Logistics plays an important role in the success of any e-commerce business. E-commerce logistics, or e-logistics, represents the logistics of internet sales. E-commerce logistics includes many aspects like product handling, production, packaging, billing, labeling, inventory management, warehousing, transportation, cash on delivery, payment, product return & exchange, and much more. But the main goal is to provide timely and efficient delivery of goods or products. This ensures customer satisfaction and return sales. The e-commerce logistics in India is flourishing due to an increase in internet penetration, a rise in the adoption of smartphones, favorable demographics, acceptability of online payment, and the emergence of several new e-commerce players. In fact, the Indian e-commerce logistics market is expected to reach US$ 11.48 billion by 2027 from US$ 2.93 billion in 2019.
So, here are a few factors businesses need to consider when it comes to e-commerce logistics:
- To Outsource Logistics or Not
Businesses interested in e-commerce need to consider whether or not to outsource their e-commerce logistics to a third-party logistics provider (3PL). It all comes down to how your existing supply chain can manage the influx of new orders. The fear of losing control if handled through a 3PL is one of the major concerns of businesses. However, there are enormous advantages to outsourcing. 3PL has an abundance of capabilities like technology, manpower, geographic spread, and expertise.
One of the top logistics companies in India, Safexpress, is a market leader in supply chain and logistics. They offer solutions ranging from warehousing to timely distribution of goods across India. Safexpress B2C specializes in e-commerce logistics and supply chain management. This service ensures real-time data capturing to facilitate time-sensitive, hassle-free, safe warehousing and inter-modal express distribution of goods.
- Decide Which E-Commerce Logistics Capabilities Are Critical
Following capabilities are a requirement if you want to implement cost-effective e-commerce logistics.
With shorter and flexible delivery timelines being the need of the hour in the e-commerce industry, businesses need to distribute their inventory and keep their products in smaller warehouses closer to population centers to reduce delivery times. It also allows usage of regional carriers for local distribution, which are often cheaper and help to keep costs low.
Big data and smart analytics
By using big data to perform smart analytics, a business can identify demand patterns and trends that were previously invisible. Predictive software can help in optimizing route planning to ensure that businesses can meet their promised deliverables.
The implementation of automation technologies, techniques and processes improve the efficiency, reliability, and speed of many tasks that were previously performed by humans. Automated systems help to notify customers when delays occur along the supply chain. Real-time data provided through automation provides visibility into the operation and enables you to make better business decisions based on trends and history.
Returns management is a process in the e-commerce industry that involves interfacing with customers who wish to return a product, and then collecting, organizing, and restocking inventory that has been returned or exchanged.
The costs and mechanisms for handling reverse logistics need to be incorporated into your e-commerce logistics plans.
The most complicated and difficult component of e-commerce logistics is the “last mile.” This is that stage in the delivery process when the package travels the last part of the journey to the customer’s door. The last mile is challenging due to few reasons like inadequate route planning and unpredictable elements.
By providing strong ecommerce logistics in India businesses can maximize efficiency, reduce shipping costs, and provide a great customer experience.