3 min read

How innovation in Logistics Management is pulling up eCommerce

logistics systems and eCommerce industry

Known to be growing at a phenomenal rate, the eCommerce industry is one of the largest business niches, building thousands of dollar turnover a year. Millions of people across the globe, make use of eCommerce stores to buy their day to day products. With different logistics and shipment industries by their side, the process of reaching the customers are becoming much easier. These logistics and courier companies are setting up the opportunity to increase the overall profitability and business of these stores. They are not only bridging the gap between the dealer and the customer but are also managing the obstacles and challenges that are coming on the way.

The trend of eCommerce has reached this position due to the brilliant idea of home delivery. With the busy and hectic lifestyle of the 21st century, people really don’t have time to go for a store crawl for buying something. So these eCommerce sites are here to save the day. With just a mobile app, you can now order ANYTHING to get delivered at your home. But the challenge comes to the point where you need to develop a successful eCommerce strategy. Right after the order placement, the products go through a lot of steps including packaging, shipping etc. until it successfully reaches the consumers.

However, over a certain amount of time, the popularity of eCommerce was seen to be a little down. Why you ask? Well because of the lack of proper management. A lot of people lately started getting wrong products and sometimes, the order didn’t even reach the customer. This reduced the trust of the customer for these sites, where people re-evaluated whether to order online or go get it on their own. The return rates increased and these sellers started suffering a huge loss.

Some of the major reasons that caused a sudden downfall of eCommerce are as follows:

1. Mis-delivered products

Ever ordered a phone, and received stone instead? Or ordered that jewelry that you have been batting eye from a long time, that came broken? Mis-delivered products not only break a heart but also customer’s trust. Management ignoring these facts gradually causes the downfall of an eCommerce site.

2. Return rates

Increased mis-delivery leads to increased return rates. This affects the seller as they have to spend extra money for the returned product.

3. Delayed delivery

Most eCommerce delivers their products with 5-7 business days. However improper shipping and transport handling cause a delay in delivery. This creates a negative impact on the customers and they eventually stop ordering from that particular site.

4. Negative reviews

Reviews matter more than you think. A site having more good customer reviews tends to perform better than the sites that don’t. So if a site is constantly delivering wrong products, the negative reviews are increasing, and so is their negative reputation.

Is there a way out?

Of course, there is. Technology has its own way to turn it around. The innovation in modern day logistics is gradually reducing the above-mentioned problems and regaining people’s faith towards eCommerce. The AI-driven technology is here to rescue the platform from falling, and are enhancing a better dealer and customer relationship.

The future of logistics

A Logistics system acts as the middleman between the customer and the retailer. Improper management at this point is what creates all the above blunders. So technology is innovating the way of how the modern day logistics work and helping different businesses to grow.

The automation in sales is affecting logistics in a lot of ways and is actually shaping the country’s economy. The innovation in logistics management is pulling up eCommerce business from the pit and significantly reducing the refund and return rates. One of the most trending among them is the use of AI-driven technology that is being used to ease out the eCommerce business. With a virtual calling software, a logistics can now confirm on the product specifications before it is out for delivery. Different logistics are also focusing on setting up their own NDR team to resolve all the non-delivery issue. The concept is skyrocketing in popularity and is resulting in reduced non-delivery rates.

The root of all problems is the lack of proper communication. Hitting the right ground will not only increase revenue rates but will also prevent significant time loss. Innovation in logistics management can bridge the gap between buyer and seller and makes sure you get your product in hand. Through real-time tracking, easy customer support, and dealing with the online buyer in an automated way has eased out online trades like never before.

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