The Role Of Logistics In The Local & International E-Commerce Sector

If you run a digitally enabled business, you likely have experienced—or are currently experiencing—relatively smooth and easy virtual transactions between you and clients. From the initial steps of receiving customers’ orders, sending quotes, and receiving payments, the process is typically seamless as long as you leverage the best digital technology.

But research reveals that you are not the only one reaping the dividends of a tech-enabled business. About 60% of businesses have an international presence through e-commerce. So what makes your business stand out in a saturated market such as this?

Quality logistics services would undoubtedly give you a competitive advantage in the local and international markets.  At international levels, the e-commerce sector can fuel the development of not just the private sector but the overall economy of nations, particularly in developing countries. Despite this potential in the e-commerce sector, poor logistics remains a major barrier to its growth.

So, what exactly are logistics roles in the e-commerce sector, and how can issues around logistics be solved?

We explore these questions and more in this article.

The Role of Logistics in the Local and International E-commerce Sector

While the internet can enable e-commerce transactions, there is an even greater need for smooth transportation and delivery of goods locally and internationally. Simply put, the e-commerce sector can never survive without an efficient logistics system.

Below are some of the indispensable roles that logistics plays in the e-commerce sector:

1. Improved customer satisfaction: The baseline goal of any business is to grow revenue and be profitable. But this can only be achieved when customers are satisfied and constantly assured that the company is centred around their needs. These needs are constantly evolving, and the demand for them to be satisfied is also increasing.

To this end, businesses need to have an efficient logistics system for shipping and delivery or employ the services of a third-party provider that can provide the best logistics services. This way, your customers get a positive e-commerce experience.

2.     Transparency and increased efficiencies in supply chains: Efficient logistics enables transparency and enhanced efficiency in supply chain operations through improved process organisation. Improved organisation can be observed, for instance, in how orders and shipments are tracked from the warehouse until they arrive at the consumption centres and finally at the consumer’s doorstep. Efficient logistics also reduces transportation costs along supply chains as there is transparency in freight rates.
3.     The convenience of returns: While this may be a downside of e-commerce, customers are entitled to return products that don’t satisfy their taste unless there is a no-return policy. Logistics makes the return process faster and easier for all parties involved and from any location. Also, this influences the customer’s positive perception of the business.

All of the above roles affect the overall growth or decline of the e-commerce sector. However, some challenges can prevent these logistics roles from achieving the desired outcomes in the e-commerce sectors. They include:

1. Poor logistics and transport infrastructure, which can limit road access.
2. Lack of reliable logistics services and proper postal addressing system for last-mile deliveries.
3. Inefficient custom clearance procedures and regulations.
4. High trading volumes with inadequate resources to meet demands.
5. The risks of cargo theft and damages.

So what’s the solution?

Although collaborations between the public and private sectors and some government intervention can help overcome some of the challenges above, third-party logistics service providers like GIG Logistics can fill the gaps and scale logistics operations domestically and internationally in the e-commerce sector.

The benefits of an efficient and tech-enabled logistics system cannot be over-emphasised, so GIG Logistics is the right partner for all your logistics needs. GIGL offers affordable local and outbound shipping services to over 230 countries and territories.

With the GIGL Class Plan, your business can get all the logistics to support it needs to provide the best services to your customers and clients across the globe. This way, your business can become one of the numerous E-commerce success stories.

Sign up today.

 

 

 

 

 

 

 

 

Written by Victoria B. Faleye