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Deliver your Product | Anita Erasmus

Why ecommerce logistics? Why did OnlineX decide to have a whole session just about e-commerce logistics, usually in a normal, non online environment, I will ask people to take a guess. But this is not the situation. So to give you a quick answer, why ecommerce Logistics is so important. And it's really it all comes down to the simple answer of it's all about money. So firstly, if you think about how extremely important the delivery process is, when it comes Delivering your parcels it directly affects your customer experience. 55% of customers state that if they've had a bad experience with the delivery of the parcel, they will not buy from your store again. A customer's bad experience means you lose your sales. And then also at the end of the day, that affects your money.

And secondly, it's just the cost of managing your e-commerce logistics. It's a massive cost expense. And you need to realize that if you do not manage that expense correctly, it's directly going to affect the profitability of your company. And at the end of the day, you don't want to work not to make any money. It all comes down to making money. Right. And that brings me to my topic of the day: how not to lose money when it comes to ecommerce logistics, because it's an extremely important topic. And I think that is something that is not easily achievable, but it's definitely achievable. So maybe I'll be able to give you some answers today in terms of that. So I want to start with warehousing. And that is really an important part. Because if you are a new merchant that's looking to go online, or if you're an existing merchant, it's a very important aspect of your e-commerce logistics that you need to decide which model you are going to follow.

So there's basically two general models at the moment when it comes to warehousing, you can make use of in house warehousing, or you can outsource your warehousing. In house warehousing refers to you managing the performance process yourself, which means the thinking of the storing, the picking, packing and shipping of your parcels. When you outsource your warehouse, you make use of a third party. So you actually get your supplier to deliver to the third party warehouse, they will fulfill the parcel and they will ship the parcel to your customer. So that is the two major I would say options that you've got when it comes to warehousing. So now the question obviously is, which one do you need to use? And before I can really give you an answer, I want us to just quickly look at the pros and the cons of when you make use of outsourcing or warehousing. So outsourcing is when you, as I've explained, make use of a third party company. So let's just look at the first pro, you can save on certain expenses. So when you make use of a third party warehouse, you obviously don't have expenses, like the rent of your warehouse, the insurance of the warehouse, staff costs, and all of that. So those are expenses that you can save.

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