Every e-commerce business aspires to be successful. According to Kearney research released in 2020, the GCC’s (Gulf Cooperation Council) e-commerce business has expanded dramatically from about $5 billion in 2015 to today’s revenues of roughly $24 billion.
According to the same Kearney survey, 60 percent of millennials buy online and spend, on average, $1,500 annually on vacation, clothing, electronics, and other items. The pandemic has also contributed to increased awareness of the potential of e-commerce among older generations, thereby expanding the market.
The needs of the e-commerce industry for logistics are continually changing to keep up with the changing business environment. However, the logistics industry will need to overcome key obstacles if it wants to create resilient and flexible networks. In this blog, we examine the major problems the e-commerce logistics sector is currently facing.
DISPATCHING ORDERS SLOWLY
Whether you supply through a major retailer or several channels has no bearing on your business. When a customer places an order for a product, you must process it right away and within the time frame outlined in your terms and conditions.
The majority of sales channels and marketplaces anticipate customers’ orders in 1-4 days. Processing delays inevitably result in problems with distribution and shipment, which may further result in irate consumers and negative review ratings.
SOLUTION 1
Ecommerce businesses should locate their pickup centers as close as possible to groups of suppliers. close to retail stores to get around this challenge and shorten collecting and handling periods. No doubt, the best option is for online retailers to set up fulfillment facilities that are loaded with goods and will be accessible as quickly as possible once an order is received.
ABRUPT INCREASE IN ORDER VOLUME
As a participant in the eCommerce industry, you are aware that the marketing strategy includes seasonal sales. During this time, people enjoy shopping, which drives the number of shipments to an all-time high. Customers would be actively engaged by your eCommerce business through a variety of buy, return, feedback, and retention actions. Your delivery service companies may find it difficult to plan ahead and be prepared for such circumstances without going under.
SOLUTION 2
Some economists advise combining pickup and collection along the same transportation route to save on pickup expenses. However, without some kind of computerized logistics management system like the one that is currently being developed, it would probably be exceedingly difficult to organize the operations of this kind of scheme.
POOR TRANSPORTATION SYSTEM
Every e-commerce company’s objective is as straightforward as delivering the product from the warehouses into the hands of the buyer. However, if there is bad transportation management, this can become impossible. Since there aren’t many distribution centers in smaller cities and villages, it might be difficult for merchants to move products far along the supply chain over difficult terrain in sweltering temperatures. Few retail businesses can also keep up with delivery, which further slows down the entire process.
SOLUTION 3
Motorcycles consume less gasoline than other types of transportation, such as cars, trucks, and buses, which saves money when traveling long distances. Engine hardware maintenance, repair, and tuning take less time and money. Riding a motorcycle is one of the simplest methods to avoid traffic congestion. A motorcycle can easily steer the narrow streets, and passing takes only a few feet.
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CONCLUSION
The implications of a more definite transition to online buying will reverberate throughout the broader global market as e-commerce is expected to gain even more traction in the upcoming years. With the rise in popularity of online shopping comes a new set of logistical issues for eCommerce, such as faster delivery times, free and easy exchanges or refunds, real-time routing, and mobile-friendly websites.