Logistics is an essential part of e-commerce and entrepreneurship. It's easy to forget that company logistics planning should start when selecting products to sell in the online store. In this article, we'll go through logistics planning and challenges especially from small online stores' perspective.
Logistics needs stem from product characteristics and business model
The size of goods directly affects shipping costs in many cases, starting from import. It's also worth considering whether the product is sold internationally. In this case, a large product should be packable into a small space and possibly consist of multiple parts. The smaller the packaging, the lower the shipping and storage costs will be, which directly reflects in the product's final price to the customer.
In consumer trade, a diverse selection is an advantage
Customer needs must be considered when selecting logistics services. Many customers are used to using specific logistics services and naturally want their orders as quickly as possible. Numerous studies have shown that customers easily switch online stores if they can't find a suitable delivery method or if shipping costs are too high.
It can be difficult for a small business or online store to offer all possible logistics services to their customers:
Contract negotiations with logistics service providers can be dizzying.
Calculating exact prices for international and domestic shipments helps monitor costs but requires a lot of time and effort.
Ordering import pickups and shipping larger batches of goods can prove challenging.
SME shipping volumes often suffice for one contract, and additional services incur significantly higher costs. Additionally, price research and going through the entire ordering process is very time-consuming work.
In B2B trade, speed and image are decisive
In business-to-business trades, it's important to handle shipments quickly and appear professional (a natural consequence of good service).
For example, if a company orders a sample, they've likely ordered similar samples from other companies too. Therefore, it's worth using fast courier services especially for sending samples. If your sample arrives quickly before competitors' shipments, your company has a clear advantage. You can also track courier shipments precisely and stay in real-time contact with the recipient to ensure sales.
Shipit solves small online store logistics challenges
At Shipit, we aim to optimize customer costs starting from import. The earlier you start logistics planning, the more competitively you can grow your business.
This is how you tackle problems as a Shipit customer:
Easily check transport prices for your shipments before starting trade.
Avoid complex contract negotiations with numerous transport companies, saving time and money.
Get competitive transport prices for domestic and international shipping
Get nationwide transport options for B2B, B2C, and even freight shipments.
By trying different logistics options, you'll discover which solutions work best for your customers. With Shipit, you save clear money on transport costs, which you can use for acquiring additional sales. This way you bring added value to your customers and increase your own sales at the same time. Win win!
The interview was published in Transport and Logistics magazine issue 1 / 2018.