So, does your eCommerce business really get affected by shipping routes in any way? International trade peaked with the rise of numerous e-commerce businesses, which significantly impacted global logistics and the supply chain. That growth has made the major shipping routes busier than ever to keep up with the flow of products and services being delivered worldwide.
However, you might ask, “how do shipping routes affect e-commerce businesses?” In this article, we’ll cover how your e-commerce business is affected by simple shipping route changes. We’ll also provide you with some shipping methods you can use in your situation. But first, let’s discuss what e-commerce is all about.
Understanding The Key E-commerce Concepts
Electronic Commerce, better known as E-Commerce, is simply the buying or selling of goods and services online. You use the internet to break international barriers and achieve your goals in global training.
And in this era of digitalization, an exclusive growth in e-commerce is noticeable. It opened up new opportunities for people. They can now buy and sell goods from the convenience of their homes, which then keeps global logistics busy and increases the traffic on shipping routes.
How Shipping Routes Affect Your E-Commerce Business
Logistics should be one of your top priorities when you own an e-commerce business that sells tangible items. Any problem in logistics can significantly affect your brand. In light of this, there are several elements you should consider when planning your shipping route options, which will influence the entire business. Here are some of them:
1. Product Costs and Pricing
The per-unit cost of your products — for instance, the shipping costs — is influenced by the shipping route you choose. They depend on various factors, from the warehouse site where the items are stored to the buyer’s address. Additionally, the shipping fee will undoubtedly be higher if the customer’s location is far away or in a remote area. Keep in mind that some places charge more than others.
2. Inventory Management Costs
Your inventory is one of the most expensive elements of running any business. That said, effective inventory management is essential while anticipating that unpredictable events in the shipping routes can happen.
For instance, transportation could be delayed, or, worse yet, the quality of your product could be destroyed by an extreme weather event along your typical shipping route (if selling fragile items). In that case, you still need to complete their orders, which means more expenses since you might need to order more goods to fulfill.
In that case, having an inventory control system is crucial. It helps with managing and tracking your inventory and improving your logistics workflow.
3. Time of Delivery
The foundation of an E-Commerce company, more than the marketing strategies, is logistics. Of course, you decide how long it should take for your consumers to receive their purchases.
Therefore, choosing a shipping route that might accommodate the delivery timeline is crucial.
Let’s say the selected shipping route is congested, and there isn’t a direct shipping route accessible. The delivery will get delayed, and your customers might leave your brand a bad review. Know that not everyone can understand the situation, so you must ensure that you have an emergency route to fulfill the items on time. One bad review from your buyers may affect the next crucial element of e-commerce businesses—your image or reputation.
4. Brand Reputation and Exposure In An E-Commerce Platform (If Applicable)
Connected to the previous one, when you happen to break your promises about the shipping duration, it might taint your overall brand reputation to some extent. Customers could leave a bad review that every other shopper will see. That would affect their decision to support your business, reducing purchase traffic.
Also, if you use retail platforms like Amazon, eBay, or others, you must know that violating their shipping policies might make your account suspended. This instance will reduce the chances of your brand’s visibility in the marketplace. You know how massive the audiences these platforms can reach. One mistake, for example, choosing a route not feasible to fulfill your duties as a seller, will affect everything.
These aspects of shipping routes have an impact on the growth of your company. For this reason, it is necessary to have a strategic delivery plan, and we will provide you with a solution, which is choosing the right fulfillment option. So, what are the fulfillment options for any given eCommerce business? Well, let’s have a look at a few of them below, shall we?
1. In-House E-commerce Order Fulfillment
In-house order fulfillment is exactly what you think it is. You, as the seller, are the one who needs to manage logistics without the assistance of a third-party fulfillment provider. This strategy is best for companies that fulfill products of less than a hundred each month. You can also choose this if your target audience lives near your location.
With dropshipping, your supplier picks, packs, and ships orders on your behalf. It works in a way that when someone orders from your website, the supplier will be notified. They will be the ones to manage the entire fulfillment process. This method is a viable option when your loyal customers live near the manufacturing factory’s location.
3. Third-Party Logistics (3PL)
Third-party logistics is best for e-commerce companies in need of supply chain management. So, if you don’t have the resources to manage the packing, shipping, and returns, this is the best choice. Aside from outsourcing a 3PL partner, you also benefit from their purchasing power, data insights, value-added tools, transportation network, and sector knowledge.
The Bottom Line
In general, shipping routes can greatly affect one’s e-commerce business growth. Any adjustments to the shipping routes have a massive impact on your business operations. Therefore, make strategic plans for your logistics when planning to build an eCommerce business. Always choose which fulfillment option is feasible for your overall company integration.
And also, find which shipping routes will be best to make all shipment deliveries on time first before taking any drastic conclusions. But, if you’ll need more help, you can always Consult Us so that we can give you more tangible guidelines. You are also welcome to share your suggestions, opinions, recommendations, or even contribution questions in our comments.
NB: The Featured Image Source Is From Unsplash