Ecommerce logistics, occasionally known as elogistics, encompasses the procedures employed by ecommerce businesses to fulfill orders and deliver products to customers. When a customer makes an order online, those orders are picked, then packed, shipped, and delivered.
While specifics may vary among companies, the ecommerce logistics of an online merchant typically comprises multiple integral components.
What Makes Up The Ecommerce Logistics Supply Chain?
Ecommerce logistics entails a intricate series of steps, where each element relies on the others. Ecommerce brands must guarantee the seamless operation of each component to swiftly and efficiently deliver online orders to customers.
The ecommerce supply chain is a sequence of logistics processes, these will usually include the production of raw materials, manufacturing of finished goods, warehousing, inventory management, order fulfillment, and delivery. The end goal is to deliver the “right” product to your customers and give them the very best experience possible, every stage of the supply chain plays a role in operating a trusted brand.
Just in case you didn’t know, an ecommerce supply chain is the set of systems, processes, and infrastructure that supplies the product and delivers it to the customer. It is the overall chain that dictates the logistics of an online store and all their ecommerce.
An ecommerce supply chain encompasses the manufacturer, inventory management system, warehouses, distribution center, fulfillment center, delivery carrier, and additional components. For an ecommerce brand, optimizing every link in this supply chain is crucial. This not only enhances cost-effectiveness but also ensures satisfaction among online shoppers.
Ecommerce Order Fulfillment
Ecommerce fulfillment focuses on all the individual steps in the ecommerce logistics process that occur within a warehouse up to the shipping stage. These processes may include storage, warehousing, picking, packing, and ensuring orders get to the right carrier. This also includes inventory management across other warehouses within the ecommerce supply chain.
When it comes to the ecommerce fulfillment process, it also involves one of the most important steps as it pertains to customer satisfaction, that being a customer’s unboxing experience. A great customer experience can set the stage for growth while a bad customer experience can lead to issues you don’t want. Order fulfillment is extremely important to your company’s success, the process allows ecommerce companies control what packaging they use, what packing materials are used, and whether they should use custom boxes or not.
The fulfillment process serves as a bridge for a brand to engage with customers during online transactions and can significantly influence their perception of the brand.
Inventory Management
No matter if you have a single warehouse or several, things can get very messy without proper ecommerce inventory management. By properly tracking what merchandise is situated in which warehouse, employees can keep supply levels in check based on current and predicted demand. With proper inventory management, online orders can get shipped faster and online shoppers can avoid waiting for their items.
Inventory management becomes especially important if an ecommerce brand sells shoes, apparel, or any item that is available in multiple sizes and colors. They’ll need to ensure that they have the right inventory management software and warehouse management software in place to find and track merchandise across their entire supply chain network. Ecommerce brands can also outsource their inventory management process to a trustworthy 3PL partner who can handle these activities on their behalf.
Order Packing And Shipping
Packing an order involves more than just ensuring the correct products are included in the box. Once the order is processed, a shipping carrier is chosen. Occasionally, customers can select a specific shipping option (if available), but typically, the warehouse management system makes the decision. Subsequently, an employee gathers and packs the order, affixing the shipping label afterward.
Those that are packing orders need to be knowledgeable about working with fragile items, using packing materials for speciality items, and including samples when an order says so. If the package requires kitting, they must also know which items should be grouped together in the box.
When ecommerce companies use a 3PL warehouse, they need a logistics partner they can trust and rely on. Experience matters, you know this. Since 1959, we’ve been helping companies with fulfillment. Many decades later, order fulfillment has changed but we’ve been able to adapt to these changes over the last 60+ years.
Ecommerce Warehousing
One of the biggest challenges for growing ecommerce companies is space for inventory. When our clients reach out, many of them are experiencing exponential growth in sales. When you’re choosing a warehouse, you have to consider how much inventory you need, how much you need in stock, and you have to think about where products are stored. Communication is another key element, you need to have the ability to with communicate with all areas of your supply chain. That’s the only way you can maintain the right levels of inventory and ensure customers don’t have to wait on orders.
Another critical consideration for an ecommerce brand is the location of its warehouses. The distance merchandise must travel from a fulfillment center to a transportation hub can impact delivery timelines, especially within narrow windows. The warehouse location significantly influences the calculation of shipping times and the timely delivery of orders to customers.
Ecommerce Returns And Reverse Logistics
Returns are going to happen, especially when you’re selling hundreds, thousands of products. When a customer wants a return, they should get it as quickly as possible, this is why you need a ecommerce returns process that’s effective. Companies must make sure their reverse logistics are just as effective and efficient as their ecommerce fulfillment. If orders are being delivered to the wrong place or getting lost, customers won’t be happy. In many cases, lost items are usually a X2 loss for your business.
An Efficient, Premium Brand Experience
If you’re looking for fulfillment and warehousing solutions, Thill Inc. can help your make your supply chain efficient and easier. With more than 60+ years of experience, Thill Inc. is one of the top 3PL companies in the world. We offer a wide range of solutions to help with:
