What Happens After an eCommerce Startup Contacts Logistics Top Companies
ECommerce startups can’t thrive in a super-competitive environment without the assistance of an efficient logistics team. Once eCommerce startups defy the odds to generate revenue, investing in an efficient logistics team that can ship products the way their shoppers expect can only strengthen their market position.
In the past, startups often had to experience logistics nightmares as soon as they started diversifying their product range. Thankfully, 3PL companies (third-party logistics) integrate technology and analytics to make these ambitious business upgrades seamless. 3pl in Canada are so efficient; they soon become the core of the startup by storing products, fulfilling deliveries, and a plethora of other services. That’s why between 2010-18, the global 3PL industry generated $932 billion.
Many small-scale eCommerce startups may be anxious to team up with these 3PL giants. These apprehensions are baseless as top 3PL companies are always looking to expand their clientele and help up and coming startups gain a foothold in the global retail market. Here’s what happens when small-scale eCommerce startups contact logistics top companies –
More Efficient Inventory Management
While top retail companies can spend excessive amounts on creating inventory forecasts and assessing customer data, small-scale eCommerce startups can’t afford such luxuries.
3PL logistics companies help small-scale eCommerce vendors manage their inventory by monitoring traffic on the eCommerce stores, using seasonal data from their previous projects, assessing holiday-driven purchases, etc. They inform their clients about unanticipated increases and decreases in demand.
Plus, they offer flexible stocking options to make sure the eCommerce businesses can invest in marketing efforts. Since top logistical companies offer flexible warehouse spaces, small-scale eCommerce startups can manage abrupt increases or decreases in demand in the same way that top retail companies do.
Improvement in Sales Performance
A good indicator of growth for small-scale eCommerce companies is an increase in the need for logistical support. Small-scale eCommerce startups often face these challenges once their business starts expanding –
- Improper logistical support (off-the-cuff efforts to deal with increases in orders).
- The need to invest in several warehouses – an effort that radically increases business costs.
- Deficiencies in inventory management due to malfunctioning internal stock forecasting systems.
- Online shoppers realizing an item is unavailable after entering the checkout process.
Top logistics companies help smaller eCommerce businesses stock adequately without forcing them to pay for additional shelf space. Their services are priced in accordance with the market space a business holds. Of course, their operational discipline in terms of inventory management is perfect, and it eliminates these common problems that most smaller eCommerce businesses face when they try to go big. The transition from a small-scale eCommerce website to a reliable seller becomes much smoother when a top 3PL company is introduced into the equation.
Major Improvements in Shipping
Online shopping is on the rise only because customers love the convenience of the process and because of fast deliveries. In a recent Deloitte survey, over 72% of online shoppers cited convenience and free shipping as key reasons they prefer shopping online.
Free shipping and same-day deliveries trigger countless online purchases. Top logistics providers realize the importance of these two factors. That’s why they reduce the cost of storage, optimize the supply chain, and offer cross-docking to ensure offers like same-day deliveries or free shipping don’t financially drain small-scale eCommerce companies.
Online shoppers remember delivery experiences. They quickly forget how efficient the eCommerce customer support was, or how smooth the store’s website was, etc.
With efficient deliveries, satisfying consumer expectations becomes a lot easier. eCommerce vendors who’ve teamed up with logistical experts don’t need to invest heavily in other resources (e.g., app building, customer tracking, etc.). This order fulfillment company will help improve your customers’ happiness with their excellent service and on-time fulfillment and shipping.
Additional Services
Small scale eCommerce businesses are often too preoccupied with managing orders that they fail to offer additional services. For instance, most eCommerce sellers struggle to manage order refusals and returns (reverse logistics).
Order returns and refusals have to be managed as efficiently as original purchases, or the seller risks permanently losing a customer.
Flexible return policies boost customer confidence in the brand. However, these services drive costs for small-scale eCommerce businesses. A top logistics provider can help these businesses by –
- Providing cost-efficient return shipping
- Charging minimal restocking fees
- Keep order returns separate from the central supply chains of new purchases.
- Create separate warehousing sections or spaces to specifically manage returns
- Assign inventory managers and warehousing experts to manage these returns
Get Close to The Customer
Lastly, and most importantly, top 3PL companies move products closer to customers. Since these giant logistical companies have numerous warehousing and distribution centers, it is easier for them to respond to instant orders. An overall reduction in delivery times is also guaranteed.
These are the weapons that top logistics companies add to the arsenal of small-scale businesses. Leveraging these weapons will ensure the long-term success of smaller eCommerce companies. dutch barge for sale uk