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The ecommerce industry has become highly competitive with customer expectations rising at a fast pace. Modern customers expect their orders to be delivered as soon as possible. In fact, same-day delivery and next-day delivery have become the norm for customers. In such a scenario it is difficult for ecommerce brands to strike a balance between fast order delivery and cost-savings while shipping.
What are ecommerce logistics?
What are ecommerce logistics?
Ecommerce logistics is the process of delivering an order from an ecommerce warehouse to a customer’s location. It involves processes such as:
Storing inventory (Warehousing)
Inventory management
Picking and packing orders (order processing)
Shipping of orders
Last-mile delivery
Managing returns
A streamlined ecommerce logistics process is essential for all ecommerce brands as it helps in ensuring fast order delivery while keeping shipping costs low.
What are some strategies for minimising shipping costs and improving delivery speed in ecommerce logistics?
What are some strategies for minimising shipping costs and improving delivery speed in ecommerce logistics?
Here are some strategies ecommerce brands can use to minimise shipping costs while improving delivery speed in ecommerce logistics:
Calculate consumer demand
Ecommerce brands can calculate consumer demand using historical sales data. They can then stock inventory based on demand to prevent overstocking which increases operational expenditure and Out of stock situations which can lead to missed sales opportunities.
Distribute your inventory
Ecommerce sellers can split inventory across different shipping zones to store inventory closer to customers. By reducing the distance between an ecommerce warehouse and a customer’s location, ecommerce brands can deliver orders faster and cheaper as the shipping costs reduce when the distance is lower.
Ramp up order processing
Increasing the speed of the order pick and pack process can help ecommerce brands ship orders faster. Moreover, using technology in order processing will also reduce the chances of human errors and ensure a high order accuracy rate.
Negotiate shipping rates
Ecommerce sellers can negotiate shipping rates with courier partners. Ideally the more an ecommerce brand ships, the more discount they can get on shipping rates. However, it may be challenging for ecommerce brands that do not have a high order volume to negotiate shipping rates. Such ecommerce brands can partner with 3PLs like Eshopbox which can provide them with discounted shipping rates due to the bulk order volume Eshopbox deals in.
Reduce the weight of the package
Shipping rates are determined by the size and dimensions of the package, customer location and preferred delivery speed. Ecommerce brands can take steps to reduce the weight of the package and consequently the shipping rate. Package weight can be reduced by using the right size of the package, reducing in-fill, and not using too much bubble wrap.
Use poly-mailers
Ecommerce brands can also make the switch from boxes to poly mailers and reduce shipping costs. Boxes have more volumetric weight than mailer envelopes and as a result, they can raise shipping costs. If your ecommerce brand sells small, non-fragile products you can consider shifting to poly-mailers.
Insure with third-parties
Shipping insurance protects orders in case they are damaged or lost in transit. Most courier companies provide shipping insurance, however, third-party insurers are much cheaper and cost-effective. You can choose third-party shipping insurance to minimize shipping costs.
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