What is Physical Distribution in eCommerce?
FAQs
What is physical distribution in ecommerce?
Physical distribution refers to the storage, handling, and transportation of finished products from warehouses and fulfillment centers to end consumers. It's a key component of the ecommerce supply chain.
Why is physical distribution important for ecommerce?
Efficient physical distribution enables on-time order delivery and positive post-purchase experience, driving higher conversion rates and repeat purchases.
What are the benefits of improving physical distribution?
Optimized physical distribution reduces operational costs, accelerates order processing and delivery, improves customer satisfaction, and boosts sales and revenue.
How can I enhance my ecommerce physical distribution?
Strategies like centralizing inventory, leveraging automation, optimizing delivery routes, and closely tracking fulfillment KPIs can significantly improve your distribution.
Should I outsource my order fulfillment to a 3PL?
Partnering with a third-party logistics provider that has warehousing infrastructure and expertise in ecommerce distribution can streamline your operations.
What common problems does poor distribution cause?
Inefficient physical distribution leads to higher costs, delayed shipments, poor customer experience, and loss of repeat business and referrals.
How do I choose the best 3PL partner for distribution?
Select a 3PL with ecommerce expertise, optimal warehouse locations, integrated technology, scalability to grow with your business, and transparent pricing.
