Logistics Guide for ecommerce: Reduce costs and increase customer satisfaction

Discover how to reduce costs and increase customer satisfaction in your ecommerce business with our Logistics Guide. In this article, we will explore proven strategies to optimize your logistics operations and improve efficiency at every stage of the process, from inventory management to final delivery. Get practical tips and innovative solutions to meet the logistical challenges of e-commerce and deliver an exceptional experience to your customers. Join us on this journey towards logistical success in ecommerce!

In the increasingly digitized world of ecommerce, logistics plays a fundamental role in the success of any business. Efficient logistics management is crucial to ensure a smooth and satisfying shopping experience for customers. From order processing and inventory management to on-time delivery, well-structured logistics allows you to reduce operational costs, minimize delivery times and maintain high levels of customer satisfaction. Efficient logistics also translates into increased competitiveness in an ever-changing marketplace.

Logistics management in an online store encompasses several implications that directly impact the success and profitability of the business. From product warehousing to final delivery, each stage of the logistics process requires strategic and efficient planning. Effective logistics management involves proper stock management, supplier coordination, optimized packaging and labeling processes, appropriate choice of carriers, real-time shipment tracking and exceptional customer service. Well-executed ecommerce logistics not only ensures on-time delivery of products, but also helps minimize operational costs, reduce errors and returns, improve customer satisfaction and build a solid reputation in the digital marketplace. Ultimately, efficient logistics management becomes a differentiating factor and a competitive advantage for online stores in an increasingly demanding and competitive environment.

Looking for a comprehensive solution to manage your ecommerce logistics? You’ve come to the right place! Here you can find the ultimate logistics guide, packed with knowledge and practical tips. We invite you to discover all the secrets of efficient logistics management, from inventory management to final delivery. And best of all, you can access the complete guide for free by downloading our exclusive PDF. Don’t miss this opportunity to optimize your processes, reduce costs and take your business to the next level – download now and glide your way to logistics success.

In warehouses, space is money, so how to densify fulfillment processes needs to be studied. This could happen with narrower aisles and AGVs, although it is worth studying whether individual picking is better with this high-investment method.

Another key consideration is to use the same warehouse to fulfill both ”external” orders to stores and individual consumers. This requires appropriate software to manage the dual flow efficiently and transparently. Through this software, the supplier could also advise on which products move faster or slower, where special offers can be made, or, for example, whether a best-before date is to be applied to certain foods.

Drop shipping, where the supplier delivers directly to the customer, offers the advantage of no warehouse occupancy. For heavy, bulky items that do not move quickly, such as a pool table or garden swings, it can be a viable idea. But, it can also mean that a single basket is split into multiple deliveries from multiple sources, resulting in different delivery dates for the customer, and incidentally, a larger carbon footprint. By outsourcing this delivery, you don’t have as much control over the process, nor over your own brand image.

Responsiveness and agility are key differentiators for online customers. and it also means faster fulfillment and delivery. This means squaring the circle between costs, carbon footprint and resources. Fulfillment processes need to be set up so that they can be done at the latest time of day, so that customers can place their orders late, but still have the product delivered the next day.

In terms of delivery, although the industry is leaning toward 24- to 48-hour turnarounds, some standards are resisting this and prefer to devote their efforts to other priorities. “Companies that place sustainability among their key selling points will not necessarily seek to shorten delivery times, at all costs,” says Corinne Etienne, Key Account Manager at FM Logistic, and e-commerce specialist. “Today, many customers prefer environmental considerations and convenience over speed.”

The conventional wisdom is that charging separately for delivery will automatically scare the customer away. This may not be true: the customer is aware that he is paying for it, either in a margin, or on a separate line on the final invoice. In certain sectors – the wine industry, for example – it is common to charge delivery by the bottle, or by the case. Watch how others do it, but don’t expect it to be a key differentiator.

One of the most important aspects, however, is to offer free and convenient returns. Some brands have focused their core strategy for their sales on ”try it, return it” propositions. ”Free returns provide the customer with a security in their purchase, because this way they know that there will be no problem, if they change their mind. But also, it shows that you are confident enough in the quality of your product that you don’t expect it back,” explains Corinne.

Depending on the product category and the consumer’s standard, return rates can be extremely high. In some markets, figures approaching 30% have been observed, while in France, an average e-commerce brand can expect up to 9% returns. But since returns are expensive to manage, it is important to find a way to manage them at scale, to reduce unit costs. “The key objective is to get returned products back on sale, as quickly as possible, otherwise they have no value,” says Corinne. This involves streamlining returns and employing dedicated people to recondition items, to get them back in the box, before returning them to the shelves. This should be done in a specific area of your warehouse, rather than elsewhere, to reduce the time it takes to get packages back on the shelves.

The choice of logistics provider is a critical success factor for your move to direct selling (D2C). However, contrary to popular belief, it may not be with a 3PL specializing in e-commerce that you get the best logistics solutions. “Multi-customer, multi-industry centers offer the most agility when it comes to managing order fulfillment,” says Corinne. “If facilities handle both in-store deliveries (outers) and individual e-commerce orders, the seasonality of each channel is different, and resources can move seamlessly between the two.” This avoids the staffing issues often seen in the weeks leading up to Christmas in many e-commerce warehouses.

An experienced partner can also help devise a different proposition to what people might find in a store. “We have consultants who advise our clients on co-packing: doing product bundles that are unique and increase average spend; for example, why not include branded glasses and coasters with craft beer?” suggests Corinne. “A 3PL, such as FM Logistic, should be there to simplify the process of launching an online direct sales channel for these large consumer goods companies and take the burden off their shoulders. Ultimately, our goal is to show them that e-commerce is within everyone’s reach.”

An ecommerce logistics operator should offer you a wide range of services and solutions tailored to your business needs. From warehousing and inventory management to order picking and efficient delivery, a good logistics partner should ensure end-to-end supply chain management. In addition, it should provide advanced technology for real-time tracking of shipments, a sustainable transportation network and flexibility to adapt to peaks in demand. It must also offer exceptional customer service, with personalized attention and fast and efficient problem resolution.

This logistics option means that the retailer does not store the products it sells. Instead, the retailer takes orders from customers and passes them on to the supplier or manufacturer, who then ships the products directly to the end customer. Dropshipping is a convenient option for retailers who want to avoid costs and inventory management, as they do not have to worry about warehousing and shipping the products.

Fulfillment, also known as order management or fulfillment logistics, involves a third-party supplier taking care of warehousing, inventory management, packaging and shipping the products on behalf of the retailer. This fulfillment provider can be a specialized company or a marketplace. By using fulfillment, retailers can outsource logistics operations and focus on other areas of their business, while benefiting from the expertise and infrastructure of the fulfillment provider.

This option implies that the retailer is responsible for managing all logistics operations in-house. This includes product procurement, warehousing, inventory management, packing and shipping of orders. In-house logistics requires investment in infrastructure, personnel and technology, but provides greater control and flexibility over logistics operations.

Each e-commerce logistics option has its advantages and challenges, and the choice will depend on the needs and resources of each business. It is important to carefully evaluate each option to determine which is right for your business.

In today’s digital age, e-commerce has become a driving force for economic growth and consumer convenience. Behind every successful online store, there is a logistical framework that allows products to reach the customer’s hands in an efficient and timely manner. In this context, FM Logistic stands out as an industry leader, offering a wide range of warehousing and distribution services designed specifically to meet the needs of ecommerce. With its innovative approach and expertise in last-mile logistics, FM Logistic has become the ideal partner for ecommerce companies looking for sustainable and effective logistics solutions. From strategic warehousing to inventory management and expedited shipping, FM Logistic positions itself as a trusted logistics partner, enabling online retailers to deliver an unparalleled shopping experience to their customers.