In our previous blog post, we discussed the interdependency of E-commerce and Logistics as well as how important they are to commerce today. A good understanding of this can improve how you do your e-commerce business.
Today, I will expatiate on e-commerce models and how logistics fit into them
For a start, let’s give some backgrounds to the existing e-commerce models we have today. Some of which are:
1. Retail: here, there are no middlemen. Businesses directly sell their products to their customers.
2. Wholesale: It involves the sale of products as well. But, in this case, products are sold in large quantities to retailers who are then responsible for selling them to the final consumers.
3. Drop shipping: In drop shipping, a third party manages the manufacture and delivery of the products. The business only manages branding and marketing. Here, goods are not stocked by the business, but by the manufacturer who ships directly to the consumer when an order is placed.
4. Subscription: The subscriber pays a monthly or yearly fee consistently for access to a product or service. This goes on until the subscriber chooses to cancel their subscription.
5. Services: Here, skills or a set of skills are provided and paid for.
6. Crowdfunding: here, money is collected from consumers ahead of the availability of the product or service to ensure that there is enough money to meet their demand.
Why Logistics is a Crucial Aspect of any E-commerce Business
The “order now” button is a common click button on any e-commerce stores. Customers place their orders and don’t necessarily consider the processes that get their orders delivered to them. In fact, they sum up late delivery as inefficiency on the part of the stores and threaten not to transact business with them anymore.
Really, no customer wants to care about what extent businesses go to ensure that products are delivered to the promised timeline.
Moreover, it is no longer enough to have impressive products. If delivery is inefficient, the brand is labelled incompetent. The assurance that customers want aside product quality is how timely and accurate their needs are met.
Hence, there is a need for a lot of e-commerce business owners to realise that building trust with customers is partly hinged on the efficiency of their delivery service and not just their product quality.
Planning your Logistics for your E-commerce Store
While some businesses opt for running their own logistics processes in order to ensure that they meet up to the expectations of their customers, others prefer to rely on third-party logistics firms to handle the process in order to optimise their operations.
When outsourcing your logistics to a third-party logistics company, you need to consider the model of your e-commerce business as listed above and the type of logistics company that serves around such model etc. We have discussed this before on our blog.
Outsourcing to a trusted third party logistics company like Us takes the logistics to stress off you so that it is easy for you to focus on what’s important while still providing top-notch services to your customers.
Are you already considering outsourcing your logistics operations? Here is a section on our blog that highlights the processes of requesting a logistics service so you don’t have to worry about getting started — the important steps to requesting third party logistics company service,
You can download our app to request our service too. This is a lot easy even when you require emergency logistics service. We are just right at your service!