LOGISTICS FOR E-COMMERCE - WHAT CHARACTERISES IT?

E-commerce companies are also competing with each other on the efficiency of order fulfilment. Nowadays, fast shipping is standard - if a company makes a customer wait too long for a parcel to be posted with an item they have purchased, they risk losing the buyer to a competitor. E-commerce today therefore requires excellent organisation of logistical processes. Consumers often rate the speed with which a shipment was sent and consider this factor to be one of the most important components of their overall evaluation of their experience with a brand. No less important for the e-shop's reputation is the control of logistics processes so that no mistakes are made - both in the content of the parcels and when assigning address labels to them.

Entrepreneurs considering setting up an online shop must choose a logistics model for their business. In the e-commerce market, we can distinguish several such strategies. These include dropshipping, fulfilment and private labelling, among others. What are these models and how do they help entrepreneurs reduce business costs?

• Dropshipping - one of the most recognisable logistics models on our market. In this arrangement, the retailer's role is limited solely to launching its own online shop, operating it and promoting it. The receipt of goods from the manufacturer, storage, packaging and dispatch is handled by an external entity, usually a dropshipping wholesaler.
• Fulfillment - this model also neglects the aspect of storing the goods at the seller's premises. This task is handled by an external, specialised logistics centre. Outsourcing logistics in this case involves transferring the shop's stock to a warehouse managed by such an entity. Once the customer buys the item, it is the fulfilment provider who takes care of completing and then packing and shipping the order.
• Private labeling - this interesting model, like dropshipping, also allows online shops not to worry about production processes. The manufacture of the products is also handled by an external entity. The difference between dropshipping and private labelling lies primarily in the fact that, in the case of the latter, the goods are labelled with the seller's brand.

The differences between e-commerce logistics and its traditional counterpart are apparent at first glance. The most noticeable differences are in the value of orders and the quantity of goods in a single order. In traditional logistics, we are dealing with bulk quantities of goods, which directly translates into a higher order value on average. Wholesale shipments are relatively rare in the e-commerce industry. Orders contain individual products, in addition to being shipped to consumers (rather than B2B customers, as is usually the case with traditional logistics).

The efficiency of order processing in an online shop depends on the efficiency of the necessary logistics processes. It is necessary to design them so that the purchased products reach the end customer quickly and safely. What is particularly important for e-commerce logistics? What is particularly important for e-commerce logistics?

• day-to-day stock control;
• omnichannel logistics;
• efficient handling of returns;
• optimisation of the warehouse layout, separation of the order picking area;
• automation of warehouse operations;
• thoughtful design of the final stage of the supply chain (so-called last mile transport).

Watch DHL eCommerce returns guru Greta Molinski debate.... with herself! From the cost "of free returns" to the environmental impact, Greta and Greta discuss everything.