E-commerce: the challenges of your logistics management

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In 2020, online commerce represented a turnover of 112.2 billion euros according to the Federation of e-commerce and distance selling (Fevad). This represents a growth of 8.5% compared to the previous year, which is explained by the explosion of online sales during the lockdown period. Companies, regardless of their sector, have turned to e-commerce to compensate for the closure of their structures and ensure the sustainability of their activities. Home delivery and in-store collection have developed and this trend looks set to last.

Starting an e-commerce business may therefore seem easy today, because consumer habits are well established. However, things can get complicated when it comes to planning the right logistics. The challenges of such management, particularly in e-commerce, are often underestimated.

Online shoppers want to be delivered as quickly as possible, in optimal conditions and for a low or no cost. As a merchant site, you must be able to meet these demands. This requires you to think about several essential kuwait telegram points: how will you store your products? Where will you do it to deliver quickly? What are your replenishment options? How will you get the goods to the customer? What delivery options will you offer them and, above all, at what prices?

All these questions lead back to a major problem: how to satisfy your customers while ensuring the profitability of your e-commerce activity? We help you take stock of the challenges of your logistics management.

The delivery amount: a key factor for success in e-commerce
When it comes to buying online, 73% of consumers say that the cost of delivery is the most important purchasing criterion. A cost deemed too high is synonymous with cart abandonment. More than a third of Internet users do so when shipping costs are not offered. This is how “free delivery” has become a sales argument to stand out from the competition.

Offering delivery would therefore increase sales for your online store. However, it can be difficult for a small business to offer free delivery, because the logistics costs for storage, packaging and transport are significant. This is why most merchant sites favor sharing delivery costs. The company assumes part of the costs and the rest is billed to the customer. You certainly reduce your margins, but this is done to the benefit of sales. The lower the delivery amount, the more likely the buyer is to place an order.

As a merchant site, you must therefore find the most suitable logistics solutions to optimize your margin . This is strategic, because they must not only be attractive in terms of price, but also correspond to the pace of life of your customers.

Delivery methods: flexibility appreciated by online buyers
When placing an order, the delivery amount is not the only determining criterion. At home, express, at a relay point: the delivery methods are also taken into account by the buyer. The more there are, the more favorable it is to increasing your turnover . Internet users appreciate having the choice: they can opt for the alternative best suited to their pace of life. You thus guarantee them a certain flexibility.

According to Fevad, 86% of buyers prefer home delivery, but interest in in-store or relay point collection services is growing. Lockdown has encouraged this trend. To make delivery one of your growth levers, it is therefore interesting to set up a click and collect service . This is easily achievable if you create your online store with Shopify .

Some companies also offer an "à la carte" delivery service . When confirming their order, the buyer can choose not only the day, but also the time of delivery: they benefit from a specific appointment. This meets the need for flexibility of consumers, who are not fans of deliveries announced "between 1 p.m. and 6 p.m."

When it comes to e-logistics, time management is central. You must announce to your customers delivery times that you can meet . Your e-commerce logistics must therefore be efficient. 29% of buyers say that on-time delivery is their main concern. This is in addition to the fact that they appreciate knowing the status of their order. Confirmation, preparation, shipping, delivery: by e-mail, SMS or via the customer area, order tracking is essential.