The eCommerce industry has experienced a 45.8% increase over the last two years. As far as success stories go, this kind of growth rate is what enterprises aim for and hope to sustain. Although the eCommerce community has welcomed this growth, some still falter when it comes to delivery.
The world of cross border eCommerce logistics has never been on a higher pedestal as it is now. As customer behavior evolves, eCommerce brands need to be at the top of their game to cater to the changing consumer needs.
eCommerce logistics service providers play a huge role in this; thus, businesses need to partner with an eCommerce logistic service that understands this. This blog post will guide you through what eCommerce logistics is and how products move from the site to consumers with eCommerce logistics.
What is eCommerce Logistics?
As the name implies, eCommerce logistics is the process involved in storing and moving products of an online business. But as simple as it seems, eCommerce logistics comprises several activities before any product moves from the warehouse to the end-consumer.
Some of these services included in logistic services are the collation of inventory, storage, packing, shipping, and tracking inventory for an online store.
- Collation of inventory: Collation of inventory refers to the collection of packages to be delivered. It is also known as inventory management.
- Storage: Shipping time for some items can take days or weeks, depending on how long it takes for the product to clear. Within that time frame, logistic services are in charge of storing the products.
- Packing: eCommerce brands usually pre-pack products for delivery, but logistic companies ensure that the parcel is packaged appropriately for transit.
- Shipping: This is the transfer of products from the warehouse to the customer.
- Tracking: From the moment a parcel leaves the warehouse, eCommerce logistic businesses monitor its movement until it gets to its destination.
eCommerce logistic companies are an essential part of customer satisfaction as it deals with order fulfillment. If a product does not reach a consumer within the specified time, it might damage your eCommerce brand’s reputation. Therefore, eCommerce brands must acknowledge that it takes skill to run an eCommerce logistic business effectively, so you must find the right company for your deliveries.
eCommerce Logistics Chain: Who is Involved?
The straight line of product interaction within manufacturer and consumer has become more weblike due to eCommerce logistics. Different parties are now involved in ensuring that products make it to their destination in good time and pristine condition. Here are some of the active players:
- Suppliers: Suppliers stand as the manufacturers of the products that ship to consumers. Once an order goes live, the product embarks on its journey to the second in the chain (global logistic services/fulfillment centers), where it is sent off to consumers.
- Fulfillment centers: These hubs hold parcels until they are ready to be sent off to the consumers. Most times, fulfillment centers have the inventory in storage for ease of transport once an order comes. It can be an outsourced center like Amazon’s 3PL service or in-house and owned by your eCommerce business.
- Distribution hubs: The larger your clientele, the wiser it is for your brand to have multiple locations across your region that stock your products. Distribution hubs are essential because they cut down the delivery time and shipping costs.
- Sorting facilities: Sorting facilities are often associated with larger eCommerce brands. These facilities help sort bulk orders that are to be delivered.
- Carriers: Parcel carriers are in charge of transporting the parcels to the final consumers.
eCommerce Logistics Success Tips
An efficient business is most likely a successful one, especially in logistics. While the focus is to deliver goods to consumers, eCommerce logistic brands survive by reducing delivery time. And most notably, a well-oiled logistics supply chain is the key to success in logistics. Below are some tips to help achieve a well-oiled logistics supply:
- Numerous distribution points: It might seem wise to store products in one location but have inventory in different places to reduce cost over time.
- Inventory management software: The days of manual logging of information are gone. Investing in inventory management software reduces error and enhances shipping efficiency.
- Warehouse management systems (WMS): Warehouse management systems are put in place to ensure that tracking information on products occurs in real-time and is accurate.
- Reporting and Insights: This is the analysis process of eCommerce logistics. It allows you to keep track of how many parcels were delivered, if the delivery was on time, the cost incurred on shipping, and the steps needed to create a more effective program.
Keys to Faster Shipping
Consumers will always opt for the business that offers them faster shipping for their products. Faster shipping has been linked to business growth since eCommerce went mainstream. eCommerce businesses that offer faster shipping tend to generate more profit through recurring customers.
Third-party logistics (3PL) providers are usually advisable for smaller brands that can’t invest in proprietary logistics infrastructure. There are steps to consider before selecting an eCommerce logistics service for faster shipping. These steps are:
- The 3PL should have 1-2 days shipping options.
- They should have fulfillment centers to reduce the bulk load from your brand.
- They should have advanced and accurate software to track orders and inventory.
- They should offer bulk discounts and opportunities to reduce delivery times and costs.
Conclusion
eCommerce logistics brands that lack these features are most likely not the logistic service that will take your business to the next level. If you plan on outsourcing your delivery, it should be with a company that knows what they are doing; and have the results to prove it. An example of which is YunExpress.
YunExpress is a professional cross-border eCommerce logistics service provider that can cater to all logistic needs. They have delivery routes that span over 220 countries worldwide; and are partners with Amazon, Wish, eBay, Shopify, and many more.
YunExpress handles cross-border deliveries, international express, postal parcels, and FBA (fulfilled by Amazon) packages. Their express service offers fast and low-cost deliveries that can suit any eCommerce needs. For information on how to begin a YunExpress journey, visit their website today!