How To Boost eCommerce Sales through Logistics Optimization?

When you first think of logistics optimization, you wouldn’t think about how it would help you boost eCommerce sales. But believe it or not, when you do it correctly, it helps the sales.

There are millions of store owners on Shopify, Shoplazza, WordPress, etc. There are many eCommerce platforms that offer trustworthy logistics companies to let you freely choose from. But only a few people know how to make the most of them.

This article explains how it helps you out and gives five tips to reap the benefits yourself. So if that sounds interesting, then keep on reading.

How Does Logistics Optimization Boost Your Sales?

Well, it isn’t straightforward! While Logistics Optimization doesn’t directly affect your sales, it does as an advertisement might do. Instead, it boosts your sales indirectly!

Let’s take an example to explain this. You found a supplier that manufactures your products faster and cheaper. While that might not boost your sales, it does make your products more profitable. And since they are better, you’ll have more money for your next ad campaign, increasing your sales.

And that’s not all how it affects your business. For example, if you can have faster fulfillment and shipping, people will prefer to buy from you as you give them a better experience.

What Can You Optimize?

Now that you know how logistics optimization boosts your sales, you might wonder what you can optimize to reap the benefits.

Well, there’s quite a lot you could do! Apart from cheaper manufacturing and faster shipping, you could change your packaging to be smaller. You can store more products in your warehouse, but shipping them will be cheaper, making your products more profitable.

However, when you change your logistics, remember that the changes must have the customer in mind. If all you do is find the cheapest and fastest option, you might give your customers a bad experience.

And if they have a terrible experience, they’ll choose your competitors!

5 Tips for Boosting Sales Through Logistics Optimization

Now that you fully understand how logistics optimization helps you boost your sales and what you can optimize, we want to give you some tips to improve your online store’s logistics and become more profitable! Here are our five recommendations:

Tip #1 - Work with a Third-Party Logistics Company

One of the easiest ways to improve your logistics is to partner up with a third-party logistics company (aka fulfillment center). With them, you can outsource your fulfillment to the company.

You'll have more time to work on other important things, but you’ll also get better shipping times and fulfillment accuracy if you choose your partner correctly.

Tip #2 - Pick a Great Supplier

Another way you can optimize your logistics is by choosing a great supplier. But what makes a supplier great?

Well, it’s not only about the price of manufacturing. Instead, it would help if you also considered other aspects like the speed of delivery and the quality of the product. This way, you will have fewer damaged goods and be more profitable while giving a better customer experience.

So when you have to choose, consider these three things and pick the best manufacturer for them.

Tip #3 - Optimize Your Packaging

Packaging can do a lot for your business! That’s because if you pick the smallest packaging available, it gives you two benefits:

More Products in Your Warehouse: Since your packaging is smaller, you can store more inside your warehouse. That way, you won’t need a new warehouse!

Cheaper Shipping: Since your product packaging is smaller, shipping will also be more affordable. That means you’ll be more profitable, giving you more resources to get more customers.

Tip #4 - Keep Updated with Customs Requirements

Another thing you should do to optimize your logistics is to keep yourself updated on the customs requirements. It’s essential to know the laws for shipping your products to other countries.

If you don’t, you’ll avoid breaking any rules and suffering the consequences of paying penalties or doing some time-consuming admin work.

Tip #5 - Create a Logistics Workflow

And lastly, I want to recommend that you create a workflow for your logistics. That’s because it’s handy. You will understand how your logistics work, but you will also know where you can improve.

It’s also a great way to find the problem areas in your logistics.

Conclusion

And that’s how you can boost your sales through logistics optimization! Now all that is left to do is to start taking action. Then you can save that money, give a better customer experience, and boost sales at your eCommerce store.

(Contributed by Andreas Ojala & Hermes Fang)