Overview of eCommerce Logistics
The eCommerce industry is built on the foundation of logistics. The logistics sector is responsible for the existence and functioning of online sellers. The lack of in-store experiences in the online commerce industry prevents customers from examining their desired products first-hand, however, eCommerce makes up for it through seamless logistics and doorstep convenience.
The online shopping experience requires a lot of effort and resources to compete with traditional shopping experiences. This need is fulfilled through the help of the logistics industry which helps businesses store, pack and move products to help reach customers in the comfort of their homes. In this article, we discuss what eCommerce logistics is and how it applies to the eCommerce industry.
Logistics services used by eCommerce businesses
The logistics industry is an umbrella term used to describe a wide range of services provided by companies to move a product from one place to another. It is the logistics industry that is responsible for connecting the modern, and now it is an asset to the eCommerce industry enabling businesses to reach customers wherever they are present.
Let us now discuss what are some of the logistics services an eCommerce company uses:
1. Shipping
The primary requirement of the eCommerce industry from logistics companies is shipping services. This allows businesses to move their products from their source or manufacturing facility to a central location where they can be stored. From the storage facility, products can be sent to smaller units that are placed strategically.
Once the products are placed in the storage facility, the products can be processed, packed and dispatched as per the requirement of the eCommerce platform.
2. Warehousing and inventory
Warehousing services provided by the logistics industry enable online sellers to operate without the requirement of any physical presence. The products that an eCommerce platform sells can be stored and sorted in the warehouse facility. Through advanced inventory management software, the levels of stock and analytics on requirements of a particular product can also be examined without needing to visit a storage facility.
Through warehouses, businesses can pack their orders and dispatch them with the help of the ideal delivery partner who can then deliver those items to the end consumer through the use of last-mile delivery agents.
3. Allocation and processing
When a product is sitting in the warehouse, it can easily be sorted and placed strategically within the facility for maximum efficiency. Whenever an order is received by the eCommerce platform, it is routed to the warehouse where the item is identified and packed. From then on, the product can be processed and labelled within the facility.
Once an order has been, the item can be allocated to the delivery partner that is ideal for a particular type of item, or specific geography or other factors.
4. Reverse logistics
The eCommerce industry cannot replace the experience of customers getting the touch and feel of a product before they make a purchase. Therefore, online sellers offer returns to customers to allow them to return or exchange their product if they feel that the product is not up to the mark or damaged in any way. However, the returns process is complicated and requires the expertise of logistics professionals.
When eCommerce companies receive return requests from customers, they send that information to their logistics partner who then moves it to their agent. The agent receives the product from the doorstep of the customer and takes it back to the nearest hub, from where the product begins its journey back to the original storage facility.
Why do eCommerce companies need logistics partners
Since eCommerce companies do not have brick and mortar stores, logistics partners play an important role in ensuring that they are able to reach customers. Online sellers need to substitute the online selling experience through logistics services, which allow them to move the product to the customer and back from the customer if needed.
Final thoughts
The logistics industry has proved critical to the existence of the eCommerce sector. Companies from both domains have proved to be successful in recent years owing to the advent of an internet boom. The eCommerce industry simply cannot survive without logistics companies, and therefore must conduct thorough research before choosing the ideal partner for their business.
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