Logistics for e-commerce shops: rates and solutions

Discover our guide to understand at a glance an e-commerce logistics rate in order to make the right decision regarding your logistics strategy: logistics cost, transport cost, internal management, outsourcing solutions etc.

Which costs to take into account for its e-commerce logistics?

The costs related to logistics are not limited to transport costs and it is important to bear in mind that many costs are also involved upstream of shipping. It may be costs of interfacing, storage, purchase of supplies, preparation etc.

Find in detail below the main costs to take into account, whether you manage your logistics yourself or you have a partnership with a logistics provider.

The cost of the management software

The computer interface between the warehouse and your e-commerce allows to manage in real time the data exchanges. For example, when the customer places an order on your site, the information is immediately transmitted to your warehouse or to your logistics provider who can start the preparation of the order.

Storage costs at the warehouse

With a logistician, those storage costs are related to the reception, the shelving and the picking of your products. The e-commerce logistics rate related to storage may depend on several criteria, such as the location of the stock, the volume of goods, the weight of items, the storage method (pallet, shelf, box ...) etc.

In the case of an in-house logistics operation, it will of course be necessary to consider the rent of the chosen storage space or to consider the purchase of an in-house warehouse and in which case to study its amortization over time.

The costs of preparing the order for shipment

For most 3PLs, standard fees apply for the preparation of packages, generally including picking and packaging costs. These costs can be higher according to the specific indications of the customer, for example with the use of a custom packaging, a specific positioning of the items in the boxes, the use of specific cushioning supplies, the addition of flyers etc.

These costs, in the case of an internally managed logistics, also exist but in another form: it is necessary to consider the cost of purchasing supplies (cardboard boxes, various cushioning materials, bubble wrap, etc.) as well as the cost of labor, which can fluctuate according to the seasonality and the periods of the year, without forgetting the cost of employee training.

The transport costs of the order

This is one of the most important expense items, depending on the delivery methods you offer to your customers, such as delivery in a pick-up point or at home, in Standard or Express for example. Within the framework of transport costs, additional services impose extra costs on the majority of carriers (delivery tracking, returns management, specific delivery zones, etc.). In the vast majority of cases, these rates can be negotiated and give rise to more or less substantial discounts, generally based on the monthly volume of orders shipped.

What are the advantages of outsourcing e-commerce logistics?

For an e-merchant, taking care of all the logistic aspect by himself is a colossal task, and even more fallible if the logistics is not his core business. To start working with a logistician then presents interesting advantages.

A more attractive e-commerce logistics rate

A service provider has the advantage of concentrating, for the same warehouse, the activity of several of its customers. Logically, it benefits from competitive rates for storage, preparation and shipping of packages.

An interesting time saving

As an e-merchant, you can thus unload time-consuming tasks in order to refocus on the added value of your activity, such as the development of your brand via marketing and customer satisfaction.

The support of the e-commerce logistics provider

Since it is his core business, the logistics provider benefits from an expertise that allows him to offer quality services and to show a great reactivity.

Choosing your e-commerce logistics provider: what solutions?

Several options are proposed to you and allow, for example, to obtain attractive rates or to keep more or less control over the stocks. Outsourcing your logistics is an important decision that requires you to compare the different platforms according to multiple criteria. How to compare the solutions and rates of e-commerce logistics providers?

Find below, without exhaustiveness, the criteria to consider when choosing the outsourcing managers:

• The specialization: some logisticians deal with all types of classic goods, while others specialize in a field. For example, they can handle the delivery of bulky, fragile or fresh items, or have a dedicated B2C or B2B offer.

• Volume of goods: mid-sized providers have limited storage space and services, but offer more affordable prices than the market leaders.

• The logistic price list: the provider applies different prices according to multiple criteria, such as the weight of the parcel, the choice of the carrier, the delivery time, the destination country, etc. Think, therefore, to compare the rates of e-commerce logistics providers.

• Additional services: the logistics provider can offer, for example, a green delivery option in large cities.

You can now discover the different solutions of logistics outsourcing.

Dropshipping

This system consists in delegating the whole logistic chain until the ownership of the goods. From your e-commerce, you present and sell products that you technically do not own. When an order is placed by a customer, you order the item from the manufacturer, who takes care of the shipments to the different customers' addresses. Dropshipping has the advantage of being affordable, since you don't have to manage the stocks and the costs are therefore limited. It is a practical solution, but suffers from intense competition and lower profitability.

Negotiating directly with carriers

From Mondial Relay to Colissimo, through TNT and Fedex, there are many carriers and they differ on their prices and services. This solution is especially interesting for large companies, whose large volumes of orders give them a significant advantage in negotiation. In comparison, SMEs cannot benefit from such attractive prices.

E-fulfillment: a logistics platform

Fulfillment consists of outsourcing the entire logistics process: storage; transmission of the order to the warehouse; preparation and e-commerce shipping. This logistics management method has the advantage of giving e-merchants access to numerous functionalities such as real-time monitoring of stocks and shipments via a connected platform, easier deliveries in Europe and internationally, access to more varied shipping methods, etc. Unlike dropshipping, fulfillment means that you own the goods, which implies a certain investment. However, it is a practical solution and, once a certain volume of shipments is reached, it is clearly financially worthwhile.

Why choose Cubyn for your logistics outsourcing?

Our specialized e-commerce solution allows you to manage all processes from a single interface. Invoicing is both simple and clear, with only three cost lines: a platform fee, a storage fee per item and an all-inclusive fee per package, all in complete transparency: calculate all your logistics costs using our online cost simulator.

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