icon Recharge Now for  ₹1000   & Get   ₹1600*   In Your Wallet. Use Code:   FLAT600   | Limited Period Offer On First Recharge

*T&C Apply.

Signup Now



Follow Us

How Does eCommerce Logistics Work?

Puneet Bhalla

Associate Director - Marketing @ Shiprocket

August 18, 2017

4 min read

Managing Logistics is the greatest challenge for any eCommerce company especially in a country like India with a vast territory. With the advancements in eCommerce, even the logistics industry is witnessing innovation and implementing technological support to cater to such high demands.

ecommerce logistics

And now it is possible for online buyers to track their consignment from the date of dispatch from the factory or warehouse till its’ delivery at the consignee’s address. The task of delivering shipments becomes even more strenuous during weather disturbances such as the rainy season or when extensive areas get flooded and many bridges are damaged.

Before the advent of the eCommerce industry, retailers sourced goods either from manufacturers or distributors. And now that we have a plethora of online shopping stores, the intermediaries cease to exist, leading to deals directly done between the supplier and end-user: C&F (clearing and forwarding agents), distributors, dealers, and retailers have no role in this direct selling process.

With these intermediaries removed, eCommerce shipping has become an essential part of supply chain management and emerged as a highly specialized service with the majority of them being managed by eCommerce companies themselves.

How Does eCommerce Logistics Work?

eCommerce logistics is a congregation of various processes such as inventory management, warehousing, packaging, labeling, billing, shipping, payment collection, return, and exchange that work in synchronization leading to a supply chain. All these put together turn into an exigent task, that requires a full-proof strategy to be accomplished.

Apart from these, eCommerce logistics also requires a thorough knowledge of territories, roads and road conditions, regulations regarding the movement of goods, and transport laws. The principal purpose of creating a logistics unit is to deliver parcels much faster, safer, and more accurately.

The eCommerce Logistics Company Functions in Two Directions

  • Forward Direction – Distribution and delivery of goods to buyers.
  • Reverse Direction – Exchanging or replacement of defective, damaged, or wrong shipments.

Both these processes become easy if logistics are managed and controlled by an eCommerce company.

ecommerce logistics

Working in the Forward Direction

  1. Receiving the order on an eCommerce store
  2. Providing a payment option
  3. Preparing inventory
  4. Packaging the item
  5. Preparing its invoice
  6. Dispatching the order

Handing over the parcel to the courier company

For an eCommerce company logistics in the forward direction involves receiving an online order, arranging for the item, packaging, preparing its invoice, arranging the payment, dispatching, and delivering the item to the customer’s doorstep. The time between receiving the order and its distribution depends on the availability of the material and the location of the consignee. For specific locations, a separate delivery charge could be applicable

From the time of dispatch until delivery of a consignment, it is the responsibility of the seller to notify the exact location of a shipment to its respective consignee through tracking SMS or email notifications.

Payment collection is essential for any eCommerce business owner, analogous to a retailer. An online retail company should have multiple payment options for a better customer experience such as debit/ credit cards, bank transfers, and COD (cash on delivery). In a country like India where buyers are more comfortable with dealing with physical money, the COD option is of utmost significance.

Working in Reverse Direction

In spite of the best efforts the possibility of incorrect or damaged shipments cannot be ruled out. In such situations efficient reverse logistics is essential. It is the responsibility of logistics to take back these defective or damaged materials and replace them with proper order that satisfies the customer within a reasonable time. A hassle-free exchange or replacement process goes a long way in building trust between the buyer and an eCommerce company.

Interpersonal Relationship

For any logistics or online retail company-customer relationship is critical. This relationship is established by delivery boys who are the face of an eCommerce company to buyers. Delivery boys must always be well-behaved and patient with customers. Attention must be paid to complaints with assurances of rectifying them soon. It is advisable to have delivery boys with a cheerful disposition.

What are the types of payments in eCommerce logistics?

There are prepaid and COD payments in eCommerce logistics

Does Shiprocket take care of reverse eCommerce logistics?

Yes. Shiprocket handles reverse logistics for your business with multiple courier partners.

Will courier companies pick up orders from my warehouse or business office?

Yes. Courier companies pick up orders from your pickup address.

Custom Banner

Calculate Your Shipping Costs Now

2 thoughts on “How Does eCommerce Logistics Work?

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

Product Differentiation

Product Differentiation: Strategies, Types, and Impact

Contentshide What is Product Differentiation? Importance of Product Differentiation Teams Responsible for Differentiation 1. Product Development Team 2. Research Team...

April 12, 2024

11 min read

sahil bajaj

Sahil Bajaj

Senior Specialist - Marketing @ Shiprocket

International Courier Service Providers in Rajkot

International Courier Service Providers in Rajkot

Contentshide Outstanding International Courier Services in Rajkot ShiprocketX: Empowering the Global Expansion of Businesses Conclusion Expanding and growing your business...

April 12, 2024

8 min read

sahil bajaj

Sahil Bajaj

Senior Specialist - Marketing @ Shiprocket

Cargo Weight Limits in Air Freight

When Is Your Cargo Too Heavy for Air Freight?

Contentshide Weight Limits in Air Freight Cargo Restrictions for Any Special Item Implications of Carrying Overweight Cargo on Aircraft Managing Heavy...

April 12, 2024

6 min read

sahil bajaj

Sahil Bajaj

Senior Specialist - Marketing @ Shiprocket

Ship with confidence
using Shiprocket

Ship with confidence using Shiprocket

Trusted by 270K+ eCommerce brands like yours.