In the past, businesses only shipped their products locally. Thanks to advances in supply chain management, businesses can now have customers from across the globe. Hence, professional providers of logistical support, who are masters at planning and coordinating the transportation of goods safely and timely, play a vital role in global commerce. Especially in the e-commerce industry, the role of the services logistics companies provide is fundamental.
Why Efficient Shipping is the Essence of Online Commerce?
In the world of e-commerce, Amazon is the undisputed king. Recently, the company recorded over 100 million 'Prime' members in the USA. That means that over 100 million users receive free and fast shipping. These improvements in customer service shape the expectations of the average online shopper. All shoppers expect more from their eCommerce vendors.The facts mentioned in Pitney Bowes' 2015 shipping study ring more accurate than ever -
- 93% of consumers said flexible and fast shipping option offers, play a key role in their decision-making process.
- 88% stated that offers like 'free shipping' or 'two-day delivery' made e-commerce shopping more attractive. The same respondents also indicated that they didn't prefer paying extra fees for receiving faster deliveries.
Should Vendors Offer Free Shipping?
It is undeniable that e-commerce platforms that offer free shipping sell more than the vendors that don't. But, how can merchants balance their budget after offering free shipping? Here are some noteworthy free shipping models used by the leading e-commerce giants-- Free shipping on all orders. Online retailers with small, light or perishable products offer free deliveries on all orders. Some stipulations regarding delivery methods, distances, etc. may apply.
- Free shipping on large orders. Setting minimum order value encourages customers to go for larger orders.
- Free shipping on specific goods.
- Free shipping during festive seasons.
- Location-based free shipping.
- Loyalty programs for platform members. Only members of the platform who pay monthly charges receive free shipment.
Implementing These Offers
There's no doubt that e-commerce sellers can gain many customers and a good reputation by offering their customers shipping perks. But, setting up an in-house supply management system is very expensive. Add the costs of providing free shipment to these expenses, and e-commerce vendors have an almost unmanageable situation in hand. That's why the leading e-commerce giants are teaming up with third-party logistic companies that provide guarantees on their services. These third-party providers offer a guaranteed boost to a business's supply management chain for a fixed rate.But can these logistic experts help online vendors guarantee low-cost and timely deliveries? Yes! Top logistic companies offer 'cross-docking.' That's why sellers are looking for the biggest logistic companies that are masters of 'cross-docking.'
Understanding Cross-Docking
Cross-docking is a relatively new logistics procedure that is driven by technology. Third-party logistic companies who offer cross-docking pick up the manufacturer's supplies and distribute them directly to customers.There's minimal handling or storage in this process. Typically, all products on inbound trucks are unloaded and instantly reloaded on outbound trucks. There are no storage costs or delays. The biggest logistics companies handle numerous trucks at the same time. Their network covers large regions. Hence, all vendors who team up with a TPL gain access to this extensive network. They can quickly expand their delivery capabilities without having to spend anything on warehousing. The type of cross-docking services a seller may need will depend on the products being shipped.
Benefits of Cross-Docking
Logistic companies who offer cross-docking help e-commerce companies fulfil their orders on a timely basis. Tech-driven cross-docking eliminates supply chain management errors.E-commerce companies can depend on their logistics company's efficiency to boost their brand value. Some benefits of cross-docking include -
- Sellers can offer an uninterrupted flow of products
- No labour expenses in storing or stacking products
Top logistic companies create automated terminals where shipping packages takes only a few seconds. Overall, there's a considerable decrease in the time it takes to ship a package to a customer successfully.
- As a service, cross-docking offers three qualities – high-speed transportation, safe distribution, and route optimization. Smaller eCommerce businesses can become a part of this optimized delivery network by signing up with a third-party top logistics company. They can
- Logistic companies spend a lot of resources on finding ways to decrease distribution and transportation costs. Their services are ever-improving.
E-commerce sellers who deal with high-priced items that don't require strict inspections upon receipt can benefit from having such a fast and optimized delivery network. The same applies to vendors who sell perishable goods (e.g., staples and groceries). Overall, the logistics industry has become super-fast ever since the concept of 'cross-docking was introduced.
