An e-commerce trader needs to set up effective logistics, enabling it to limit costs and guarantee customer satisfaction.
Logistics are a key element of an online store’s success. The delivery department is the only physical intermediary between the seller and its customer. Consequently, its quality (meeting deadlines, prices, reliability, stock availability and after-sales service) has a significant impact on buyer satisfaction and loyalty.
Customer requirements
Customers appreciate the possibility of choosing between different delivery methods according to a price scale. They also like being informed about:
- Stock availability
- Returns policy
- Delivery times and any changes
- Confirmation of delivery date
- Step-by-step order tracking
Delivery time is a major factor in distinguishing yourself from your competition.
Efficient management of logistics
Logistics management can quickly prove complex when the volume of sales increases. This does not just mean packing and sending products. The trader also needs to anticipate demand, procure supplies from suppliers and manage receipt of orders, stock, any returns, transportation, customs formalities and the traceability of items sent.
Here are some tips for optimum logistics management:
- Remain transparent and responsive in terms of customer requests.
- Update the physically available stock in real-time on the website. If stock runs out, inform the customer about when the item will be back in stock or offer another product instead.
- Optimize stock layout: frequently dispatched products should be the easiest to reach.
- Choose the packaging size to reduce delivery costs. Professional in appearance, packaging must protect the product during transportation.
- If consignment volumes are high, look into the possibility of automating the warehouse in order to reduce costs.
Outsourcing logistics
Many specialist companies offer a comprehensive logistics service for e-commerce companies. They receive orders directly from the website, store products, manage stock and handle shipments and returns. The trader can then focus on its selling activity.
