Ecommerce Logistics is a term that has become more prevalent in the logistics industry since the turn of the century and has risen to even greater prominence during the events surrounding the pandemic. As distributors and retailers have become more and more dependent of online sales in recent years, the role of ecommerce logistics has taken a high profile position in business strategies across the globe.
Ecommerce Logistics – the definition
Known also as elogistics, is a term that describes how an online business or ecommerce brand moves its products from its supplier base, via warehouses, and into the hands of the end user or customer base. Sounds simple enough, but the “devil is in the details”. Let’s take a closer look at the components of a successful ecommerce logistics supply chain.
Ecommerce order fulfillment
This part of the ecommerce logistics strategy involves everything that goes on with an order at the warehouse up until the time that the order actually ships to the customer. Everything from the warehousing itself such as storing, packaging and actual handling of the order. One of the key components of this part of the process is inventory management…..you need to be able to keep track of stuff and find it quickly when an order arrives. Many ecommerce operations get into financial trouble when this part of the supply chain isn’t “bullet proof”.
Sizes, colors, and different product designs will add a level of complexity to inventory management that can quickly over whelm an operation if the entire warehousing system hasn’t been well thought out ahead of time.
Ecommerce in reverse
In today’s modern online business environment, returns and refunds are an inescapable part of the business environment. When customers return goods they expect that refunds or replacement of purchases will happen easily, quickly and with now extra costs involved. Lanning ahead for this inescapable component of the ecommerce process is important to the business owner for long term success and survival. Rather than thinking of a return as a problem, the smart ecommerce business owner will see this situation as an opportunity to impress the customer with a speedy resolution to the problem and a chance to build long term customer loyalty with real time follow up and problem resolution tactics. Free samples, loyalty bonuses, and person to person interactions during the return process will go a long way towards ensuring that that new customer becomes a repeat customer going forward.
Finally, the last and often times most critical factor in any ecommerce strategy is the means and vehicle you will employ to physically deliver your product to the customer. This is where a trusted freight forwarding partner can be an invaluable part of your ecommerce team. At Eagles Air & Sea, we will take the time to review your business plan and support you with our large component of trained ecommerce business professionals.
