3 Warning Signs that your E-Commerce Logistics is Harming your Business

By | Oct 10, 2019 |0 Comments

Do you think that your eCommerce Logistics is making the grade or it is the culprit that’s actually harming your business? Whether you’re trying to cope with the busy festive season, an important sales promotion campaign or just an ordinary day; everything boils down to the fact as to how efficient your company’s supply chain management is. It is the backbone that can make or break your online business. You may not realise initially, but this has a huge role to play in your eCommerce business. Right from showcasing your products, order acceptance, delivery and payment procedures the precision of logistics  does matter a great deal. 

Nowadays, the eCommerce market is extremely competitive. Consumer expectations are also scaling up demanding timely delivery, order accuracy, easy returns and more. Hence, your eCommerce management is put to test each time, a ‘buy now’ button is pushed through. 

As a business owner, it would only be imprudent if you jeopardize customer satisfaction with the poor performance of handling orders and deliveries. If your ecommerce courier service provider is letting you down by failing to meet the key deliverables, it’s time to get smart. 

There is often a thin line between a logistics plan that is failing and one that is simply experiencing a crash during seasonal flow or higher inventory. The plan does not fail overnight. There is a gradual and imperceptible decline that go amiss (particularly when you are unaware of what some of the signs of a failing supply chain could be.  You must try picking up early warning signs that are harming your business. If you recognise these signs in your business, it is possible that you could be experiencing a temporary glitch or more serious issues that are only just stemming.  

SIGN#1: Decreased Customer Loyalty( empty cart thumbs down )

Most business owners tend to miss out on an important fact: the supply chain greatly affects customer loyalty. If your logistics contain any loopholes, it will surface only too quickly. Because of increased awareness, (thanks to the internet), consumers demand prompt service even at the back end. If there are errors in the supply chain management, customers will complain about fulfilment errors, damaged products, untimed delivery and also returns. 

Continuous poor service will force your customers to shift to other portals. Remember, there is no excuse for poor performance. These days, consumers have dime a dozen options and they are just a click away. If they find your service incompetent, most of them will never return and will also not shy away from writing reviews. In a way, this will not only cut down on consumer retention rate but will also make it difficult to bring new business. 

A flood of consumer calls and emails for poor service and damaged shipments is a sure shot sign confirming that your ecommerce courier service needs some serious consideration. Of course, minor errors are inevitable, but dramatic mistakes in higher frequency can lead to reduced orders due to decreased customer loyalty. In this case, we can safely assume that efficiency in handling your eCommerce back end procedures is directly proportional to long-term consumer loyalty. Isn’t it? 

SIGN#2: Poor System Integration

Now, what does this mean? Your ability to provide excellent service to your consumers depends upon the transparency of your communication. It is important to have a clear format of communication with your end-users as well as with your company that is responsible for deliverables. 

Smooth logistics needs an easily reachable and reliable courier service provider. Failing to reach them or experiencing prolonged delays in response times tend to imply that your consumers will undergo a similar experience. Hence, poor or inefficient system integration at any level means customer retention and profits, both are in jeopardy. Would you like to take that risk? We think not! 

The only way to cope up with the problems of poor system integration is to look out for a dedicated ecommerce courier service provider that assures a reliable support system. This also means that it should be available to address customer issues promptly. 

Good system integration will proactively minimise potential communication challenges even before they arise or escalate. This will eventually lead to lesser challenges and will cut down on backlogs of complaints and returns. 

SIGN#3: Increased Costs for Shipping and Storage 

All third-party service providers increase their rates annually. Nevertheless, companies with extensive inventory ship in bulk which provides them with the benefit of discounted and high volume shipping rates.

One of the major checks to know if your logistics is ditching you is to ponder over your current shipping rates. Does your existing shipping charges allow you to provide low-cost or free shipping to your customers? If the answer is ‘NO’, then your company is probably diving towards losses. 

It is only wise to partner with a company that undeniably provides its customers with the lowest rates available to help you do some cost-cutting on shipping. 

Besides just shipping, logistics  costs that can unexpectedly show up in the form of storage fees are also something to take into account. Storage charges are levied by the warehouse owners for products and items that have not been moved out of the yard within a specific free-time. This can affect yard space and productivity. 

Every warehouse arrangement offers a certain free period to process shipping requirements, after which the meter for storage charges runs through. If so is the case with your supplies, your expenses are going to shoot up. In situations such as these, it is only advisable to beware of storage costs and opt for an ecommerce service provider that makes shipping a sizeable task. 

As your company steps into a high-growth phase, it is important to bring your focus on what and how it is delivering to your end-users; tangibly as well as intangibly. You must review and revise your logistic procedures from time to time and leverage resources and manpower to improve it. Right from choosing a reliable logistics partner to leveraging technology, one should focus on value-added practices that include quality, prompt service and the benefit of cost. 

Handling inventory and dealing with it can get cumbersome and complicated, but it can be tackled in a methodical way by setting out disciplinary practices. Remember, while more and more companies vie for consumer loyalty, you ensure a smooth and pleasant customer experience before thinking to move forward with anything else. 

If your business is also showing these warning signs, it is high time to take charge and change the way you have been handling your ecommerce courier service. ShipKaro offers a host of features for fast and discounted delivery using multiple shipping partners. Check out the logistics pricing plans of ShipKaro to choose the best solution for your business.

Leave a Comment