Logistics Issues All New Ecommerce Business Owners Must Consider

On the surface, ecommerce businesses might seem simple to run, especially if you’ve got a good product and a solid grasp of building and promoting websites. While there is no doubt that these are important factors, success is also largely determined by logistics.

Many people who are new to ecommerce make the mistake of overlooking logistics, and they quickly learn that matters like storage, shipping, and handling returns are tremendously complex.

Packing and Shipping

First of all, packing needs to be considered. This is far more complicated than simply placing items inside a box. There are so many different shapes and sizes of boxes to consider, and this situation grows even trickier when hazmat or insulation issues must be dealt with. Cost plays a big role here as bigger boxes tend to carry higher shipping fees, so finding a box size that is suitable without being too big is crucial.

Many consumers expect free shipping and perhaps you’d like to offer it, but you know that shippers don’t actually work for free. You might opt to raise all your prices to cover the expense, or you could offset it by raising prices slightly and charging a modest shipping fee.

International Shipping and Insurance

You’ll also have to think about whether you want to ship your goods abroad. While this can open up huge new markets for your goods, you’ll also have to deal with sky-high shipping prices and challenging customs paperwork. There is also the nightmare of packages getting held up in customs, which is out of your control and likely to leave you with some pretty unhappy customers if you don’t inform them of this possibility beforehand.

Insurance is another vital aspect of shipping. While some carriers cover insurance in their prices, others tack on an extra charge for it. Generally speaking, however, the cost of insurance and tracking is usually well worth it for the peace of mind you will gain, particularly when it comes to big orders and expensive packages.

This blog post was based off of an article from Business 2 Community (B2C). The original article can be viewed here.

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