E-commerce reflects changes originated in the shift in model of consumption.
The number of customers who make purchases on the Internet is growing without stopping. According to a study byMckinseyconsultancy, the sales via a digital channel increased by 160% between 2014 and 2019 and this tendency accelerated even more because of the pandemic.
This expansion has completely changed the logistics and warehouses.
In order to understand the logistic challenge which poses an online channel for trade, we will start with analysis of differences between traditional and e-commerce logistics.
Traditional logistics versus e-logistics: what are the differences?
- The type of order and shipping:in traditional logistics we deal with a full load, whereas in e-commerce logistics parcels and small-sized loads predominate. Very often lots of orders have to be prepared on a daily basis, orders which frequently include various articles and which have to be delivered to the customer in minimum delivery times.
- The kind of customer:whereas traditional logistics works with a well-known and returning customer, e-commerce counts with customers who usually are new, variable and rather not loyal.
- The flow of goods:in traditional logistics it was possible to count with regular flow, predictable and clear. E-logistics, in turn, works with irregular, difficult to foresee and complex flow.
- The destination:the destination of traditional logistics usually are, first of all, companies and physical shops. In e-commerce logistics the destination usually is a natural person, although B2B e-commerce models also exist.
- The demand:traditional logistics counts with more stable demand than e-commerce, which is much more subjected to fluctuations and becomes therefore a factor difficult to predict. Moreover, online sales usually are mostly seasonal, with demand peaks concentrated in the specific parts of the year such as Black Friday, Christmas or sales.
The differences mentioned above can help us understand why warehouse management in e-commerce will be a key factor to maintain competitively of your online business.
As we can see, it is necessary to count with agile fulfilment, which will make the whole process, starting with the customer purchase, most agile possible:goods storage and order preparation, as well as packaging and goods distribution.
If you would like more information on how Nordlogway can help you click at the following link.
