If you’ve never managed an online store, it could appear like all you need is a few high-quality products and a website that will draw visitors and encourage them to make a purchase. Additionally, while the website and the products are crucial components of e-commerce, logistics also play a significant role in determining the success or failure of an online company.
When considering an online business, consumers frequently overlook logistics until they realize how challenging it may be to handle shipping, storage, handling returns, and other logistics-related tasks.
We’ll be looking at everything new e-commerce business owners need to know about the intricate topic of logistics today.
It Must Be Packed
The fact that packing is required is insignificant if you believe that logistics as a whole is disregarded. Actually, you do. It is necessary to package your product so that the buyer receives it safely.
It sounds like a rather easy task to complete, doesn’t it? You package your stuff and call it a day, right?
In terms of dimensions, forms, and characteristics like hazmat or insulation, there are countless varieties of boxes. If your product isn’t particularly breakable, you can also choose for other packaging solutions like coffee bags, which can really make a difference.
Of course, you have to consider your expenses when it comes to shipping and box purchases (larger means more expensive). If your products come in several sizes, you will need to determine how many of each size box to buy in addition to selecting the appropriate size box for each product.
Though it’s not particularly complicated, it is something to consider.
Who Covers the Cost?
Almost all e-commerce marketing articles (particularly those on cart abandonment) will tell you that providing free shipping is essential.
The fact that free shipping doesn’t exist is the sole issue.
Rather, it boils down to who foots the bill. You are paying for shipping if you truly promise free shipping with no conditions. Without a doubt, you will experience it when it comes time to evaluate your revenue.
Naturally, you may make up for this by raising the pricing, but this would not sit well with your clients. It is also possible to counteract it by raising your prices somewhat so that both you and your clients bear the cost.
Letting your consumers see the true cost of shipping and select the carrier (FedEx, UPS, or the Federal Postal Service) is a wonderful approach to handle this. This lets customers know that shipping is just an inevitable expense and that the cost of shipping isn’t being included in the price of your goods.
It just requires a little bit of fine tuning and balancing, so you should start considering this as soon as possible.
Protection
Shipping merchandise is usually a good option when it comes to insurance. While some carriers charge extra for insurance, others include it in their costs. Insurance (as well as tracking) is generally inexpensive, and you’ll feel better knowing that you’ll be taken care of if something goes wrong. This is particularly valid for more costly packages and larger orders.
International Shipping
A few considerations need to be made when shipping internationally. First, there will be an increase in the cost of shipping. They will significantly increase. You may be very unpleasantly surprised at how much this can reduce your profits if you are expecting to pay for all delivery.
Afterwards, there are the papers, which will comprise several documents based on the package’s contents, recipient, and shipping location. The good news is that you will be able to determine precisely which forms you must ship where, and this shouldn’t be a problem most of the time.
Having said that, you should let your clients know that, while it’s actually beyond your control, their country’s customs may charge them extra. All you need to do is let them know to check their local rules and ordinances. You also need to let them know that it’s almost a given that packages will occasionally become stuck at customs.
Increasing the Amount
Ideally, as your online store expands, you’ll outgrow packing your own goods at home. This day can arrive even sooner if all you do is resell the goods made by other producers.
This is the day you start thinking about your own logistics and stop depending on the postal service and large carriers. It’s crucial to note that you will still work with a third-party logistics provider to handle your company’s shipping and warehouse needs rather than managing these tasks yourself.
Being wise about your 3pL partner at this point is crucial because they will function as an extension of your business. Since they bought the products from you, your customers don’t care who delivers them because they believe you to be accountable.
Locating a third-party logistics partner with e-commerce job experience might be a wise move. That is to say, there are significant differences between traditional and e-commerce logistics, and you require an expert in handling the delivery of smaller products to a larger number of clients.
Seeking 3pL partners from established global logistics centers such as Los Angeles, London, Hong Kong, or from up-and-coming hubs worldwide may also be a smart move. Although we are discussing far into the future, it is best to have some knowledge of international logistics at an early age.
Rather than a Final Word
We’ll end by giving you a crucial word of caution: logistics will go wrong. They consistently do. Products come damaged, shipments go missing, transportation costs spike unexpectedly, etc.
This is a necessary component of the e-commerce lifestyle, so you must embrace it.
Know what to do, be ready, and know how to respond when something goes wrong.
