, or infrastructure of your own to get it done.
Improved Customer Experience
When you have the right and efficient e-commerce logistics in place, you can have prompt and accurate deliveries and reduce delays. With this, the customers have a good experience with your online shop. With such great customer satisfaction, you can increase their loyalty to your online business.
Get Your Logistics Partner
If you want to propel your online business toward profits and growth, you don’t have to do all the work on your own. Rather, you can outsource and get the right partner by your side. The good thing is that there are online services that can help you get the different logistics tasks done. This ensures you optimize and manage your e-commerce logistics for the benefit of your business. With such a partner, there is no more hassle in processing your online orders. The benefits of involving others in your e-commerce logistics range from saving costs and improving customer experience to increasing your focus on the online business.
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