5 Things You Need to Know in an E-Commerce Logistics Business

Your e-commerce startup has grown from an idea into a full-fledged company with real customers and real revenue. However, your success could lead to your downfall if you’re spending too much on logistics or not shipping products the way customers expect.

This why logistics is the livewire of any e-commerce business.

The more ineffective your logistics chain, the more complaints you get from customers and with so many eCommerce companies now available in Nigeria, they won’t return due to their not very palatable experience. So, as an entrepreneur or business owner, you should know these things as it relates to logistics.

Plan ahead

Retailers typically base their inventory forecasts on historical data. So how do you know how much inventory you’ll need? There are a few techniques to use until you build your own sales history. First, monitor site traffic and social sharing. If your social media efforts start to pay off, demand could spike, and you’ll want to be ready. Look at seasonal trends such as changes in the weather and holiday-driven purchases.

Free shipping

The thought of no-cost shipping spurs many online purchases, but of course, the shipping is only free to the consumer. The shipper must be as disciplined as possible to reduce cost while providing the service customers expect. Your customers now expect two to three days for delivery, but don’t want to pay for it. Marketing techniques like minimum order sizes or promotional offers can help drive orders with free-shipping offers. Discipline in your supply chain can reduce costs to make free shipping a competitive advantage rather than a financial drain.

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Last mile delivery

Certain consumers may judge their entire interaction with your company based on the delivery experience. A sustainable last-mile strategy must satisfy consumer expectations while balancing costs requirements.

Managing returns

Managing returns may be the most challenging aspect for e-commerce sellers. To handle returns properly, a retailer should consider a return as a reverse purchase with all the same care and oversight that goes into managing the original purchase. Your return policies help incentive buyers who can purchase with confidence that they won’t be stuck with products that don’t suit their needs. However, your enterprise must have a clear understanding of the costs and logistics implications to those returns.

Decentralised Warehousing

The latest trend in e-commerce is moving the product closer to the customer. Rather than fulfilling orders from a few regional million-square-foot distribution centres, companies are using smaller facilities closer to population centres. The smaller facilities are more responsive to customer orders and can reduce delivery times. 

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