E-commerce Logistics: Complete Guide

The e-commerce standards differ significantly from more traditional points of sales. It relates to logistics processes as well — e-commerce logistics are more complicated than traditional ones, and, therefore, call for a thoroughly planned approach.

Logistics managers need to transform their operational activities, and their roles have become fundamental for all organizations in the e-commerce environment; until the customer has the product in their hands, the sale is not completed.

In this article, we represent a comprehensive e-commerce logistics guide where you can find the answers to all basic questions: what is e-commerce logistics, and how to master the basics of e-commerce logistics?

What Is E-commerce Logistics?

E-commerce logistics is a complex multi-step process an ecommerce brand uses to get an order out the warehouse door and right into the hands of the customer. The process of e-commerce logistics includes inventory management, pricing, packing, and shipping of online orders.

What does e-commerce logistics consist of?

In e-commerce businesses, logistics usually covers the following activities:

• Inventory management. It entails monitoring and managing the inventory of your company while it is produced or purchased from producers, stored, and delivered. It coordinates the complete product flow, from purchasing to selling, making sure you always have the necessary number of units at the right location at the right time.
• Warehousing. Warehousing is an essential component of a retail supply chain that focuses on storing goods that will be sold or distributed later.
• Order packing. Order packing is the process of packing all the products into an appropriate container before delivering it to the final consumer. The packing process takes place in the warehouse and, as a rule, consists of selecting suitable materials and containers to pack the orders, weighing the package, and labeling it with the relevant invoice.
• E-commerce order fulfillment. It is the part of e-commerce operations that deliver orders to end consumers. Depending on your business needs, you can outsource this service from a third-party provider or invest in in-house order fulfillment.
• E-commerce return management. Although e-commerce companies aim to avoid returns, they do occur in all sectors of the economy. A customer’s desire to return a purchase triggers the e-commerce return management process, which is completed by the company collecting, arranging, and replenishing the product. If your supply chain is designed effectively, you can drastically reduce losses by replenishing warehouse inventory for resale with undamaged returned goods.

5 Practical Advice on E-commerce Logistics

Delivering quality products on time is essential for business success. Frustrated customers who have trouble acquiring their items are unlikely to patronize the retailer again. Even worse, they can even post unfavorable reviews on social media.

To prevent these circumstances, we prepared for you the top-five tips to enhance your logistics management.

Establish strict stock control

Is there anything more upsetting than purchasing something and then discovering that it is missing? Well, that demonstrates a lack of organization and gives people a bad impression of the store.

It’s crucial to periodically check the goods, including monitoring inventory and checking in and out, to avoid situations like these. Additionally, it is advised to check the products’ condition.

Another piece of advice is to have a few additional things available to the consumer while keeping the present quantity of products as close to the existing quantity as possible. This will be helpful, for instance, if there are damaged goods that need to be replaced.

Make free and fast shipping a top priority

Offering a free delivery can motivate customers to complete their purchases. The main motivation for internet shopping is free delivery. When asked why they hadn’t made an online purchase, 35% of buyers cited a longer delivery period.

There are ways to control the cost of free delivery, such as requiring a minimum order value or limiting its availability to certain promotions or products. Retailers nevertheless want a cost-effective e-commerce logistical solution while offering free shipping.

Free shipping isn’t sufficient anymore. The “10-business-day delivery” has vanished. Customers are disappointed when timely delivery of their orders is not a possibility since they anticipate it. Only 15% of US customers report that they received their orders quickly enough.

Offer multiple shipping options

One of the primary causes of shopping cart abandonment in online retailers is pricey delivery. The majority of buyers want to benefit from every purchase they make: good product quality, an enticing price, and size value. If it’s free, all the better.

E-commerce logistics must offer a variety of shipping choices because every consumer has different needs. While some customers are impatient and would rather pay more for delivery than wait, others are content to wait as long as they can get the same great deal.

Find carriers and pick the one that provides the most value for your money. Keep in mind that the process doesn’t finish until the product is delivered to the consumer.

Provide shipping tracking

Since shipping tracking enables customers to know the status of their order, it is one of the features that customers desire the most when making purchases from an online store.

Typically, the courier will give a tracking number or code when an order is processed. You and your customer will be able to find out the status and location of the package by visiting the courier’s website and entering the code.

It is your responsibility to make this tool accessible to your clients and to incorporate this portal into your website. This is crucial if you want to optimize your e-commerce for better sales and shipment quantities. The open rate of emails that contain this portal should also be taken into account. Utilize the tool and add branding components and special offers to boost conversions directly.

Make use of technology to automate documentation processes (and all that can be automated)

It goes without saying that running a successful online store involves a lot of work and commitment. Fortunately, there are lots of strategies and areas of concentration that can help you get ready for heavy loads.

Technology accelerates the entire buying and shipping process, which is advantageous to both buyers and businesses. It contributes to money savings, time savings, and a great shopping experience. Your e-commerce business can benefit from improved results if all operations are digitally controlled. In essence, it enables you to concentrate on crucial duties while the majority of logistics (such as controlling orders, shipments, and deliveries) is being handled by an automated system.

Final Say

A truly effective fulfillment strategy does not appear out of thin air. Consider your company’s requirements, then begin gradually streamlining your supply chain. You will succeed every time if you put together the proper group of partners and concentrate on exceeding customer expectations.

Opt for our e-commerce consulting services to make every step of your logistics process as efficient as possible.