E-commerce creating a major push for effective shipping process

October 30 2013

By now, every organization is aware of the impact online shopping has had on the retail world. With the ability to browse and make purchases of anything you can think of from the comfort of your own home, it is no surprise that the solution is taking off. However, it is also causing a massive shift in the shipping and supply chain sectors.

E-commerce is on the verge of creating the busiest shipping day every recorded. At least that is what a FedEx spokesperson told CNN Money. According to a recent article, Cyber Monday—the Monday following Black Friday—is the most popular online shopping day of the year. This year the logistics company is predicting a 24-hour volume of more than 22 million shipments on Cyber Monday. That would be the most it has ever done in a single day.

It is clear that e-commerce is going to play a major role in the future of retail but it opens up several challenges for merchants in areas that they may not have much knowledge in. Not only must they roll out an effective shopping experience for customers, they must also implement a shipping strategy that can be effective.

Knowing that this trend is coming and being able to capitalize on it are two different things, however. A recent article from Practical Ecommerce examined several ways that companies can save on shipping. The piece offers advice like negotiating for better rates, shopping around for a good deal and being sure to educate yourself on the industry. There is another piece of advice that is particularly poignant.

"A final cost saver may be as simple as using one or more fulfillment services that warehouse, package, and ship orders on your behalf," the article reads.

"Fulfillment services can take advantage of economies of scale to get better rates on shipping, shipping supplies — like boxes and tape — and even warehouse space.

What's more, some fulfillment firms have multiple warehouses, so you can place inventory in more places thus reducing shipping rates by proximity."

With the help of a reliable shipping partner that understands all of the challenges of the industry, organizations can easily deploy a supply chain strategy that will meet their needs.