eCommerce is exploding, and your customers expect nothing less than Amazon-level service. Fast, reliable shipping? It’s not a perk anymore; it’s the baseline. But you don’t have to keep up with the Andrew Jassy (or should we say, the Bezos?). You only have to focus on your bottom line while delighting your customers.
If your logistics feel like a tangled mess, you’re not alone. Most online retailers spend 20-40% of their revenue on getting products from point A to B. However, there are proven ways to cut those costs, speed up deliveries, and keep your shoppers returning for more. To know these logistics strategies for business, you must read this blog, where we’ll discuss strategies many eCommerce giants use.
7 Winning eCommerce Logistics Strategies to Level Up Your Online Store Performance
1. Make Your Inbound Supply Chain a Well-Oiled Machine
Inbound logistics are like the gears in a clock – if one cog slips, the whole thing falls apart. And regarding eCommerce, that means delays, unhappy customers, and money down the drain.
Inconsistent vendor performance and late shipments are signs of disaster. They disrupt planned operations and lead to costly rework and potential lost sales. That’s why you should establish clear expectations with your suppliers and hold them accountable for them. Set strict standards for on-time delivery, order accuracy, and product quality.
Robust vendor compliance programs are guardrails that keep your inbound shipments on track. Clearly define your requirements and expectations, leaving no room for ambiguity. Ensure your suppliers understand and agree to your terms, and regularly review their performance to ensure compliance.
Moreover, look for opportunities to shift certain activities, like labelling, tagging, or bagging, further upstream in your supply chain. Your suppliers may be able to handle these tasks more efficiently, freeing up your team to focus on core operations.
For example, if you sell clothing, consider having your supplier add branded tags and labels before the garments even reach your warehouse. This simple change can save you valuable time and labour costs.
2. Ship Smarter, Not Harder
Shipping costs and transit times can be a real drag on your eCommerce business. High shipping costs are a significant pain point for online retailers. They eat into your profit margins, make your products less competitive, and can even scare customers away.
The pressure to compete with giants like Amazon only fuels the fire. Customers have been spoiled by lightning-fast shipping and expect the same from you, no matter your size. It’s a tough race, but don’t throw in the towel just yet.
With some savvy and smart strategies, you can slash costs, improve delivery times, and give your customers the experience they crave.
- Channel your negotiation and haggle for better deals with your carriers. The more you ship, the more leverage you have.
- Consider spreading your inventory across multiple distribution centres. This “decentralised warehousing” approach gets your products closer to your customers, translating into faster delivery times and lower shipping costs.
- A freight audit can help you uncover hidden charges and billing errors. It’s a financial checkup for shipping costs, ensuring you get the best possible rates and services.
3. Turn Your Warehouse into a Productivity Powerhouse
Wasted space and inefficient warehouse layouts can cost businesses big time and money. Every minute your team searches for misplaced items in the warehouse is a minute they’re not fulfiling orders, satisfying customers, or boosting your bottom line.
The first step to unleashing your warehouse’s hidden potential is to give it a thorough checkup. Start by mapping out your current layout. Are there underutilised areas? Are there bottlenecks that slow down the flow of goods? Is your storage method the most efficient for your specific products? A warehouse assessment can help uncover these issues and develop an improvement plan.
Once you’ve identified the problem areas, it’s time to work. If you still use traditional shelving, consider switching to pallet racking or vertical storage systems. These solutions can dramatically increase your storage capacity and make it easier to access your inventory.
If your budget allows, consider adding some automation to your warehouse. It will facilitate to work faster, smarter, and with greater accuracy. Automated storage and retrieval systems (AS/RS) can handle the heavy lifting, while robotic picking systems can quickly locate and retrieve items.
Taking these steps to optimise your warehouse can significantly increase your capacity and utilisation. This means you’ll be able to store more inventory, fulfil orders faster, and ultimately boost your bottom line.
4. Ditch the Paper, Embrace the Data
Manual processes are like trying to drive a car with one hand on the wheel and the other over your eyes. You might get by for a while, but eventually, you’ll crash and burn.
Paper-based systems are notorious for causing delays, errors, and headaches. Every misplaced document, incorrect entry, or lost shipping label can snowball into a logistical nightmare. And those nightmares are expensive.
To improve the efficiency of your eCommerce operations, invest in robust order management systems (OMS), inventory management systems (IMS), or warehouse management systems (WMS). These digital tools swoop in to save the day with their automation, accuracy, and real-time visibility.
But wait, there’s more. Leverage barcode technology to simplify your data. By scanning barcodes on products, boxes, and shipping labels, you can instantly capture and transmit information, eliminating the need for manual entry. This not only saves time but also reduces the risk of errors.
With automation doing the heavy lifting, your team can focus on more strategic tasks, like building customer relationships, developing new products, or expanding your business. And with real-time visibility into your operations, you can make informed decisions that drive growth and profitability.
5. Supercharge Your Order Fulfilment
Is your order fulfilment process more of a snail’s pace than a sprint? If your warehouse feels stuck in the slow lane, it’s time for a much-needed tune-up. Slow and inaccurate order fulfilment leads to shipping delays, frustrated customers, and unnecessary stress. It’s like trying to win a race with a flat tyre – you’re not going anywhere fast.
So, how do you transform your order fulfilment streamlined engine for growth? It all starts with the right tools.
- Voice Picking: This hands-free technology guides your team through the picking process with voice commands, allowing them to work faster and more accurately.
- Pick-to-Light Systems: These systems use lights to direct pickers to the correct location and quantity, eliminating the need for paper pick lists.
- Goods-to-Person Technologies: Bring the products to the selector rather than having the picker walk to the products. This can significantly reduce travel time and increase efficiency.
- Robotics: These high-tech helpers can automate repetitive tasks like picking, packing, and sorting, freeing up your team for more complex tasks.
While these technologies may sound tempting, it’s important to remember that they come with a price tag. Before diving headfirst into automation, carefully evaluate the potential return on investment (ROI).
Consider factors like your order volume, labour costs, and the tasks you want to automate. A solid ROI analysis will help determine which solutions best fit your business.
6. Reimagine Returns as Opportunities
In eCommerce, returns are as common as online shoppers hitting “add to cart.” Around 20-30% of online purchases return to you. It’s a logistical headache, a financial drain, and a potential customer service nightmare.
However, instead of seeing returns as failures, see them as valuable data points. They offer insights into customer preferences, potential quality issues, and areas where you can improve your product descriptions or marketing.
The returns process is a hassle, takes time, and is often confusing. But you could make it as easy as clicking a button. Make it simple, intuitive, and hassle-free for your customers to send items back. Offer clear instructions, pre-paid return labels, and multiple drop-off options. The easier you make it for them, the more likely they will return and buy from you again.
Conclusion
Efficient logistics management is the key to survival. Don’t let shipping woes, warehouse chaos, or return nightmares hold your business back. The strategies we’ve explored here can truly transform your operations.
But remember, the most successful businesses don’t do it alone. They partner with the best courier aggregators in India like NimbusPost who understand the ins and outs of eCommerce logistics.
With its AI-powered platform, extensive carrier network, and commitment to customer satisfaction, NimbusPost could be the missing piece in your eCommerce puzzle. It’s time to ditch the stress and let NimbusPost handle the heavy lifting so you can focus on growing your business.
