E-commerce is a transaction of buying and selling of goods and services online. Logistics in e-commerce mainly concerns fulfillment. Logistics makes e-commerce business complete because it brings purchases to customers. You can order a pair of shoes online rather than from a physical retail store, however, the pair of shoes would not reach you physically unless logistics intervenes.
It is important to note that supply chain management is a critical component of any business today but it is especially the case in e-commerce. E-commerce business owners have to familiarize themselves with logistics. Since they don’t have a physical storefront, they usually have to rely on third parties to help in storing and shipping their products and services. E-commerce business owners have to carefully choose their logistics providers. In making the choice of their logistics providers, they should consider the flexibility, specialization and efficiency of logistics companies. These are very key metrics for consideration to ensure total customer satisfaction.
Technological advancements over the years has given rise to the continuous evolving e-commerce logistics globally. These technological breakthroughs have brought about expedited delivery, improved efficiency, cost reduction techniques and improved GPS enabled tracking devices which helps customers to track orders.
In 2011, Google’s fiber optics debuted in Kansas City bringing high-speed internet service to the world of e-commerce logistics. In 2016, E-commerce logistics saw the delivery of products by drone delivery courtesy of Amazon.com. The launching of this technology took us many steps further in e-commerce logistics. In a similar vein, Uber launched its driverless service in Pittsburgh in 2016 and in the same year, 7-11 launched its first drone delivery in Reno, NV.
As technology continues to advance, several predictions have been made of what to expect in e-commerce logistics in the near future. One of these predictions is the spread of drone delivery to several cities in the world. The development of ground support systems for drone deliveries will produce a more effective drone delivery system.
Additionally, the biggest impact on e-commerce logistics will be artificial intelligence (AI). Chatbots are a great example of how this technology is becoming more extensive and helpful. Smarter chatbots will be developed to assist customers with basic queries such as tracking a shipment. Many companies are already using AI technology to provide stellar customer experiences. Undoubtedly, technological advancements would be used in bringing to fore, behind-the-scenes operations of major e-commerce companies.