E-commerce is a new way of shop and pay. The customers are large in numbers and buy only a small quantity with each transaction. This results in the accumulation of a large number of small packets for delivery to customers unknown to the seller. In e-commerce, the demand in shipment is unpredictable. The suppliers as well as the customers are spread over a wide geographical area, resulting in higher transportation costs for procuring and delivering goods. As the operations need more integration, the accountability for delivering the consignment is extended throughout the supply chain. Because of the virtual nature of all transactions in e-commerce business, customers have high expectations as to the quality of services and demand speedy delivery of the consignment. Normally, consignment returns in e-commerce trade are on the higher side as compared to the traditional trade. Hence, it is necessary for a company in e-commerce trade to have a separate return logistics system in place. In e-commerce, demand for and availability of information required are greater than for the traditional business. The customer focus is on a one-to-one marketing approach that results in customized delivery and after-sales service. Logistics service is a bit complex process in fulfilling cross-border orders. The e-commerce trade calls for online processing of orders, which covers transportation mode booking, freight rate quotation, freight payments, shipping documents processing, and so on. Finally, in e-commerce trade there is a larger scope for enhancing customer satisfaction level using an efficient and a cost-effective logistics system.
Source: Sople V.V (2013), Logistics Management, Pearson Education India; Third edition.
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