The ecommerce industry is one of the fastest-growing economic sectors in the world. It has experienced new avenues of growth thanks to globalization, technology, and the ever-evolving support of shipping companies.
Ecommerce shipping has become one of the most profitable areas of the logistics industry. Being able to keep up with the competitive growth rate of companies, more innovative ecommerce shipping solutions are needed.
What is Ecommerce Shipping?
Ecommerce shipping is the end-to-end process of fulfilling an order for online retail service providers. It is how ecommerce services can be provided on a regular basis to customers all across the country. Ecommerce shipping solutions typically entail a combination of labor-related tasks and tech-enabled support that streamline delivery.
These services start with order processing and packaging, and usually end with the order being handed over to the customer or returned to its place of origin. Additional specialized services are also part of this spectrum, like customized packaging, order tracking, delivery date estimation, or security and insurance.
Details on How Ecommerce Shipping Works
Ecommerce shipping is essentially the process by which companies ensure customers are receiving their orders on time. There are numerous steps to this process, each of which contains its own range of complex procedures.
These encompass the general range of specialty shipping services that most shipping solutions must offer. The entirety of ecommerce shipping can be categorized on the basis of these 5 important stages.
1. Storage and Warehousing
Many shipping companies and 3rd party logistics tools provide storage facilities and warehouses for eCommerce stock to be maintained.
These shipping services can be combined with warehouse management systems (WMS) and ERP (enterprise resource planning) to speed up order processing and enable better inventory management, in addition to increasing overall order fulfillment.
2. Order Processing
A chunk of the work that shipping companies do immediately after an order is placed is focused on order processing.
This is when the order is created and confirmed in the shipping partners’ database. It is given a unique identity, that is a shipping or return label, that can be scanned and traced throughout its journey. This process typically ends with an order being picked and packed.
3. Transport
Ecommerce service providers usually rely on shipping carriers to provide the requisite vehicle or fleet to transport goods from the origin warehouse to the customers’ destination.
This also means that the carrier is responsible for the safety of the item during this stage. In-transit storage hubs, and distribution and fulfillment centers managed by shipping carriers enable them to more effectively provide this service.
4. Last-Mile Delivery
The last mile of delivery is where carriers must be able to communicate with and work well with ecommerce enterprises and their customers.
This phase, when the order is transported from the last hub to the customer, is when delivery exceptions occur most frequently. Orders can get stuck or delayed, and customers may be unreachable or unavailable, but carriers must still be able to ensure the order reaches its destination.
5. Returns and Exchanges
Many orders are either canceled or requested to be returned after receipt. If these returning orders are not handled efficiently, it could result in heavy losses of products that were available for resale.
A good carrier is one that is equipped to handle reverse logistics with the same efficiency as forward logistics are handled. Alternatively, customers may request exchanges instead of returns. Even there, prompt pickups and transparent communication between all parties are necessary for successful fulfillment.
What is the Role of Real-Time Notifications in Ecommerce Shipping?
From the moment of checkout, customers look forward to receiving their orders. And to deliver well on that anticipation, businesses must keep sending them real-notification shipment tracking notifications software.
These alerts inform shoppers as to when they might expect their delivery and make themselves available for the same. Additionally, they build excitement and if brands successfully deliver on their promise, they stand to gain a loyal customer.
In addition to real-time tracking updates, brands must also share estimated delivery dates (EDD) on product and checkout pages to reduce cart abandonment and customer drop-off rates. Notifications together with EDD are an incredible way to boost customer experience and increase customer lifetime value (CLV).
Conclusion
Ecommerce shipping consists of a set of clear functions and tasks that have to be carried out. Separating these tasks based on the operational functionality of each of them can help you gain a better understanding of how ecommerce shipping works.
The numerous ecommerce shipping solutions and freight forwarding features made available by different shipping companies are informed by these stages of the delivery mechanism. To optimize and enhance every customer’s delivery experience, these parts of the process must be well understood.
We hope this blog has shed some light on the intricacies of eCommerce shipping and the importance of providing live shipment status updates to customers.
