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

Being responsible for a company’s e-commerce transport and logistics strategy is not always easy. From inventory and supply management to routing and shipping goods from the warehouse, you can quickly miss out on a myriad of details. 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 gathered here for you – along with practical solutions, of course.

Optimise your inventory to process orders better

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

But monitoring your inventory is also important so you always know what is and isn’t available. This availability plays an important 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 e-commerce 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 on this topic.

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

Speed up order preparation

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

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

Solutions to put in place

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

Choose time-saving packaging. Packaging such as instant or quick-assembly boxes (which automatically assemble by squeezing the sides) or packaging with integrated padding will help you save valuable seconds in order preparation.

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

Provide a different customer experience

If you want to face the competition and retain customers, you need to work on your brand’s customer experience. As an e-commerce business, this obviously means offering customers a seamless online shopping experience.

Solutions to put in place

Choose carriers 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 need to be able to give customers real flexibility and offer optimal tracking.

Be careful when unpacking products. For this purpose, choose packaging that makes it easier to open parcels. For example, packaging with tear-off tape or a closure made of rubber tape instead of adhesive tape are ideal. You should also pay attention to the presentation of invoices and include goodies and other small surprises in the packages to achieve the much-desired “wow” effect.

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

Manage order returns effectively

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

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

Solutions to put in place

Publish a clear customer returns management policy on your website. Highlight it on a dedicated page, but also on sales pages. Make the returns policy as clear as possible, including the time limits within which products must be returned and the costs involved. 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 search for other packaging.

Control the cost of e-commerce logistics

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

Solutions to put in place

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 shipment. Therefore, 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 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 an ecommercelogistics platform. You can consider this logistics outsourcing solution if you need to handle urgent shipments, deal with seasonal peaks or want to focus on your core business. Some platforms may offer shared shipping costs, allowing you to ship your products at a lower cost.

Implement environmentally responsible e-commerce logistics

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

Perhaps you are already working on the environmental responsibility of your products. But have you thought about how important a role your supply chain plays in this green image?

Solutions to put in place

Choose environmentally responsible packaging for your e-shops. You have different solutions for this: reusable, recyclable, made from bio-based raw materials, biodegradable packaging, etc. To see this clearly, see the 5Rs rule for packaging, which includes:

• Reduce the amount of raw materials used by choosing packaging that is closest to your products.
• Reuse packaging where possible (e.g. in the case of returnable packaging).
• Replace packaging that is not very planet-friendly with more environmentally friendly alternatives.
• Recover 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 bicycle courier or choose carriers that drive hybrid or CNG (Green Natural Gas) vehicles.

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