Logistics in the Golden Age of E-Commerce!

Golden Age

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Golden Age article and permission to publish here provided by John Howard of couponlawn.com.

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.

While an increase in customer demands prove beneficial for most large-scale fulfillment companies, the mid-sized companies are in for a competitive ride. Unless these mid-size competitors find a way to make their fulfillment services more comfortable to use and access or offer low prices for their quality solutions, closing down will be one of the first options.

Evolving With The Market

If you’re a logistics company owner, you must know how to evolve and adapt to the current trends in the market. Online vendors nowadays often release deals and coupons for customers to have discounts and even free shipping (visit couponlawn.com). Most of the time, these sellers have additional expenses when it comes to delivering products; that’s why they partner with fulfillment companies.

If you’re looking to be a possible candidate or partner for these online sellers, you should provide them with the following benefits:

  • Having a wide area of coverage, both domestic and international.
  • Your services can match the market demands, especially if the company you’re working with has promos or deals and causes a surge of order fulfillment.
  • Offer bulk discounts for companies.
  • Focuses on customer needs, especially in fulfilling orders by ensuring that updates are evident and assurance that the products are on the way and well taken care of when delivered.

The Dynamics Of E-Commerce Fulfillment

In the fulfillment industry, there are three categories that you should know about: large powerhouses, pure-play services, and tech-focused companies.

Large E-Commerce Fulfillment Powerhouse

One of the most known companies in this field is the ‘Fulfillment By Amazon’ (FBA), which acts as a platform for both large and small scale businesses to sell their products. It also lets sellers tap into Amazon’s capabilities in the logistics field, which allows all sellers to fulfill orders no matter the number or volume.

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Another example is the FedEx Fulfillment popularized in 2017 that lets any seller successfully deliver orders while being in several marketplaces such as eBay and even the seller’s website. FedEx Fulfillment offers a wide range of excellent services such as packaging, reverse logistics, transportation, and warehousing.

Pure-Play Fulfillment Services

An excellent example of companies who engage in pure-play e-commerce fulfillment is Radial (formerly known as eBay Enterprise) and Red Stag Fulfillment. Both offer significant services coupled with expertise, which, overall, gives the customers excellent service and deliveries.

Tech-Focused Companies

ShipBob is a company that continues to offer an “Amazon-like level of logistics” to small and medium-sized businesses. They also have flat rates for deliveries, no matter the volume and weight, making it easier for many sellers to manage and compute.

Another company known as Shipmonk uses both flexible and easy-to-use technology to create a platform that customers can easily use. No matter the volume of the orders, the tech-focused platform by Shipmonk caters to all consumer populations.

Ensure Your Success In The Fulfillment Industry

Whether you’re a new company or on the way to being a mid-sized fulfillment service, make sure to do the following and ensure your overall success:

  • Invest in quality technology. One of the main priorities is to give consumers the best user experience by creating platforms that are straightforward and innovative.
  • Always offer reasonable prices for all types of sellers. If people see that your company is flexible and can provide solutions for small to large-scale sellers, more people are naturally drawn to your services.
  • Decide on what type of fulfillment company you are, depending on the information mentioned earlier.
  • Focus on customer service and making their experience with your company better and unforgettable.

Conclusion

With the continuous increase in market trends and customer demands, companies in the fulfillment industries should also adapt in this golden age. The new economy offers more accessible and more convenient ways of purchasing products, which is why logistics companies should start looking for ways to thrive in the new set up.

Originally written for Supply Chain Game Changer and published on July 8, 2020.

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