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What Are The Offerings of Logistics Companies For E-commerce Businesses?

An efficient e-commerce logistics company can help an e-commerce business stay competitive and succeed online

Covid-19 pandemic has derailed economies and businesses across the world. However, e-commerce which has showed impressive growth trajectory over the past decade, has bucked the trend and thrived through the pandemic. E-commerce sales soared by 160%, six to eight times the rate of growth of traditional retail between 2014 and 2019.

During the pandemic period, e-commerce rose from 13% to 17% of total retail. An IBEF study forecasts that Indian e-commerce will grow at a CAGR of 27% to reach the $99 billion by 2024.

Various supply and demand side factors have facilitated the growth of e-commerce. Increasing online consumer base, changing lifestyle of the Indian consumer seeking convenience, comfort and variety, and increase in internet-enabled devices have been key drivers.

The rise of e-commerce and the digital marketplace phenomenon, also known as ‘The Amazon Effect’, has changed the consumer buying behavior and expectations. Consumers now expect fast, free shipping and competitive pricing.

E-commerce logistics refers to the processes involved in storing and shipping inventory for an online store or marketplace, including inventory management and the picking, packing, and shipping of online orders. Having a strong ecommerce logistics partner can maximize efficiency, reduce shipping costs, and provide a great customer experience.

A robust and efficient logistics infrastructure is necessary for the success of e-commerce business. An e-commerce logistics company helps accelerate the speed with which order volumes move both up and down the supply chain. While some businesses might prefer to operate in-house logistics enterprises, the advantages of hiring logistics providers to achieve cost savings and increase efficiencies are higher.

However, this demanding delivery schedule poses several challenges for traditional logistics and supply chain models. Logistics businesses have been forced to develop and deploy advanced solutions with a view to keep up with the increasing demand from e-commerce channels and meet the rising customer expectations.

Innovating for excellence
Logistics companies have evolved from mere last-mile delivery solutions providers to holistic supply chain management partners, especially third-party logistics (3PL) companies. A 3PL partner allows e-commerce businesses to automate order fulfillment, with services including warehousing, inventory management, shipping and receiving, FTL and LTL freight shipping, picking and packing, kitting and customization, and reverse logistics.

There are several advantages that logistics companies offer for e-commerce businesses.

  • Reliable tracking

Tech-enabled logistics companies are equipped with inventory tracking systems that allow businesses to view inventory levels and order status from multiple channels in real-time.

  • Greater efficiencies

An e-commerce logistics company helps improve efficiencies by transporting packages in the most reliable and cost-effective way possible. Leveraging technology helps e-commerce logistics companies identify the best route for shipping orders which helps reduce shipping costs and transit times.

  • Use of leading technologies

Leading technologies empower e-commerce logistics companies to automate time-consuming and tedious tasks throughout the supply chain and cut down on manual work. Connected systems enable automated order tracking and real-time analysis of all systems at any time, which reduces unnecessary delays and errors during fulfillment. Information-visibility systems lead to a more fluid inventory pipeline and better customer satisfaction.

  • Focus on value-added services

Logistics technologies have grown to include a host of value-added services, for instance auditing services, to ensure small business have the tools and resources to grow in an e-commerce-based market.

  • Offer world-class customer support

Top logistics companies go to great lengths to keep clients in the loop throughout every step of the logistics journey.

The right logistics partner can help e-commerce businesses stay competitive and succeed online. An efficient e-commerce logistics company can help e-commerce platforms meet customers’ expectations and standout from competition.


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