Logistics Management in eCommerce Businesses

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Process of conducting eCommerce business online

The process of buying and selling goods online is relatively easy. An interested consumer or customer will visit the business official website, inspect the goods available for purchase and subsequently make an order for the goods that fancy them. They will then have an option of paying for the goods right there and then or they could pay for the goods on delivery to their residence or office. This will depend on the regulations and policy set by the eCommerce store. Some stores have both options whereas others only operate with one payment option.

Once the order has been made and payment taken care of, instructions are sent to the warehouse holding the goods. The goods are packaged and shipped to their intended destination while appropriate changes are made in the inventory lists. This process is repeated for every new order that is made on the store’s eCommerce website.

Logistics management challenges

While the process of buying and selling goods explained above sounds easy and fairly straightforward, there are numerous challenges that the eCommerce store might have to face and settle before successfully concluding one order. Some of these challenges have been listed and explained in detail below:

1) The challenge of shipping costs

Shipping costs are a huge headache to many online businesses. This is due to the fact that the products being shipped are of different prices and value, hence estimating the amount of money that a customer should pay for goods ordered might end up being a problem. It is also important to note that there are millions of online stores competing for customers on the internet. This makes it imperative for any store to have affordable and competitive shipping rates. It is no wonder then that many businesses simply absorb the cost of shipping and make it free for the customer.

2) Time it takes for the goods to reach the consumer

Another tricky logistics management challenge is the time it takes for the goods ordered to reach the consumer. No one likes to wait for goods that they have already paid for. This is why the most successful online stores have little to no waiting periods. Some have a guaranteed delivery in twenty four hours whereas others promise delivery within three working days. Anything more than three days will definitely annoy the end consumer, and it is unlikely that they will reorder.

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