In a world where e-commerce volumes are growing at an unprecedented pace, competing solely with the uniqueness of a product or service is no longer enough – in order to establish itself and stay relevant, a business must respond to market trends, consumer needs, and adapt flexibly.
According to data provided by Statista, global e-commerce grew by 20% in 2023. It is forecasted that growth will remain rapid in the coming years.
Experts note that one of the key factors for e-commerce success is well-organized logistics – studies show that ensuring a good delivery experience can lead to 73% of customers returning for a second purchase, making the choice of the right logistics partner more important than it might seem.
Business partner’s mistakes – your losses
Imagine a hypothetical situation where you are the owner of an e-commerce business: you spend your valuable time generating ideas, investing in product manufacturing or sourcing, as well as technological and marketing solutions that help your business be visible and accessible in the online space.
It seems that everything is going according to plan – the products are of good quality, sales are growing, and the marketing strategy is proving successful. However, you soon start receiving more and more customer complaints about delayed deliveries and damaged packages. It seems clear that the problem lies in the disorganized processes of the chosen logistics partner, but an unsatisfied customer won’t look far for the culprit, so your business will have to take on all the negative consequences.
According to Jurgita Karčiauskaitė, the Sales Manager for the Baltic States at the shipping company ‘Venipak,’ effective product logistics management in the rapidly growing e-commerce market is becoming an increasingly important, yet still underappreciated, component of the business success formula.
According to her, as shown by the experience of other businesses and customers, a reliable logistics partner can help improve operational efficiency – from the speed of order fulfillment to optimizing operational costs, as well as increasing customer satisfaction and strengthening their loyalty, which is vital in today’s competitive environment.
“Moreover, a logistics partner that operates in multiple markets and understands their specifics gives the business an opportunity to expand into new markets, and their experience helps effectively address unforeseen situations and minimize supply chain disruptions. These advantages not only create added value but also ensure sustainable business growth,” adds the interviewee.
Price or quality – how to make the right choice?
J. Karčiauskaitė notes that price often becomes a decisive factor in choosing a logistics partner, but she emphasizes that the decision should not be based solely on this aspect, as pricing typically correlates directly with the service portfolio, the professionalism, and reliability of the company.
“More and more often, especially in larger companies, when making significant purchases, recommendations from existing major partners are requested. This is an important aspect that can provide valuable information about the partner’s reliability and work quality, so do not hesitate to ask for such recommendations. Additionally, it is crucial to ensure that the service portfolio offered by the partner aligns with your specific needs, particularly quality requirements,” says the Sales Manager for the Baltic States at ‘Venipak’.
For example, in the e-commerce sector, the most important decisions are those that ensure fast delivery and easy returns management. In the manufacturing sector, it is crucial to efficiently manage raw material supply and finished product logistics to avoid supply chain disruptions. In the pharmaceutical industry, it is necessary to ensure specialized temperature control solutions that meet the highest safety and quality standards. For small businesses, it may be relevant to take advantage of partnership opportunities offered by logistics partners when collaborating with e-commerce platforms – this helps to compete more effectively in the market and expand without significant initial investments.
Another important aspect is the partner’s technological capabilities, such as real-time shipment tracking, integrated warehousing services, and automated processes that ensure efficiency and a personalized approach to the customer. When choosing between several partners, prioritize those who offer modern solutions that can directly improve your operational efficiency and reduce costs. If you plan for significant growth and business expansion, assess the partner’s capacity and ability to grow alongside your business – that is, whether they have the necessary infrastructure and resources to support your expansion.
Also, don’t forget to assess the transparency and flexibility of the pricing – avoid complex or unclear pricing models that could lead to unforeseen costs as the partnership progresses.
“If you have the opportunity, always start the collaboration with smaller-scale services or a trial period that will allow you to assess the partner’s work quality and suitability for your needs. A partner’s flexibility and ability to quickly adapt to changing customer needs or the current market situation is one of the most important factors ensuring a successful and value-creating collaboration,” says J. Karčiauskaitė.