Everything You Should Know About E-commerce Logistics
March 2023 would mark roughly three years since COVID-19 was declared to be a global pandemic. Three years since communities worldwide were spurred into lockdowns. Three years since individuals flocked online to buy their essentials, pushing e-commerce sales to new heights.
Despite the international borders opening up and physical retail gradually coming back to life, many people would still rather shop online than visit brick-and-mortar stores. With millions of parcels being shipped across the globe on any given day, it is imperative that proper e-commerce logistics infrastructure is in place to keep them on track. But to begin, what exactly is e-commerce logistics? And how can retailers better elevate their e-commerce experience in this post-pandemic world? Let’s find out!
Components of the Modern Logistics Chain
E-commerce logistics is a complex multi-step process that involves several components, including inventory management and packing of orders.
Inventory Management
Inventory Management refers to the process of monitoring and tracking the amount of stock in a company. It helps companies to ensure that there is never too much or too little stock on hand, thus reducing the risk of stockouts and inaccurate records. With proper inventory management, businesses can enjoy an array of benefits, most of which are mentioned below:
Save Money on Storage: Inventory storage is a variable cost determined by how much space your initial inventory takes up at any given time. Therefore, if you take care of inventory levels, you can relocate the funds to other areas as and when needed.?
Improve Cash Flow: A good inventory management would mean that you are only spending money on inventory that sells, thereby facilitating a constant cash flow through the business.
Show Trends in Customer Behaviors: You can also derive important insights about consumer purchasing behavior from tracking the inventory. Knowing what your audience likes and dislikes would play a crucial role when coming up with effective marketing campaigns in the future.??
Satisfy the Customers: Having sufficient stock would allow customers to receive their items without having to wait, which in turn helps with increas
ing customer satisfaction levels.
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