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Logistics in E-Commerce: Key to Success or Insurmountable Hurdle?

By Tavo Zambrano - Skydropx
CEO and Co-Founder

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By Tavo Zambrano | CEO & Co-founder - Wed, 04/26/2023 - 12:00

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The rise of e-commerce has changed the way people buy products and acquire services, especially in Latin America, the region with the highest growth in e-commerce since 2020, according to Emarketer. Instead of going to a physical store, more and more people are opting to do their shopping from the comfort of their homes or mobile devices. However, this shift towards e-commerce has posed new challenges for companies, especially in the field of logistics.

Logistics is the process of planning, implementing, and controlling the flow of goods, services, and information from the point of origin to the point of consumption. In the context of e-commerce, logistics is the process that manages orders, storage, shipment preparation, and product delivery to end customers. Therefore, logistics is essential for the success of e-commerce, as any problem that arises in the process can negatively affect the customer's shopping experience.

One of the biggest challenges that e-commerce companies face is inventory management. It is essential to maintain an updated and accurate inventory to ensure that products are available at all times for customers. If products are not available, customers may choose to buy from another store. On the other hand, if products are available in excess, the company may face storage costs and other associated costs.

Another important challenge in e-commerce logistics is the efficient preparation and shipping of orders. The speed and quality of preparation and shipping are vital to ensuring a good shopping experience for the customer. Delays in shipment preparation or errors in the process can lead to customer dissatisfaction, which can negatively affect the company's image.

In addition, product delivery is a critical factor in the customer experience. Customers expect to receive their products as quickly as possible and in good condition. E-commerce companies must ensure that they work with reliable and efficient shipping providers to ensure that products arrive on time and in good condition.

In the world of e-commerce, logistics is key to customer loyalty. Once customers have had a good shopping experience with a company, they are more likely to return to buy in the future. On the other hand, if a customer has a bad shopping experience due to logistics problems, they are unlikely to return to the same store. Therefore, it is essential for e-commerce companies to pay attention to logistics and ensure that their processes are optimized to guarantee customer satisfaction.

In response to these challenges that require urgent solutions in the face of the continuous growth of e-commerce, new technological startups emerged a few years ago that saw an opportunity in the innovation of businesses due to deficiencies in logistics. For example, Skydropx has focused its efforts on understanding the needs of businesses and becoming their ally, not only in the shipping process, but also in every stage of operations. To achieve this, it has been extremely important to be on the side of customers, who sometimes judge business services voraciously. Therefore, in a scenario where everything is against us, on one hand, technological support, and on the other, users who have no mercy, we decided to create solutions whose results raise the credibility of businesses.

As a first measure, stable and robust software is fertile ground; ensuring scalability, growth, and constant improvements that help our users is the goal in this challenging universe that is e-commerce. We all want to stay one step ahead and not fall behind, that is our flag, and together with Skydropx's purpose (to ensure that businesses do not worry about their logistics), we aim to make every project we undertake competitive.

We also understand that fulfillment is a sensitive issue that is directly related to the success of a business, and that businesses are successful thanks to impeccable logistics, which is our top priority. This is why we put so much effort into automating the collection, packaging, and labeling processes and refining them every day to bring them to a better version.

On the other hand, the high cost — often avoidable — of returns, complaints or claims is a negative point that we take on the task of reducing. We set the goal that our users can manage returns correctly and efficiently, to significantly reduce unnecessary expenses and avoid the tedium of fractured communication with customers.

Having a platform like Skydropx significantly reduces the number of errors that could be made when doing manual work. Under this premise, our focus has always been on efficiency and speed, how agile, easy, and comfortable the logistics operation of a business can be. And this same ease is felt by end customers of those who use Skydropx as their logistics ally. Notifications and intelligent real-time package tracking are evidence of the fluidity and support offered by the platform. As we already know, no one wants to wait blindly, we are all waiting for our packages without any setbacks, that's why we enhance this point and offer a much more comprehensive service than just tracking shipments. The possibility of customizing notifications and giving space for the brand to stand out in its way of communicating with its customers is a great win that Skydropx users value.

If we rely on the figures, e-commerce currently accounts for 15% of sales, and it is projected to reach 25% by 2025. How do we approach this from Skydropx? Being responsible and participating in that growth,  our contributions will surely be positive to the extent that we contribute to e-commerce businesses, increasing their credibility thanks to the logistics for which we work continuously.

To conclude, it is worth answering the question we posed at the beginning of this text: Is logistics in e-commerce the key to success or an insurmountable obstacle? I choose and decide to stay on the optimistic (and challenging) side: logistics in e-commerce will be the key to success.

Photo by:   Tavo Zambrano

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