E commerce Logistics Industry Overview

Logistic costs per product are becoming an increasingly significant part of the total sales costs. This makes it crucial for companies to find an e commerce logistics partner or suppliers who can ensure quality and order accuracy while balancing value added logistics, costs, and focus. Also, they require a flexible logistics system that can reduce downtime and unnecessary overcapacity.

Business Challenges Faced

The client, an e commerce logistics company in North America, was moving their sales through the website due to great products, good marketing, and customer service. However, in late 2018, the client found themselves in need of a flexible, scalable fulfillment solution that could map to their business strategy and meet customer expectations for fast, affordable delivery. The inability to store inventory, improve delivery times created the need for a flexible long-term contract from suppliers. They also needed to identify suppliers who could offer dropshipping while growing product lines. The client, therefore, approached SpendEdge to identify potential suppliers in the ecommerce logistics industry. 

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Our Research Approach

With the aid of SpendEdge, the client developed an operational and functional capability matrix of suppliers for the e commerce logistics industry. They analyzed the business profile, revenue, financial structure, and manufacturing and distribution capabilities of potential suppliers in the e commerce logistics market. While profiling suppliers, they also determined geographic coverage which the suppliers could provide based on their logistics capabilities. This helped the client to compare suppliers in e commerce logistics industry against each other and engage with the best suppliers.

The comprehensive e commerce logistics industry report also helped the client to place inventory in fulfillment centers, closer to demand, and shorten the delivery time. This helped the client to offer free shipping and in-store pickup option for its consumers. 

Engagement Outcome

SpendEdge’s solution helped the client to reduce delivery times by 47% and logistics costs by 35%. Also, the supplier insights offered helped the client to associate with key suppliers and expand their market reach by 75% within a span of 45 days while increasing the SKUs by 3x times.

Associating with key suppliers is imperative for companies to increase share in the e commerce logistics market. Subscribe now to enjoy free access to SpendEdge’s insights regarding the e commerce logistics industry.

Best Practices for Companies in the E commerce Logistics Industry

Here are a few tips that companies can follow to successfully manage their logistics.

• Take advantage of different shipping options available in the market. Have a dedicated provider that can better handle the intricacies of bulky items and unusual shipments. 
• Provide multiple shipping options to consumers. It can be in-store pickup option or ship to home delivery based on your capabilities.
• Offer real-time visibility of products to improve customer service levels.