Establishment of Logistics Infrastructure for E-Commerce Sites
Logistics cannot be considered separately from the e-commerce sector. One of the first integrations that companies add to the ecosystem in setting up e-commerce systems is logistics systems integration. The logistics sector attaches importance to its investments in e-commerce companies. The two sectors that support each other at a high level are intertwined. E-commerce companies that have not been able to fully construct their logistics infrastructure can no longer be successful. Logistics companies are also implementing new services and new solutions for e-commerce companies.
Establishing the logistics infrastructure in e-commerce initiatives requires professional processes. It should not be expected to reach a certain financial level for the establishment of logistics infrastructure. Logistics infrastructure should also be included in the system during the establishment of an e-commerce site. Considering the e-commerce ecosystem, it is observed that e-commerce initiatives that attach importance to the establishment of logistics infrastructure and establish a professional logistics infrastructure are successful. Because logistics is one of the most sensitive issues of e-commerce.
E-Commerce and Logistics
E-commerce and logistics are inseparable. For this reason, developments in e-commerce have created cooperation between the two sectors. Logistics companies can reach the customer one-to-one and observe customer needs and reactions. The feedback obtained by logistics processes in contact with the customer is an opportunity for the e-commerce sector. In this way, more effective and new solutions for their customers can be developed and offered to customers.
In e-commerce transactions, most of the product shipments are made through cargo companies. When it comes to shipping by cargo, storage, stock, management and management systems are also on the agenda. Considering that millions of products are delivered to customers between provinces, districts and countries through e-commerce, the importance of logistics will be better understood.
Logistics companies represent the e-commerce industry before customers. For this reason, logistics companies with an important responsibility work in an integrated manner with the e-commerce sector, which works with instant stocks. The integration of e-commerce and logistics provides cost control for both sectors.
Logistics Management in E-Commerce
E-commerce is a sector that needs versatile solutions. These solutions should be considered during the e-commerce site setup phase. Logistics, one of them, is responsible for all types of delivery. It also includes logistics, e-commerce cargo and storage solutions.
E-commerce companies make choices in line with their goals while setting up the logistics infrastructure. While large-scale e-commerce companies set up their own logistics processes, smaller-scale e-commerce initiatives leave the management of their logistics processes to e-commerce logistics companies.
Logistics companies can offer delivery, storage and assembly services. Logistics companies, which operate an operational process according to all logistics requirements of e-commerce sites, provide operations management especially for medium and small-scale companies.
How to Establish E-Commerce Logistics Infrastructure?
Logistics generally means delivering the right product to the right customer at the right time. One of the most important components for successful e-commerce is a competitive and efficient logistics service in price. Logistics; It plays a key role in strategic pricing, customer satisfaction and most importantly in determining cash flow to the business. Logistics is an integral component of e-commerce; however, various factors such as infrastructure, consumer behavior and logistics cost complicate the logistics setup.
There are different ways of setting up logistics infrastructure for e-commerce initiatives. First of all, a basic logistics infrastructure can be established to meet the needs in an office. At this stage, firstly, an agreement should be made by contacting cargo companies providing e-commerce shipments.
Another alternative is to collaborate with a logistics company. There are many companies serving in this field. Giant logistics companies that offer a comprehensive operational process across the country or worldwide are highly effective in operation. The biggest disadvantage of these logistics companies is that they are very costly for initial setup or start-up. Depending on the type of shipment and the distance of the shipping address, logistics costs can be much higher than the profit to be obtained from the product.
Increasing number of e-commerce initiatives and high logistics costs brought holistic logistics applications to the agenda. Small e-commerce firms’ customer bases are also small. These small firms have no major orders on a daily basis; However, when the orders of all these e-commerce companies are collected, a large amount of orders arise. For this reason, logistics or order collecting brokerage firms, by establishing partnership with e-commerce companies, collect cumulative orders and deliver them to customers within the framework of their cooperation with large logistics companies.
Let’s assume that only two orders are created per day for online sales; Logistics companies will not negotiate as orders are few. Also, shipping costs will be very high. However, partnership with logistics aggregators will allow you to take advantage of highly subsidized shipping rates and multiple options.