A Guide to Logistics in the ECommerce Industry

ECommerce-logistics

Globally, the COVID-19 pandemic proved to be the most challenging period for individuals. Everything was halted, social isolation was implemented, and it was advised that everyone stay at home. Despite everything else, the COVID-19 epidemic has turned out to be advantageous for the e-commerce logistics sector and has changed consumer purchasing behavior. In 2020, when there was a huge demand for medicine and other essential items, ecommerce logistics became a savior and delivered essential goods to people at their doorstep. According to a recent World Economic Forum analysis, consumer e-commerce deliveries accounted for 25% of the increase in 2020.

To put it succinctly, e-commerce logistics have sustained customer flaring demands during the COVID-19 suspension. Furthermore, it has been anticipated that the need for online purchasing will persist even after the pandemic, making up 10% to 20% of the most recent rise in e-commerce shipments. Are you interested in learning more about the best e-commerce logistics businesses as well as the components that make up ecommerce logistics operations? Get all the answers you need by reading this blog post from AllAssignmentHelp.com.

ECommerce Logistics – What Is It?

E-commerce logistics is a process that causes a lot of confusion in people’s minds. Below, we have tried to explain the meaning of e-commerce and simplified this multi-step process.

  1. E-commerce logistics is the supply chain process of shipping goods from an online marketplace.
  2. E-commerce is also similar to other logistics methods and involves the management, processing, packing, and transportation of goods. 
  3. E-commerce companies face a lot of difficulty managing their inventory and working with the conditions of their customers. Every online logistics company is likely to face more problems than the others, as they correctly don’t know what to do and what not to do.
  4. One of the essential features of e-commerce logistics solutions is the ability to timely deliver their products and meet customer demands.
  5. To fulfill online customer orders, you need to be strong with your e-commerce warehousing services and shipping power in both domestic and international countries. One also needs to know the different distribution channels to effectively work with tight orders, increase sales, and survive in the long run. 
  6. E-commerce logistics often need help in effective inventory management and timely delivery of goods to customers. The reason for this is that with the increased online shopping methods, customers want everything to reach them in the shortest amount of time. 
  7. In simple words, we could say that e-commerce retailers have to meet the two most important demands of their consumers, which are none other than fast delivery and low prices. 
  8. That was some of the introduction to e-commerce logistics. Moreover, this business is at high risk of failure as it mainly works on customer demand and needs, which keep fluctuating now and then.

Elements of the Logistics Process for ECommerce

You might think that e-commerce logistics is just about getting inventory from the manufacturer or supplier and delivering it to the customer’s doorstep. However, it is much more than this. There are several things involved in this process that help in effectively running e-commerce logistics despite all the odds. Continue reading to learn about the process of e-commerce warehousing.

1- Fulfilling all ECommerce Logistics Orders

  1. Order fulfillment is the first step of e-commerce logistics, where you will receive, process, and deliver your orders to customers. 
  2. Remember, a good fulfillment strategy will take a lot of time, and one cannot create it immediately. 
  3. When discussing with potential vendors, you need to be accurate with the quality of your products. 
  4. Do you think that you will be able to build up a good reputation if you do not follow good quality in your orders? no right? So make sure you maintain the quality of your goods and deliver your orders exactly at the given time. 
  5. Only having a marketing buzz is not essential for e-commerce logistics. Customer satisfaction can be a turning factor.

2- Inventory Management

Inventory management is exceptionally important in e-commerce logistics. Less inventory and excess inventory are both bad; why? Excess inventory will just tie up all of your cash, which you can spend on other things in your business. With less inventory, you won’t be able to meet your customer’s demands and can even lose potential customers. This is why an e-commerce logistics inventory manager should be their top priority. So how can one manage their stock? Ask yourself some questions like the one below to calculate and analyze your inventory.

  1. What is your inventory budget?
  2. What is your inventory cost?
  3. What are your inventory management goals?
  4. Do you have previous knowledge about inventory management?
  5. Know about the different inventory levels?
  6. What inventory strategy do you have?
  7. How technology can benefit or affect your inventory management?
  8. How do you handle seasonal fluctuations?
  9. Obsolete inventory and safety stock?
  10. What is the process of inventory management and turnover?

3- Warehousing

  1. Logistics management is the act of recognizing conceivable shipping and transportation organizations, identifying them, and assessing their effectiveness. 
  2. It is progressively successful to outsource logistics to external organizations for most businesses, which spend significant time in storage and transport, and this is particularly valid for eCommerce organizations.
  3. Warehouse management is the other important process in e-commerce logistics. A warehouse is the place where you store all of your goods before shipping them to customers. 
  4. A good warehouse is important, as it will protect all your products from all kinds of natural calamities and disasters. Planning, organizing, staffing, and controlling your resources are some of the important aspects of warehouse management. 
  5. Moreover, if you think that storage and warehousing are difficult to manage, you may go with 3PL like many other companies do to manage their expenses and losses.

Do you know that a degree course in logistics and supply management gives job opportunities not only within the industry but also in the outside sector? You may work in different positions, like project manager, supply chain manager, warehouse manager, transportation manager, supply chain software manager, and many other top positions. Furthermore, you may at any time seek logistics supply chain assignment help from assignment experts to solve all your assignment-related issues.

Best ECommerce Logistics Companies

The global e-commerce logistics industry has reached new heights after the COVID-19 pandemic. If we look at the statistics, this market has a value of US$431.6 billion as of 2023. The following are some of the biggest players in e-commerce logistics.

1- FedEx Corporation

FedEx is a US-based company established in 1971. It offers business, e-commerce, and transportation services at an international level. It is a trusted package delivery partner and is connected to delivery in more than 220 countries and territories. The following are some of the services provided by these e-commerce logistics companies:

  • Digital printing
  • Packing services
  • Small package ground delivery services
  • LTL freight
  • Home delivery
  • Shipping services
  • Billing and collection services
  • Technical support

2- Bluedart

Blue Dart Express Limited is the most innovative and award-winning express logistics company. They are known for their express delivery services via air and are headquartered in Mumbai. It is the top e-commerce logistics company in India and is functional in more than 220 countries across the world. It is one of the top and most successful third-party ecommerce logistics companies and a household name for all kinds of shipments. Blue Dart e-commerce logistics offers shipments to suit your convenience and covers a full range of dangerous goods and services.

3- Amazon.com Inc.

Amazon Logistics is the other top enterprise logistics company, established in 1994 with a headquarters in Seattle, Washington. This is operating through three different phases. North America, international, and Amazon Web Services (AWS) are a few of them. It offers low startup costs, making it easier to start your own business. Choosing them as a delivery service partner and working with Amazon can make an impact on your community.

Top Tips to Manage Ecommerce Logistics

Do you think that managing a company’s logistics is impossible? Are you looking for someone to manage your e-commerce logistics or assist someone with the logistics company? Here are some of the things you need to understand to effectively run your online business.

  1. Managing any company is impossible if you don’t know about your customers, their preferences, likes, and dislikes, so to make your e-commerce logistics successful, make sure to study everything about your consumers to provide them with what they actually need.
  2. No e-commerce logistics will function only in your home country alone; international deliveries are important. When it comes to international deliveries, certain things need your recognition, like different transportation modes, freight services, customs duties and taxes, and other stuff. All this will help provide the best service at both the domestic and international levels.
  3. Inventory is the soul of every business. But for an e-commerce logistics company where you claim to deliver your products in fast mode, it is even more important. You should continuously check on your inventory so that you can fulfill demands and not lose customers. Regularly keep track of your stock level and reduce your losses.
  4. Choosing the wrong e-commerce logistics partner is the reason why most companies suffer losses. So make sure you don’t do this thing. If you don’t want to face this issue, you should have a reliable shipping partner for both your domestic and international deliveries. Are you thinking about how to find the right shipping part? The only thing that could save you is research. Research as much as you can so that you can make the right choice and not fall into traps.

About Us

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Frequently Asked Questions

Question 1: What are the three types of e-commerce logistics?
Answer 1: Third-party logistics, drop shipping, and in-house logistics are the three types of e-commerce logistics.
Question 2: Which is the best e-commerce logistics of all?
Answer 2: Most logistics companies have found that third-party logistics is the best and has improved their customer service like never before, resulting in overall cost savings, next-day, and 2-day shipping, More data and valuable insights for business growth, better return processes, and established good relationships with suppliers.