The shift from offline retail to online businesses is an unstoppable trend. The E-commerce business model arrived decades ago, and its relevance now booms in the current advancement of technology.
Now, more and more entrepreneurs are building and starting their e-commerce businesses. For your e-commerce business to have a greater chance of success, you need to think long and hard about what E-Commerce business model you’re going to pursue.
You have just started an online business and you want your store to be user-friendly and loaded with great products.
One of the most important things to running a business is to manage your supply chain effectively and consider 3rd party integrations, or partnerships.
Technological advancements have made our lives more convenient. Different sectors of the economy have benefited from novel innovations; however, businesses can be considered as the biggest winners and ECommerce fulfillment is critical.
From manufacturers to retailers, technology has greatly improved the efficiency and operations of these sectors. The emergence of ecommerce redefined how entities and their customers relate. Today, the ecommerce sector has made it easier for people to purchase their desired products hassle-free.
Thanks to digital technology we can carry out commercial transactions online. We can buy and sell items or services, pay bills, make orders, and so much more as we look to the future of E-Commerce.
Online enterprises are heavily relying on this commodity. This is why we have numerous online businesses nowadays.
The infographic below from Subscriptionly will inform you about the current and future tech trends that will influence the ecommerce sector. Some of the main trends are as follows.
The entire world of business has changed forever and one of the featured and most notable changes has been the move online, including online marketing. Just a few decades ago it was only outbound and so-called traditional marketing techniques that were used by business to generate leads and build their brand among the general public and those who were interested in their products and services.
Now it is the inbound marketing on the internet that has become a must have for all businesses that want to reach a global audience.
For the last two decades, the field of e-commerce fulfillment (logistics) has been going through the golden age because of the equally growing market of e-commerce providers (online sellers). However, other logistics companies improved their fulfillment game in 2018. New players in the field, such as ShipBob, presented the public with cheaper fulfillment solutions.
With all the changes in the e-commerce industry, customers are expecting faster services and response times. Amazon suddenly changed the game by introducing the 2-day shipping program of Amazon Prime. Target tried to counter this move, but Amazon launched ‘Amazon Prime Now,’ which ensures deliveries over two-hour delivery time.
After the launch of these fantastic services, customers’ demand will only increase.
Online shopping has become an integral part of many consumers’ lives. The increased volume of parcels shows that this new way of acquiring goods and services and the provision of tracking information is here to stay.
While a lot of packages are successfully delivered, sometimes, they can get misplaced, damaged, and in worst cases, lost. For these reasons, many customers will want to know the exact location and status of the items they ordered to ensure that it will safely arrive in their homes.
Online shoppers are growing in huge numbers year after year, and so are their delivery expectations. According to a study, there were 268 million digital buyers in the United States in the year 2022 alone. This number is said to climb up to almost 285 million in 2025.
Also, 62% of online shoppers in the US say delivery speed is what makes for a good purchase experience. This has pushed retailers to double down on their delivery efforts in the last mile.
Despite all the efforts, what’s stopping your retail and e-commerce businesses from providing excellent delivery experiences to your customers?
A new survey from Brightpearl found that 42 percent of U.S. retailers say they have seen an increase in the number of returns and “serial returners” over the last 12 months.
What’s more, 61 percent of the retailers surveyed said they would ban serial returners.
This is an interesting change in an industry that has put so much emphasis on facilitating free returns and exchanges.
Launching an eCommerce business is a thrilling journey with endless potential since billions of people are now buying online across the globe. Numerous eCommerce businesses have skyrocketed thanks to well-crafted content and strategies, growing in fame while also making it easier to acquire customers.
Taking your eCommerce Business to the next level can be difficult, but with a well-executed plan to scale your eCommerce business, there is an abundance of potential for exponential growth!
E-commerce is defined as the buying and selling of products or services exclusively through electronic channels. If you’ve made an online purchase through eBay, Shopify, Amazon (through Amazon FBA), and other platforms, then you have made your purchase via an e-commerce site. More and more people spend their time browsing on the internet and the more likely they are to buy stuff online.
Admittedly, the e-commerce industry is booming. Retail e-commerce sales in the United States are projected to grow at a fast pace in the coming years, going from 322.17 billion U.S. dollars in 2016 to just over 485 billion US dollars in 2021.
Why You Need Order Fulfillment Services
If you’re looking for a business that will eventually get you out of your 9-5 job, or looking to expand your existing business, having an online presence and web-based store could fulfill this goal. For beginners in the e-commerce trade, what do you need to do to get more sales, with a lot of online businesses competing for customers’ attention?
Customers want products that will give the best bang for their buck with speedy delivery, and good after-sales support. Here’s where the different companies offering order fulfillment services come in.
What is an Order Fulfillment Service?
Order fulfillment is defined as the steps involved in receiving, processing and delivering orders to end customers. A fulfillment service is defined as a third-party company that provides these order fulfillment steps on behalf of another party, such as an online seller.
FBA, or Fulfillment By Amazon is a business model wherein e-commerce sellers on the Amazon Marketplace, big or small, can have their products stored in any of Amazon’s giant warehouses, pack and deliver them to customers, handle customer support, and returns.
FBA Pros
Expertise and Reach
Amazon has one of the most advanced e-commerce fulfillment service in the world, can help you scale-up or grow your business and as of the last measured period, the source estimated 90 million paying Amazon Prime subscribers in the United States, up from 63 million in June during the previous year.
Amazon Prime customers are eligible for 2-Day Shipping, Free Shipping and other benefits. If you sign up your products for Amazon Prime, your products are eligible for free shipping, too.
Customer Service and Returns
FBA handles customer service and returns. Listings are displayed with the Prime logo, so customers know that Amazon handles packing, delivery, customer service, and returns.
They handle the fulfillment services side of the business and saves your time, so you can focus on the other aspects of your business.
Multi-Channel Fulfillment
With Multi-Channel Fulfillment, you can fulfill orders from other sales channels using your inventory stored in Amazon order fulfillment centers. Single-source your inventory to streamline your fulfillment operations, manage your inventory through an online user interface and can direct Amazon to return your inventory in e-commerce fulfillment centers at any time.
Cons of using FBA
Customization
Little to no order customization. Sellers must comply with existing Amazon .processes.
Branding
Items are shipped in Amazon boxes. Sellers can ship in generic boxes which may cost extra.
Warehouse Pricing
Storage fees are generally higher compared to 3PLs and usually rise during holidays.
Higher order handling fees for non-Amazon orders.
Communication
Solutions are based in standard processes which may pose little opportunity for dialogue.
Conflict of interest
The fact that Amazon may actually be a competitor to the seller. Amazon is in the business of selling, they just happen to offer shipping services. For Amazon, it’s free product and market research, and they’re making money off you.
Third Party Logistics (3PL / TPL)
Third–party logistics in logistics and supply chain management is a company’s use of third party businesses to outsource elements of the company’s order fulfillment services.
Pros of Using 3PL
Customization
Boxes/bags and all internal packaging are customized to a specific brand. Processes are adapted to your business’ operation and specification.
Warehouse Costing
Attractive storage costs that is variable. Customer pays storage space on a given month. Some 3PLs even offer free warehouse storage for a limited time.
Communication
Has onboarding processes, frequent communication before and after product launch. Collaborative approach is encouraged.
B2B (Business to Business)
Certain 3PLs can handle both B2B and B2C (Business to Consumer) fulfillment, resulting in one e-commerce fulfillment partner for all sales channels.
Cons of Using 3PL
Finding a Trustworthy 3PL company takes time.
Not all 3PL providers are created equal. It takes time to find a good company to work with from the beginning. Once you find someone you can trust, you can rest assured that your goods are being properly cared for. The initial search could be stressful but it will all be worth it once you find a reliable 3PL company.
Bad Service Reflects on Your Company
An inefficient 3PL provider could make your company look bad. Your customers do not care who is in charge of getting the product to them. All they care about is the end result. It is very important to look for a good distribution center early on to avoid customer-satisfaction issues in the future.
Amazon FBA or 3PL in Conclusion
Order Fulfillment Services are a crucial part of your business and a major factor in determining its success or failure. Whether you entrust your fulfillment services to FBA or a 3PL, there is a greater chance that you will be in good hands – these are fulfillment experts, after all. The key difference is you as the owner, – what do you want for your brand and what kind of customer experience you want to give to your consumers.
If you are happy to use Amazon’s existing system and tap into their wide customer reach, FBA may be a perfect fit for your company. If, however, you would like more control over your order fulfillment services, partnering with a 3PL could be the best solution. Make sure your order fulfillment service provider is experienced with the type of operations you need before you entrust them with your reputation.
Amazon FBA article and permission to publish here provided by Dona Dimaculangan at 3p-logistics.co.uk. Originally written for Supply Chain Game Changer and published on March 8, 2018.
Starting a new business can be an exciting venture, full of promise and potential. However, it’s essential to lay a solid foundation for your startup to ensure its long-term success.
This article will guide you through key components and considerations for an E-Commerce business model, focusing on accounting, marketing, chat support, and IT support. We will also touch on essential elements like sales, operations, the management team, and financial projections.
Wearable technologies, social networks, and business directories have changed people’s shopping habits. Before making a purchasing decision, savvy customers google your brand and read customer online reviews.
Most importantly, they are more likely to share positive and negative experiences with your company with the public.
Here is how online reviews can impact your small business.
The world of data privacy has undergone significant transformation in the last decade following the boom of digital developments. As the public gains more access to mobile phones, they have also become vulnerable to privacy breaches.
Controversies on data privacy have been a universal concern among consumers, all eager to find ways to minimize any potential threats that jeopardize the integrity of their connectivity.
My wife recently ordered some nail polish online from a VERY large online retailer. A few days later a large box arrived at the door. Rattling around in this large box were 2 small bottles of nail polish. The overpackaging was absolutely shameful and disgusting.
We’ve written about the topic before, and many years ago. And with all the talk about the environment, sustainability, recycling and waste elimination we would have thought the situation would have improved.
But at least one out of every 4 online orders we receive is subject to overpackaging.
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