17 November 2022

Logistics is the foundation of e-commerce

Logistics is the foundation of e-commerce

 

One of the most important matter in the context of doing business in the e-commerce industry is good logistics. Issues related to the offer, warehouse, or online store design are essential, but the time of order completion and delivery has the greatest impact on customer satisfaction. Find out, why is it worth focusing on this aspect.

Why is logistics so important in e-commerce?

Efficient order completion is an important element of online store management. There are two reasons why this area of ​​business is so critical: customer satisfaction and company profitability. The warehouse service team should fast but flawlessly find and pack the goods ordered by the customer, to later hand them over to the courier.

The duration of this procedure and the processing capacity of the employees determine how many orders can be accepted. As the store grows, its recognition and the number of products sold increase. If a seller wants to generate more profits, he must be prepared for it.

The long waiting time for delivery is one of the factors most severely assessed by e-customers. If there is no reasonable explanation (e.g. the product is custom-made or imported from abroad), the delivery should be immediate. The biggest downside to online shopping is that customers have to wait for the bought product. The sooner it gets to the client, the more satisfied he will be. Therefore, it can significantly improve reviews and the overall shop’s image.

What are the expectations of e-customers in terms of logistics?

Nowadays, online store customers are mainly used to the fact that they have several delivery options to choose from. This allows them to decide how the parcels will be delivered. Some people prefer courier service, but others will choose a pickup point or a parcel locker (usually when it is located near their place of residence).

Another important issue is the delivery price. One of the reasons for the increase in the bounce rate is the high shipping costs. Unfortunately, lately courier services become more expensive, but it is worth comparing all available options to find and offer the cheapest ones. 

However, the delivery time is of the greatest importance. E-customers have already gotten used to the fact that they receive their parcels within 2-3 working days at the most. Express services are also very popular, as they allow you to get a package within 24 hours or even on the same day.

Buyers also pay attention to the quality of Customer Service. In case of a product replacement or complaint, they count on quick help and good manners of employees. And when they are waiting for delivery, they should be able to track the package

What is the best way to organize logistics in the online store? 

Online store owners have to face many challenges. When they organize the warehouse well (equip it, invest in a professional system, employ experienced staff, etc.), they must establish cooperation with couriers. First, they have to find a way to send parcels as cheaply and as quickly as possible, so they should get acquainted with the companies operating on the market and choose the best of them.

It is difficult to control cooperation with many carriers, so often additional support is necessary, e.g. from a logistics intermediary. Thanks to that, it is much easier to send parcels and supervise their path. Accelerating the time of order fulfillment and reducing mistakes (mixed-up, damaged, or missing products) allows to get many tangible benefits. Thus, it contributes to the development of the business.