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Improving Logistics for Ecommerce Businesses

Since the inception of ecommerce businesses, the amount of online shopping that takes place has only increased, and it doesn’t seem like this will be changing soon. So, finding the right company to handle your ecommerce logistics is a must if you’re looking to keep up with the competition. 

Organizing the receiving, storage and distribution process of your marketplace’s products doesn’t have to be a hassle anymore. Stay focused on what your business needs most and learn how to find the best company for ecommerce logistics services today. 

What Is Ecommerce Logistics?

Ecommerce logistics is the process of inventory being stored and shipped from an ecommerce marketplace to the customer. The inventory is generally stored by a 3PL, otherwise known as a third-party logistics company. 

The inventory is stored and then shipped by the 3PL to the customer when orders are placed. These logistics will include inventory management, storage, picking, packing and shipping of all online orders placed with the ecommerce business. 

How Do You Excel at Ecommerce Logistics?

Excelling at ecommerce logistics may require you to have and rely on certain technology that works best for your business. Supply chain efficiency is a critical piece to analyze. 

This is because consumers want to receive their product as quickly as possible, and any hang ups along the way will only slow down the process. Additionally, these can increase the costs your business has to pay, which can then lead to an inefficient supply chain, thereby decreasing your sales and your profits. 

Incorporating technology is a must with ecommerce logistics. Whether you need to track your process and see where improvements can be made, cut costs, reduce picking, manage other errors, increase customer service or conduct any other process-related changes, technology is key. 

Ultimately, technology is a simple and effective way to ensure that you are operating your business in the most efficient and effective way possible. That way, you can then excel at the art of ecommerce logistics

Components of Ecommerce Logistics in Supply Chains

Keep reading to learn about some of the most important components of ecommerce in terms of supply chains. 

Inventory Management

Inventory management is the process of managing the inventory or stored products of a business. This is a key piece of the supply chain because without it, you won’t know what inventory you have in stock at any given time. 

Properly managed inventory will allow you to ensure that you have the products that you need when you need them. If you have too few products on hand, you’ll run out of stock, while having too much stock means you’ll end up wasting money unnecessarily. 

Inventory management will include the ordering, stocking, storing and restocking of inventory. It also entails adjusting order frequencies, order quantity and inventory forecasting as necessary. 

Warehousing

Warehousing involves storing products or inventory in warehouses or storage facilities while they await being sold and then distributed. The warehouses will securely store your inventory in an organized manner, making it easy for you to track them. 

You should be able to track your inventory’s location, arrival time, storage time, quantity and so much more. Without proper warehouse management services, it is close to impossible to run an effective supply chain and ensure your customers receive their products shortly after ordering them. 

Order Fulfillment

Order picking, packing and shipping are all parts of the order fulfillment process. While it may seem like a simple process, a lot more goes into it than the average person may realize. 

Once an order has been placed, a warehouse worker will receive a packing slip. This will ensure they know what products they need to pick up from their warehouse and put together as part of each specific order. 

The products they pick will then be moved onto the packing process. Some pickers may be the same ones packing the products, while others might pick products and then forward them onto the packers in a different part of the warehouse. 

Either way, the products will be securely packed and sealed with a shipping label so that they are sent to the proper address. The type of packing materials that are needed will vary between ecommerce businesses and the 3PLs they work with. 

Once they have the designated shipping label, they are generally moved to a loading dock for distribution, at which point they will be prepared for shipment to the customer. Working with some of the best 3PL companies will make sure your shipping times are rapid. 

Returns & Reverse Logistics 

Reverse logistics involves the return of products from the customer back to the manufacturer. With so many purchases being placed online, it’s no surprise that an effective returns process is critical for a successful supply chain. 

For your reverse logistics to run smoothly, you will need to ensure that the product can be verified and inspected or tested, if necessary, once returned. Some products may need to be repackaged when they are returned before they can be counted as inventory or returned to the vendor. 

Alternatively, defective products might have to be discarded entirely upon being returned. With so many variables involved in the returns process, it’s imperative to have effective returns and reverse logistics processes in place. 

Find a Good Middleman for Faster Shipping

Consumers want their products as soon as possible after they order them. Any lag time that your company experiences can result in a decrease in sales in the future. The faster your order fulfillment process is, the more likely you are to see an increase in sales. 

But speed isn’t the only important detail. It is also necessary for your process to be void of errors as well. This is why partnering with the right 3PL company is not only smart but it’s also necessary when it comes to handling your company’s ecommerce logistics processes. 

Ecommerce businesses have an incredible number of moving parts, so with the right 3PL company, your logistics should only help you increase sales and profits. The best 3PL companies will be able to handle your inventory management without hassle, too. 

Incorporating Technology To Increase Your Sales and Profits

When you’re running an ecommerce business, the logistics can easily become overwhelming. This is why utilizing a 3PL company can help you increase your sales and, in turn, your profits. 

Ecommerce logistics is what these companies do best, and the most experienced logistics companies can help you run an effective business. It all starts with having an efficient supply chain management process in place. 

Streamlining your operations is easy when you have proper ecommerce logistics in place. Don’t waste your time and resources by going it alone. Turn to a company that can help you instead.   

FAQ

What Is a 3PL Ecommerce?

3PLs provide the services that ecommerce businesses require to manage their supply chains.

What Is the Difference Between Ecommerce and Logistics?

Ecommerce businesses are essentially online shopping options and marketplaces. Also, ecommerce logistics involves the process that ecommerce businesses will utilize to store and ship inventory and products to their customers.

 Is Logistics Part of Ecommerce?

With ecommerce businesses, the logistics are often referred to as elogistics. Elogistics are necessary to get products from ecommerce businesses to their customers.

One-Click Logistics

Save time and money on freight and shipping with FreightPOP - the smartest TMS for manufacturers, distributors, retailers, and 3PLs.

One-Click Logistics

Save time and money on freight and shipping with FreightPOP - the smartest TMS for manufacturers, distributors, retailers, and 3PLs.