E-commerce warehouse management is an extremely important process for online shopping despite complex supply chain layers. Meeting customer demands while keeping sustainable costs is one of the main challenges faced by companies in online retail. In addition to mobile and online commerce, suppliers open new channels such as shipment programs for web stores and large box retail. Various suppliers are struggling to benefit from the opportunities in the operational chaos. Cross border e-commerce warehouse management, e-commerce warehouse management, inventory management, dispatch, order management and digitalisation of all these processes are gaining importance!
Sales and Marketing In E-Commerce
E-commerce warehouse management processes are the main topics for online shopping. Because e-commerce is one of the fastest-growing sectors in the recent period. To be successful in highly competitive e-commerce, it is important to know about sales, marketing and related costs. Firms that do not spend enough for sales and marketing might fall behind the sector and competitors with their services.
Business with high-profit margin can allocate more resources for sales and marketing. Thus, a business can compete with competitors. But to increase product prices to achieve high profit might cause customer loss. Instead, operational costs should be decreased and unnecessary costs should be eliminated to increase profit margin. Changing the prices this way might prevent customer loss.
E-Commerce Warehouse Management System (WMS)
E-commerce businesses have certain operational costs. The most important one is keeping inventory and operational costs. Making cuts without considering these costs might lead to negative results. At this point, one of the ways to increase profit margins without interrupting the operation is e-commerce warehouse management system integration. E-commerce warehouse management system (WMS) integration is one of the most important tools that increase warehouse performance. Management of productive warehouses have lower cost and contribute to the growth of e-commerce businesses.
E-Commerce Warehouse Management System Advantages
Applying an e-commerce warehouse management system effectively with other related processes greatly contributes to online shopping layers of the businesses. Order follow-up in e-commerce business brings some advantages.
- Inventory number can be followed.
- Order status can be controlled.
- Inventory management and integration are easy.
- It gives practicality for order shipment.
- It increases customer satisfaction.
- Data related to orders can be automatically integrated into other processes.
- It will provide time and cost-saving.
E-commerce warehouse systems rapidly integrate product inventory information to the marketplaces. They can be integrated to brand website and other sales channels simultaneously. This way, inventory status is constantly updated. It prevents any confusion in the order process and contributes to the e-commerce operations of the businesses.
E-Commerce Order Management
A successful e-commerce order management process might indicate new online sales. A payment error, a missed order or delivery problems will lead to dissatisfaction and negative assessment. The research revealed that 65% of online customers broke their connections with the brand due to negative results in electronic orders. Companies with strong e-commerce order management and e-commerce warehouse process will not have a problem in order management. Additionally, they can open the way for customers to order again. So, what is e-commerce warehouse management system? How can you apply to e-commerce warehouse management?
E-commerce warehouse management and e-commerce order management includes the operations related to managing the processes to follow the online orders in a retail business and to deliver these orders to the customers. Order management includes the processes such as receiving the order, e-commerce storage, product delivery, aftersales service and product return. Receiving an order is the first step of order management. Following an order might be easy at first. But this will become more complex and harder as the number of orders increase. Therefore, there certain things to consider before the intense order stage!
E-Commerce Payment System
Each unsuccessful payment in e-commerce means potentially losing a customer. All challenging marketing and conversion efforts might end up with failure at the last moment with incorrect or hard to use payment system. Therefore, choosing a secure payment processor is important. The E-commerce payment system is an important tool for a quality e-commerce order management process. All these processes are intertwined and the entire online orders might fail if one process is missing. Worse, it is possible to miss the payment of completed orders. You can increase your sales by listing on different marketplaces. Therefore, you need to choose a strong payment system for e-commerce.
E-Commerce Forwarding Management
E-commerce forwarding management which is the part of e-commerce warehouse management is a process related to delivering the orders to customers. Regardless of being a retailer or service provider, e-commerce warehouse management and forwarding management software must be designed to meet the needs of any customer. Different shipment stages must be linked. For example, alternative shipment and delivery channels such as UPS, USPS, DHL and FedEx should be used. Just like in inventory and order preparation systems, e-commerce retailer has and must have an alternative shipment company. Therefore, it is important to integrate e-commerce warehouse management with different systems to coordinate with delivery companies.
E-Commerce Warehouse Management System Selection
In e-commerce warehouse management, the best option for long-term decreased costs is to use cloud-based WMS. Cloud-based WMS can be easily updated. The costs and speed are better than other WMS types. E-commerce warehouse management is possible independent of location. Additionally, storing the order data on the cloud storage system minimises the data loss possibility. The first installation of cloud-based WMS has higher cost than other e-commerce warehouse management options. But it is easier to adapt to new systems over the long run. Additionally, this system will eliminate the frequent system replacement cost. At this point, the most updated WMS can be used with cloud-based e-commerce warehouse management without re-installing the system.
Sell More Products By Decreasing Logistic Costs!
E-commerce is an extremely strong and competitive market. This market is constantly changing and has a dynamic structure. Therefore, the adaptation and integration of various systems such as warehouse management system are important. Commercial agreements, campaigns and promotion changes must rapidly adapt to e-commerce systems. It is necessary to be prepared for seasonal order increases. The entire system might fail in the smallest mistake. To avoid all these problems, a new generation e-commerce warehouse management system should be used.
WMS is not alone in e-commerce. At the same time, on-time product delivery and affordable costs are important. When logistic strategies are determined, local logistics firms at an e-commerce warehouse location and logistic companies in the shipment location should be investigated. At the point, prices can change based on various factors such as product size, production material. Correct research can minimise these costs. At the same time, strategies to increase business performance should be determined.
Beneficial Information About E-commerce Warehouse Management
- An e-commerce warehouse is a different system than a traditional built-in retail warehouse.
- In e-commerce WMS, the latest delivery date is extremely important.
- Applying a warehouse system designed for e-commerce is faster and more practical than the traditional system.
- The average single product order rate in e-commerce is at 80% level.
- Single product order rate on e-commerce marketplaces such as Amazon and e-Bay are around 90%.
- An e-commerce warehouse management system must process high-volume single item orders.
- Correct warehouse management software should optimise the collection routes. Thus, operators can collect multiple orders from certain regions and the time in the warehouse decreases.
- E-commerce warehouse management software must be integrated with e-commerce platform for correct inventory listing.
- Warehouse system should provide inventory numbers and update them online.
- E-commerce operations can consist of numerous small systems that manage certain functions. Therefore, e-commerce warehouse management must work with these systems if it is not directly communicating with them.
- Traditional warehouse management systems do not have as many returns as B2B and retail operations. The average return rate for fast fashion e-commerce is around 17-25%. It is important to handle the returned orders fast and efficiently.
- A traditional warehouse might have numerous documents that must be dispatched with every order. However, the number of orders are low and these operations can be manually completed.
- A warehouse management system designed for e-commerce can automate printing required documents for each order.
- A well-planned WMS software eliminates mistakes, enable time-saving and help to increase the reputation of the brands across the country.
- Various e-commerce companies must have numerous carriers that offer multiple shipping methods depending on customer preference or order requirements.
- An e-commerce warehouse management system should be designed to match e-commerce and traditional systems.