What is logistics management in e-commerce and its benefits – Go Start Business
Logistics, which is one of the important steps of order fulfillment for e-commerce companies, provides customer satisfaction if applied properly. Increase in customer satisfaction leads to higher sales traffic and higher sales volume. Effective logistics management is essential to meet the growing demand. Thanks to successful logistics management; It can be easily adapted to the diversified product range and increasing customer demand.
If managing the logistics of e-commerce is not successful, customer satisfaction and the perception of trust towards the company suffers.
Customers who have problems with delivery are reluctant to shop from the same e-commerce company again. Given that most of the sales are from existing customers, this hits hard on sales. When this data is evaluated, we can say that logistics is just as important as product and service quality in e-commerce operations.
What is logistics management in e-commerce?
logistics services; It covers stages such as product transfer from manufacturer to seller, warehouse and inventory management, product sorting, adjustment of payment systems, packaging, distribution and delivery. logistics management; It is a process in which the order flow is controlled in many ways in online sales. ensuring the perfect transmission of the demand flow between the consumer and the producer; It depends on the organization of operations such as warehousing, supply, delivery, payment and inventory management. Careful planning, implementation and supervision of these phases ensures success in logistics management. To explain the logistics process with an example; The logistical process begins with producing the shirt and preparing it for sale. The process continues with the storage of the shirt and its distribution to the points of sale of the various brands. Customer, the logistics process is completed when the product is delivered after purchasing it in the store or online. The activities of returning products, changing them, and after-sales support after they reach the consumer are within the scope of logistics services in e-commerce.
How does logistics management work in e-commerce?
The supply and delivery processes for online sales are defined as “logistics management”. e-commerce logistics management; The products produced by the manufacturer begin with the supply and storage of the products by the seller. The process continues with the purchase of the order placed by the customer on the website. In the next stage, the required product is taken out of stock and made ready for sale. The packaged product is then delivered to the company’s distribution unit or a contracted freight company. The process ends with the product being delivered to the customer. It is important that these processes meet customer and business expectations. Consider the stages of logistics management;
Receipt of products
The product receiving stage covers both the transportation between the supplier and the seller and the customer and the seller. It is important that the stages of the logistics process are carried out accurately in order to deliver the purchased products without any problems. When the products are on their way to be delivered to the customer, it is necessary to follow up on the delivery. Delivery tracking also ensures that potential issues with shipments are avoided.
warehouse management, which is a stage of logistics management; It covers various processes such as product management, warehousing, packaging, labeling, invoicing, shipping, receiving payments, returns and exchanges. Meticulously planned appointments and strategies must be put in place to avoid disruption to warehouse management operations. Fast processing of order fulfillments is closely related to the smooth management of warehouse operations. fully coordinated storage system; It provides advantages such as saving time, low cost and fast delivery of products.
Order management covers the processes of recording, tracking and fulfilling customer orders. For an e-commerce company, the order management process is very important in terms of controlling the products sold and the process. There is a positive relationship between successful implementation of order management and increase in sales rates. Managing successfully executed orders will achieve success in sales.
Multi-channel inventory management
Inventory management is an important part of the logistics process. when inventory is not successfully managed; Problems such as excess inventory and insufficient inventory arise. Selling an out-of-stock product will negatively affect customer satisfaction and damage brand image. Furthermore it; Excess stock products also cause additional costs and losses for the company. It is important to implement ‘multi-channel inventory management’ in sales that are made on more than one channel. Thanks to multi-channel inventory management, it is possible to gather information from different sales channels under one roof. By purchasing e-commerce packages created by Smart Trade for your brand, you can easily manage inventory with variants.
Packaging is one of the key stages in the logistics management process. Product specific needs must be considered at the product packaging stage. Given these needs, different packaging and protection methods must be included. In order for the product to reach the customer safely, it is important that the packaging is impact resistant and spacious enough to contain the product.
Goods management of the packaged product is important for customer satisfaction. Rapid action must be taken regarding disruptions in the shipment delivery process. Care must be taken to ensure that products arrive within the specified time range. You must agree with a good shipping company to avoid any problems in shipping operations and to deliver the product at the promised time.
returns management stage; It is a logistical process that involves handing over the product from the customer to the seller, checking the returns and receiving the product into stock in line with the review. Returns management is also known as “reverse logistics”. Reverse logistics does not mean that the product is delivered to the consumer, on the contrary, the consumer sends the product back to the company, that is, it is returned. It is possible to successfully manage the return process by defining your company’s return policies and providing after sales customer support.
What are the advantages of logistics management in e-commerce?
The fact that online shopping is becoming more and more preferred by the customers is largely possible with a good planning of the logistics process. successful management of logistics operations; Increases customer satisfaction and brand confidence. In this regard, it would be beneficial to give due importance to logistics while planning your e-commerce operations. As the Smart Commerce team, we are at your side to help you outperform your e-commerce competitors with the perfect service you provide.