The eCommerce industry is the new “it” in the world of business. The industry has experienced a 45.8% increase over two years. As far as success stories go, this kind of growth rate is what enterprises aim for and hope to sustain. However, eCommerce companies cannot function without delivery services. This brings logistics companies into the limelight. With the increases in the eCommerce industry, eCommerce logistics companies face an equal rise.
Status Quo of eCommerce Logistics
eCommerce logistics, as the name implies, are companies that handle eCommerce deliveries. They ensure your products get to your customers safely and in time. The need for efficient and effective logistics to stand between your eCommerce business and its customers is crucial as clients most times will not only see the quality of the product but the quality of delivery as well.
Challenges of eCommerce Fulfillment
eCommerce fulfillment is hubs that hold parcels until they are ready to be sent off to the consumers. Most of the challenges faced by fulfillment centers are related to inventory management and customer services. Below are challenges faced by eCommerce fulfillment centers.
1. Locating inventory
Due to the high number of parcels stored in fulfillment centers, not having a suitable method of arranging inventory could delay finding orders and hence lead to delay in shipping and delivery time.
2. Damaged or incorrect inventory
The need to check and double-check parcels before shipping is vital as sending wrong inventory or damaged inventory is most times challenging, it would not only take time to resend the parcels but there is a possibility the customer would be discouraged from using your online store next time. It is also essential to have insurance on your products to reduce the loss of damages.
3. Inadequate customer services
One may be wondering why do we need customer service in delivery? Some people like to ask questions about what they want to order. They also want to track the product. Due to a large number of inventory managed by fulfillment centers, there is always inadequate customer service. This should be supervised to ensure your customers get good service when needed and come back.
4. Poor inventory management
Managing inventory is one of the critical roles of fulfillment centers. When these inventories are not well managed, you lose track of which products are damaged, need restocking, or even where they are located. Ensuring good management will help avoid issues of customers ordering things that are out of stock.
Requirement of eCommerce fulfillment centers
In establishing or planning a fulfillment space, there are some considerations to make. These considerations ensure your fulfillment center is current and meets up with the growth requirements. Here is a 4-point checklist on critical requirements to consider:
1. Dock Equipment
Consider what is previously in place and what is needed. Check the working conditions of dock doors and equipment. Ensure equipment’s like shelters/seals, dock lights, and hydraulic dock levelers are securely locked to prevent rain, rodents, and dirt
2. Electrical requirement
Consider the type of equipment available and the charging requirements needed. Also, consider the criteria for the conveyors, automation, and other equipment.
3. Working environment
Considering most fulfillment centers are not air-conditioned, sufficient airflow is necessary. You have to consider the humidity and climate and if it needs to be controlled.
4. Safety and fire
Lastly, you need to consider safely not just for the inventory but also for your staff. Understand products classification and height requirements. Also, it would be best if you considered how long it takes to exit the building for employee’s safety.
Features of third party logistics (3PL) for eCommerce fulfillment
There are some fundamental values an excellent third-party logistics company should have. Some of these are;
1. Good communication
Good communication is the bedrock of logistics. A 3PL company with a good communication channel between customers and customer service is a keeper. It helps you keep track of the shipment and not any unforeseen setbacks.
2. Traceability
A good 3PL partner should have good tracking technology to monitor the product anytime, which helps you know if the product was delivered in good condition.
3. Global access
A 3PL partner should have global access as this helps the business grow. Your business is not limited to a small area, but it is global and can ship anywhere in the world effectively.
4. Proven performance
A 3PL partner should have a good track record. There is no need to base on tests and errors. Their track record will speak for them. It will also give you a perspective of how the 3PL company carries out its duties.
The Benefit of Utilizing Third-Party Logistics (3PL)
3PL logistics are helpful to both traditional and eCommerce businesses. They provide services that help businesses meet the needs of their clients, provide storage for companies and help create an extensive network for businesses. Below are the benefits of using 3PL logistics:
1. Drive cost savings
Third-party logistics help small and large-scale eCommerce businesses it cost by providing warehouse storage for their products, delivery transportation, and tracking and also give customers delivery discounts.
2. Focus on core competencies
Once the business of delivering your product to the final consumers is handed over to the competent hands of 3PL, you can focus on core competencies that help you improve your business and expand your reach.
3. Improve customer satisfaction
The overall goal of employing the service of 3PL is to improve your customer satisfaction. This is also, of cause the top priority of any 3PL company.
4. Enables business growth and market expansion
3PL companies give businesses a chance to grow. The worry of how the product gets to customers and its storage becomes the problem of the third-party logistics.
Conclusion
When choosing the right 3PL company for your eCommerce business, you want to select the best and most competent company with proven performance. One of these reputable companies is YunExpress.
YunExpress is a professional cross-border eCommerce logistics service provider that can cater to all logistic needs. They have delivery routes that span over 220 countries worldwide; and are partners with Amazon, Wish, eBay, Shopify, and many more. YunExpress handles cross-border deliveries, international express, postal parcels, and FBA (fulfilled by Amazon) packages. Their express service offers fast and low-cost deliveries that can suit any eCommerce needs. For information on how to begin a YunExpress journey, visit the website today!