Understanding the Basics of Logistics for e-commerce

E-Commerce is expected to become the largest retail channel in the world by 2021 and 10 percent of retail sales in Africa could be transacted online by 2025. Many brands are turning their brick and mortar shops into direct-to-consumer e-commerce businesses. While some brands can adapt much easier than others, other industries and brands may find a few obstacles in the shift from traditional business practices to the now more digital and fast-paced practices of e-commerce.

When it comes to e-commerce, managing logistics is essential to thriving. With some businesses, the demands become so strenuous that outsourcing logistics to a third-party may be required.

What is logistics? Logistics is the managing, planning, controlling, moving, and shipping of goods and services from one place to another.

Consider the following e-commerce logistics as you prepare to take your company to the next level.

👀 Visibility

The bigger your business grows, the greater the demand becomes on your services and goods. Something to consider with your e-commerce brand is visibility. This means ensuring proper inventory and visibility of your goods. It is important that what you have is visible to the public and your consumers, not to mention easy to find. Having your services and goods visible means that potential customers can see what you have to offer.

Sometimes ensuring your brand is visible may require enlisting the help of a company to manage your internal and external data of goods and services. Don’t miss opportunities to grow or profit due to a lack of visibility.

📦 Supply and Demand

Brands that have established a shopper’s base have had the time to understand the trends of their consumers. This means that they are able to ensure their inventory is not only sufficient enough to meet their shopper’s demands but that they can stock accordingly. For newer brands, it can be hard to know how much of a product to have available when there is no data to build on.

One way of ensuring enough supply for the demand is to monitor online traffic, trends, and traction. Are certain goods gaining more traffic and traction? Is there a trend that is creating increased interest? These are questions and considerations that can determine the number of goods to have in stock.

🚚 Last Mile

Boxconn offers tech-driven last-mile delivery services that enable brands to provide customers the ultimate post purchase experience. For e-commerce brands, the last mile is even more important. As a shopper, not only is navigating a brand’s website important but the actual receiving of the goods and services also becomes just as important.

🤝🏼 Partnering with 3PLs

To provide outstanding last-mile delivery services most brands use third-party logistics partners (3PL). Outsourcing enables brands to not only meet demands, but ensures the fastest delivery of goods and services. Brands that cannot meet a minimum delivery window are not likely to thrive. Partnering with tech-driven and current 3PLs allows brands to meet the new market standard with same-day and next-day delivery as well as reverse logistics.

🏠 Decentralized Warehouses

A major trend with brands pursuing e-commerce is they are moving goods and services closer to their consumers. Achieving this means decentralizing their million-dollar warehouses and establishing smaller facilities that can speedily fulfill orders.

Decentralized warehouses mean that 3PL companies such as Boxconn can provide faster and accurate delivery of goods and services. Being just a few blocks away from customers, also means that they can fulfill on-demand dropoff returns and exchanges. Offering reliable and speedy last-mile service allows for a brands to build rapport and positive customer experience, resulting in return business.

💭 Conclusion

Having a proper e-commerce logistic business plan means reaching your consumers faster but also much more efficiently. Deliver goods and services either same-day or next-day with a good e-commerce logistics plan. Partnering with a 3PL to achieve your e-commerce needs is a step towards reaching new consumers, as well as growing your business. Remember, being a success in e-commerce means evaluating and establishing a proper warehousing network, transporting services and goods efficiently, and accurately maintaining inventory tracking and management. Without fully looking at these three elements, success in a digital and e-commerce world becomes an uphill battle.

If you want to know how Boxconn can help you with your e-commerce logistics, contact us today!