[CS] 6 common problems in e-commerce logistics (and how to solve them)

Being responsible for a company’s transport and logistics strategy in e-commerce is not always easy. From inventory and supply management to routing and transporting goods from the warehouse, you can quickly miss out on countless details. Yet each of these details affects both your customers’ experience with your e-commerce store and your potential profitability. Two elements that should motivate you to handle everything masterfully.

Our experts can help you solve the most common e-commerce logistics problems, which we’ve collected here for you – along with practical solutions, of course.

Optimise your inventory to process orders better

At the top of your supply chain, managing the supply and demand of your suppliers is key. It allows you to reduce overstocking or, conversely, stock-outs.

However, it’s also important to keep track of your inventory so you can keep an eye on what is and isn’t available. This availability plays a vital role in the experience you offer your customers, who must not be disappointed when it comes to delivery times.

Your job, therefore, is to put in place a sensible supply strategy and organise your ecommerce logistics warehouse so that you can manage your inventory properly.

Solutions to put in place

Choose a storage method suitable for your business.

• TheFIFO method, where you store products that have been in stock for a long time as close to the packing area as possible, is ideal for perishable products.
• TheLIFO method (the opposite of the FIFO method) gives you easy access to the latest products.
• TheABC method allows you to optimise space according to product turnover – products that are ordered most frequently are closest to the pickers.

To learn more about storage methods, read the article dedicated to this topic.

Implement a labeling method in your warehouse that clearly identifies each zone. For example, if you have chosen the ABC method, you can define zones A, B and C in the warehouse or label shelves according to the different types of products they contain.

Equip yourself with a Warehouse Management System (WMS ) to manage stock and inventory. This is a software that allows you to track the receipt and dispensing of stock, so you always have a 360° view of what’s happening in your store.

Speed up order preparation

You know it well: Your customers expect ever faster and more efficient deliveries. What’s more, you’re facing competing ecommerce platforms that are increasingly introducing minimum delivery times, such as delivery within 24 or 48 hours.

On your part, as an e-tailer, this requires not only selecting carriers that respect this type of deadline, but also optimizing the order preparation phase to allow you to pack your products quickly and efficiently.

Solutions to implement

Optimize your order preparation area and especially your packing station. This will speed up your packing speed, but also make this station more ergonomic to reduce the strain on your warehouse. Make sure you choose your table carefully (which needs to be as ergonomic as possible) and place the most used tools within easy reach of your operators.

Take a look at our guide to packing station layout.

Choose time-saving packaging. Packaging such as instant or quick-assembly boxes (which assemble automatically by pressing on the sides) or packaging with integrated cushioning can help you save precious seconds in order preparation.

Install warehouse packaging machines such as paper or air cushion machines. If you regularly use filler materials in your shipments, these machines will allow you to increase your packaging speed and ensure your products are protected. You can also opt for strapping machines to speed up this stage of packaging.

Provide a differentiating customer experience

To counter your competitors and retain your customers, you need to work on the customer experience surrounding your brand. As an e-commerce business, this obviously means offering your customers a seamless online shopping experience.

Solutions to implement

Choose a carrier focused on customer experience. In particular, you need to be able to offer your customers a variety of shipping options. For home delivery, your carriers must be able to provide real flexibility to your customers and offer optimal tracking of your shipments.

Be careful when unpacking your products. To this end, choose packaging that makes it easier to open your parcels. For example, packaging with a tear strip or a closure made of rubber tape rather than adhesive tape is ideal. You should also take care in the presentation of invoices and include goodies and other small surprises in the packages to achieve the much desired ‘wow’ effect.

Customise your packaging – or even create it to your specifications. In particular, you can highlight your brand colors on the packaging itself (outside or inside) or even on the padding method. You can also include a marketing slogan or QR code to continue the customer experience online.

Manage order returns efficiently

The way you manage returns can be a real selling point for your potential customers who want to make sure they order the right product and can return it if necessary.

Managing customer returns can be a tricky task for e-tailers. You need to regularly update stock levels and ensure that products are returned in optimum condition.

Solutions to implement

Display a clear policy on your website for managing customer returns. Highlight it on a dedicated page, but also on your sales pages. Make the return policy as clear as possible, including the timeframes within which products must be returned and the associated costs. If possible, offer free returns.

Choose the packaging for the return. These are specifically designed to protect your goods during initial shipping and subsequent return. They also have several tear-off strips so the customer can reuse them directly without having to look for other packaging.

Control your e-commerce logistics costs

Whether you’re a small e-retailer or a larger platform, controlling your logistics costs is crucial to your profitability. Every item of logistics spend can be optimised in one way or another.

Solutions to implement

Reduce the weight and volume of express and international shipments. Most carriers charge fees for these types of deliveries based on the volumetric weight of the shipments. So take the time to eliminate empty space in your shipments by choosing packaging that is as close to your goods as possible.

To learn more, check out our guide to optimizing the weight and volume of your shipments.

Conduct regular tenders to find the right carrier at the right price. These tenders will not only allow you to find service providers that match your expectations and those of your customers, but also allow you to spend a reasonable budget.

If necessary,consider using a logistics e-commerceplatform. You can consider this logistics outsourcing solution if you need to handle urgent packages, deal with seasonal peaks or want to focus only on your core business. Some platforms may offer shared shipping costs, allowing you to ship your products at a lower cost.

Deploy environmentally responsible e-commerce logistics

Consumers are increasingly inclined to boycott brands that present environmentally unfriendly practices. Conversely, they remain loyal to brands that communicate their environmental and social commitments – and above all, stick to them.

You may already be working on the environmental responsibility of your products. But have you thought about the vital role your supply chain plays in this green image?

Solutions to implement

Choose eco-responsible packaging for your e-shops. You have different solutions for this: reusable, recyclable, bio-based, biodegradable packaging, etc. To see clearly, take a look at the 5Rs rule for packaging, which includes:

• Reduce the amount of raw materials used by choosing packaging as close to your products as possible.
• If possible, reuse packaging (for example, for returnable packaging).
• Replace packaging that is not very good for the planet with greener alternatives.
• Renew raw materials as much as possible by choosing packaging from renewable sources (e.g. bio-based packaging).
• Recycle your packaging as much as possible.

Find environmentally responsible carriers or choose eco-friendly delivery methods. For example, you can opt for last mile delivery by bike courier or choose carriers travelling in hybrid vehicles or CNG (Green Natural Gas).

With all these best practices in hand, you’re ready to implement a more profitable, efficient, and responsible ecommerce logistics strategy.