Founders and start-ups in mail-order business are quickly becoming victims of their own success. The effort that has to be spent to deliver the goods ordered by the customer on time and also the inevitable returns and their handling are proving to be time-consuming and cost-intensive.
Why logistics impact on sales has
This is a critical phase, because clean processes have an impact on the success of their own business model.
The components of logistics and fulfillment
The love of their own products, an appealing presentation and a wide range of products should not be enough in the long term to be successful in Internet commerce.
The best logistician
In order to draw an analogy to the in-house trade: Who would like to buy in the long term in a shop in which he has to stand for hours at the cash desk or the staff with hands and feet against the withdrawal of articles? How the customer evaluates his purchase in the online shop as a whole also depends on the experiences he makes after clicking on the order button
Logistical in the overview
Industry giants like Amazon, Tchibo and Otto have made it. The customer will be informed about the status of his order within a few minutes after sending his goods basket, and can also track his goods in a timely manner.
This is a fulfilled demand for transparent service, which inevitably involves smaller companies. Sophisticated logistics processes and the choice of the right service provider help shop operators meet customer needs.
In order to decide which services are to be used, it is important to look more closely at the processes associated with so-called fulfillment or logistics.
If the customer has sent his order, the goods must be taken from a warehouse and put together (commissioned). Everything must be packaged securely, so that it transcends the subsequent dispatch undamaged. Both the company and the customer must know where the goods are, so the shipping route must be traceable.
Finally, invoices - either already before dispatch or immediately afterwards - are to be written, the payments to be settled and possible reminders to write. And lastly, it should not be forgotten that customers are returning goods for a variety of reasons, and then processes have to be initiated and settled according to the customer's requirements.
Roughly, these processes can be grouped into two types of services. Logistics offer the company the pure dispatch, the company fetches the packaged goods or expects their consignment in a dispatch center and then accepts the transport.
On the other hand, the offer of companies offering the fulfillment goes far beyond this pure transport. More or less modular, all of the above-mentioned processes can be outsourced after the order has been placed in a company.
When choosing the optimal logistics provider, the question at the beginning is to whom you will mainly send your parcels and which supply areas have to be considered. If your customers tend to be private households, it is better to opt for a consignor specializing in this segment, and also deliver to stationary shops or package stations.
Many of the convenience features for the sender, such as the electronic transmission of a tracking number, are linked to the status of business customers in most companies. And this status is usually tied to a minimum amount of packets that must be sent per year. This quantity is around 300 (DHL, Hermes) and 500 packages (GLS) per year.
The complete program: Fulfillment
A variant of this model is, for example, the issuing of a software for the transmission of the shipping data, which takes place only after a minimum number of packets. If you send so many packages, you will also receive special price conditions and can pick up items directly.
In the decision for or against a logistician, other aspects may also play a role. Are there limits on the dimensions of a package or the weight of the shipment? To what extent is the consignment insured against loss? How many delivery attempts are included? Can the customer then pick up his order at a branch office? Or is there an indication of the desired time of shipment?
Powerseller can also use company services
Among the logistics companies, you will also find suppliers that are primarily specialized in the business-to-business segment and are more likely to be assigned to the courier services. These include Fed-Ex, TNT or General Overnight (GO!). They bring the goods to the customer very quickly, but their fees are likely to break the financial framework of a shopkeeper on a regular basis.
Every child knows the yellow vehicles of DHL. The biggest advantage of the company, which belongs to the Deutsche Post Group, is certainly the comprehensive network of delivery points and the large vehicle fleet. The packing stations to which packages can be delivered are comfortable for the customer. In the case of non-availability, customers can collect the goods in the company's stores and receive consignments on Saturday.
The customer can always check with the tracking number where his goods are located. The prices for shipping depend on the quantity. In order to get into the status of the business customer, at least 300 packages must be sent per year.
Hermes offers a module concept
More info and addresses
Hermes is a subsidiary company of the Otto Group and is also primarily involved in private customer business. Hermes also delivers on Saturday and now has a five-digit number of package shops nationwide in which customers can pick up goods in the event of non-availability or on request.
The price level is rather low compared to competitors, as Hermes wants to significantly increase its market share. 300 packages per year are required for the "business customer" status. A free pick-up is possible from four packages. Smaller quantities will be charged.
DPD has begun as a sender in the B2B area. The company currently still has a significantly smaller number of package stores than its competitors. However, private customer business is to be further expanded. 500 deliveries a year awaits the service of its business customers. The price level is ultimately dependent on the recipient structure and the number of packages and is negotiated through an individual offer.
A special feature for the consignors of larger electrical appliances such as, for example, coffee machines: DPD offers special return boxes in which such devices can be sent. Thus, sensitive goods get well protected in the workshop.
In many respects, GLS balances its competitors DPD. There are several thousand bases available for self-collection, and the history is similar. The prices for the shipping are flexible, the hurdle for business customers with 500 packages identical.
The brown cars of UPS are also very well known. Due to its rather high prices, the service is primarily recommended for time-critical broadcasts to business customers and private households. Customers can collect the packages in a depot after several unsuccessful delivery attempts. However, the depots are broadly distributed across regions.
Companies that specialize in fulfillment offer a much broader spectrum than logistics companies. Anyone who stores his goods and articles at a company of this kind, can be consigned to consignments and packaged there must, of course, also pay for them.
This "surcharge" compared to the pure shipping must be taken into account in the pricing of the individual products. In narrow markets, where products with a manageable margin are offered, a very pointed pencil is needed to make the decision to outsource the tasks.
In general, the prices depend on the number of booked services, the number of shipments and also on the volume of goods or shipments, since the storage capacities of the supplier have to be refinanced. While the data that is to be transmitted to a service provider for the transmission of a shipping order is fairly simple, the complexity of the information increases, even if inventory quantities are to be determined and coupled with the customer's own shop Br>
When selecting a fulfillment service provider, the compatibility of the IT programs involved plays an important role. For this reason alone, setting up such a project is highly individual. Fulfillment by Amazon is the special offer of the shipping giant
Traders store their articles there and can use the entire process chain. The goods are packaged, packaged and shipped. On request, Amazon also takes care of the customer service for the corresponding orders.
First and foremost, the company is interested in goods that are quickly turned over. This is why special charges apply to all items that are left in the Amazon warehouse for more than 365 days.
Integration is especially easy if you also use the Amazon Marketplace as a shop platform. The connection of external systems is however possible.
DHL also offers a fulfillment offer with the product eParcel, which covers all stations of an article from the order to the possible return.
The services are modular. In addition to the basic level (storage, packaging, shipping, returns processing), there is also the option to link your own systems and programs with the company's merchandise management to keep track of the products in real-time.
Hermes Fulfillment is the B2B offer of the Hermes Logistics Group. The company provides individually bookable modules. In addition to traditional distribution and returns, payment management can also be outsourced or the services of a call center can be used.
In the area of fulfillment, Hermes can, of course, take advantage of the experience and performance gained in the Otto Group. Thus, the company is also suitable for suppliers of furniture or so-called "white goods", which require a set-up or assembly service or have to be delivered by at least two persons.
PVS is a medium-sized company and does not belong to any group. It has its focus on product shipping. Further services are offered around this core discipline. Textiles, for example, which originate from a return, are optionally reprocessed so that they can be re-dispatched.
Already ambitious Ebay-Powerseller can quickly reach the shipping volume, which entitles the use of corporate services to logistics companies. In combination with a suitable logistics software, such as afterbuy from Ebay, the transmission of data becomes easier. However, the connection of own programs or shops with the services of a fulfillment provider is somewhat more complex.
Download: Logistician in the overview
Actindo is a software for the merchandise management, which interfaces with many current shop systems on the one hand, as well as the largest logistics companies and fulfillment providers on the other. Optionally, other shops can also be connected. DHL and Hermes are integrated in the fulfillment partners .; PVS: Here you can see the services and possibilities of the company.
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