Our world has changed drastically in the last few years. It will not be an exaggeration to say “everything has changed” because it quite literally has. If you compare your living style to what it was ten years ago, you will find a significant difference. This difference or change can be observed in businesses as well. The operation processes were changed and are still changing.
One of the significant changes is businesses now operating online in full swing. Internet is the cause of thousands of businesses now. For this reason, many operations are also carried out online. People now prefer shopping online to going out. It only seems logical because why go out when you can get the product delivered to your doorstep. The term “eCommerce” has to be understood to understand online logistics.
What is Ecommerce?
Ecommerce is only slightly different from commerce. It is, in fact, exactly commerce but is done through the internet. All the buying, selling, transactions, or transfers are carried out on the internet. There is no in-person interaction involved here. Ecommerce is widely spread and can be seen everywhere. People are making good use of the internet and making sure their business profits from it. You can find multiple websites and apps that are solely made for eCommerce. However, eCommerce is not restricted to just websites or apps. You can run your eCommerce business without owning a website or app. For example, you can make a Facebook page, an Instagram page, or even a Twitter account. As long as you are aware of your target audience and can do the proper marketing, you are good. There are five types of eCommerce businesses mentioned below:
Business to Consumer (B2C) – When the sale occurs between a business and customer or consumer. For example, you are buying stationary from an online store.
Business to Business (B2B) – It is when two businesses deal with each other. It could be selling or buying services or goods. For example, dealing between a wholesaler and retailer.
Direct to Consumer (D2C) – It is the latest model of eCommerce businesses. In this, a business deal directly with their customer. For example, many brands now have eCommerce websites that eliminate the retailing part.
Consumer to Consumer (C2C) – As the name suggests, it takes place between two consumers. Examples include fivver, Upwork, eBay, and etc.
Consumer to Business (C2B) – When an individual sells their services or goods to a business. The most prominent examples are freelance workers.
Ecommerce Logistics
Now comes another important aspect of eCommerce, and that is logistics. Ecommerce is solely based on good logistics; otherwise, it is of very little use. You may wonder why? Well, people use eCommerce for their convenience. They want the products to be delivered to them at the right location and at the right time. If these two conditions cannot be met, customers would instead prefer shopping at a retail store.
An eCommerce logistics involves inventory management, order management, and shipping. In eCommerce, logistics is responsible for finding online logistics solutions. They are supposed to track all the orders wherever they are shipped. It is also their responsibility to have distribution centers at the right places. It is what keeps the eCommerce business running.
So, for eCommerce to work appropriately, it is necessary to have a strong logistics department behind them. If it is a small-scale business, it is always a good idea to hire an external logistic solution; otherwise, your small business will not be able to pick up the pace. Remember, good logistics solutions back a good business.
