Importance Of Logistics In D2C Industry

Today, the industry of eCommerce warehouses in India is offered as an experiential package that includes the Direct to Consumer (D2C) model. Every logistic company in east India uses automation to provide merchants and their customers with seamless selling and shopping experiences.

D2C and Logistics Ecosystems are Changing

The pandemic wreaked havoc on the business world, forcing logistics and D2C ecosystems to adapt to changing consumer expectations. As managing an e-commerce business with seamless end-to-end operations became a daunting task, especially for small sellers, the importance of third-party logistics players became apparent.

The D2C players had been turning to third-party logistics facilities even before the pandemic. Still, as the COVID-19 global crisis disrupted supply chains, demand for their AI-powered offerings grew even faster.

Efficiency in the Final Mile

The prognosis of Direct to Consumer and logistics has gone hand-in-hand since the beginning. Online sellers are increasingly turning to cutting-edge technology to provide customers with frictionless services.

Last-mile efficiency is a critical component of ensuring increased customer satisfaction for D2C sellers, which can be achieved with the help of third-party logistics solutions that provide automated end-to-end services, from automated warehousing to doorstep deliveries.

These platforms also offer an extensive network of expert courier partners, automated pick-up and delivery, and real-time order tracking. D2C sellers can reduce manual error and provide customers with an unforgettable shopping experience by using such digitised offerings.

Providing for Local Needs

At the moment, the hyperlocal delivery industry is on top of the charts. Consumers want to buy products at the click of a button, and sellers are happy to provide them with the convenience of doorstep delivery.

D2C sellers rely on seamless logistics to keep their businesses afloat and meet local demand. It’s safe to say that user-friendly technology, simple-to-navigate apps, and experienced courier partners make it easier than ever for D2C sellers to use 3PL brands’ services.

Inventory Control and Warehousing

StoreFresh is a dynamically growing logistics company in East India that democratises the world of commerce by making on-demand warehousing solutions accessible and affordable to all types of merchants, including small business owners.

The company’s third-party logistics facilities are providing best-in-class services to sellers with the help of cutting-edge technology, from offering a flexible ecommerce fulfilment model to ensure that these sellers don’t run out of storage space during a surge in demand.

Using Third-Party Services to Save Money

The strategies listed above are some of the best practices a D2C company can use to run its logistics operations smoothly and efficiently. Many brands, however, prefer the services of third-party providers (3PL in East India aggregators/independent courier partners) due to a lack of resources to develop cutting-edge logistics capabilities. Here’s a closer look at how these logistics enablers, such as StoreFresh, aid D2C businesses.

Optimisation of the Market

Amazon, Flipkart, Pepperfry, Purplle, Qtrove, and other popular ecommerce marketplaces (both vertical and horizontal) assist D2C players with digital commerce capabilities. This isn’t a pure-play D2C model, but it’s a good compromise for lesser-known brands that are new to online selling or don’t have the resources to invest in brand building, customer acquisition, or logistics.

To begin with, marketplaces provide D2C businesses with a safe environment in which to sell their products to a large audience. They also handle all aspects of fulfilment (warehousing, packaging, and delivery), whereas brands’ responsibilities are limited to presenting their products on platforms and attracting customers.

On the downside, these marketplaces charge a per-transaction referral fee, which eats into a brand’s profit and slows its long-term growth. Despite owning their dedicated websites, many prominent D2C players such as boAt, Mamaearth, mCaffeine, Cureveda, and others continue to sell on these marketplaces for better traction.

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How Can 3PL Companies Assist?

According to an IANS report, 3PL aggregators in India have come a long way. Given the widespread adoption of online shopping, their shipments increased by 70% in the October-December quarter of 2020.

Most of these companies provide end-to-end logistics services, such as inventory management, warehousing, shipping, and last-mile delivery. D2C enablers like Shiprocket, Shipway, Pickrr, and others have helped hundreds of brands streamline their operations to scale up quickly.

On the other hand, these logistics tech aggregators are still working on a significant challenge: developing custom solutions for their clients. Because D2C brands come in all shapes and sizes, their needs are diverse, and there is no such thing as a one-size-fits-all solution in this space.

For example, one brand may require local and international shipping for fragile items, which necessitates a service in India and abroad that ensures the ‘safe passage’ of goods during transportation and storage. Another brand with a small-scale operation and an FMCG product may only require pan-India support and quick delivery.

However, the 3PL model, like marketplaces, has its drawbacks. In this case, a brand must establish an online sales platform and build a customer base, which is difficult for a newcomer to the e-commerce space.

Players in the 3PL, on the other hand, collaborate with courier services for last-mile delivery and aren’t directly involved. Thus, compared to independent shipping companies with in-house operations, there may be more non-delivery issues.

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StoreFresh is Becoming a Logistic Industry Leader Aiding the D2C Businesses.

Because logistics is such an essential part of every economy and business, many companies have turned to third-party logistics (3PL) companies like StoreFresh to outsource their logistics operations so they can focus on their core competencies.

The best benefit of using us as a 3PL function for your company is that you will achieve more efficient and cost-effective processes with the help of experts.

StoreFresh performs a wide range of operations to optimise logistics processes. We’re in charge of inventory management, revenue, assembly, loading, labelling, repackaging, and distribution. In addition, we collect and transmit the data to the client.

In short, at StoreFresh, we strive to meet the 7Rights of the Logistics Industry: the Right Product, the Right Place, the Right Price, the Right Customer, the Right Condition, the Right Time, and the Right Quantity.

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