The Importance and Distinction of E-commerce Logistics
Logistics is undoubtedly the most crucial component of the operational side of e-commerce. Leading global marketplaces have long recognized this and have made significant investments in logistics, continually improving in this area. To meet the increasing demand for orders, a strong logistics infrastructure is essential. Ensuring the correct product is shipped, packaged well, and delivered on time positively impacts customer satisfaction. However, attention must also be given to critical points at the start of the operation. E-commerce logistics, compared to other logistics operations, involves much more value-added services and has unique steps from start to finish.
Like other logistics operations, the e-commerce logistics process begins with goods receipt. Products sent in boxes, pallets, etc., from the manufacturer or seller are individually scanned and inspected before being added to inventory. While standard external box checks are performed during goods receipt, value-added services like visual inspection can also be provided. For instance, if you are a shoe seller, you may request specific checks such as “Are there two shoes of the same size in the box, or are they different?” Following the goods receipt process, the next step is stocking, which we will focus on today.
Why is Stocking According to Product Category Important?
Unlike in-store shopping, your customers do not have the opportunity to physically interact with your products. If the product they view through your sales channel does not meet their expectations, customer satisfaction will be negatively affected. Preserving your products in good condition until they are purchased by your customers helps maintain their shelf life and quality. For example, if products that need to be hung are stacked, wrinkles will increase while they remain in storage. Similarly, if flammable or explosive products are not stored in a designated area but rather in a common space, unwanted consequences may occur. Anticipating such potential damages is essential, which is why it is critical for your logistics partner to provide proper storage conditions.
How Should Product Categories Be Stored?
Let’s begin by defining storage types, followed by examples of suitable product categories for each type.
Mezzanine Rack Storage: Mezzanine rack systems allow for the most efficient use of a warehouse’s vertical space. Additional levels are created using rack supports, with the number of levels determined by the warehouse’s height. The width of the racks is calculated, and appropriately sized boxes are used to make the most of the space. Some products may not require boxes, depending on factors such as their dimensions or whether they already have packaging. To prevent the loss of small products and improve operational efficiency, these items are typically stored in boxes.
Product categories suitable for mezzanine rack storage include bulk items (lipsticks, pens, decorative items, etc.), textiles that require folded storage, sports products (e.g., yoga mats, dumbbells), home decor items (both large and small).
Hanging Storage: Hanging storage is an essential storage method for brands in the textile category. Items such as evening dresses, maxi dresses, ready-to-wear garments with special or delicate fabrics, and overcoats are not suitable for folded storage. To ensure these products maintain their quality during their time in stock, hanging storage is required.
In hanging storage, products are not stored on shelves but in a dedicated area designed specifically for hanging items. Space utilization is critical for logistics companies as they often manage multiple operations in a single location. To prevent hanging storage products from being affected by other operations in the warehouse (e.g., dust accumulation, discoloration due to light or heat), protective covers, bags, or packaging must be used.
Temperature-Controlled Rooms: Logistics companies must optimize the working conditions for their warehouse staff. One aspect of this optimization is increasing the temperature in work areas during changing weather conditions. However, some product categories are unsuitable for storage under these temperature conditions due to their chemical composition.
Examples of products requiring temperature-controlled rooms include supplements, medtech (medical technology products), contact lenses, and vitamins. Certain food categories, such as chocolate and canned goods, also fall under this requirement since their content and quality can be affected by temperature fluctuations. These products are stored in rooms with specific temperature conditions to ensure their quality is preserved.
Flammable Storage Rooms: Some products are inherently more hazardous than others in the event of a fire. Flammable storage rooms are suitable for storing such products, and logistics regulations set a 5,000-liter limit for these areas. If the stock exceeds this limit, for example, reaching 5,005 liters, additional investments in flammable storage cabinets are necessary. These areas are specially rated for flammable product groups, isolated within the warehouse, and equipped with specialized fire suppression systems to handle any fire, explosion, or similar emergencies.
Perfumes and deodorants in the cosmetics category should be stored in flammable storage rooms. Similarly, gasoline, mineral oils, pressurized items, and any products containing flammable substances in their formula must also be stored in such rooms.
Split Storage: We previously mentioned the importance of efficient space utilization in warehouses. Certain product groups may require separate storage. Large-volume product categories, in particular, are kept in palletized storage areas.
For example, if you are selling air conditioners through your e-commerce platform, their storage in the warehouse will require split storage. The main product, such as the air conditioner, and its spare parts, such as hoses, are stored separately.
We Are Here to Meet Your E-commerce Logistics Needs!
At fiCommerce, we manage all your e-commerce logistics processes end-to-end, from storage to order fulfillment, with high-quality services. Through our value-added services, we not only meet your brand’s needs but also enhance customer satisfaction. For detailed information, feel free to contact us. Our expert team is ready to answer your questions and assist you.