The eCommerce industry has snowballed over the past few years, calling for change to meet the demand. Global eCommerce sales are expected to rise to 6.4 trillion dollars by 2024 from the 4.9 trillion recorded in 2021. Millennials are on the frontline in the shift to online shopping.
This eCommerce boom sounds great, but it comes with its challenges. It is worth mentioning the increasing carrier rates, current supply chain issues, and port issues in Shanghai. As an eCommerce retailer, you need to be aware of the current challenges in the industry first. Then, you can work your way around to stay ahead of the game.
Top Challenges in eCommerce Today
Retailers in the online business face many challenges, with the most significant being shipping and order fulfillment. These three current issues are adding more salt to the injury.
- Increasing Carriers Rates
Since 2020, all major carriers have been raising their rates. Initially, the increase in shipping costs was due to the pandemic. With the growth of online shopping since the pandemic, the volumes for shipment increased, prompting an increase in the shipment fees by carriers.
The impact is on domestic ship options like FedEx, UPS, DHL, USPS, and international opportunities. These increasing rates affect everyone in the online business chain, from the manufacturers to the consumers. With the cost of materials also rising, retailers in the online business are left with the dilemma of how to remain competitive while making profits.
- Supply Chain Issues
Challenges in the supply chain for online sellers start with infrastructure, inventory management, shipping logistics, and picking and packing. Online customers are more aware of their needs and expectations. With so many retailers in the online market, customers will tend towards fast, efficient, and reliable sellers.
You need to stay ahead of the game by overcoming these supply chain challenges. It would help if you had a well-organized warehouse space and real-time inventory tracking—the faster your shipment processing, the better for you and your customer.
- Port Issues in Shanghai
Global supply chains are under a lot of pressure following the strict lockdown in Shanghai, China. The city is home to the world's busiest port which has already had significant holdups. The lockdown will add to congestion and cause a further increase in transport costs.
How Do You Stay Ahead of the Game?
Knowing all the current challenges you face as an eCommerce retailer, how can you remain proactive and competitive? After all, seeking help is not a bad idea, especially if it means you stay on top of your game. Handling the challenges in eCommerce today needs the use of other firms. Here are your best options.
Online businesses can benefit from using Xparcel to get the lowest shipping costs. Xparcel helps you boost your shipping speeds making your delivery dependable without increasing costs. With Xparcel, you can kill two birds with one stone: fast, reliable, and efficient delivery at the lowest shipping costs. However, Xparcel is for Rakuten Super Logistics clients only.
With the increasing carriers' rates, the hassle of getting the cheapest option for your package is real. You end up wasting time trying to compare prices. Xparcel makes everything easier for you through a sophisticated system that analyses the weight, dimensions, origin, and destination. You get the best shipping service based on your package.
Choose from the three product options depending on your business's needs and priorities.
- Xparcel priority
- Xparcel expedited
- Xparcel ground
Partnering with a Third Party Logistics Company-3PL
ECommerce businesses can benefit from partnering with a reliable 3PL logistics provider. 3PL companies help you handle the shipping and order fulfillment piece of your business to focus on growing your business.
Partnering with a company like Rakuten Super Logistics can help you go a long way with your online business fulfillment.
Why You Should Get into a 3PL Partnership
Partnering with a 3PL company is a life hack that every eCommerce retailer needs to consider. It comes with the following benefits;
Saving Shipping Costs
An order fulfillment company has better negotiating power than an individual because of its frequent shipment and large volumes.
Saving Time Spent on Order Processing and Fulfillment
You get enough time to focus on production and other aspects of your business. From packaging to delivery for local and international orders, all the processes involved are taken care of.
Your customers get goods delivered to them fast and efficiently. Thanks to the vast distribution network that these companies have.
Real-time Inventory Tracking
Proper inventory management will help you to plan. No more, oops! Stock is over!
The Best Fulfillment Company
Partner with Rakuten Super Logistics to maintain the competitiveness of your online business with the best fulfillment services. Learn how to reduce shipping costs with Rakuten SL here while delivering fast and accurate order fulfillment to help grow your online business.