Shipping Logistics for eCommerce businesses
Logistics is the third biggest challenge for eCommerce brands in 2024. The shipping experience that an eCommerce brand provides determines the overall shopping experience and by default, affects retention. Although you can’t physically bring someone to your online store, you can always focus on bettering shipping logistics and bringing them back.
What is Shipping Logistics?
Shipping is the process of transporting goods from the fulfilment centre to the end customer.
Logistics is the system that includes shipping. It includes storage, modes of transportation and more.
Shipping logistics, together include all the logistical activities from inbound to outbound and reverse. From first-mile to the end customer and back. It is the entire strategy from planning to cost analysis, inventory management, final delivery and returns.
For Direct-to-consumer brands or DTCs, shipping logistics can act as leverage. There are three types of shipping logistics and here is what they are –
Types
Inbound Logistics – This involves the processes that transport products from the manufacturer (source) to a warehouse or a fulfilment centre. Processes like sourcing and procurement of products, ordering and purchasing, material handling and warehouse receiving are a part of this.
Outbound Logistics – This involves moving your products from the warehouse or fulfilment centre to the end customer. Processes like order processing, warehouse and storing management, scheduling pickups, packaging, carriers and SHIPPING form a part of this. Carrier partnerships also form a big part of this type.
Reverse Logistics – This type is exactly what it sounds like. All processes when a product is returned or exchanged happen here.
Now that we know the types, the next step is to understand how can eCommerce businesses optimize shipping logistics and make the shipping experience as well as the customer experience better. Here is how you get started.
Best Practices
- Focus on inventory distribution – One practice that makes the biggest difference is how the inventory is distributed. Having an evenly distributed inventory is what best suits eCommerce. An inventory distribution model positively impacts the delivery time, speed and overall reputation of your business. Most eCommerce businesses today are following Amazon and offering same-day and next-day shipping. In such a scenario, having the infrastructure that enables a business to provide the fastest shipping is the way to go. You can invest in a Warehouse Management System to get this done swiftly.
- Gather real-time information – Having access to real-time information is something every merchant should prioritize in 2024. As an eCommerce founder, it is crucial that you have eyes on your inventory, failed deliveries, successful deliveries, bestsellers, most profitable time of the day and the list does not end. Order Management software makes this possible for you.
- Do a shipping cost analysis – 45% of merchants say that shipping costs are an important factor when it comes to delivery experience. As more and more promising carriers flood the market, it gets tougher for the merchant to make an informed choice. A factor that must always be considered is shipping rates. Legacy carriers are NOT the cheapest options out there just because they have certain programmes for small businesses. eCommerce shipping is much more than just programmes and discounts. Compare the shipping costs with carriers that specialise in eCommerce and see the overall shipping logistics improve.
- Choose the right shipping carrier – Choosing the right shipping carrier involves a lot of comparison and analysis. The idea is to find someone who understands your business, your schedule, and your customers the best. It goes without saying that they should also offer very competitive rates.
- Ensure you get all the ‘incentives’ – Carriers that are not the best suited for eCommerce would offer FREE Pickup or Drop-off as incentives. Carriers that are eCommerce specific would offer them together with the cheapest rates. To ensure that you are getting shipping logistics experience there is, make sure you get these and still are not compromising on the rates.
Shipping Logistics with ShippingChimp
eCommerce businesses in Canada trust ShippingChimp to bring them the best prices and most suited deals. With warehouses located all across Canada, transit times and speed is never an issue. Our shipping rates start at $5 within Ontario. Leading brands like Coco Village, Sleep Country and Homedics have saved up to 53% in shipping costs.
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FAQs
- Which stage of activity in logistics involves shipping the product out to customers?
Shipping the product out to the customer forms a part of Outbound Logistics.
- How can businesses manage international shipping and customs regulations for smooth global deliveries?
To ensure smooth global deliveries, businesses should prioritize partnerships with shipping carriers experienced in international logistics and be familiar with the customs regulations of the countries they ship to. Utilizing shipping management software that automates and simplifies the creation of necessary customs documentation can also streamline the process.
- What strategies can businesses implement to optimize reverse logistics and minimize return shipping costs?
Implementing a clear and straightforward return policy that outlines the process and conditions for returns and exchanges can significantly optimize reverse logistics. Offering options such as in-store returns for online purchases can reduce shipping costs and increase customer satisfaction. Analyzing return data to identify patterns can also help businesses address product issues or customer concerns proactively, potentially reducing the volume of returns over time.
- How can businesses seamlessly integrate shipping logistics with inventory management systems to streamline operations?
Integration between shipping logistics and inventory management systems can be achieved through the use of sophisticated eCommerce platforms and ERP systems that offer real-time tracking and inventory updates. This integration allows for automated order processing, accurate stock levels, and efficient shipping operations, reducing the risk of overselling and enabling faster order fulfilment. Adopting technologies such as RFID or barcode scanning further enhances inventory accuracy and operational efficiency.
- How can ShippingChimp help with Shipping Logistics?
As Canada’s most trusted shipping carrier for eCommerce, ShippingChimp offers the most affordable shipping costs for your eCommerce business. The rates start at $5. We offer eCommerce warehousing, 1-day shipping options, Free Pickups, No minimum value commitment, drop-offs, and much more!
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