Digital Marketing - Study Notes:
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So a key part of your logistics infrastructure is your warehousing. And as with everything else, there are lots of different ways that you can do this, and three of the key ways are displayed here.
- Self-managed warehousing: This is where you own and operate your own warehouse. So you have your own staff working in it, you handle everything from storing the product, picking the product, and making sure they pass it on to the couriers.
- Outsourced warehousing: That’s where all of that process is handled by a third-party warehouse.
- Drop-shipping: This is where customers buy from your site but the product they’re buying never actually touches your infrastructure. So it would be delivered and fulfilled through a third party. An example of this might be Amazon Marketplace. So a customer will go to Amazon, buy a product from Amazon Marketplace, and it is sent directly to them from a different vendor who has nothing to do with the Amazon infrastructure process.
Graeme Smeaton
Graeme Smeaton is the founder of Royal & Awesome. Along with a proven track record in defining and delivering marketing strategies that drive significant growth and create real shareholder value, Graeme is highly commercial. He has extensive experience managing PLs and other key financial statements, while being an operational board director of AFG Media Ltd, and has experience negotiating with suppliers, distributors and licensing partners.
By the end of this topic, you should be able to:
- Identify the impact of logistics, packaging, purchasing, distribution, and payment options for an e-commerce solution
- Evaluate e-commerce revenue models and the advantages associated with different e-commerce solutions
- Critically appraise the requirements for managing e-commerce customers in accordance with current laws and legal guidelines
