Starting a webshop is one thing, but growing it into a commercial success requires a clear strategy. This strategy not only includes choosing your products and marketing them effectively but also ensures that your logistics are ready for expansion. Logistics can often become a bottleneck, especially as your webshop grows. You need enough storage space and staff to handle an increase in orders.
Research shows that 60% of online shoppers base their purchasing decisions on delivery options, delivery times, and shipping costs. Terms like “free shipping,” “next-day delivery,” or “free returns” can make a significant difference in the success of your webshop. Shipping not only serves the purpose of getting goods to the customer but also plays a crucial role in the decision-making process. Additionally, the delivery experience impacts customer loyalty—if the order processing is positive, there’s a higher chance of repeat purchases.
3 logistics options for your webshop
There are different ways to organize the logistics of your webshop. Which method suits you best depends on various factors, including the stage of your webshop’s growth.
Managing logistics yourself
In the early stages, most webshops handle logistics themselves. Why? Because the number of products and orders is still relatively small, and this allows you to save on costs while gaining valuable experience. Handling logistics yourself lets you test different couriers and packaging materials, gaining insight into the process that will be useful later.
However, as your webshop grows, you’ll start facing challenges. Shipping costs rise, and you need more knowledge and capacity to manage logistics efficiently. You might need to rent a larger warehouse, which can take up a significant portion of your budget. You’ll also need to invest in hardware, software, materials, and manpower to process more orders in the same amount of time. Managing multiple couriers to get the best deals is another challenge, as it can be expensive for small webshops unless you’re processing hundreds of orders daily.
Dropshipping
Dropshipping is an effective method if you want to minimize risk. In this model, products are shipped directly from the supplier or wholesaler to the customer. The webshop acts as an intermediary. The advantage of dropshipping is that you don’t have to invest in logistics.
The downside is that not every product or supplier supports this model, and wholesalers often charge a fee for using their shipping process. This means your profit margins will be smaller, and you’ll have less control over quality and delivery times. This can lead to customer dissatisfaction through no fault of your own.
e-Fulfillment
When orders increase steadily, you don’t have to invest in more warehouse space or staff. Instead, you can outsource logistics to a specialized fulfillment company. A fulfillment company takes over the entire logistics process, allowing you to focus on the commercial growth of your webshop. This includes tasks such as inspecting incoming goods, inventory management, order picking, packing, shipping, and even returns processing.
Some fulfillment companies also handle customer service, which can be incredibly beneficial. For example, many customers frequently ask about the status of their orders, and outsourcing this to the fulfillment center can save you time. Here are some benefits of using a fulfillment center:
- No need to invest in a warehouse.
- Access to a warehouse management system (WMS).
- Handling spikes in shipping volume without extra effort.
- More focus on growing your webshop.
- Access to various couriers.
- Later cut-off times.
There’s also a downside to outsourcing logistics: you lose some control over the process. However, whether this is a disadvantage depends on how much you value the benefits offered by fulfillment.
Logistics as a competitive advantage
Working with a fulfillment center can give you a competitive advantage. Consumers have higher expectations now, such as “next-day delivery” or “order by 9:59 PM, delivered the next day.” Meeting these demands is nearly impossible if you manage logistics yourself. Fulfillment centers, however, can help you meet these expectations, giving you a competitive edge. Additionally, fulfillment centers can secure discounted rates for shipping materials and cheaper shipping costs due to their larger volumes.
Interested in outsourcing your logistics?
If this blog has sparked your interest in outsourcing your logistics, don’t hesitate to get in touch with Webship via hallo@webshop.be. You can also use our online cost calculator to calculate your all-in fulfillment price.
