The ecommerce business has picked up very fast all around the world. In any business the main factor that makes or breaks a company is its efficiency and services. In ecommerce business the major hiccup can be logistics. While reaching out to a larger mass is easier but providing them with good service is equally difficult and costly. If a company is doing all its work by itself such as supply, logistics and payment then it needs a huge infrastructure and investment. So most of the companies prefer to divide these services and work with other specialized companies which make it easier to set up an ecommerce company.
Customer satisfaction depends on proper delivery
Most of the ecommerce companies use courier services for parcel shipping. This is major challenge where customer satisfaction depends on. Thus four factors that determine the efficiency of the courier companies are speed of delivery, accuracy, scalability (so growth is fulfilled competitively) and surge (i.e. traffic against fulfillment graph). The greater amount of transparency that is maintained in this chain the easier it is for the ecommerce company to win customer’s faith and favour. Research suggests that customers favour delivery time facility like cash on delivery, free shipping, etc. over other services in case of online shopping.
How the tie-up works?
If there is loss or damage of product being delivered, most of these courier companies have agreement with ecommerce companies to provide good reverse logistics, same is valid for international deliveries too like to send parcel to Germany. Good customer services along with good return policy help rebuild the trust of the customer who may feel cheated by the damaged product. Proper packaging, labeling, invoice, providing appropriate cushioning (to avoid damage) are some important steps that can ensure saving money, time and help gain customer’s trust.
The courier service companies provide the ecommerce companies with special discounts which ensure a product at lower price and then the additional privileges like cash on delivery or free shipping cost which give positive impetus to the ecommerce companies business. The discount is mainly based on bulk orders. The greater the number of orders the greater is the discount provided by the courier companies. Better discounts are necessary to attract more customers. It is discount which appeals to the customers and gives your company more advantage than your competitors.
These online retailers will be the major market in coming two to three years and these specialized courier services will be more necessary to ecommerce companies to reach a greater mass in small towns and villages, much of which still remain unattended.