Shipping Logistics in E-commerce

Shipping logistics has become one of the essential parts of the supply chain. Read here to know more.

The entire process of coordinating and controlling the transfer of products, raw resources, or stocks is known as shipping logistics. The shipping logistics system consists of two divisions: logistics and shipping. 

Handling your own shipping is a great way to cut costs if you are new to e-commerce. However, as your business grows, managing shipping yourself will no longer be feasible. In that case, hiring a shipping and logistics business is your best call.

When a customer places an order, the logistics department decides the mode of shipping. Selecting an efficient logistic company or agent will smoothen the whole logistics process.

The agent will arrange for the product to be shipped via the company’s preferred shipment, take care of the customs clearance, and guarantee that the final delivery at the destination is completed.

The shipping department is responsible for packing the products properly, including the essential marking and labeling of packages, or cartons mentioned in the invoice. If more than one parcel is to be delivered to the lot, a packing list is required. After packing, the tracking report is generated, which the customer can access at any time from the specific application. After completing all formalities, the items are cleared from the destination point. 

Shipping Logistics

What is the Difference Between Shipping and Logistics?

The process of carrying or moving products from one location to another is known as shipping. The goods are carried by air, road, or water. The shipping modes may differ depending on the sort of items being transported. The shipping procedure entails transporting items and papers from the origin point to the delivery location.

Logistics is a supply chain component that helps companies meet consumer needs by planning, controlling, and implementing the efficient transportation and storage of corresponding data, goods, and services from the point of origin to the end destination. Logistics aids businesses in cutting costs and improving customer service.

The logistics process starts with gathering raw materials and ends with the delivery of items to their final destination. It makes process strategy, planning, and implementation easier by following customer needs and industry standards.

Types of Shipping Logistics

A well-structured and reliable shipping logistic network can help online businesses succeed in their overall operations.

Shipping logistics can be divided into three categories:

Outbound logistics

Outbound logistics, as the name suggests, is the collection, storage, and distribution of final goods and related information flow from the manufacturing plant or warehouse to the end-user. Activities that are involved in the outflow: 

  • Order processing 
  • Picking and packing
  • Shipping
  • Carrier partnerships

Inbound logistics

The processes that convey products from a manufacturer or a dealer to a fulfillment center or warehouse are known as inbound logistics. Everything your company needs to transport, store, and distribute goods should be included in your inbound logistics network, including: 

  • Sourcing merchandise 
  • Lead times of production 
  • Warehouse receiving 

Reverse logistics

Reverse logistics involves moving delivered items back to suppliers or manufacturers from customers or the delivered point. Reverse logistics are needed for activities such as returning or exchanging after a client receives a product.

Reverse logistics begins with the end-user and works its way backwards through the supply chain from the distributor or distributor to the manufacturer. Reverse logistics can also refer to operations where the ultimate consumer is responsible for the product’s disposal.

Shipping Logistics

How to Optimize Your Shipping Logistics?

In the e-commerce business shipping logistics is the backbone of a company’s operations, and it’s crucial for boosting sales and preparing for future growth. The following activities can help you enhance your shipping logistics.

  • Blueprint of planning – An orderly and strong planning saves time, cost, and manpower, and in shipping logistics, planning is the key point to start with.Modern technology – The most significant element of performing an error-free and fast service is to use automated modern technologies. There is a lot of software designed specifically for shipping logistics or supply chain management that you can use. This provides real-time updates at any point of time.
  • Inventory distribution – Your inventory distribution directly affects your shipping logistics.  Most of the customers choose the free shipping products therefore warehousing your products nearby location to your customers helps to cut transportation costs and delivery times. 
  • Innovation – Bringing on new ideas is a never-ending process. However, because of the priority placed on product developments in logistics, the company’s services are sometimes disregarded. But, it can be one of the most important areas where you can build your competitive advantage.
  • Historical data – Historical data may now be computed because of developments in supply chain technology. Let data guide your logistics customer service. This historical data can illuminate the customer’s experience and point in the right direction for change. Data can be organized and bound to assist you in understanding the customer’s journey and demands.
  • Quality service – Customer satisfaction is defined as meeting or exceeding their expectations. The customer’s ability to trust the product should not fail.  

Never let a minor issue or issue outweigh your customer’s needs. For example, if a customer has to catch a flight the next evening and wants his product to be delivered in the morning, the carrier should make all efforts to meet his expectations. In logistics, it is always the customer that is most important.

  • Return policy – Most customers look for a return policy; and returns and refunds are quite inevitable when doing business online. In an effort to keep the process simple and engaging, the content of your policy should clearly state all conditions required for a return or a return that will require a return.
  • Right shipping partner – It’s important to ensure that you choose a reliable partner who has experience dealing with e-commerce deliveries. Someone who has experience working directly with major e-commerce platforms such as Amazon and eBay
  • ‘Go green’ logistics – Logistics has evolved steadily over time and sustainable logistics (green logistics) is a significant part of its development cycle. It is a type of logistics that ensures minimum carbon emissions in the supply chain. As supply chains globally become larger and more complex, the environmental damage caused by logistics is becoming more and more severe. Therefore, the requirement for a sustainable supply chain is important.

Shipping Logistics Management

Shipping logistics management is the planning of resources, operation, trailer arrangement from carrier offices, implementation, and control of transportation of shipped products are all part of shipping logistics management. 

 The components of shipping logistics are:

  • Procurement
  • Inventory and warehousing
  • Picking and packing
  • Shipping planning
  • Monitoring of freight
  • Transportation management
Shipping Logistics

Relationship between shipping logistics and supply chain

The strategy and operations that go into planning, procuring, producing, and distributing items, also looking after returns, are covered in the supply chain. Shipping logistics is concerned with getting the correct stocks to the delivery point at the right time while maintaining the budget.

In the supply chain, shipping logistics is responsible for the transportation and storage of products and services, as well as the paperwork and reports that track whole movements of the consignment route to the consumer.

Shipping logistics refers to the arranging and supervising the transfer of products, raw materials, or inventory. This component determines where things can be stored until they’re needed at another site, which is critical for successful supply chain management.

Essentials of shipping logistics

The sheer number of people who shop online has made shipping logistics an essential element of e-commerce operations, and it’s only going to become more important as the industry continues to grow and the competition increases. While you might be able to get away with using Amazon’s FBA program in the beginning, you’ll need to build your own comprehensive shipping plan as soon as possible if you want your business to survive and thrive over the long term. Here are the essentials of shipping logistics in e-commerce that every entrepreneur needs to know about.

Groundwork

Planning and mapping out every step of your shipping process will help you prevent costly mistakes down the road. In addition to a solid plan, it’s also critical to have a reliable partner for shipping management, as well as clear policies in place for returns, customer support, and more. 

Inventory management

Ensuring that customer orders are quickly picked, packed, and shipped out is a key part of any successful e-commerce business. Without adequate inventory management and order fulfillment, companies can find themselves spending money on inventory they have not sold, potentially incurring unnecessary costs or even having to ship out free items because it’s too late to cancel an order. Any online business needs to take inventory management seriously from day one. 

Picking, packing, and fulfillment

In terms of logistics, picking, packing, and fulfilling are most important. If you neglect any one of these steps, you’ll encounter much higher shipping costs and customers might not be satisfied. In order to help with each step, these are a few tips.

Delivery options

Depending on your business model, there are a number of different delivery options available. Some e-commerce businesses offer free shipping to boost their sales; others will charge a premium for faster delivery options. No matter which strategy you choose, you’ll want to carefully consider how your customers and competitors will react to those choices. 

Shipping updates

Every time a customer hits update shipping information on your site, you need to act on it. Anything a customer interacts with online needs an online management solution. Your online management software should allow you to respond immediately when customers want something changed or updated on their order. Make sure your system has features like real-time shipping rates, tracking number generation, and automatic updates so customers don’t have to wait around for you or call every time they want an update. 

Tracking information

Every e-commerce business that ships packages to customers needs an integrated tracking system to allow for online management of shipping logistics. Look for options that can be linked directly with your company’s inventory and accounting software, allowing you to automatically keep tabs on what’s out there and where it is, so you always know exactly where your inventory stands. Pay special attention to systems that provide real-time alerts when something has shipped or been delivered – excellent customer service depends on knowing who, what, when, and where.

Reverse shipping

If you’re selling a product, it’s critical to outline how you will handle returns. For example, if someone receives their shoes and they don’t fit, will they get a full refund? Will they have to pay for shipping? Is there a deadline by which they need to return or exchange their item? How much time do customers have to make exchanges or returns after receiving an order? It’s important to be clear about your policies so customers know what to expect when purchasing from your store. Refunds are only one part of effectively handling returns; offering speedy exchanges or replacements is also important.

Sign up today and leave the logistics to us

Sign up and we will get back to you within 24 hours to discuss what services would be best for your business needs. Or speak with us now and tell us what you need.

FAQs

No, logistics is a huge activity like stocking and managing products, planning for order processing, packing, labeling, and other activities including shipping. Shipping is the delivery process for the order processing with documentation.

The stages of the shipping process are:

  • Order receiving and processing
  • Order packaging
  • Transportation and distribution
  • Returns

Logistics plays an important role in shipping. It decides the delivery partner type, plans the route, picking, packing, and labeling the orders with all documents.

The 3 types of logistics are:

  • Inbound logistics
  • Outbound logistics
  • Reverse logistics

The five major components of logistics are:

  • Procurement 
  • Inventory management 
  • Picking and packing 
  • Transportation 
  • Realtime information

Customer logistics includes determining material requirements, support, inventory control, supervision of transportation, assortment, trustability, fault reporting, storage, shipment, handling safety standards, and other training.

Exclusive benefits to ace your e-commerce game this 2023 with Locad’s desk calendar!