The emerging online retail stores, Amazon, Myntra, Flipkart and many others come under e-commerce industry. E-commerce stands for electronic commerce, which involves the commercial transactions across the internet. In this digital era, everything is summing up with the latest technologies. The main definition of an e-commerce industry is that they display their products and they sell it for transactions that are made through online payments or cash on delivery. But the main role is played by ecommerce logistics in any online store. Ecommerce logistics has to take care of each and everything while keeping customer satisfaction as their first priority. And now the customers’ expectations are increasing day by day regarding the delivery aspects. Here’s all that you need to know about ecommerce logistics or ecommerce shipping India.
The conversions will suffer more if your logistics is not set up in the best possible way. Ecommerce logistics spends all their money on different aspects like packing, storage, shipping, order picking and the returns. According to a research, it has been found that the online retailer spends about 40% of their total turnover in the logistics. Customers nowadays are jumping to new online stores if they find high shipping charges in your online store.
Let’s take a look at the e-commerce logistics options in an online store. There are several ways in which one can set-up their ecommerce logistics like e-fulfilment, dropshipping, using your own logistics system, using an automated logistics system or entering a contract with a carrier.
When it comes to online store, another form of outsourcing is fulfilment or e-fulfilment. E -fulfilment here means the whole process, which is done under any online store starting from storing, processing to shipping the product to customers, including any return comes under it. The best expertise with the latest technology and better-quality control to optimise the logistics comes under e-fulfilment companies. The plus point is that the products used in e-fulfilment are owned by the online retailer itself.
Here comes dropshipping, with a number of advantages. The first one is that the ecommerce logistics don’t have to own inventory or buy products, which in turn will let you not to rent a warehouse. Dropshipping works by following the simple steps as follows.
- Ordering products from websit
- Order processing
- Drop-shipper receives the order
- Order is shipped and then the customers receives the order
All the costs related to inventory management are taken care by the supplier.
Using Your Own E-Commerce Logistics System
Doing your own ecommerce logistics is preferred by many companies, when it comes to controlling the loss and customer contact. And of course, it will significantly come out with a higher profit margin. Doesn’t it sound good “doing your own logistics”? But it is quite difficult to handle as you have to do a lot of work starting from the processing of the orders to delivering it to the customers along with the returns.