E-commerce logistics is one of the most important parts of the work of e-commerce companies today. Because the biggest expectation of users shopping online is that the product they order reaches them as soon as possible. At this point, the importance of e-commerce logistics for e-commerce businesses comes into play.
What is e-commerce logistics?
If we define e-commerce logistics; It is the process that starts with the transportation of the inventory from the manufacturer and extends to the delivery to the address requested by the customer. E-commerce logistics is a critical function that includes tasks such as taking customer orders, completing the shipment and delivering on time.
What are the key elements of a proper e-commerce logistics process?
For the purchased products to reach the customer without any problems, the e-commerce logistics process must work flawlessly. The delivery of products to users at the promised time is the main purpose of e-commerce logistics. Imagine that you are doing e-commerce and thousands of packages are shipped across the country or in other countries where you do e-commerce business on any day. In this case, it is vital that your systems are working to ensure that the right product reaches the right person at the right time for everything to go well. At this point, the essential elements of the e-commerce logistics process must work in harmony with each other.
The e-commerce logistics process includes procurement, inventory management, stock management, warehousing, collection, packaging and delivery of online orders. Let’s briefly explain what we mean by these terms.
- Procurement: This is the stage where e-commerce companies receive their products from their suppliers and bring them to the warehouse.
- Inventory: This is the stage of operations in which e-commerce companies organise all movable and immovable assets and liabilities, especially products for sale.
- Stock: This is the sum of the products of e-commerce companies that are ready for sale.
- Storage: It is the stage where the products ready for sale are kept and these products are made ready for sale for the sellers or directly for the customer.
- Packing: This is the stage in which the products sold are packed, packaged and made ready for shipment following the transport conditions of the product to reach the consumer safely.
- Delivery (Cargo Shipping): This is the stage of sending the sold and packed products to the customer with predetermined vehicles and cargo companies. E-commerce businesses make their shipments through cargo companies and contracted logistics services.
- Returns: To increase customer support, product return service must also be handled effectively. Return policies for the product sold must be determined in general and easy return opportunities must be offered to the customers. The consumers who want to return the product they have purchased can also send the product through the contracted cargo company.
What are the benefits of e-logistics?
The right e-logistics solutions can be the key to the success of your business. Considering the e-logistics processes, if e-commerce isn’t done professionally, it means an additional workload for e-commerce companies and a loss of customers. Getting e-logistics services for your company allows you to optimise the supply chain for your business and maximise your profits as an e-commerce brand. The right e-commerce logistics partner takes you away from these problems and provides you many benefits. Let’s take a look at what benefits e-logistics service provides for your company.
- It enables to manage the process quickly and effectively by reducing human error to zero with the automation of processes. E-logistics service provides automation of the logistics chain such as order management, inventory tracking, supply chain management and delivery.
- E-logistics provides efficiency and time savings. It makes logistics operations more efficient by using digital technologies in accurate and up-to-date access, decision-making systems and efficient inventory management processes.
- E-logistics facilitates inventory and stock management and stock tracking. Thus, it solves problems such as stockouts and excessive costs in stock with stock status optimisation.
- E-logistics service accelerates deliveries and increases customer satisfaction. Thus, your customer’s visits to your e-commerce store increase.
- With e-logistics, shipments, transport vehicles and inventory can be tracked in real-time. In this way, logistics management distribution chain and operations can be monitored and in case of any blockage, it can be intervened in the right place immediately.
- E-logistics services provide cost savings by optimising commercial transport and inventory and storage systems.
- E-logistics services enable marketplace integrations, for example, meeting the need for warehousing in another city or country, according to extra needs that may arise.
- It provides a sustainable logistics business model by digitalising paper documentation in e-logistics services.
With all these benefits of e-logistics, it contributes greatly to your competitive advantage among your competitors in the sector with cost efficiency, customer service and sustainability advantages.
What should be considered when purchasing an e-commerce logistics service?
Correct management of e-commerce logistics processes is very effective for e-commerce businesses to stand out among their competitors in the long and short term. Choosing the right logistics service is crucial for customer satisfaction, costs and overall success. When you decide to get an e-commerce logistics service for your brand, it will be useful to consider whether the e-logistics company you will get service from covers the criteria we are listing below.
- Speed of delivery: Customers want their purchases to reach them as soon as possible. Therefore, the speed of the logistics service and the delivery time have great importance. It is important to get information about delivery time and speed before you agree with your e-logistics partner.
- Reliability: A reliable logistics provider delivers orders to customers undamaged, accurately and hosts delivery servers. Past performance, customer reviews and references give you information about the reliability of logistics companies.
- Tracking and traceability: It is important to be able to track orders in e-commerce logistics. Having a customer support capacity that provides step-by-step information to the customer about the sales process with tools such as tracking numbers is another service you should pay attention to -the company from which you will get e-commerce logistics service.
- Pricing and costs: The costs of logistics services have a significant impact on the profit margins of e-commerce businesses. By making a price comparison between logistics service providers, you can try to get quality and comprehensive service under your budget.
- Storage and stock management: The logistics provider’s range of warehousing and stock management helps to manage the product inventory effectively. Aspects such as the supply of products, their storing and quick response to customer requests should be taken into account.
- Shipping options: It helps you to offer options suitable for customer expectations of shipping types such as standard shipping, fast shipping and same-day shipping offered by logistics companies.
- International delivery possibility: If your e-commerce company makes international sales, the supplier logistics company must know about international shipping services and customer operations.
- Customer service: The logistics service provider should be able to facilitate customer service needs. A solution partner that offers a solution-oriented approach to uncovering misdeliveries, shipment products or other logistics problems should be preferred.
- Environmental sensitivity: Recently, sustainability and green logistics issues have gained more importance. You may prefer logistics service providers to have sensitive practices. For example, delivering the packaging to the customer with recyclable materials will help you get positive feedback from the customer about your company.
Each of these components is a process in itself and it is not easy for e-commerce companies and e-commerce logistics service providers who are not experts in this field to work together smoothly.
Choosing the right e-commerce logistics company will allow you to save time, reduce your costs and help you get a return as customer satisfaction.
In summary, when choosing an e-commerce logistics service, practical issues such as speed, tracking, traceability, affordable prices and inventory management, as well as long strategic factors such as customer service and alert sensitivity should be considered.
As fiCommerce, we are a leading company that provides logistics services in Turkey and abroad to brands that are engaged in e-commerce or will start new e-commerce operations. We have a technology-oriented approach to manage our customers’ e-commerce operations and delivering their products from our warehouses to the end consumer quickly and safely. We enable you to grow your e-commerce business with our technological infrastructure and experience.
Contact us so that we can provide maximum benefit to your business by managing all your e-commerce logistics processes with our expert teams.
