Most popular E-Commerce logistics models in the present world!
You are a seller and sell products to your clients from your end. That means clearly you have a logistics business no matter how small or big it is! When a company sells products to its clients, it follows some models. The most popular E-Commerce models that are widely used in the world these days are; Warehouse model, Drop shipment model and Fulfillment model. People love to sit back in their respective houses and place orders online and there is nothing more convenient than that.
Getting to see products from the store at the tap of their fingers have revolutionized the shopping market worldwide and it has increased consumer base for a wide variety of industry and markets. In Order to full fill, these growing trend we being one of the best E-Commerce logistics company in Singapore along with many logistics providers are in a constant process to reinvent various methods and models so that they can satisfy the customers with the best possible supply solutions.
At an instance of thought the term logistics model might sound a bit hard to understand but to make things easier it is nothing but the various actions a logistics company undertakes to stock and sell products in a store.
Warehouse model is certainly the oldest among the available ones across the world. Here the owner needs to hire a warehouse where he would stock up his essential products. No matter how big or small these products are, there should be a warehouse for that. In this type of model, lots of man force is needed. Small e-commerce companies generally use this particular model. No matter how old it is, still across the world, this is practiced on a regular basis and this is one of the most popular logistics models available on earth. In this particular model, you have full control of what is happening around you. In case of a report or complaint, you can take immediate action! The sole problem is that you need to keep the warehouse secure on your own.
Outsourced fulfillment is another important logistics model. Here the business owner doesn’t own any warehouse on his own. He will stock his products to another company’s warehouse. This is an easy thing, you do your business and do not need to worry about the warehouse owning or taking care of it. When you have a requirement, you just send the requirement to the warehouse and they will send the product to your company! One of the major advantages of this model is that your team can easily focus on building new clients and concentrating on the marketing side more, as the stocking of your products and handling of the delivery of products is taken care of by the warehouse provider. The downside is that the control of the flow of your products has reduced as you do not have direct access on a daily basis on your products. The warehouse model has all the necessary information with them, but with this model missing of information is a regular and true incident!
Drop shipping model:
Drop Shipping is the latest logistics model. Everything is outsourced here including the products one wishes to sell online. There are lots of different types of companies available who have resorted to dropshipping and this is the easiest of all to start an ECommerce business from scratch. You do not need to have your own place or your own men to run this type of model. Everything can be outsourced when needed! So these companies do not have serious business issues. Low investment is one of the highlights in this model as you just need to pay the drop shipping company a membership fee as prescribed by them. The real challenge being this is one of the most competitive models of all and it will require serious marketing efforts to sell your product.
Summary: These are the most popular logistics models that are going strong in recent times. It many times seems very difficult to choose from these various models available which is best for your business but one of the best ways to do would be to endure a combination of these models. Ultimately in this growing competitive market one has to make the best choices that can yield the highest returns on investments.