What is eCommerce Logistics?

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eCommerce Logistics Explained…

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What is eCommerce Logistics?

eCommerce logistics refers to the process involved in delivering products directly to your end customer. The steps involved in eCommerce logistics include;

  • Inventory management
  • Order processing
  • Warehousing
  • Picking and Packing
  • Shipping
  • Reverse logistics

Ensuring you have a good eCommerce logistics process in place will ensure your operations run smoothly and efficiently.

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What is eCommerce logistics? Why is it important?

eCommerce logistics refers to the process involved in delivering products directly to your end customer. The steps involved in eCommerce logistics include;

  • Inventory management
  • Order processing
  • Warehousing
  • Picking and Packing
  • Shipping
  • Reverse logistics

Ensuring you have a good eCommerce logistics process in place will ensure your operations run smoothly and efficiently.

eCommerce Logistics: the components of a supply chain…

With so many different components, eCommerce logistics can be complex. The eCommerce supply chain is the overall chain that dictates the logistics of an online store.

Its important to ensure that every part of your supply chain is running smoothly as you want to make sure that customers receive their orders on time. Poor service can damage your brand image and reputation, therefore making it harder to grow and scale your business.

Lets dive into the different eCommerce logistic components and why each component is crucial.

Beautifully crafted leather products.

Our Fulfilment Shipping Prices Start From Only £2.91

eCommerce logistics: the components of a supply chain

With so many different components, eCommerce logistics can be complex. The eCommerce supply chain is the overall chain that dictates the logistics of an online store.

Its important to ensure that every part of your supply chain is running smoothly as you want to make sure that customers receive their orders on time. Poor service can damage your brand image and reputation, therefore making it harder to grow and scale your business.

Lets dive into the different eCommerce logistic components and why each component is crucial.

Exploring eCommerce Logistics…

Inventory Management

Perfecting your inventory management strategy is crucial, especially when it comes to running an eCommerce store.

Inventory management typically involves the process of accurately ordering and storing the right amount of stock to meet demand.

Having too much stock in storage can lead to increased storage costs, or an inability to sell the excess stock. On the other hand, not having enough stock can lead to stockouts, meaning you might miss out on sales.

There are plenty of different methods, and while there is no ‘one size fits all’ method, it is crucial that you find a strategy that works best for your business. Explore more on inventory management below.

Warehousing & Fulfilment Centres

While warehouses are still used for the sole purpose of storing a businesses stock, some are used as fulfilment centres, designed to provide an end to end solution for eCommerce businesses. Regardless of the the sole function, they are both still crucial components of eCommerce logistics because they aim to provide greater supply efficiency by allowing all stock to be held in one place.

Order Processing

When it comes to using a fulfilment centre, the order processing begins when a customer places an order with you. This action will notify the order processing system, and the details of the order will be automatically sent to your fulfilment partner, allowing the fulfilment process to begin.

Picking & Packing

Picking is the process involved in physically obtaining the order items from their dedicated area in the warehouse. After the item(s) are picked, they will be packed with the appropriate packaging to ensure they are not damaged during the shipping and handling process.

Shipping

Shipping is the final stage of the eCommerce logistics process before the order reaches the end customer.

Exploring eCommerce Logistics…

Inventory Management

Perfecting your inventory management strategy is crucial, especially when it comes to running an eCommerce store.

Inventory management typically involves the process of accurately ordering and storing the right amount of stock to meet demand.

Having too much stock in storage can lead to increased storage costs, or an inability to sell the excess stock. On the other hand, not having enough stock can lead to stockouts, meaning you might miss out on sales.

There are plenty of different methods, and while there is no ‘one size fits all’ method, it is crucial that you find a strategy that works best for your business. Explore more on inventory management below.

Warehousing & Fulfilment Centres

While warehouses are still used for the sole purpose of storing a businesses stock, some are used as fulfilment centres, designed to provide an end to end solution for eCommerce businesses. Regardless of the the sole function, they are both still crucial components of eCommerce logistics because they aim to provide greater supply efficiency by allowing all stock to be held in one place.

Order Processing

When it comes to using a fulfilment centre, the order processing begins when a customer places an order with you. This action will notify the order processing system, and the details of the order will be automatically sent to your fulfilment partner, allowing the fulfilment process to begin.

Picking & Packing

Picking is the process involved in physically obtaining the order items from their dedicated area in the warehouse. After the item(s) are picked, they will be packed with the appropriate packaging to ensure they are not damaged during the shipping and handling process.

Shipping

Shipping is the final stage of the eCommerce logistics process before the order reaches the end customer.

Our Fulfilment Shipping Prices Start From Only £2.91

Why should I outsource my eCommerce logistics?

Since eCommerce logistics can be quite complex, costly, and time consuming, you may find that it is more beneficial for you and your business to partner with a 3PL company since they have the resources, connections and knowledge required to handle everything effectively.

Not only this, but a 3PL can save you money on;

  • Packaging (due to their network and buying power)
  • Shipping (also due to their network and buying power)
  • Storage (their warehouses are generally shared by a number of different clients, meaning storage becomes cheaper overall since it is split)
  • Staff (you won’t need to worry about hiring staff and paying wages)
  • Technology/equipment (things such as inventory management systems can be pricey but they are crucial)

With extra time and money on your hands, you can focus more on successfully growing and scaling while the 3PL handles all the behind the scenes work.

Why should I outsource my eCommerce logistics?

Since eCommerce logistics can be quite complex, costly, and time consuming, you may find that it is more beneficial for you and your business to partner with a 3PL company since they have the resources, connections and knowledge required to handle everything effectively.

Not only this, but a 3PL can save you money on;

  • Packaging (due to their network and buying power)
  • Shipping (also due to their network and buying power)
  • Storage (their warehouses are generally shared by a number of different clients, meaning storage becomes cheaper overall since it is split)
  • Staff (you won’t need to worry about hiring staff and paying wages)
  • Technology/equipment (things such as inventory management systems can be pricey but they are crucial)

With extra time and money on your hands, you can focus more on successfully growing and scaling while the 3PL handles all the behind the scenes work.

Beautifully crafted leather products.

Our Fulfilment Shipping Prices Start From Only £2.91

Deliver a better brand experience with TSP…

So, are you looking to outsource? Look no further than TSP.

With over 20 years of industry experience, multiple warehouses, and a team of dedicated, knowledgeable staff, and an extensive, reliable network you can be assured that your eCommerce fulfilment is in the right hands.

Explore our suite of services below.

Deliver a better brand experience with TSP Fulfilment…

So, are you looking to outsource? Look no further than TSP.

With over 20 years of industry experience, multiple warehouses, and a team of dedicated, knowledgeable staff, and an extensive, reliable network you can be assured that your eCommerce fulfilment is in the right hands.

Explore our suite of services below.

Entering The Global Market Has Never Been Easier With Our Global Shipping Options

Our Fulfilment Shipping Prices Start From Only £2.91

Fast, Reliable Shipping

Thanks to our strong relationship with a variety of shipping couriers, we are able to offer our clients a range shipping options to suit their needs and budget, including domestically and internationally.

Explore

Fast, Reliable Shipping Options

Thanks to our strong relationship with a variety of shipping couriers, we are able to offer our clients a range shipping options to suit their needs and budget, including domestically and internationally.

 

Beautifully crafted leather products.

Looking to use TSP as your eCommerce logistics partner?

If you’re ready for fast, reliable fulfilment services, look no further than TSP. We are fully committed to providing the best possible service for your and your customers.

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