What is the relationship between e-commerce and logistics

In the modern-day world of cut-throat ecommerce business, keeping your customers happy and your brand image positive is of the utmost importance. There are many ways to achieve this; you can create e great user interface and user experience on your website, you can offer attractive deals and discounts, and you can keep a large collection of products and/or services. However, none of this will matter if the end customer does not receive what they order.

For the supply and demand process of an ecommerce business to work smoothly, outside assistance is required in the form of third-party Logistics services (3PL). An ecommerce business will have a hard time if they try to manage the entire supply chain and logistics by itself, as it is a much more difficult task than one would think.

Hence, ecommerce warehousing and fulfilment have now become an essential aspect of ecommerce business. Through ecommerce warehouses, seamless logistics operations are handled.

Let’s get into the details:

What is the Role of a third-party logistics partner?

In simple terms, outsourcing order fulfilment means that you will be renting a shelf space in a large cooperative warehouse that stores merchandise of other businesses as well. This leaves you with no stress of being the operator of a sophisticated process like logistics and warehousing.

Third-party ecommerce warehousing will give you the right environment to expand your business as they are designed to optimise efficiency and increase speed for larger volumes.

How does a 3PL help an ecommerce business?

There are several benefits that an ecommerce business can experience if they partner with a third-party logistics provider.

Logistics companies are not a new thing; they have been around for decades; however, with the growth of the eCommerce industry, the demand for third-party logistics has increased exponentially. An estimated 86% of Fortune 500 companies employ the services of 3PLs.

Over the years, with higher demand and improving technology, 3PLs have also taken leaps and bounds to provide their clients with the newest processes and fulfilment solutions.

So what do they offer?

• Warehousing, Distribution, and fulfilment: The basic service of every 3PL is storage and distribution. The company will store the products in their warehouses and will pick, pack and ship them as required.

• Receiving and replenishing goods and products: A fulfilment partner will keep track of your inventory and will replenish goods as required. This removes the worry of products being out of stock or your customer receiving an old product.

• Transportation: A 3PL usually also identifies which shipping partner to use, manages the relationship with the shipping company and creates an optimised strategy for shipping products.

• Packing: Before the product is shipped, it needs to be packed and packed properly. 3PLs take care of the packing as well. 3PLs take the responsibility of packing, so the goods and products do not get damaged during the shipping process.

• Return and reverse logistics: In case the customer is unhappy with what they received, they would want to return or replace the product. Your 3PL partner will take care of that process in accordance with the return policies of your company.

• Consolidation: If many small packages are shipped to the same address, a 3PL typically will consolidate all the different goods into one shipment. This reduces the shipping cost for all parties involved. This process is also known as freight consolidation.

What else to expect from third-Party Logistics partners?

• The facility to talk to an e-commerce expert to have the best warehouse and shipping experience tailored to your needs.

• The ability to find the best-suited fulfilment location, which will optimise delivery time and cost.

• A team which handles client onboarding to complete all regulatory compliances for the businesses and integrate marketplaces, shopping carts, and courier partners.

• The option for the supplier to ship inventory directly to the fulfilment centres at discounted freight rates.

• The facility to start shipping as soon as an order is received

• The guarantee is that all goods and products will be safely packaged, shipped, and handed over to the optimal courier partner.

• A faultless tracking system to monitor all shipments, ensure that customers are contacted in case of non-delivery and immediately start a delivery reattempt.

• A robust Returns Management System ensures all goods and products are back in the inventory and available for further circulation within 48 hours.

Conclusion,

The relationship between an ecommerce business and logistics cannot be understated. To have the best third-party logistics services by your side, you need to partner with Emiza.

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