Why Logistics is a Key Element of E-Commerce Start-Up Business Plan?


Nowadays economics is going through difficult times. Traditional business models are replaced by new ones. More and more people tend to deal with eCommerce. It implies buying and selling goods or services with the help of the Internet. Moreover,  the processes of transfer of money and data to execute these transactions are also completed online. E-commerce is not only about the sale of physical products online. It’s about any type of commercial operations that are facilitated through the Internet.

If you decide to launch your own e-commerce business, the first step you should take is to create a business plan. It should include information about the market research and possible solutions. They are to meet the needs and expectations of the target audience. Yet, many beginners make one and the same mistake. They pay lots of attention to the choice of proper suppliers, creation of an eye-catch design of the websites, marketing strategy, but they forget about an essential stage of any order fulfillment process. It’s necessary not only to find clients and sell them products but also to deliver purchases to them. It should b done in the best possible way and as fast as possible.

Thus, logistics should be a key element of any eCommerce start-up business plan. It’s necessary to think very carefully about the following aspects:

  • Inventory.

Having an elevated inventory management strategy is essential for any e-commerce business startup. It allows companies to rise above the competition and delight buyers. It’s necessary to control the number of available supplies, order the needed items in advance, and receive them without delays and damages. Nowadays there are lots of innovative software. With the help of digital tools, it’s possible to control initial orders and restocking without effort.   

  • Warehousing.

 It’s possible to run an e-commerce business from any spot on the globe. Yet, if you are located in California, it’s not an easy task to transport cargo to Hawaii from your state. It’s better to store products in several warehouses. Experienced logistics brokers are ready to help you to solve this task. 

  • Last-mine delivery.

It’s the main part of the supply chain. The wrong choice of a freight forwarder is able to ruin your business. If clients are not able to receive their orders on time, they are likely to look for another company. Expedite transportation seems to be an ideal solution for this issue. It allows delivering parcels as soon as possible.  

  • Returns management.

Whether you like it or not but there are always clients who are not satisfied with the products they receive. Your task is to create an effective model of returns management. It’s a good idea to let your customers decide what they want to do with the items they wish to return. They may replace the product, raise a full refund, or other variants.

  • Delays.

Even if you cooperate with the brilliant freight forwarders, delays still may happen because of strikes, accidents, traffic jams, or other unexpected situations. Your task is to inform customers about delays and make everything possible to avoid negative reviews.

So, e-commerce startups seem to be an awesome solution for those who want to keep up with the times and make money. Yet, to make the business as profitable as possible, it’s necessary to organize logistics effectively.