E-Commerce Businesses Can Improve Their Logistics

Logistics technologies have an enormous potential to improve the e-commerce sector.
E-Commerce Businesses Can Improve Their Logistics
Image credit: Shutterstock

Franchise Your Business

Schedule a FREE one-on-one session with one of our Franchise Advisors today and we’ll help you start building your franchise organization.
Founder, Zurova.com
3 min read
Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

There is no denying that logistics play an important role in the success of any e-commerce business. Logistics technologies have an enormous potential to improve the e-commerce sector. In order to find an edge in a progressively crowded e-marketplace and to satisfy today’s tech-savvy customers with exceptional service and prompt delivery, e-commerce companies are going logistic way.

E -commerce firms are going logistic way

The role of logistics will continue to hold a considerable wave in this sector,  because the success of an e-commerce business is defined by how well they serve and retain their consumers, which is the major function of logistics.

In a business sense, logistics is the management of the flow of things (physical items) between ‘the point of origin’ and ‘the point of consumption’ in order to meet customer’s requirements.

Logistics include many aspects like product handling, production, packaging, billing, labeling, inventory management, warehousing, transportation, cash on delivery, payment, product return & exchange, and many more things. But the key role of logistics is to provide timely and efficient delivery of goods or products. When a customer is satisfied, they do frequent purchasing and become a regular customer and also earns e-commerce companies more customers for future purchasing.

The logistics firms also take help from special enterprise mobility softwares to manage certain logistics related issues. These softwares take care of the tracking issues, deal with location problems, manage stock level concerns along with packaging and fulfilment troubles as well. Professional logistics services are responsible for faster delivery and growth for the company, that is why renowned e-commerce companies often prefer professional logistics services.

Earlier, retailers used to source goods directly from suppliers and manufacturers. But now the scenario has changed, there are numerous e-commerce distribution firms who distribute products. 

To avail logistics services, e-commerce companies choose third-party logistics providers. But again to avoid any chaos from third party logistics supplier, some established e-tailers are also going forward to create their own logistics carriers. The benefit of forming an own logistics firm is that it can ensure speed, accuracy, minimize product damages and save a lot of money. However, it becomes difficult to manage in-house logistics that is why e-commerce companies turn to third-party providers to handle orders, inventory, shipping and returns.

To lessen product damages, good logistics providers use good packing materials and give ‘handle with care’ tags for delicate products.

Nowadays, some popular e-commerce companies are planning to come up with their own logistic delivery service to cater all the cities of their network.

Why are logistics so important for an e-commerce firm?

Let’s take an example, the person who delivers products to the customer is the face of that e-commerce company for that customer. Because he is the one who is responsible for timely product delivery, communicates with the customer, and build a rapport with the customer.

So it becomes important for an e-commerce company to keep track of the delivery staff. And for this, e-commerce companies partner with professional logistics firms and delivery networks who are serious in their work approach.

There are numerous e-commerce portals, who provide same-day delivery to woo customers who don’t wait for next-day delivery and crave express delivery.

This is one of the reasons why logistics can be a game changer in e-commerce. If online marketplace really wants to double their revenue and boost their clientele, they sooner or later have to hold themselves with top-notch logistics solutions.

Latest on Entrepreneur