5 Questions to ask before choosing Logistics partner for Ecommerce

By | Jun 24, 2016 Tags: | | 2 Comments | 6456 views |
  • 5 Questions to ask before choosing Logistics partner for Ecommerce

Own an online store or sell on one of the multi-seller marketplaces? What is the biggest challenge you face every day? What is the one segment which can greatly increase your operational efficiency?
For 9 out of 10 online business owners the biggest pain point is finding a reliable logistics partner for ecommerceAlthough, the industry has evolved very rapidly in the last five years but delivering products timely still remains the main challenge.

Customer is the king and keeping them happy is the key to success for any business. This is especially true for the extremely competitive e-commerce market. Despite having the best products and most competitive pricing website can easily lose customers if the product delivery is not up to the mark.

Related Read: Same-day delivery or Next-day delivery. What is a good delivery strategy for online stores?

You can provide the best shopping experience to your customers on your web store but once the product leaves your warehouse the things are no longer in your control. Your reputation is now totally dependent on the services of the e commerce logistics companies you have partnered with.

Choosing the right shipping partner is crucial for any business. It can be the single most important factor in deciding the success or failure of your business. If you choose an unreliable shipping partner, your customers get a bad experience and might move to your competitors. Go for too pricey shipping services and it eats away your profit margins.
So, it is essential that every business owner choses logistic solution for ecommerce after carefully analyzing it on certain parameters. Ask the following questions before finalizing your shipping partner:

Do they provide end to end delivery?
Check out the end to end delivery channels of your shipping provider. A reliable partner should be one which can ensure efficient and timely transportation of goods across the length and breadth of country. Usually, the courier companies have tie ups with local partners to manage delivery to the remotest areas. Moving goods quickly and safely is of prime importance. Check the first mile, in transit and last mile delivery of your partner before finalizing the e commerce logistics companies for your business.
Do they offer Insurance?
On an average 7-10% of orders are lost in transit and if the item is not insured the merchant has to bear the cost of the lost product. In some other cases deliveries get misplaced and the delivery might take t weeks or even months. This usually happens due to error in labelling, wrong or missing PIN code, infrastructural issues or some other factors which are beyond the control of the courier agency.
Given the scope of losses it becomes imperative that every seller thoroughly checks the insurance policy of their e commerce delivery service. Never partner with any company without understanding its insurance policies, how your shipments are covered, how to dispute, how to file a claim and how to calculate the value of your parcel for insuring it.

Related Read: Ask these questions before choosing an e commerce platform
Are they Cost effective?
Getting a competitive rate from your shipping partner depends on your order value and the relationship with the provider company. Also, you need to pay a good amount as upfront security deposit. So, instead of going with too many tie-ups it is always better to choose a few reliable partners for shipping and build a good relationship with them.
Are they suitable for your business model and industry?
The shipping needs of various industry verticals can be different from each other like chalk and cheese. For example, if you are running a cake and flower shop, you need intra city quick deliveries. Whereas, an online electronics goods shop needs nationwide delivery coverage. So depending on the e commerce logistics case study of your business you need shipping partners who specialize in your industry category.

Are you getting broad coverage?
Not every courier company provides Pan-India delivery coverage. If you go with a shipping agency that has limited coverage you can lose many customers who are beyond the serviceable area. The alternative is to tie up with various agencies which can lead to hefty upfront security payments. You can cut on the costs by reaching out to logistics partners who offer deliveries to areas where you have maximum customer density.
StoreHippo platform brings for you pre integrated e commerce logistics providers chosen after thorough review of their services and pricing. Keep visiting our blog page for more details on our shipping solutions.
If you have any queries about our order delivery services, please post them in comments below and we would get back to you with best solutions.

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I really wanna know the inital parameter to select the desired logistics channel, can u plz help me out by providing me the update. I deal in garments. The above article was really very helpfull and gave me many insights

By: Vedant Agarwalla
Apr 28, 2018   Reply

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Delivering the product to your customer on time is a big challenge for online stores. Though online stores can use courier companies for delivering their product to customers, there are specialist companies that handle logistics and product delivery for e-commerce.

By: rexfordjoan
Nov 25, 2016   Reply

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