Explore e-commerce challenges in shipping, logistics, and environmental impact. Learn how proper planning mitigates complexities for sustainable business growth.
Before we dive more into detail about the negative environmental impact of e-commerce packaging, it is also essential to note the mounting challenges with shipping and logistics, as this section of the industry plays an irreplaceable role in e-commerce.
With the increasing demand for more and more products, shipping and logistics poses challenges, which also need to be addressed by e-commerce businesses.
E-commerce businesses need to take into consideration the following as the e-commerce market grows and expectations rise:
- Tracking – Customers need to know where their package is at all times, even if there is a delay. E-commerce companies must ensure their customers can track their packages with regular updates to ensure a smooth experience.
- Shipping Costs – Shipping accounts for massive costs when running an e-commerce business. Companies must balance pleasing the customer without affecting profit margins and raising prices, which may deter customers.
- Product Returns – 56% of online shoppers make purchasing decisions based on return policies. Businesses need to consider a good return policy for their company to avoid missing out on potential business.
- Scalable Logistic Operations – This factor is double true with the growing e-commerce market. Businesses need to plan dynamic scaling solutions to accommodate spikes and drops in sales without overextending their resources.
- International Shipping – With global reach as easy to access as ever, e-commerce businesses must be aware of additional fees like customs, import fees, and taxes to avoid surprise costs on international customers.
- Warehousing – Knowing where to store your merchandise can significantly help e-commerce businesses save money. Companies must consider the size and location of their warehouses to optimize and prevent unnecessary costs.
- Shipping Errors – Wrong shipping addresses, lost tracking numbers, and incorrect package weight can be a significant headache for e-commerce businesses and consumers. Thankfully, new technologies in packaging can help mitigate this, which we will cover later.
- Delivery Security – Unfortunately, package theft is common. Ensuring packages get delivered to their rightful owner is challenging, but notification alerts, designated delivery points, and many other options can be considered to mitigate this issue.
- Environmental Concerns – Finally, coming back to ecological concerns, it is not only e-commerce packages that can harm the environment, but transportation as well. Companies should consider consolidated packaging and weight to mitigate the need for additional trips.
Whether you are a new or established e-commerce business, shipping and logistics will always be challenging.
However, with proper planning and implementation, these challenges can be mitigated, allowing you to focus on the next major challenge: environmental impact.
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