Virtual commerce, that is, e-commerce, is to wait for the paid goods to %22come%22 after being liked on the screen.
Logistics for e-commerce is the process in which %22virtual%22 commerce becomes %22real%22, that is, in fact, e-commerce %22takes flesh and bones%22, and after the customer’s payment starts at the warehouse (sometimes a flow from the supplier to the warehouse or directly from the supplier to the customer can be added) distribution to the customer (popular expression %22last mile%22) and ultimately ending with the return of the customer.
Due to the appetizing development of e-commerce, logistics companies want to be structured for the purpose of %22cargo distribution%22 and while companies are established only for the purpose of e-commerce cargo distribution, some retail companies are trying to establish their own distribution organization, especially since there are problems in cargo distribution.
Unfortunately, there is no data on the size of the logistics for e-commerce in Turkey. On the other hand, for example;
- Approximately 350 Million cargo packages for “travel, tickets, flowers, clothing other than food, shoes, accessories, white goods, small appliances, electronics, books” (350 Million orders calculated according to the Ministry of Commerce 2019 data and 1 order =1 package assumption) may have been deployed from the repository to the client.
- There are about 15 warehouses for e-commerce purposes only, and about 20 cargo or similar companies for cargo distribution, apart from their own distribution structure of e-commerce companies.
- According to the “Traffic and Transportation Information (KGM 2008-2019)” report, “letter and parcel” showed the highest increase among the 20 freight groups, with an increase of 56% in the amount per vehicle and 237% in the amount transported to the types of freight (with the development of e-commerce, partially e-commerce). -assuming for trade).
Unlike classical commerce, in e-commerce, dealing with small quantities in a short time, as well as sometimes combining the goods from the supplier and services such as gift wrapping, complicate the logistics for e-commerce and even affect %22customer satisfaction%22.
According to the TUIK report, %22delivery is slower than stated (47%) and wrong & damaged (49%) delivery%22, the two most important problems in e-commerce are %22availability%22 as the reason for trying a new brand, according to the %22The Great Consumer Shift (McKinsey)%22 report. ”, “delivery fee” and “hygienic” are very prominent; According to Webrazzi’s survey, “delivery speed (77%) and shipping fee (63%) affect the purchasing decision” in Turkey, and 47% of them did not experience any %22returns%22 problem; According to the “The Last Mile Delivery Challenge (CapGemini)” report, “the non-distributor will drop out (20%)” and “will switch to a faster-delivering retailer or brand (55%), and buy 12% more than a fast-deliverer.” He says that he will get it (74%), express fast delivery positively to others (82%), delivery within 2 hours will increase his loyalty (55%), and according to the “UPS Pulse of the Online Shopper 2019” report, 63% of their customers around the world say that they have purchased “returned” (48% due to logistics).
As can be seen above and in many different studies, %22customer satisfaction%22 in e-commerce is actually directly related to %22logistics%22.
The most important benefit of logistics is that the goods are made available to the customer. If the customer cannot use the goods in the e-commerce for which he has paid in advance (if it arrives late, missing, damaged or wrong), that product is of no use to the customer. In e-commerce, the complete, undamaged and timely delivery of the ordered goods is very important for the company’s %22customer satisfaction%22 and even %22loyal customer%22 target and purpose.
In addition, companies that do (want to do) e-commerce:
- It should be structured according to the strategy of “being close to the customer” throughout Turkey.
- Instead of focusing only on solutions for distribution to the customer, it can easily solve the distribution problems to the customer by looking at the whole process and using the right technology.
- It should always act with the aim of %22quality of service%22 and for this, it should work with the %22right%22 people for warehouse and delivery and manage them %22correctly%22. If companies fail to implement them “correctly” and even continue to operate “cost-oriented”, customers may look for the current situation.
- Pay attention to the impact of e-commerce on air pollution and traffic. According to the WEF’s %22Future of the Last Mile Ecosystem%22 report, as the %22last mile%22 operation will increase by 78% in 2030, 36% more vehicles will be used, which will reduce CO2 emissions, 6 million tons and traffic congestion in 11 minutes. can increase.
- In particular, it should measure “first time delivery” performance. This performance affects both CO2 emissions and traffic congestion, as well as “profitability” and, of course, “customer satisfaction”.
- For competitive advantage, it must facilitate the %22return%22 process and develop solutions for logistical (damage, wrong, missing) returns.
And as a final word, since the success of e-commerce, which is almost 99% “logistics”, depends on the performance of logistics, “logistics is the process in which ‘virtual’ commerce turns into ‘real’; I say that your trade will be ‘virtual’ but your logistics will not be ‘virtual’”.