E-commerce Logistics Models

For a new E-commerce portal, it’s necessary to pre-decide the required business model for retail logistics. These models are: –

• Inventory-led model
• Fulfillment by E-commerce retailer model
• Drop ship model
• Marketplace model

LSPs offer a variety of delivery options in terms of the delivery time window. New players in the E-commerce business need to be definite and decisive upon the choice of business model and the delivery time window for the placed orders’ deliveries. Switching to another model midway might be troublesome and require a business overhaul.

Shipping is another phase that is integrated into logistics. Ordering and timely delivery are possible only when there is a butter-smooth coordination between the E-commerce retailer and the shipping company. Shipping is a process of transport of goods by some means of transportation. Shipping requires an understanding of few technical terms for new E-commerce players.