How to improve logistics in an online store?

Polish e-commerce is rapidly adapting trends emerging in the online sales market in Western Europe or the United States. However, our domestic e-businesses still face many barriers to the development of online shopping.

Among a number of difficulties faced by Polish e-entrepreneurs are both those related to relatively high fees for electronic payments, which affect business profitability, and those related to access to customized software. Despite the huge selection of IT solutions for e-commerce, it is still difficult to find a decent interface to a warehouse or accounting system. Providers of such applications are most often limited to providing an API, i.e. a ready-made "connector" of the store's website, to which other programs must be plugged in. You have to deal with configuration on your own, which, unfortunately, is not always successful or is done in a way that does not ensure optimal interaction of the various systems. As a result, this lowers margins and severely restricts the e-tailer's freedom to apply such buyer bonuses as free shipping and return, individual and secure packaging, freebies or loyalty actions.  On the other hand, the infrastructure does not allow the spread of such services as "the same day delivery" or shipping on the day of an order placed, for example, by 5 pm.

It is logistics, however, that creates the most difficulties for those running e-stores. Internet entrepreneurs face problems in virtually every element of this chain.

Storage

Almost everyone who frequently buys online has at least once encountered the purchase of a non-existent item. Such a situation can occur as a result of a conscious policy of the seller ("I will offer something cool at a good price to draw traffic to the site. Then I'll sell the customer something else, claiming that the desired product just sold out"). This can also be the result of a lack of system solutions (synchronization of inventory with the store's website) or inadequate product storage conditions (goods physically present in the warehouse are not suitable for sale). In addition, flexibility in access to space and the ability to handle seasonal spikes in turnover without year-round commitment to renting large spaces is not insignificant.

Packaging of packages

This part of the process can vary greatly, depending on the size of the e-business. Small, one-person stores, on their own, establish procedures, work rhythms and internal standards. The larger the seller and the wider the assortment, the more complex the packing of an order for shipment gets. A person running a faucet gasket store in his garage has his entire warehouse in his head (possibly in a notebook) and completes orders in a 15-square-meter area. At the other end of the scale, we have a clothing giant that, with 15,000 stock indexes, must use sophisticated software. It divides orders into parts to be picked by selected employees in given zones. This avoids situations in which a warehouseman, in order to pack three different products included in an order worth PLN 50, has to traverse 600 meters of the warehouse and spend 15 minutes packing the whole thing.

Shipments

The end customer's satisfaction is affected by both the price for delivery and its quality. In this area, every e-tailer should consider several important factors, including matching packaging to the products sold or selecting the right carrier. Saving on packaging usually ends up in increased complaints related to
related to damages, which are then efficiently and in accordance with the regulations rejected by courier companies. In turn, when choosing a carrier, it is worth taking into account the characteristics of the products sold and bet on a partner experienced in handling such goods. A good solution may be to use the services of two - three independent operators. Such a configuration gives you a sense of comfort in the event of a sudden deterioration in the quality or conditions of cooperation with one of the
of them.

After-sales service

Unfortunately, many domestic e-businesses are still unaware of the importance of Customer Service for the maintenance and development of a given business. Professional advice, assistance in product selection, recommendations (whether reviews, live-chat or the availability of service via email or phone) are all elements that allow the customer to choose a product as close to his expectations as possible. As a result, this not only reduces the risk of returns or withdrawal from the purchase, but also helps to build the image of a professional partner and increases the chances of a satisfied customer returning in the future. Of equal importance is service after the sale is finalized - especially the way complaints and returns are handled. A positively and promptly resolved complaint can generate more loyal customers than correct and flawless handling of a standard order.

How to deal with e-logistics?

The pains described above affect many large and small players in our e-commerce market. Wanting to grow their business, e-shops are increasingly facing the need to invest in knowledge and modern system and infrastructure solutions. Where the barrier is the lack of resources, e.g. finances for investing in warehouse systems or complex interfaces, combining different systems (website / payment / warehouse / picking system / courier system / accounting system / consumer relationship management system) - it is worth considering cooperation with outsourcing companies offering to handle part or all of the logistics process. The of such solutions is used by a large part of the largest successful players in the e-commerce market. Focusing on developing the venture, they support themselves with know-how and infrastructure of experienced partners.

Krzysztof Wieczorek, director of e-logistics process implementations at Cursor SA