Analysis of B2C e-commerce logistics

1、Analysis of B2C e-commerce logistics U200916* #l AbstractThis paper starts with the present situation of the development of B2C companies, indicating that currently inefficient logistics system is the biggest bottleneck in the development of B2C business, and analyses in-depth all kinds of problems

2、that exist in the B2C logistics .Based on the analysis we think about three logistics modes.Keywords: B2C, E-commerce, Logistics Modes, Chain Operation, 3PLl IntroductionB2C e-commerce is the process of exchanging public consumer goods and services via computer networks, supported by electronic paym

3、ent. So B2C e-commerce is in essence a kind of electronic retail. According to CNNIC (China Internet Network Information Center) 26th China Internet Development Statistics Report, by June 30, 2010, Chinese netizens reached 420 million people, and coverage reached 31.8%. The size of mobile phone user

4、s increased 43.34 million this year, reaching 277 million people. This large scale of customers should have provided enough space for the development of B2C enterprises; however current situation is not so good except several companies like Dangdang and Joyo. The rest are mostly in deficit situation

5、. Many years ago experts pointed out that the three biggest bottlenecks limiting the development of EC are Network security, online payment and logistics. Up to now, with the development of science and technology, the reality has proved that the former two are no longer the bottlenecks. But the logi

6、stics is still trouble. Modern logistics in China is developing rapidly, and theory study is changing with each passing day, but the corresponding marketization, practical has not kept pace with the pace of the theory research. Nowadays, for B2C e-commerce enterprises, the shackles of the logistics

7、level of B2C e-commerce has become the biggest obstacle to business development.l the main problem in B2C e-commerce logistics In Chinas B2C e-commerce activities, after the achieving of the flow of commerce through the web site, the main problem is the lack of an effective logistics and distributio

8、n system, providing low-cost, timely and appropriate delivery services for social goods.1 Lagging development of logistics itselfCompared with the development of EC, even in developed countries, logistics pace of development is difficult to keep pace with the pace of development of e-commerce. In Ch

9、ina, logistics is in the economically backward part; an advanced e-commerce and a backward logistics, especially resulting in a very sharp contrast, with more rapid e-commerce development in the future, will make between opened a larger gap. The reason behind is that in our country service operation

10、 platform for logistics cannot meet the need of development.Firstly, the costs of distribution are too high. High distribution costs finally passed on to consumers, making the electronic commerce become a kind of luxury consumption patterns and away from the public.Secondly, slow response time, not

11、timely delivery. One of the advantages of the electronic commerce is convenient and quick, but the fact is that online users go into a long wait after ordering, making the electronic commerce lose advantage of crossing time and domain.Thirdly, service area and service products are limited. The exist

12、ing distribution system is limited in the major cities, and cant spread to small and medium-sized cities and the countryside. Also traded goods are limited to easy-to-transport items such as books, audio-visual products and so on. .2 B2C e-commerce characteristics increased the difficulty of logisti

13、cs servicesSeen from the B2C e-commerce characteristics, E-commerce makes transaction processing informational, business networking, range of sales unlimited, consumer demand for personalized, decentralized, producing of goods flexible, which requires the corresponding logistics of EC to be time-urg

14、ent, and logistics services should be customized. Information based, automation, networking, intelligent, flexible are the new requirements of the logistics in e-commerce era. Seen from the logistics distribution, the randomness and dispersion of goods ordering often lead to small batch and high fre

15、quency distribution. This will bring greater problems to the delivery route planning, scheduling Distribution of schedule and rational use of delivery vehicles, and easy leading to increased logistics costs and a lower level of logistics services. Whats worse; damaging and losing of goods in transit

16、 are generally difficult to avoid. For non-store operation of B2C businesses, after-sales service especially service returns, can result additional costs and this usually hinder the development of its own.3 The errors of B2C e-commerce businesses in the understanding and practice Error one：B2C e-com

17、merce businesses consider themselves revolutionaries and leaders, and they believe that traditional business will suffer the merciless elimination from e-commerce. They ignore or even deny the traditional companys strengths and features, and especially are dismissive of the traditional business mode

18、l of distribution. They refused on cooperation and integration with traditional logistics companies, to make their own logistics bottlenecks have become increasingly prominent.Error two: B2C e-commerce companies often pursue large and comprehensive model, but in fact not all products can run on e-co

19、mmerce platform. Complex use, high value, high technology and highly professional products are suitable for online sales. But things like daily necessities whose traditional sales network are very rich are not suitable for sales online. This “large and comprehensive” mode brings great difficulty in

20、logistics distribution to make logistics scattered difficult in forming the scale.Error three: B2C e-commerce enterprise fails to fully realize that the logistics distribution problems are related to the service level of online stores, and is often the factor consumers are most sensitive with, and i

21、s an important way to establish the enterprise brand. In other countries, B2C companies often build cooperative relationship with large courier companies like Federal Express and UPS; Due to most goods selling online are cabinet and delicate, they are most suitable for express transportation, which

22、also got the identity of the masses of customers. Domestic B2C business is mainly through the post, but in fact it is not very satisfactory. Customers are still wary of this transport mode. Currently the best way is to directly use the existing traditional business sales network transport, so that c

23、ustomers can buy with confidence. But not all companies have ability to do it and it does not meet the characteristics of online shopping. This can just be a kind of temporary substitute behavior.l Design of B2C enterprise logistics mode At present, Chinas B2C e-commerce businesses levels of the log

24、istics system differ, and business model also varies. In contrast to the developed countries B2C e-commerce the logistics distribution system, we can make a conclusion: there are several logistic modes suitable for Chinas EC business. They are as follows:1. Self-built logistics modelLogistics is the

25、 core competitiveness of enterprises. Seen from our companys specific situation, many companies across the country for years have set up their own distribution channels. They have their own logistics network with very good modern logistics technology and management experience. With the development o

26、f network economy, these companies improve its logistics network and build a logistics and distribution system for themselves through continual integrating its resources and absorbing external resources in the business of e-commerce. When building their own logistics system, B2C companies can consid

27、er building relationship with third-party logistics companies and warehousing companies, and integrating the resources of partners in all logistics aspects to form high-quality and efficient supply chain. For companies with a more comprehensive system of its own logistics, they can take advantage of

28、 their logistics network to bear other companys logistics business and distribution business, thereby reducing idle and waste of resources, to reach scale of distribution network and low-cost, efficient distribution.2. Chain operation modeThis model relies on the wide commercial networks of traditio

29、nal chain industry and carry out sales distribution and sales services directly. Chain stores can provide practical support for online virtual mall. Chain operation is developing fast and healthily in many industries, forming a networking circulation pattern based on large leading chain enterprise a

30、s backbone, medium-sized and small chain service networks as the supplement, supermarket, convenience stores, specialty stores, warehouse-style shopping malls. Chain operation can open store in the community, which is the foundation of cooperation with B2C business. People make the order online, the

31、n go to chain store nearby to get the goods or enjoy door-to-door delivery provided by chain store nearby. This way can save much time and is very convenient, so customers can enjoy complete and fast sales service.B2C companies make use of networking resources, shortening the distance of its own log

32、istics and reducing the frequency, in order to achieve low-cost distribution of goods. To chain enterprise, the cooperation with B2C business can bring large number of quality customers and at the same time it can enhance brand awareness, almost with no cost. Its a win-win situation.3. The third par

33、ty logistics modeToday online shopping delivery generally means the EMS and ordinary mail, followed by city courier. These EMS and express company just distribute goods and they cant provide additional service. Also online shop owner cant get in touch with customers once the goods arrive and its ver

34、y expensive. But real logistics is the circulation of commodities in the process of the physical flow, including transportation, loading and unloading, and storage, information management. Logistics as an industry, of course, should be taken by a professional company, namely third-party logistics. T

35、hird party logistics providers typically specialize in integrated operation, warehousing and transportation services that can be scaled and customized to customers needs based on market conditions and the demands and delivery service requirements for their products and materials.The advantage of thi

36、rd-party logistics is obvious. Firstly, it let B2C business concentrate its limited resources on cultivating core competitive ability. Secondly, it can minimize inventory and even realize zero inventory, but can also ensure supply effectively. Thirdly B2C business can improve the utilization rate of

37、 each link and save cost through the professional advantage and scale advantage of the third-party logistics enterprise; so that enterprise can benefit from the structure of expense separation. Therefore, third-party logistics become the mainstream of the 21st century international logistics, and also accord with the trends of gradual thinning of social division.Most B2C business only