E-commerce logistics is the backbone of online retail operations, covering everything from when a customer clicks “buy” to when they receive their package. This is made up of several different components:

• Order Fulfillment is where it starts – this includes receiving inventory, storing products, picking items when orders come in, and packing them for shipping. Many e-commerce businesses start handling this in-house but switch to fulfillment centres as they grow beyond 100-200 orders per day.
• Inventory Management involves maintaining optimal stock levels across warehouses. For e-commerce, this is particularly critical since you need real-time tracking to prevent overselling on your website. Most operations aim to keep 30-45 days of inventory on hand, though this varies by product type and sales velocity.
• Warehousing needs differ significantly from traditional retail. E-commerce warehouses process individual picks rather than case picks, requiring different layout optimization and picking strategies. A typical e-commerce warehouse processes 2-3 times more orders than a traditional retail warehouse of the same size.
• Last-Mile Delivery has become increasingly important as customer expectations have shifted. Most consumers now expect 2-3 day delivery as standard, with many demanding next-day options. This has led to the rise of distributed fulfillment networks, where inventory is stored closer to end customers.
• Returns Processing or reverse logistics is a major component that traditional retail logistics doesn’t handle at the same scale. E-commerce typically sees return rates of 20-30%, compared to 8-10% in brick-and-mortar retail. This requires dedicated reverse logistics operations and clear returns policies.
• Technology Integration ties everything together – your warehouse management system (WMS) needs to communicate with your online store, shipping carriers, and inventory management software in real-time. Any delay in these systems talking to each other can lead to overselling or shipping delays.

When people think of logistics, they typically think of e-commerce -a large warehouse with hundreds of workers all packing away the goods to be sent off to the consumer. It sounds easy enough, but there are definitely some issues that can occur.

6 Common Ecommerce Logistics Headaches We See

Inventory Stockouts

These hit hard and fast. When you’re selling across multiple channels – your website, Amazon, Walmart – syncing inventory becomes a nightmare. One delayed update can lead to overselling and angry customers. Most operations need a buffer between marketplaces to prevent this.

Peak Season Scaling

This is one that catches many businesses off guard. Holiday volume can jump 300-400% above normal, and you need warehouse space and staff ready months in advance. Finding seasonal workers who can maintain pick accuracy above 98% is tough, especially when you’re competing with every other fulfillment operation in your area.

Returns Management

Processing a return costs $8-15 on average, not counting shipping, which can eat into your profit margins fast. Then you’ve got to inspect items, restock what’s sellable (usually 60-70% of returns), and figure out what to do with damaged goods. Many operations struggle to process returns within 48 hours during peak seasons.

Shipping Costs

We’re seeing shipping costs continuing to increase globally. Carriers implement new surcharges constantly – oversized packages, residential delivery, fuel surcharges. These can add 20-30% to your base shipping rates. Finding the sweet spot between fast delivery and reasonable costs is getting harder, especially with customers expecting free shipping.

Technology Integration Issues

If you don’t have the right warehouse systems in place, they can cause constant headaches. Your WMS needs to talk to your shopping cart, your 3PL’s system, and your accounting software. One API update from any provider can break these connections. We see most operations spending 5-10 hours weekly just maintaining these integrations.

Last-Mile Coordination

Late deliveries, missing packages, wrong addresses are headaches for companies that rely on last mile delivery, like Amazon – about 5-8% of deliveries have some issue. Setting up a customer service team to handle these problems while maintaining same-day response times is challenging.

Logistics and ecommerce are not synonymous, but they are intertwined and inseparable from one another. In fact, modern ecommerce has pretty much redefined how logistics operations work. Traditionally, retail logistics moved pallets to stores. Now, we’re shipping individual items directly to customers’ doors, which completely transforms your warehouse operations and inventory management processes.