Last Updated on January 21, 2022
When you are developing an ecommerce store for your traditional business, you should be aware that it will involve moving your goods from one place to another. It may initially sound a cakewalk but it is not everyone’s cup of tea. In 2020, choosing the right logistic partner for your Magento store is not an easy task. You have to do careful research, thorough consideration, and some basic mathematics.
A logistics provider company is not limited to just moving your products from one place to another but is also responsible for planning, controlling, implementing, and tracking the movement of your goods with their storage information.
They will also take responsibility for the security and safety of your products. In fact, whatever happens to a product within the point of manufacturing and the point of delivery falls under the preview of the logistics service provider.
Why you need a Logistics Partner for your Magento store?
Logistics and delivery play a very important role in online business. There is a need for loading data in the warehouse, checking it, and then shipping it to different delivery addresses. There can be situations when the freight brokers are spending too much time while checking the load, or the truck gets hauled at the mid-way point to a warehouse, or your trucks are moving empty. So to optimize all these processes you need to take services from a logistics services provider. The logistics service include fleet management, logistics on-demand, warehouse management, tracking & forwarding, etc.
Business Logistics Costs from 2005 to 2019 in the USA in trillion USD
Benefits of a Logistics Partner
Top Logistics Partner for eCommerce Worldwide
Bluedart, FedEx, DHL, BombinoExpress, Ecom Express and Aramex are some of the popular logistics companies offering services in different parts of the globe.
Factors to Consider While Choosing a Logistic Partner for Your Magento Store
These are the important points that you must take into account while you are searching for a good logistic partner for your Magento eCommerce store.
1. Area of Expertise
You can find many types of logistic providers with different services such as warehouse, transportation, distribution, shipping, etc. Not a single logistic provider can provide all these services and hence many businesses require multiple logistics partners for more services. Every logistic provider has expertise in any particular domain. So you first analyze what type of needs are involved in your business.
There may be possibilities that a single company can handle the type of services you need but choosing multiple logistics partners has always been a better option. Make sure the expertise of the logistic provider best suits your business.
For getting the most efficient and effective services, the logistics provider must use the latest technology in its operations. Before choosing a logistic partner, ask them what technology they are using for their services. Newer and better technology will not only help in reducing the costs of the services but will also matter to your business and your customers’ shopping experience.
Generally, most of the logistic companies are equipped with the latest technologies for providing effective and transparent services to their clients. They use technologies such as warehouse automation, cloud computing web-based booking, tracking system, etc. These technologies are helpful in providing error-free and consistent service. They can automate the processes, and quickly identify any potential problem with supply chains and by accessing large databases of carriers.
3. Customer Service
Does your chosen logistic partner able to provide better customer service, quick responsiveness, instant communication, and efficient problem-solving? These are a few of the prerequisites that you must observe before choosing a logistic partner.
Obviously every logistic partner company claims to provide all these services at the best level, but how do you know the reality? You ask them for their feedback from their previous customers. It would be best if they can provide reviews from the clients of a similar industry. Doing research in this regard will definitely help you in the long run. After talking to some of their old clients, if you find that their customer service has been excellent, then you can decide. Choose that company that is responsive, has effective problem-solving mechanisms, manage fluid lines of communication, and prioritizes customer service above anything else.
4. Capabilities & Coverage
Different businesses have different needs or requirements in terms of capabilities and coverage. So, for the best decision you should knows your needs regarding this segment in advance. Identify what amount of goods you have to transport and to which locations they need to transport? The right logistic services provide must match your needs regarding capabilities and coverage.
Suppose you need to make weekly deliveries to a certain location in the western demographic of India, then you must choose a logistic partner which is having a good reputation for logistic services in that area and a fleet of vehicles that can effectively make the deliveries.
On the other hand, if you need to make deliveries in any part of the country, then you must look for a provider which is having distribution services across all parts of India. The number of goods you need to deliver and the frequency of the deliveries will also affect this decision, as capacity requirements will vary with every business.
For every service, you need to pay a price and it is amongst the major factor which will impact your profits and overall revenue. Check if there any hidden price involved is the pricing completely transparent. You can analyze the per delivery price before making a choice. Generally, the logistics companies charge costs for transportation, receiving the parcel, warehouse fees, pick-and-pack cost, shipping fees, account set-up costs, and a monthly minimum charge.
While deciding the partner, don’t feel that the lowest price would be the best choice. No business can run on loss and will make a profit. So if the quotation price is lower than the market expectation then you must check the services and their prior feedback. It is important to keep in mind that the price should be commensurate with the services they provide.
6. Speed and Reliability
How early can you logistic partner process the order? How much time will it take to ship the orders to the customers? Speed and reliability also matter a lot in the ecommerce industry. The customers are less patient for their orders than ever before. A few years ago, they even need to dress up for buying items from the nearby grocery store but now they have to tap on the screen and the order will get delivered right at their doorstep.
Speed is considered by how much time, the provider takes to pick the order, pack it, and ship it to the destinations. The shorter time it takes better would be its speed. Also, it is not only the speed that matters. The product should be delivered in excellent condition as replacement or refunds will take all your profit if any damage occurs to the product. In short, opt for the fastest ecommerce shipping keeping the point that the products should be delivered in a proper condition.
7. Company Reputation
If you are making a company a part of your overall operations and system then it is likely that at some point the relationship would be tested. And at that time the character of the service provider’s relationship would be revealed.
Before it gets too late, you need to find about the integrity and honor of the logistic service provider. You can delve into the services of its previous customers, and reviews and ratings. And a good service company doesn’t only reveal the feedbacks from the customers but also from its employees and staff. Try to know how the company treats its suppliers and employees. Is there any active and positive force within their working members? How long they have been in this business? Also, double-check if the supplier’s price is significantly less than the market standard rates.
8. Network of Locations
The network of locations of a logistics service provider will not impact much if you have a small business or have to supply products to a limited region. But if your business has scalable potential then the network of locations of the logistics provider can determine your business expansion & distribution in the world.
So, if you want to deliver your products to Australia within a year and a cross-border freight forwarder, then you may need services of that company which is already providing services in that country. The right logistics provider will definitely offer strategic solutions to meet your business expansions. They have a network of located facilities and the ability to open new locations to cope with your specific needs.
The safety of products is the most important concern while delivering them to customers. If the products are not delivered safely to the customer then it will not impact the revenue because of replacements and refunds but will also impact the customer’s trust in your company. Also, safety is not limited to the delivery of products but also of their storage.
A deadly fire in the warehouse can cause a huge loss for your business. A good logistics company provides complete safety training to its employees, should place proper safety warnings, check regular facilities, and a document of safety guidelines.
10. Freight Management
Last, but not least, you must know how the service provider manages its freight. Check how your logistics provider is managing its freight? How it manages the changing marketing requirements? It should offer a customize and changing needs services. It would likely offer a quick and effective solution to the customers’ specific situation. They can coordinate based on customer demands. They may even provide customized services and tools to their clients based on their business requirements.
As discussed, finding a right logistic provider can be a daunting task but these check elements would definitely help you in the long run. However, if you need the best ecommerce services provider for your Magento store, then we are here for you to serve you the best way. At Emizentech, the best Magento development company in India, we can provide you best services regarding all aspects of Magento. Let us know your requirements.