Thursday, 28th October 2021
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How eCommerce companies complement courier firms?

In the last twenty years, eCommerce companies saw a huge boom, it changed the way the customers’ shop and people do business. One key factor that contributed to this boom includes digital payment which is immensely supported by many governments across the globe. Both eCommerce companies and digital payment were recommended during the pandemic. What…

In the last twenty years, eCommerce companies saw a huge boom, it changed the way the customers’ shop and people do business. One key factor that contributed to this boom includes digital payment which is immensely supported by many governments across the globe. Both eCommerce companies and digital payment were recommended during the pandemic.

What makes shopping online a joy is that the products are available at a discounted price and at the top of that the product is delivered right at the doorstep. To enhance the customer experience, if the return and refund policies of many online stores have improved.

Logistics infrastructure is a huge pillar for any eCommerce. In addition to delivering the product on time, it also provides the customer with the tracking order and the status of the order. It is important for an eCommerce company to create ties with reputable courier companies like  YunExpress and ePacket to ensure that the package reaches the customer on or before time without any damage.

For the operation of any online store that sells physical products, order fulfilment places an important role. The satisfaction of the customer hugely depends on how efficiently and quickly the order has been dispatched and delivered. To ensure the satisfaction of the customers, it becomes vital to be backed up by a good courier company.

As explained above, as courier companies are essential for the functioning of any eCommerce companies, with the boom of eCommerce companies, even the courier companies are rapidly growing too and that is the connection between the two. Therefore, to ensure the smooth operation of the online store, it is important to be connected with the right courier companies.

eCommerce And Courier Companies In Nigeria
In Nigeria, with the economic boom, people are going cashless as digital payment is becoming popular. As discussed above, digital payment plays a huge role in the growth of eCommerce companies, the popularity of digital payment has resulted in the growth of eCommerce companies too. Currently, Nigeria is seen as a promising hub of eCommerce companies.

Other factors contributing to the popularity of the eCommerce companies in Nigeria include the youth population, improved purchasing power of the customers and increased smartphone penetration. According to a report, the current spending in the eCommerce sector is $12 billion and it will reportedly increase to $75 billion by 2025. In Nigeria, many eCommerce activities are meeting their logistic needs with courier services like DHL Worldwide Express, EMS Speed Post and Fast – Trac Logistics International Limited.

How eCommerce Companies Pick Courier Services?
For any eCommerce company choosing the right courier company is not only crucial but also difficult too. There are three ways in which an eCommerce company handles its logistics department.

Firstly, they have the option of creating their very own logistic department. This is the costliest option, however, it gives the owner complete control over how and when they want the product to be delivered. The second available option includes delegating the logistic responsibility to a third-party service.

Lastly, the eCommerce company also has the option to work together with a third-party service to fulfil the order.

Many eCommerce companies prefer to engage in the second option where after packing the product, they hand it over to a courier company to ensure that it is delivered on time. Plenty of considerations are made while choosing a courier company. Firstly, the size of the consignment plays an extremely important role. Secondly, the delivery rate acts as a deciding factor.

A competitive rate with the track record that they complete their order is the most chosen option. It is not easy to find the right courier company on the very first try. Many companies go through the hit and trial method before narrowing it down to one option.

With one and two-day delivery by Amazon, there is a high expectation from many other eCommerce brands for quick delivery of their product. However, in Nigeria, popular eCommerce platforms like Konga and Jumia, sometimes take more than a week to deliver the product.

Logistical issues are one of the most pressing issues for many online businesses in eCommerce companies. It is high time that the country introduces many new logistic players who can provide the products at a time that can satisfy the customers.