Outsource your e-commerce logistics solution

When you start to enjoy success with your e-commerce site, logistical problems can arise.
As orders grow in size, it becomes difficult to manage everything from storage and packaging to shipping and tracking.
Calling on an e-commerce logistics platform can help you better manage your business and continue to satisfy your customers, particularly when it comes to delivery times.
Find out everything you need to know about e-commerce logistics solutions, their advantages and disadvantages.

What are logistics and why use an e-commerce logistics platform?

E-commerce logistics: Definition

E-commerce logistics encompass all the means and methods implemented for the physical management of an online store’s products.
It is a process that brings together several activities:

  • reception of products from suppliers ;
  • product control ;
  • product packaging ;
  • labeling ;
  • storage ;
  • packaging ;
  • preparing orders for dispatch to customers ;
  • returns management.

Logistics should not be confused with transportation.
Although there are companies that offer complete solutions, most logistics services stop when the carriers take over delivery.

Why outsource the entire logistics side of your e-commerce business?

As soon as you start making a significant number of sales on your online store, it becomes essential to outsource.
There are a number of reasons why it’s not viable for you to handle your entire logistics chain on your own: meeting order processing deadlines, organizing the labeling and packaging of each product, etc. logistics solution for e-commerce Outsourcing your e-commerce logistics therefore frees up your time to concentrate on more strategic tasks for your online store.
Opting for a logistics solution for your ecommerce also enables you to anticipate periods when sales are at their peak and you need to fulfill every order on time.

The advantages of outsourcing e-commerce logistics

Saving time

All the actions involved in the labeling, storage or packaging process are extremely time-consuming.
Unless you have staff dedicated solely to this part of your business, using an e-commerce logistics platform can save you a lot of time.
As a result, you won’t have to manage every stage of the supply chain.
An e-commerce logistics provider can also handle peaks in activity or peak seasons.
Indeed, these periods are often synonymous with time-consuming work for an ecommerce business.

Making money

By relieving yourself of all logistics management, you eliminate the cost of renting storage space.
Savings can also be made on staff costs, equipment repairs, depreciation, insurance, etc.
Even if the logistics solution adopted for your e-commerce does not include transport, the subcontractor can save you money on transport thanks to its network of partners.

Efficiency and flexibility

Many logistics-related tasks are not only tedious, but also have no real added value: administrative tasks, handling, and so on.
By outsourcing logistics, you free up time to concentrate on more important tasks that contribute to your core business.
You’ll benefit from the expertise of the subcontractor, who will know how to best manage any storage problems that may arise, as well as any other unforeseen events.
The subcontractor also has the advantage of using professional, adapted tools: mechanization and automation in the warehouse, ERP software, etc.

The disadvantages of using an e-commerce logistics solution

It’s difficult, if not impossible, to use an e-commerce logistics solution if you sell perishable products such as food.
In addition to restrictions due to the nature of the products, there are other disadvantages to outsourcing your logistics.

Lack of control

You have no control over the management of logistics flows or the quality of the work.
This becomes problematic if you sell fragile products that deserve attention, hence the importance of choosing a trusted e-commerce logistics provider.

Lack of customization

For homemade or handcrafted products, the personalization aspect can disappear.
It’s difficult to outsource this part to a logistics solution, especially if the personalization consists of handwritten thank-you letters or personalized gifts.
In fact, not every customer will receive the same attention, as this is based on the number of orders placed, the customer’s history, the amount spent, and so on. e-commerce logistics platform

The cost can become high depending on your activity

While using an ecommerce logistics provider usually saves you money, there are two reasons why costs can become high:

  • Price can be a disadvantage if you choose the wrong subcontractor.
    In fact, you need to spend some time choosing your service provider so that you can compare and choose the one that offers the best advantages, particularly in terms of cost.
  • If you’re making very few sales, opting for an external logistics solution can be costly.
    In fact, this option only becomes attractive once you’ve made a significant number of sales.

How do I find a good e-commerce logistics provider?

The logistics provider is an important link in your e-commerce business.
Indeed, customer satisfaction also depends on the quality of order processing and delivery, and an unsatisfied customer will not place another order.
That’s why it’s important to choose a good logistics provider who specializes in e-commerce or who already works with e-tailers, to ensure that your products are properly managed.
Here are the most important criteria to take into account when choosing a logistics provider: the reliability of the provider, its storage capacity, the reliability of its IT system for tracking, the diversity of delivery solutions and its responsiveness.
You now know the advantages and disadvantages of an e-commerce logistics solution, enabling you to anticipate the logistics management of your products in anticipation of large orders.
And if you need any help with your e-commerce web development, don’t hesitate to contact me. As a Prestashop expert with over 10 years’ experience, I’ll be happy to help you with your online store project.