Why is logistics important in the world of e-commerce?
When entering the world of e-commerce, there are many factors to consider. Finding or designing a product, establishing a marketing strategy, planning a budget: the concerns are numerous.
With the mind occupied by these different aspects, many people starting their online business tend to overlook the logistics aspect. This is a common mistake, but one that can have significant consequences. Let’s explore together why logistics is essential for any e-commerce project:
The different aspects of e-commerce logistics
Behind the term logistics are many elements, each of which is important. To successfully carry out your project, you will need to focus on each of them:
The warehouse
Before reaching your customers, your products need to be stored in a warehouse. And if you decide to have your own warehouse, you must ensure that a number of criteria are met. Of course, there is the workforce: you will need qualified personnel to organize your products and prepare orders. But you will also need equipment. Boxes, pallets, shelving, these essential elements of any e-commerce warehouse must be of quality to avoid any incident. Quality metal shelving will, for example, prevent problems and allow you to optimize your space. At Ractem, you can find metal shelving that supports heavy loads and is fully modular, optimizing warehouse work.
Shipping
With your products stored and orders prepared, it remains to deliver the customer’s basket to their home. To do this, you will have a choice of a wide range of delivery services. Your choice should be suited to the type of merchandise you’re delivering and the volume of your orders. However, some criteria should always be respected. For instance, the delivery solution should be compatible with your online store’s CMS, and customers should be able to track their package delivery at any time.
Inventory management
Inventory management is one of the most complex parameters of e-commerce logistics. If you have too much stock, your products will not sell, and you will lose money. Conversely, if your stock is not sufficient, you might not be able to deliver to your customers on time. There are many methods to adopt depending on your store’s profile. Use all the data produced by your customers to adapt your strategy and manage your inventory optimally.
Why does good logistics ensure the success of an e-commerce store?
It is important to focus on logistics when entering e-commerce because this aspect is directly linked to the success of an online store. Conversely, for many reasons, poor logistics guarantee you will not meet your goals.
Good logistics improve customer satisfaction
The main reason why e-commerce logistics is a crucial element is customer satisfaction. Internet users have a choice of thousands of shops: at the slightest error, they will not hesitate to go to the competition. Delays in delivery, damaged or ordered but unavailable products can tarnish the reputation of an e-commerce business for a long time. Conversely, if your customers do not encounter any problems, they will enjoy ordering from you again.
Poor logistics will make you lose money
Similarly, poor logistics will have dramatic consequences on your online store’s finances. Beyond customer satisfaction, too much stock will generate many unsold items, defective products will lead to incessant returns, and a poorly organized warehouse will require much more manpower. When combined, these issues can be decisive for the viability of an online business.
Well-established logistics allow you to offer competitive prices
Good logistics will help you save money and, in turn, offer aggressive prices. What made Amazon’s global success is above all the precision and efficiency of its logistics. By optimizing storage and shipping costs, reducing the necessary workforce to a minimum, and choosing the most optimized delivery solutions, it’s possible to significantly reduce the selling price of your products. In other words, if you do not refine your e-commerce logistics, it is useless to hope to compete with the market leaders. That’s why logistics must be at the top of your priorities: your products may be good, but if they’re sold cheaper elsewhere, customers won’t hesitate for a second.
As you have understood, logistics is the cornerstone of any e-commerce project. While the elements that make it up may seem complex at first, it’s easy to discern the various mistakes not to make. Thanks to reading this article, you already have a solid foundation of knowledge!
