Running an online store isn’t easy. But you can build a successful business with hard work, dedication, and diskarte. The challenge to growing sales is if you’re not equipped to handle more orders, you could run into operational problems, such as wrong orders, longer fulfillment time, and unsatisfied customers.
Ecommerce logistics is one of the many growing pains for small business owners. To grow your business, here’s what you should know about ecommerce logistics and how to optimize this part of your operations.
What is ecommerce logistics?
E-commerce logistics covers all the steps needed to get customers’ orders delivered to them.
For many small online sellers who operate in their homes, this means collecting the items ordered, packaging them properly, working with a courier to deliver the package, and making sure the package arrives at the customer’s address at a reasonable time. And if the customer isn’t happy and wants to return the item, you have to give them a way to return the product.
Why is logistics important for growing businesses?
As your online business grows, it may not be practical or efficient to continue logistics on your own. More interested customers means you might not have time to handle the logistics for ecommerce while you manage your online store. This is where ecommerce best practices like outsourcing logistics become helpful.
Through outsourcing, you can grow your business with other services managing your inventory and shipping them out to your customers. Warehouses can store your goods, collect orders, package and ship them, and then deal with returns. It’s a logistical solution that frees up your time to focus on the other tasks of running your online store.
What tasks are under ecommerce logistics?
How does logistics work in ecommerce? The process involves several tasks that track the moment your customer orders a product right up to the time that product reaches their hands.
If the orders become too much for your online store to handle, you can outsource these tasks to grow your business without exhausting your resources:
1. Inventory management
Keep track of how many products you can sell. For example, if you have 10 dresses to sell, manage your online store so that only 10 dresses can be sold. If 11 people buy that dress, you’ve oversold your product. If this happens, you’ll have to choose between canceling someone’s order or delaying fulfillment until you can get more dresses in stock – both of which can lead to unhappy customers.
2. Warehousing and storage
Warehouses store your goods before they’re sold online. This step involves organizing items, managing space efficiently, and ensuring that goods are stored safely and securely.
3. Order fulfillment
Fulfillment covers the steps after a customer places an order: picking items from storage, packing, shipping, delivery, and managing returns and refunds. You’ll want to do this part of the logistical process as accurately and as fast as possible to ensure customer satisfaction.
What is the ecommerce logistics chain?
Your products go through a logistics chain before they can reach your customers. The chain varies between sellers and the type of ecommerce practices they use, but most will include the following points:
- Suppliers: You either source the product from your suppliers or you get raw materials from your suppliers and make the product yourself.
- Fulfillment centers: These are the warehouse centers where your inventory is kept and managed whenever a customer orders.
- Distribution hubs: Growing businesses need distribution centers to split their inventory between different warehouses. When an order is made, different warehouses ship to the distribution center, and the inventory is then packaged and shipped.
- Courier service: These carriers are responsible for getting the packages from the fulfillment centers and distribution hubs to the customers. Couriers have different coverage areas and offer multiple shipping methods, including local and international shipments.
Should you outsource your ecommerce logistics to 3PLs?
Outsourcing your ecommerce logistics to partners like third-party logistics providers (3PLs) offer several benefits. Instead of dealing with multiple partners for your logistics, 3PLs handle various aspects of the supply chain.
On top of simplifying your logistics, the logistics solution offers:
- Expertise: 3PLs specialize in tasks like warehousing, inventory management, order fulfillment, and shipping. Work with experienced partners who can streamline your logistics and improve efficiency.
- Scalability: As your business grows, you may experience increased demand, especially during sales and holiday seasons, that make it difficult to fulfill orders on your own. 3PLs allow you to quickly scale up or down your logistics operations to accommodate changes in order volume.
- Cost savings: 3PLs have existing infrastructure, technology, and transportation solutions. For many small business owners, it’s more cost-effective to pay a 3PL for these facilities than to hire and invest yourself.
- Focus on core business: Managing logistics can be time-consuming, taking focus away from other tasks like product development, marketing, and customer service. Working with a 3PL allows you to focus on growing your business and serving your customers better.
- Better customer experience: Timely and accurate order fulfillment leads to a positive customer experience. 3PLs can help businesses meet customer expectations by providing fast shipping, accurate order tracking, and streamlined returns.
Get reliable ecommerce logistics solutions with Ninja Van
Ecommerce logistics plays an important role for small online businesses that want to grow. By working with experienced and reliable partners, you can reduce the tasks on your hands and pay more attention to other tasks that improve your business.
Ninja Van offers cost-effective fulfillment and warehousing solutions that improve your business operations. Our speedy process ensures your customers’ packages are shipped as soon as possible, giving you and your customers a reliable experience.
Contact us today at 09177161495 or ph-niu-fulfillment@ninjavan.co for seamless, streamlined logistics solutions.
More helpful tips for your business logistics:
Why You Need To A One-Stop Logistics Solution
Top Benefits of Warehouse Automation
Ecommerce Trends that Have Changed Logistics
