Logistics Challenges of Online Shopping

Logistics challenges of online shopping
International Logistics and Supply Chain Management
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Black Friday online shopping problems（E-commerce logistics problems）Logistics challenges of online shopping in the perspectives of information flows, material (or product) flows and money flow.
Table of Contents   1.0  Introduction. 3 2.0 The Logistics challenges of online shopping………………………………………………….3 2.1 Information flows. 3 2.2 Material (or product) flows. 5 2.3Money flow.. 7 3.0 Recommendations to manage logistics challenges. 9 3.1 Information flow.. 9 3.2Money flow.. 11 3.3 Material flow.. 12 4.0  Conclusion. 13 5.0 Reference list. 14 1.1 Introduction The growth of e-commerce allows companies to move products through to different locations regardless of where the customers are located. However, problems still persist in e-commerce because of shortages and logistical problems, even as customers want accurate, faster and efficient logistics. Even with the development of e-commerce, logistics problems restrict technology advancement. Logistics is one of the most important aspects of e-commerce since there is emphasis on reducing distribution costs and improving efficiency of material flow. As online shopping has expanded e-commerce companies and outlets with e-commerce platforms face difficulties managing customer needs when there is increased demand like on Black Friday and Cyber Monday (Delcea, Ioanas and Paun, 2017, p. 230). Online shoppers visit e-commerce platforms and websites, then place orders, then receive the order and make arrangements to dispatch the purchased products. In the case of e-commerce giants like Amazon, there are warehouses where products are sorted and dispatched even across states.  When focusing on e-commerce logistics and supply chain management there is an emphasis on information flows, material flaws and capital flows.
2.0 The Logistics challenges of online shopping 2.1 Information flows The three flows in e-commerce supply chain management are the information flow, money flow and material flow. Ideally, there should be an information exchange on inventory, sales, forecasts, transportation, sales confirmation, invoicing and delivery (Yao, 2016, p. 360).  There are different logistics services that can be outsourced to third-party providers including warehousing and distribution. The warehouses are important in modern logistics as this affects the efficiency of the supply chain. The supply chain is effective when the supply and demands are met, but there are inefficiencies in online shopping when the warehouses are overwhelmed, and this result in delayed deliveries and sometimes laxity in assessing that products meet the required quality standards, and the storage time of the product to be delivered may also be longer than usual. Online shopping is convenient, but online information is not always the same with what is promised. Since there is higher demand during the shopping season, even there retailers are inclined to higher products at lower prices to attract more online shoppers. However, t...