How to Supercharge Ecommerce Business with Logistics Companies

Reading time:  4 min 23s 

Late delivery complaints, goods paid for but not delivered, online order yet to arrive after the due date; when customers have to lodge complaints like these every time, you know your ecommerce business is headed nowhere good.

Order fulfillment and delivery should be hitch-free to guarantee the best possible experience for your customers. Consider these interesting statistics from a survey of online shoppers in the United States, conducted by Arvato;

  • 4 out of 5 online shoppers place a high priority on free shipping
  • Over half of online shoppers will abandon carts due to shipping costs.
  • About 53% of shoppers prioritize the speed of delivery.
  • 52% of online shoppers expect free returns while shopping
  • 1 out of four shoppers would cancel the order if the delivery is not fast enough.

This means logistics should not only be cost-effective but also tailored to meet your customer requirements. Ecommerce businesses rely on logistics companies to get the best of this process. Here’s everything you should know about logistics companies and how they can help fuel your growth;

 

What’s a logistics company?

A logistics company is oftentimes referred to as a third-party fulfillment provider or a 3PL. These companies offer a range of logistics services for ecommerce businesses that can range from warehousing to order processing, down to others like picking out items for delivery, packing and labeling, and shipping out the products for delivery.

Logistics companies help ecommerce businesses receive, store, manage, and process inventory. As soon as a customer order comes in, the 3PL company moves to pick out the item to pack and prepare it for shipping. They’ll then run a cost comparison between different carriers to determine which of the carriers offer the best rate.

 

Importance of logistics to your ecommerce business

A reliable 3PL like ZhenHub brings so much value to the table.

These logistics companies can process incoming orders for ecommerce retailers to prepare the products for prompt delivery. This makes same-day shipment possible and the retailer is, therefore, able to improve its customer service and satisfaction. Retailers that use 3PL providers find that their logistics costs go down considerably while their customer satisfaction rate also increases significantly. In most cases, using a 3PL fulfillment company would help you achieve far more benefits than you can with self-fulfillment.

Another good thing is that 3PL companies are able to handle high order volumes with greater speed and accuracy. Retailers can also benefit from lower shipping prices as the logistics companies are often able to negotiate bulk discounts with carriers. This discount gets passed down unto the ecommerce retailer, and subsequently down to the customers who would always be happier and more satisfied to pay the least possible fees for shipping.

 

Key benefits of ecommerce 3PL services

There are a lot of values and benefits in third-party logistics services for ecommerce businesses. If you’re considering what benefits you stand to gain with partnering with a 3PL ecommerce fulfillment company, some of the many benefits you can expect include;

  • A reliable 3PL provider guarantees faster delivery even in the face of growth and increasing order volumes. This helps you avoid supply chain disruptions and delays.
  • You can also enjoy highly improved order accuracy as most great 3PL providers leverage fulfillment automation solutions and technology for storage, packing, distribution, delivery, and everything in between.
  • Order tracking and reporting help your customers get access to real-time information related to their orders. This helps them get more visibility into their orders to keep them well-informed.
  • Ecommerce logistics companies help you improve customer service. While a lot of the key aspects of your business as regards warehousing, inventory, and logistics are automated for more accuracy and efficiency, you’ll also have more time to focus on other aspects of your business such as marketing.
  • Your customers get to enjoy cost-effective shipping rates as well as a few other perks that come with this to make shipping and delivery more convenient, pleasurable, and satisfying.

Image credit: Baymard Institute

 

What’s involved in your ecommerce logistics service?

ZhenHub, for instance, offers top-of-the-range logistics services for businesses in the ecommerce and retail industry. Like any good logistics service, ZhenHub, as premier 3PL, offers a comprehensive service that transcends sending out orders to customers. These services include but not limited to;

 

Game-changing inventory distribution

With ZhenHub’s distributed inventory service, your goods are split across strategically chosen fulfillment centers to make inventory closer to your customers. This helps to reduce the distance and number of shipping zones that products have to travel through before they get to the customer.

For you and your customer, this translates to faster delivery times, reduced shipping costs, and greatly improved service experience. All of these will help you grow your business rapidly.

100% proprietary order fulfillment technology

There’s nothing like having control visibility and control over your order and inventory management processes. As a tech-enabled logistics company, ZhenHub boasts a proprietary, state of the art order fulfillment technology for a variety of end-to-end ecommerce solutions that will make your business operations faster, more efficient and cost-effective.

Our software is designed to offer a cohesive experience with its intuitive interface. This system integrates seamlessly with major ecommerce platforms from Woocommerce to Amazon, Shopify, eBay, and more.

 

Custom packaging and branding

Want to turn your brand into the total package with full customization, a 3PL provider like ZhenHub can help you brand customer orders with your brand logos and other elements. If you don’t want this, you can also go for free unbranded packaging. Whichever way you choose to go, your 3PL provider should be able to serve you.

 

Responsive and reliable support

ZhenHub services have been designed to ensure hitch-free experiences for bot the ecommerce retailer and their end customers. But should you encounter any issue at any point, there’s a reliable support team you can always turn to.

 

9 Signs you need an ecommerce logistics company

So, now that we’ve clarified the benefits and reasons why your ecommerce business will need a reliable third-party logistics provider, it’s still important to know when exactly the time is right to partner with one. So, what are the tell tale signs you have to look out for? These will include one or more of the following;

  1. You operate a physical store but want to start offering your retail services online.
  2. You want to scale growth and expand into new markets
  3. You have no efficient strategy or system for inventory management.
  4. You’re struggling to cope with fluctuations with order volumes especially due to holidays or seasonal changes or events.
  5. You have no warehouse or a distribution center at the moment.
  6. Your customers have to constantly deal with delivery inefficiencies that could range from late delivery to shipping and picking inaccuracies.
  7. You’re spending too much time picking out items, packing, and preparing them for shipping and delivery.
  8. You would like the idea of an optimized supply chain that’s free from delays, disruptions, etc.
  9. You’d like to free up valuable time for you and your employees to focus on productive administrative tasks to help you drive business growth.

 

 

Conclusion

ZhenHub offers end-to-end logistics services as well as warehousing, inventory management, and order fulfillment services. These services and more have been designed to help make your business processes faster and more accurate and efficient to accelerate business growth.

If you want to leap into your next phase of growth, you can trust ZhenHub to help you deliver as far as excellent ecommerce logistic services are concerned.

 

If you need assistance with reducing logistics costs, you can reach out to our specialists – hello(a)zhenhub.com or submit an enquiry here.