How to Evaluate Your E-Commerce Logistics?

by Robert

As Covid-19 is impacting businesses worldwide, the need to open businesses remains important. More people have started ordering products as lockdown restrictions are being eased worldwide. Every e-commerce business now has to review its previous logistics before this period. The pre-COVID business world we knew will take a while before we see it again if we ever will. Currently, online buyers are seeking ways to have their orders delivered as soon as possible and in the expected excellent conditions.

Things to consider when reviewing your e-commerce logistics

If there is a surge in demand for your products or you are just opening up your business after easing the lockdown, evaluating your e-commerce logistics should not be delayed. Here are some key areas to evaluate.

1. Item inspection (quality control)

You need to rate your present e-commerce logistics provider’s competencies on items inspection. One way to go about this is to compare the numbers of defective items reported at the point of delivery to the warehouse with those reported at the point of delivery to customers. If you have more values on the later instant, it may be an indication of poor inspection services.

2. eCommerce platform integration (order sync)

Evaluate how easily your e-commerce store integrates with your logistics company’s inventory management software. This tells how efficiently the logistics company will be prompted when there is an order on your e-commerce site.

3. Pick and pack

Check with your customer care representatives to see how many customers called to complain about orders that are not exactly as the customer indicated in the online store. Be sure to trace the problem from the online store to your logistics company to find out where the error came from.

4. Number of strategically located warehouses

Know exactly how many warehouses your e-commerce logistics company is operating and how many of them are functional. This is very important if you aim to deliver your products globally within two or three days from the order date. The lesser the number of strategically located warehouses your e-commerce logistics company runs, the less likely that your products will be delivered faster globally. An e-commerce logistics company having a minimum of three functional warehouses may be good for a start.

5. Pricing

E-commerce logistics costs can drive the market price of your products in serious proportions. You want to be sure you have the best fulfillment service provider working for you at the cheapest cost possible. To determine the total logistics costs your business operates on, you need to add up the inventory receiving fee, handling, storage/warehousing fee, cost of transportation of goods to Fulfillment Center Locations.

These costs can add up to hundreds of thousands of dollars, depending on the volume of orders that are processed monthly. One way to save cost is to use an order fulfillment company that waives some of these fees or offers a relatively lower charge on these services. By doing so, you will be saving your business lots of money that could have been consumed by logistics.

NextSmartShip is the best fulfillment service provider that you can use to get excellent e-commerce logistics without the need to pay too much.

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