More and more consumers worldwide are shopping online, but it remains a continuous battle for e-tailers to win over their trust. Needless to say, the logistical handling of an order has to proceed just as smoothly as all the previous stages in the process. Fulfilling an international order is often highly complex and many e-tailers have already discovered that errors in the delivery and returns process can prove costly and time-consuming. And, of course, these additional costs eat straight into their profit margins.
Team up with an experienced fulfillment partner
A growing number of e-tailers are looking for an experienced logistics partner to keep the costs and complexity of international e-fulfillment under control. After all, outsourcing means you don’t have to invest in infrastructure and overheads yourself — and it’s no secret that operating a well-equipped fulfillment center comes at a hefty price. Other factors that help to reduce costs when you outsource your logistics include access to process improvements, a high level of automation and better control of warehousing and transport costs.
By teaming up with an experienced partner, e-tailers can convert their fixed costs into a variable cost price per order and make use of the economies of scale that are possible through their logistics partner. Not only do your costs fall, but also your transparency increases significantly. Thanks to the agreed service levels, e-tailers are free from the hassle usually associated with logistics and have the guarantee that their customers will enjoy consistent quality beyond the online transaction. Flexibility — to help balance out the peaks and troughs in sales volumes — is ensured, transparency is increased and additional value-adding services are made possible in the warehouse.
Focus on your core activity
Cost savings — as important as they may be — only make up click here part of the picture. By outsourcing their logistical processes, e-tailers are able to focus on their core activity: putting together the best possible product range and taking care of all the necessary marketing tasks. For most companies, logistics is not a core activity and the required level of expertise is not always present in-house. This means that many companies face an expensive learning curve, with all the risk of damaging their corporate image, before basic competencies in the field of e-commerce logistics have been mastered.
Thanks to their scale and expertise, specialized e-fulfillment companies can play a big role in the successful realization of a company’s e-commerce strategy. They have a significant advantage in the field of automation and IT systems over companies whose e-fulfillment is carried out within the four walls of their premises. Once you add the international character of e-commerce into the mix, it immediately becomes clear why IT can still create a significant bottleneck in the way of quality customer experience. E-commerce activities require an exceptionally flexible IT system like our proprietary online platform Mercury that can process thousands of orders a day with ease.
Invest in a strong network
E-commerce is experiencing rapid growth and evolution, and nothing seems to stand in the way of this pattern continuing. E-tailers that seek to guarantee quality and flawless operations throughout the whole e-commerce process should make it a top priority to select a suitable e-fulfillment partner. A company’s logistics network can’t afford to be its weakest link. After all, e-tailers can only evolve as experts in the front-end of their business when the back-end is also in safe and expert hands.