Ecommerce logistics has witnessed a tremendous amount of growth in the past few decades. Most of this has been possible due to the technological advancements in the sector. Things like total supply chain visibility, real-time tracking updates, or even inventory management have together improved the way ecommerce businesses serve their customers.
The introduction of big data, AI and ML processes, LLM, and IoT have transformed ecommerce logistics by allowing businesses to analyze massive amounts of data, predict customer behavior, and fulfill customer expectations. Logistics came around about 4 decades ago but the changes it has witnessed in these years are unthinkable. It is time for the eCommerce world to sit back and see how technology is transforming eCommerce logistics.
In today’s article, we take a brief look at all the ways in which technology is transforming eCommerce logistics. Some of these changes you may have already seen and some are still in the pipeline. Let’s read on!
Top 7 Ways in which Technology is Transforming Ecommerce Shipping
The first and most important goal of any eCommerce business is successful order fulfillment and customer satisfaction. Technological developments in eCommerce logistics have enabled 3PLs and eCommerce retailers to provide the best shipping services to their customers.
1) Intelligent Carrier Selection
Most eCommerce businesses work with 2 or more carriers to fulfill their orders. Manually selecting carriers to carry out order delivery is a difficult process. With ecommerce logistics technologies, shipping software can automatically recommend and allocate carriers for every order depending on certain metrics like delivery zones, type of shipment, SLA breaches, overall shipping experience, and more. Depending on the kind of eCommerce logistics software, you may even set your own metrics for the allocation of carriers.
2) AWB Generation with Shipping APIs
AWB generation (Airway Bill) or order manifestation is the process of printing a shipping label. It’s the first step in the shipping process. The job of an order manifestation API is to generate shipping labels and send them over to the carrier.
Once both the carrier and the logistics software are integrated with the shipping API, shipment info like addresses, names, and type of order can be easily transmitted from the carrier to the eCommerce logistics software through push and pull notifications. The introduction of shipping API has hastened the eCommerce shipping process and it is a major way in which technology is transforming eCommerce logistics.
3) Live Shipment Status Notifications
Technological transformation in eCommerce logistics has enabled eCommerce businesses to retrieve order tracking information from carriers and send real-time order update notifications to customers. They also send shoppers a tracking link where they can track the live status of their orders at all times.
Many such tracking portals come with branded features that allow businesses to personalize the experience for their consumers with brand logos, colors, featured products, and more. This also helps them generate more sales with cross-selling and upselling. For customers, this is a welcome change because they can contact their sellers if they notice any delays or issues with their orders.
4) Identification of Shipping Exceptions and Delays
Today’s AI-powered logistics technology is swift at catching shipping exceptions and delays. This is important because delayed shipments or failed deliveries impair customer engagement. Not only that, if failed deliveries become a recurring problem it can affect the revenue stream of your business in the form of product returns or RTOs. Identification of stuck, delayed, or failed deliveries at the earliest is very important so that eCommerce businesses can determine the causes of these SLA breaches and take action to improve shipping.
With an automated NDR management process, the eCommerce logistics software sends queries and prompts to the carrier and the customer to ascertain the reason for the shipping exception or failed delivery. This gives eCommerce businesses ample time to soothe customer grievances and address the issue of NDRs.
6) Estimated Delivery Dates
Accurate delivery date projections have really changed the ecommerce game. So much so that most customers today would shy away from buying from a store that does not offer EDDs or fails to deliver on that promise. It has become one of the most important factors for retaining shoppers and improving customer experience.
EDD projections rely on EDD APIs that pair with carriers to offer near-accurate delivery dates based on parameters like serviceability, type of package, type of delivery, etc. EDDs are typically displayed on the product and checkout pages but it’s extremely important to calibrate the data so that you always reflect accurate EDDs.
7) Returns & Exchanges
This is another aspect of ecommerce that has been greatly influenced by technological advancements. Earlier, returns would spell doom on the profits of ecommerce businesses but technology has changed that to a great extent.
Businesses offering returns or exchanges have started using return management software to automate and simplify returns on both ends. Like a tracking link, customers sending items back are given a link where they can track the status of their returns or refunds.
In many cases, this platform also features an exchange panel where customers can replace their existing items with something of their choice instead of returning them. This lowers return rates and helps save logistics costs. Brands, on the other hand, benefit from automated return pickups or pre-configured rules that can automatically accept or reject returns based on set parameters.
Final Words
As you can see from the above discussion, technology is slowly but surely transforming eCommerce logistics all over the world. The latest tech updates mentioned above are increasingly becoming indispensable for an excellent customer experience.
As customer retention rates spike, brands are looking towards new ways of capturing the audience’s attention. We assure you that by introducing the systems discussed above your business will grow rapidly and gain more customers in the process. We wish you all the best in your endeavors!
