E-commerce Logistics has evolved into a highly specialized business, with the majority of it being controlled by eCommerce companies themselves.
Managing logistics is the most difficult task for any eCommerce company, especially in a large country like India. With the improvements in eCommerce, the logistics business is also experiencing innovation and integrating technological support to meet such high expectations.
Online buyers can now track their orders from the time they are dispatched from the factory or warehouse until they arrive at the consignee’s address. During weather disruptions such as the rainy season or when large areas are flooded and many bridges are damaged, the task of delivering supplies becomes much more difficult.
Overview of E-commerce Logistics
Customers and businesses alike have frequently wondered how Ecommerce logistics works, given the phenomenal expansion of social commerce and e-commerce enterprises. To develop their business and reach millions of clients, online firms in all genres require the continual assistance of Ecommerce logistics suppliers. With millions of customers opting to shop online, eCommerce businesses require more effective and efficient logistics solutions to handle increasing volumes.
Ecommerce logistics and courier businesses help online stores with shipping, packaging, and picking. They also provide a variety of different shipping services that might assist a company in expanding and reaching a wider audience. Understanding how end-to-end logistics work is the only way to truly optimize logistics operations. Ecommerce enterprises may choose the best logistics partners if they have a thorough understanding of the various phases of delivery.
Joining together with a dependable and trustworthy logistics partner is simply the first step. From the moment an order is placed until the customer receives it, each stage of the delivery process has its own set of complications and challenges. In fact, a shipment must pass through five significant milestones in order to fulfill and finish an order.
We’ll break down all of the phases involved in the shipping process in this article so you can get a better knowledge of what happens in eCommerce shipping and how Ecommerce logistics work. This understanding will aid eCommerce enterprises in comprehending how shipping costs are determined and determining which services are more critical to their operations.
What is e-commerce logistics?
The activities involved in keeping and shipping inventory for an online store or marketplace, including inventory management and the picking, packaging, and shipping of online orders, are referred to as e-commerce logistics.
With millions of shipments being shipped across the country every day, it’s critical that procedures are in place to keep them on track and ensure that they get at their destinations on time.
Ecommerce logistics begins with the movement of merchandise from the manufacturer and continues until it reaches the final destination of the end customer. One of the most important aspects of e-commerce logistics is digital fulfillment, which includes:
- Inventory management
- Warehousing and storage
- Order fulfillment, or the picking, packing, and shipping orders
Each of these components is a world of its own in terms of intricacy, and keeping them all working together seamlessly is no easy chore.
Businesses must guarantee that sufficient stock levels are maintained in a distribution center near the customer’s location. If they outsource fulfillment, their 3PL must be dependable and capable of keeping up with demand, even during peak and holiday seasons.
Any breakdown in communication or execution in your retail supply chain might harm the customer experience.
The modern logistics chain: 5 factors from cart to a customer
Suppliers or manufacturers are those who have inventory ready to ship to a business destination. Once a purchase order is placed, they create the products and ship them to fulfillment or logistics facilities.
2. Fulfillment centers
Fulfillment centers are huge warehouses that store products close to the end-user, allowing each order to be chosen, packed, and dispatched as soon as it is placed, ensuring quick delivery. A fulfillment center can be owned or leased by an e-commerce company, or by a third-party logistics service provider (3PL), a professional retail fulfillment organization that works with a variety of brands.
3. Distribution hubs
Large e-commerce retailers have their products in multiple locations throughout the US or the world for both direct-to-consumer (DTC) and B2Borders. Rather than holding all of your inventory in one place, which can result in longer delivery times and higher shipping costs, dividing inventory allows DTC orders to be shipped more quickly.
4. Sorting facilities
Facilities that sort items are usually for large-scale e-commerce shops that are moving bulk quantities.
Shipping companies are in charge of getting goods to their final destination. FedEx, UPS, USPS, and DHL are common US carriers that distribute packages by truck and plane.