From a logistical perspective what are some of the differenc

From a logistical perspective, what are some of the differences between online and in-store retailing?

Solution

Online orders tend to be more plentiful and in much smaller quantities than in-store retailing. Therefore, online retailing requires an order management system capable of handling high volumes of orders. In addition, online shopping is characterized by open-case picking, rather than full-case picking, and this necessitates packaging containers, such as bags and envelopes, which are well suited to holding small quantities of product. The smaller order quantities associated with online retailing tend to favor transport companies with extensive delivery networks and expertise in parcel shipments. Moreover, return rates for online retailing are higher than in-store retailing and thus online retailers should attempt to make the return process as painless as possible.