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Quick Summary
eCommerce logistics present a hurdle for online retailers, especially with the rise of two-day free shipping expectations set by giants like Amazon. Striking a balance between cost-efficiency and customer satisfaction is crucial, prompting the exploration of diverse logistics strategies to optimize online store performance.
What is the Application of E-Commerce Logistics?
If you are an eCommerce giant and your logistics is not set up possibly, and not thinking about logistics, you might be losing customers or chances are high that your conversions will suffer. You have only two options and that’s is sacrifices and compromises, resulting in sky-high logistical costs.
Research has shown that on average, an online retailer spends between 20-40% of their turnover on logistics including costs for storage, order picking, packing, and returns. These costs cannot recover from the consumer. In today’s time, where customers have no intention of paying shipping or return costs as they have plenty of opportunities to search for alternative online stores selling the same products when they see high delivery costs.
Logistic is a beating heart of eCommerce, and this is why it must always be kept under control and running smoothly. But it is essential to look at the logistical strategy when setting up your eCommerce to get succeed as marketing and communication requirements are constantly changing.
Meanwhile, what are your options as an online retailer?
As you’re planning for the future of your online business, here are some useful tips you need to consider taking your eCommerce logistics to the next level.
What are the E-commerce logistics options for online stores?
These are the possible eCommerce logistics options you can consider for your online stores and useful tips to keep the logistical heart of your eCommerce up and running at all times.
1. Who are your customers?
The first and foremost thing you need to eye on is the customer, like who is your customer as it has a beneficial effect on almost every aspect of your eCommerce business and customer’s shopping experience. What you can do is create a strong call to action to entice and invite your users to become loyal customers. This way, your customers can enjoy an enhanced user experience and you can rely on purchasing habits to adjust the different logistical factors to suit them.
2. What are your products?
This matters a lot! Having different products with size, shape, and weight conditions will allow you to establish a well-ordered and efficient warehouse. Furthermore, you can arrange products according to which are the most in-demand, so that you have quick access to them and can optimize your operations in terms of time and space.
Knowing your products can help you get an idea about product packages, weight, and their storage condition and that will help you build organized storage space. Many online retailers are already using product organizing and storage organization to make their operation better and smooth. Hence, knowing your products can ensure you for better organization.
3. Who are your collaborators?
This is essential when it comes to logistics because you cannot perform well without having a human force in your logistics department. The human factor in logistics is crucial, you might be using professional software or technology to manage the warehouse needs but it would be useless if there were no specialized personnel to operate it.
So, make sure your employees or collaborators are professional if you rely on third-party warehouses and during tough times, don’t be afraid to hire more staff and distribute the tasks in a targeted manner to each worker, especially according to their knowledge.
4. What are the shipping considerations?
The most important thing when it comes to eCommerce logistics or any logistics is shipping costs as it is one common eCommerce dilemma for the store owners to abandoned carts. This happens when the customer adds in all the items but then gets distracted by the shipping costs. When setting up eCommerce logistics, a store owner needs to have a clear shipping strategy in mind, which is a balance between being attractive to the customer as well as marketing business sense for the seller. There are many options available for these including free shipping and shipping modes.
Free shipping is a method of enticing customers and generates interest. This is for the customers who don’t want to pay additional costs that are included with the actual price of the product and that’s why to get their attention, free shipping works a lot.
Shipping modes also play a vital role in attracting customers as it is one of the best way retailer can choose to offer for their business. The different shipping modes are ship to home and ship to store. From ship to home, the item is directly delivered to the customer’s home wherein ship to store, items ordered online are shipped to a store.
5. Expand your sales networks
This is when you feel right and appropriate to expand your product sales networks by relying on an external marketplace or collaborations with other online stores. All you need to is before implementing this strategy is to prepare your logistic management counter-strategy and that’s it.
You need to make sure that your eye on every logistic management of your eCommerce store and examine before implementing and expanding your sales networks.
6. Make the use of technology and advancement
This should always be a key aspect when it comes to business whether it’s small size or large as advancement make every operation seamless and effective. For logistics management, choose professional software to organize seamless workflows that help you to quickly and effectively manage tasks such as orders, packings, inventories, tracking, and much more.
7. Keep your customer updated
Well, this shows that you care about your customers and that’s how they will show more interest in you and your store. As a good provider, it is your responsibility to provide customers with all the details and update about their orders. This is one of those processes that you need to be looked at whenever you deliver or ship any products to your customers.
Wrapping Up!
Now might you are understood about the endless opportunities in eCommerce logistics and how you can take the benefits for your eCommerce business. These are the useful tips you can implement now and enjoy the benefits along with customer satisfaction and a great shopping experience.
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