The holiday season is right around the corner - well, at least it's coming up fast. For shippers and freight pros, holiday logistics have already been on the brain for some time. We've discussed some general freight guidelines relating to Christmas and holiday retail already, but as Christmas in July gives way to August, we'd be remiss if we didn't spotlight the type of holiday shopping growing the fastest - e-commerce - and the logistics of the online shopping game. E-commerce brings with it some different shipping terminology and its own unique challenges, which we’ll take some time to discuss here.
A blind shipment means a shipment in which the buyer is not aware of the shipper or its origin, with a double blind shipment referring to one in which both the buyer is unaware of its origin and the shipper is unaware of its destination. Blind shipments are common in e-commerce as the online shopping store often does not want the consumer to know where the product comes from and/or the shipper to know where it’s going to prevent both sides from coming together in a direct transaction – thus cutting the retailer out of the process. Some use the term blind shipment interchangeably with drop shipment, but they are different. A drop shipment is when an item is sold by a retailer but not directly kept in stock. So rather than the retailer keeping shelves full of a particular item, when a customer places an order in a dropshipping scenario, it gets shipped via another party like the manufacturer, a wholesaler or even another retailer. The other key difference between a blind shipment and a drop shipment is, there are no secrets, as in, all parties know where the product originates and where it is delivered in dropshipping.
When it comes to retail, omnichannel is a scenario in which a consumer can go to one place to buy/return a product in any number of ways. For instance, a retailer implementing an omnichannel strategy allows a consumer to
Buy online, then pick-up at the brick and mortar store
Buy online, then have it delivered to the home or another location
Purchase in store, with the delivery either to the home or another location
Drop ship from a warehouse or manufacturing center to store, home or other location
Buy online, then return at store or online
Buy online, then return online
Omnichannel has been a growing push in recent years, as consumers come to expect these options and the convenience they offer. Without omnichannel implemented, retailers can be left behind for more appealing options and miss out on potential revenue growth, reduction in costs and improvements in logistics on top of the positive customer attitudes it engenders.
E-commerce logistics is simply the logistics behind online retail. Also called e-logistics, this refers to the process used by an e-commerce retailer to make products available, fill orders and get those products into the hands of the end consumer. A complete e-commerce logistics strategy would ensure packing, shipping, last mile delivery and even a return option. In other words, e-logistics for an online retailer should include
These components are all important to get an e-commerce logistics operation up and running, and keep it running smoothly.
Whether for the holiday season or the rest of the year, e-commerce logistics does bring with it some unique challenges, including
If you're ready to take the next step, at InTek Freight & Logistics, we can help. Just tell us what you need and we'll discuss how our expertise can help with the unique shipping challenges your business faces. Rather do a bit more research first? View our Freight Guides for comprehensive articles and eBooks on all things freight and logistics.