May 6, 2021

Ecommerce Logistics: Choosing the Right Partner for Your Ecommerce Startup

Miles Varghese
Miles Varghese
Helping independent freight forwarders/brokers better stay in-sync, collaborate, and improve operations with their shippers/clients. Co-founder & CEO @ Cargologik.com
e-commerce logistics

Ecommerce logistics form a vital part of global retail. According to Forbes, “74% of global retail and consumer brand professionals said they expect the crisis-led rise in online shopping to become permanent in an October survey fielded by Euromonitor International. E-commerce has been the fastest-growing channel over the last decade, with the crisis accelerating such shifts. Euromonitor International projects that half of the absolute value growth for the global retail sector over the 2020-2025 period will be digital. That equates to USD1.4 trillion in absolute value growth as more goods are sold online.” 

Direct-to-consumer packaged goods are all the rage now, with e-commerce platforms such as Shopify and WooCommerce,  combined with modern marketing, leading the way fueling furious growth for these brands. Often, it can be hard to keep up with e-commerce demand and logistics departments at these shippers and their freight-forwarding partners need to evolve rapidly to keep up with surging consumer demand. Rather than leaving it up to chance, freight forwarders ought to consider a few things about how to choose the right partner for your system setup and processes. 

The Challenges of Managing Ecommerce Logistics Are Vast

Freight forwarding might seem fairly simple in the context of ecommerce logistics. However, the remarkable growth of ecommerce in the past year has exacerbated the problems inherent in managing freight around the globe. For instance, consider these top challenges of managing ecommerce forwarding:

  • Geographic differences result in added delays or capacity constraints that limit carrier availability.
  • International trade regulations increase total landed costs and make planning/executing shipments difficult.
  • Around-the-clock shipping execution that results in a strain on resources, especially when using manual management approaches. 
  • The Amazon Effect continues to create new standards for faster, free shipping, putting more pressure on freight forwarders to offer lower rates. 

Digital Freight Forwarding Platforms Simplify Ecommerce Logistics

Digital freight forwarding platforms have an important effect on freight forwarding. Whether a company is receiving products from international origins or shipping to overseas customers, it’s important to ensure all applicable tariffs and documentation are retained and properly completed. 

Moreover, digital freight forwarding platforms reduce the risk of complications deriving from missed opportunities. This means that international and domestic freight forwarders can quote more shipments and avoid unnecessary delays – generating more loyalty-driven revenue.

Core Considerations When Choosing a Digital Freight Forwarding Management Platform

There are a few core considerations freight forwarders need to take when choosing a digital management platform. These include:

  • Track and trace functionality to manage the full shipment lifecycle and ensure maximum compliance with regulations. 
  • Forecast demand to account for changes in demand and capacity availability, reducing the hassle of quoting and pain associated with gathering key shipment information. 
  • Taking advantage of sequential tendering processes to automate the quoting/booking process
  • Exception management capabilities to reduce rework and avoid unnecessary, redundant tasks.
  • Centralized document management to collaborate and share the bill of lading, proof of delivery, or other materials, including freight claims documentation when necessary.
  • Integrated capabilities to streamline billing processes, reducing back-office costs for freight forwarders.

Enhance Your Ecommerce Logistics Freight Forwarding Strategy With Cargologik

Ecommerce logistics will only increase in value and demand as time progresses. And the ability of today’s freight forwarders to stay competitive depends on the ability to recognize problems, streamline operations, and put the right systems in place. Simplify communication, get the transparency you need from your 3pl, and sign up for Cargologik to get started today.

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