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You run an online store or are just about to start your own fast-growing e-commerce business? You spend a lot of time selecting products, designing your store, and building your customer base - but what about logistics? The right packaging, smooth shipping, and on-time delivery turn simple recipients into happy customers. Find out here what the most important points are on the subject of logistics in online retail.
Expectations of the online shoppers regarding logistics
Cheap and fast - this is what the end customer usually expects from an e-commerce store in terms of delivery. For this reason, store operators face great challenges, often involving high costs in logistics. This means for entrepreneurs that they have to start picking immediately after receiving the order and hand it over to the logistics provider as soon as possible.
In addition, the customer is often not willing to spend a lot of money on shipping. High shipping costs can lead to dissatisfaction or abandonment of the purchase process. A study showed that high delivery costs are the most common reason for abandoning a purchase. Consequently, as a store owner, you have to make sure to keep the costs as low as possible.
Commissioning costs
Talking about commissioning, you should definitely take into account the following costs:
- Rent for a warehouse
- Packing material (cartons & filling material)
- Personnel costs
The logistics warehouse is needed to store both the products and the packaging material and to provide a work area for the packaging process. It is advisable to buy the packaging material in large quantities, as you can benefit from cost advantages. Therefore, if you want to pack cheaply, you should order a larger volume. The downside of this obviously is that the packaging materials blocks storage space for your other products.
Last but not least, you need staff that is always available in the warehouse to pack parcels and, at best, ship them the same day via the logistics provider. At the same time, the employee should take inventory of the packaging material and the goods in order to be able to regularly reorder missing material.
Best parcel delivery partner
After picking and packing the goods, the next step is to choose the right logistics provider for your online store. Different providers have different geographical focus areas and vary in terms of speed and service level. The price for shipping depends heavily on your volume. It is important that you compare the conditions of the shipping providers very carefully. Many companies have surcharges for tolls, fuel, customs clearance, delivery to private customers, oversize, etc.
Others have different limits for maximum package length and girth, depending on the country. Also, for international shipping, prices are often calculated based on volume weight rather than the actual weight. It is therefore important that you inform yourself well in advance so that you do not encounter unexpected costs later on.
Here you can find additional information about the best delivery companies in Germany, France, the Netherlands, and the UK.
Not to be underestimated when shipping is the additional extra work for other points:
- Fill out a customs form for worldwide shipping (read our customs form guide)
- Sending fragile goods
- Sending packages cash on delivery
- Initiating inquiries, clarifying damage claims, etc.
Matters that cost a lot of time & nerves!
A flexible solution for your online store
Just as your online store (WooCommerce, Plentymarkets, Shopify, Shopware, etc.) should be tailored to your needs, so should your e-commerce logistics solution. So if you want to save time and money and outsource logistics, byrd is your perfect fulfillment partner.