Top 10 Logistics Challenges Facing the Online Shopping Industry

Top 10 Logistics Challenges Facing the Online Shopping Industry

The challenge of getting customer orders out the door can sometimes be even greater than getting visitors to an eCommerce site. There is no shortage of opportunities for your business when you consider that eCommerce brands shipped more than 3,200 packages per second in 2020. It is more important than ever to get your e-commerce logistics strategy right. Take a look at the top 10 challenges that online companies face when it comes to logistics.

Cross Border Shipping and International  E-Commerce Sales

Businesses are increasingly selling internationally as global reach has become easier. You need to be prepared for the world’s marketplace when it is yours. From customs clearance to import fees and taxes, e-commerce brands must be proactive to avoid unexpected charges. Online shoppers hate nothing more than being charged extra at delivery after already being charged at checkout. When selling globally, it’s important to work with a provider who can help you present the true cost of delivery.

Managing eCommerce Returns

The online shopping experience has become very comfortable with returning items if they don’t live up to expectations, from shoes that are the wrong size to items arriving damaged. To be precise, 30% of shoppers. Nevertheless, three out of four consumers consider online returns to be a hassle.

56% of online shoppers base their purchase decision on return policies, so without a good return policy, you may be losing sales without even realizing it. The reverse logistics for returns must be as efficient as the shipping best Logistics company in Dubai for e-commerce brands.

As a result, e-commerce brands must monitor consumer trends and monitor their customers’ return behavior. Returns are also an opportunity to pivot towards a loyalty-driven offering and build a lasting relationship.

Finding a shipping logistics and order fulfillment service

Choosing the right third-party logistics service can be difficult, but it can be the most effective solution to several e-commerce logistics challenges.

While many e-commerce leaders outsource their fulfilment processes to third-party logistics providers, the key is finding a fulfilment service that respects the attention to detail your online brand has worked so hard to create.

We shouldn’t become just another nameless online seller as a trade-off for efficiency. With the right provider, you can scale while remaining flexible in their offerings. A 3PL solution, however, can provide peace of mind by providing support and advice.


Managing merchandise has become a major challenge for e-commerce brands. A large overestimation of space can result in higher costs, while a small underestimation can result in a backlog and slow down your e-commerce logistics.

In addition to a warehouse location, the delivery window is another important factor to consider. Keeping the supply chain running efficiently requires addressing warehouse management issues head-on. When businesses struggle with warehousing, they should consider a third-party logistics provider for both advice and assistance.

Controlling Shipping Costs

What’s more important: shipping an order faster or shipping it at a lower cost? For years, e-commerce brands have struggled with this question, and it remains a challenge today as well.

It’s all about keeping up with orders and pleasing your customers without adversely affecting your profit margins or increasing your costs. Most e-commerce shoppers are indeed fine with waiting for an order if it means they’ll pay less (or none) in shipping. In these cases, it’s usually best for you to offer express shipping as an optional upgrade that customers can purchase.

Several e-commerce brands have developed the bad habit of offering only one shipping option. The reason is easy to understand: Why change something that’s already working? The downside is that you may not be choosing the best shipping option for each package, potentially increasing shipping costs. By diversifying their shipping carriers or outsourcing their order fulfilment to a 3PL partner, e-commerce brands can reduce their costs.

In addition to reducing shipping costs, a reliable 3PL provider can also reduce warehousing costs.

Delivery Security 

E-commerce brands and carriers have always struggled with getting packages to their rightful owners.

E-commerce brands now have a variety of options for ensuring safe and secure delivery, including parcel lockers at designated delivery points and notification systems.

  1. Offering Free Shipping 

All e-commerce brands offer free shipping as a standard. It depends on several factors whether you can offer free shipping, including:

  • value of the products
  • weight of the items being shipped
  • average eCommerce order amount
  • order’s the shipping destination
  • customer’s expected delivery window

To offer free shipping and still make a profit, e-commerce brands must build free shipping costs into their prices and find a deal that works for both buyers and retailers. There may be a minimum order amount before free shipping is applied, or free shipping can only be applied to certain products.

Scaling your e-commerce logistics 

To grow online sales, you have to keep up with demand without going overboard. Online sales spike rapidly for many companies, leaving them scrambling to ramp up e-commerce logistics.

To grow or decrease their e-commerce supply chain without overutilizing their assets or tying up their monetary resources, e-commerce brands must understand and implement dynamic scaling logistics. These kinds of scales are specifically designed for 3PL providers.

To help clients get the most out of their e-commerce logistics investment, the right provider will offer strategic input on growth opportunities.

Shipping Errors

Shipping errors can cause e-commerce brands a lot of headaches and create frustration for customers waiting for their orders, ranging from entering the wrong address to losing tracking numbers.

Investing in postal software and technology as well as outsourcing the entire shipping process to a trusted and reliable third-party logistics provider can help curb human errors.

Tracking Online Orders

When a customer clicks the “Confirm Purchase” button, knowing where their order is can make or break their experience. Ecommerce brands need to ensure that customers can track their orders with regular updates, they need to know when the package has left the shipping facility. When it is on its way to them, and when it has been received.

The knowledge that their order is being processed is reassuring to the customer, even if their order is delayed. Freight forwarding company in Dubai need tracking solutions that let shoppers know. Where their order is and when it will arrive after they hit the “Buy” button.


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