A repository of acronyms, jargon, and useful definitions perfect for eCommerce founders & marketers like yourself.



Various processes such as warehousing, inventory management, labeling, packaging, payment, delivery, exchange, and return together to form the logistics. The main goal of the logistics unit is to deliver parcels accurately, safely, and as fast as possible. 

Logistics is the management of the way resources are stored, obtained, or shipped to their final destination.

It works in 4 simple steps-

  • The customer places an order on your website.
  • The order triggers a response to your inventory software. 
  • Notification for Order confirmation is sent to you.
  • You pack the item and deliver it to the customer.

How eCommerce logistics work

There are two directions in which a logistics company functions-

Forward direction- This includes delivery and distribution of products to buyers

Reverse direction- This includes replacement, return, and exchange of damaged, wrong or defective shipments.

Working in the forward logistics

  • Getting the order request on an eCommerce store 
  • Giving a payment option
  • Preparing the stock
  • Packing of the product
  • Generating Invoice
  • Dispatching the order

For an eCommerce company, the logistics in the forward direction include getting an online request, arranging the product, bundling, generating an invoice, giving multiple payment options like credit/debit cards and COD, dispatching, and delivering the product to the client's doorstep. From the hour of dispatch until delivery of the product, it is the duty of the vendor to give updates about shipment to the customer through email or SMS notification.

Working in the Reverse Logistics

An effective reverse logistics is essential in situations when there is a damaged or defective shipment. It is the key responsibility of the logistics to replace the damaged with proper order within a reasonable time that satisfies the customer. Easy and efficient return policies help to build trust between the buyer and the eCommerce company.

How can you track items on the Backend?

Since logistics is now dependent on digital technology and has become more complex, there are multiple options available for you to keep track of your inventory and where it is in the supply network. You can get real-time insights into how many products are left in your inventory with the help of inventory management solutions within your eCommerce platform. By having UPS, USPS, and FedEx as your business partners, you can keep track of your products based on their fulfillment number and even share the number with the customers so that they can keep a track of their order. For example, when you place an order on a platform like Amazon, you instantly get a notification of your tracking number that you can use to get real-time updates about your order.

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