Blog Hot Topics [Online Store Strategies] 5 Major Benefits of Using an Online Store Logistics Service

[Online Store Strategies] 5 Major Benefits of Using an Online Store Logistics Service

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[Online Store Strategies] 5 Major Benefits of Using an Online Store Logistics Service

As online shopping becomes more and more popular in the modern age, SMEs and even more well-established, time honoured brands have encountered pressure to jump on the e-commerce bandwagon and take their business online, allowing their customers to complete purchases anytime, anywhere. Delivering goods to customers quickly and efficiently, however, is a difficult challenge that many companies face. Fortunately, some third party logistics companies now provide one-stop online store logistics services, handling everything from receipt of goods, packaging, storage to delivery, making this an appealing choice for many enterprises.

The ongoing trend of online shopping has undoubtedly provided bigger and better business opportunities for merchants, especially SMEs. However, many problems must be taken care of in order to successfully sell products online, with potentially the greatest of them all being logistics. Running an online store requires the integration of many operational stages, including ordering, receipts, warehousing, packaging, transportation and delivery. Each of these stages is interconnected and cannot be disorganized. Even a slight delay or mistake in any of them (for example delivery lags, incorrect goods or damaged goods) can seriously affect customer experiences, in turn harming online store reputations and future business levels. 

Unless companies already have a large-scale logistics team under their belts, as well as considerable logistics experience, it is not easy for the average enterprise (especially SMEs) to successfully navigate online store logistics from scratch, as this requires the investment of many resources and lots of time. Companies who attempt to do so could potentially waste copious amounts of effort just to see the logistics side of their business fail – not to mention how the development of their business could be continually hindered. 

Taking note of this, some integrated logistics companies have sought to provide one-stop, tailor-made online store logistics services catered to both small and large online stores, which are easy for SMEs to adopt as well. This kind of service can also be referred to as a “Third-Party Ecommerce Order Management Service”. Prices for these services are generally reasonable, allowing companies to improve the efficiency and profit of their online stores while focusing on their own business development.

5 Major Benefits of Using Online Store Logistics Services

1. Saving Costs

When using third-party online store logistics services, companies do not need to rent out warehouses on their own. Storage costs for these services are also calculated based on the space that is actually being used, which can also save a substantial amount of costs. Warehouses in which goods are stored are always reliable, well equipped with temperature and humidity controls as well as theft safeguards to properly protect your products. Labor costs can also be saved, since there is no need to hire a separate team of logistics staff.

2. Online Inventory Management

Third-party online store logistics services can also provide you with cloud-based inventory management systems, allowing you to manage your items, control freight transportation and track deliveries virtually in real time, anytime and anywhere. This in turn allows for the full integration of your supply chain, allowing customers to place orders and have the logistics company be directly responsible for delivering the relevant goods to stores or customer addresses. Inventory notification and budget tools within these cloud-based systems can also help you manage appropriate inventory levels and plan future business strategies more effectively.

3. Cross-Border Logistics Expands Market Reach

Third-party online store logistics services can also help you gain access to overseas markets. SMEs can use different popular online shopping platforms to expand their sales channels and sell their goods worldwide. The online store logistics service will then deliver the goods to these new customers in the most cost-effective manner – there’s no need at all to rent warehouses in other countries.

4. Value-Added Services

Third-party online store logistics services can provide a variety of custom value-added services for you, such as product re-labeling, re-packaging, gift packaging, FIFO (first-in first-out) packing strategies, etc. These can not only ensure that your products are kept in the best condition, but can also create more purchasing options for your customers.

5. No Long-Term Contracts

Third-party online store logistics services are generally charged monthly, and you are only charged for the services or space that is actually being used. There is no need to sign a long-term contract, which makes your enterprise operations more flexible as you can change your chosen service at any time, without being tied to a single contract.

Choose a third-party online store logistics service that best suits your company. Even as your sales volume increases, you can ensure that all of your goods can be delivered to customers on time and in proper condition, without having to deal with various logistics issues. This will allow your company to focus more on key business developments. If you want to learn more about online store logistics services, please contact Boxful’s online store logistics consultants.

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Further readings:[Online Store Strategies] Picking and Packaging: A Major Factor in Online Store Success

Further readings:[Online Store Strategies] 7 E-Commerce Tools and Platforms That Start-Up Online Store Must Use

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