Cerasis White Paper:

E-Commerce & Logistics

E-Commerce has changed the very face of how This new technology is a joint effort between
businesses sell products and how consumers buy Cerasis and WebShopApp, and it offers distinct
them. Consider the numbers: advantages to users. These include:

• Retail sales over the internet have more • Ability to retrieve freight rates from more
than quadrupled over the last ten years than 25 carrier partners

• E-Commerce sales are now more than $260 • Ability to use shipping override to offer
billion annually country or region specific shipping

• About $75 billion of that is Amazon alone, • Access all Cerasis freight managed services
but countless businesses are posting record including invoice, activity reports, and more
sales • Ability to set up standard shipping rates on
But what is often overlooked is the fact that the very items from one location to another
logistics involved in E-Commerce are often more • And much more
complex than most realize. Shipping items to their
destination can become very expensive, and In short, it's a better way to manage LTL
managing supply chains and logistics involved in E- shipments. But the entire process of overseeing
Commerce has often been difficult. LTL shipping as it relates to E-Commerce deserves
a closer look. It's more complex than you might
Luckily, today's manufacturers and distributors now realize, and has some challenges that are often
have LTL E-Commerce logistics solutions that they overlooked.
can rely on. The key is the very thing that has
driven the rise of online shopping – better
technology. Today, Cerasis is a leader in Less
Than Truckload (LTL) shipping and freight
management, and utilizes powerful technology and
apps to help create a better way to manage E-
Commerce shipping solutions.

Page 01 Cerasis White Paper: E-Commerce & Logistics

 The Evolution of Logistics
First, it's worth taking a look at just how logistics
and supply chains have changed with the rise of
online shopping. As stores have moved from direct
sales to online ones, things have changed a lot.
Here's a look at the basic timeline of logistics
evolution:
• 1970s – Retail stores ordered stock and
received it from direct deliveries coming
from wholesalers and other suppliers.
• 1980s – Retailers began to set up
distribution centers that were used to
replenish store supplies, centralizing the
process.
• 1990s – Global sourcing begins to increase.
Most retailers set up import centers that
bring products in from overseas, then filter
them to distribution centers, then move
them on to their storefronts.
• 2000s – The rise of the internet eliminates
many shops and direct sales. Instead,
products are shipped through parcel
delivery centers and then shipped directly to
customer homes or collection points.
With E-Commerce, inventory arrives in bulk form
and must then be shipped out to the consumer.
This has drastically increased the amount of LTL
shipments being processed and delivered
throughout the country. With that, the need for
better E-Commerce logistics management has
arisen.
Page 02
The Big Benefits of E-Commerce In
Manufacturing
While plenty has been written about the numerous
obvious benefits that ecommerce provides to
consumers, it's easy to overlook the many different
benefits that are provided to manufacturers and
even to distributors. The influence is there for sure
– about 62% of manufacturers in a 2013 study
reported that their website will have the biggest
impact on them securing more business.
But why is that business so vital – beyond just
profit? More specifically, what does ecommerce
offer to manufacturers that helps it stand out?
Here's a look at some of the biggest benefits that it
provides:
• More Prospects – The most obvious benefit
is simply that the national or even global
scale of the internet means that you can
reach more prospective customers than with
a traditional storefront. That translates to
better sales and a stronger overall network.
• Direct Access – You are also able to directly
interact with customers and let them do the
same with you. This leads to better service
for them.
• Total Scalability – Since you're focusing on
creating a digital storefront, your biggest
challenge in scalability comes with
generating leads, improving sales channels,
and managing logistics. It's far easier to
grow your business to meet market demand
quickly online.
• Better Innovation – It's faster to
communicate with your customers and
develop new techniques and products. The
feedback you get online comes quickly and
lets you adjust your strategy to meet
customer needs.
• Better Efficiency – While setting up your
logistic framework will take some time, the
end result means that your entire ordering
and shipping process will become more
efficient. This translates into big results from
your online marketplace.
Cerasis White Paper: E-Commerce & Logistics
 • Better Analytics – Reviewing data is made
easier when you have analytic tools
measuring pure digital information. Instead
of receipts and bank statements, you can
get an accurate and fast look at your
company's performance with an online
system. And when you combine basic
online tools with a freight shipping
application, you can adjust your shipping
strategy in a tremendous way.
• Better Brand Awareness – Finally, it is much
easier to showcase your brand online and
build stronger brand awareness. You'll
carve out your segment of the market and
grow your brand identity in a very significant
way.
Today's manufacturers are moving towards a
commerce model that has multiple channels
including online ordering. As such, it's integral to
understand what the benefits are and then find a
way to simply the way that you manage and
oversee shipping logistics.
Choosing Your Freight Shipping
Strategy
While the convenience and pricing of online
shopping have helped to engage customers and
increase the number of sales made through this
method, the reality is that there are challenges that
aren't present in traditional shopping. Shipping is
one very common problem. In fact, in a survey of
online shoppers, it was found that 44% of online
shopping carts that are abandoned are left because
shipping and handling costs were too high – it is the
number one reason for shopping cart
abandonment.
This means that for online stores, it is vital that you
determine a shipping strategy that keeps costs low
and still delivers excellent results for you and your
consumers. In the grand scheme of things, there
are three options to consider.
Page 03
• Free Shipping – Free shipping will help
avoid the issue mentioned above entirely.
Online shoppers absolutely love free
shipping, and while it can cut into profits,
there is a good chance that you'll increase
your visibility and your customer base. It
could help you increase sales. Of course,
this means doing extensive research in
order to know what your shipping costs will
be so you can adjust accordingly.
• Cover Only Your Costs – Thanks to today's
technology, you can usually setup a
calculator that will give you real-time
shipping rates on each order. This lets you
charge your customers only what you get
charged by a freight carrier. This can
increase trust with a consumer, but you
need to find an application that allows you
to get accurate freight shipping information
in real time or else you could end up
struggling to give customers the proper
pricing.
• Flat Rates – Finally, you can offer a flat rate.
This has two risks – one is that you may
undercharge and end up having to pay the
extra shipping on an order. The other is that
you overcharge, and customers end up
losing trust in you. Usually, the over/under
will even out in terms of cost, but flat rate
shipping isn't always appreciated by
customers. It's important to once again do
your research and determine whether or not
this is the right call for you.
Cerasis White Paper: E-Commerce & Logistics
 LTL shipments are incredibly common now, and
any ecommerce store needs to spend time figuring
out the right way to ship their goods. The three
shipping pricing options above are the ones to
review, so be certain to take the time to do your
research.
The Rise Of Omni-Channel Supply
Chains And Maximizing Customer
Satisfaction
One of the newest trends in the logistics world has
been the recent rise of Omni-channel supply chains
With more than 1 billion online shoppers spending
an estimated $1.3 trillion this year on e-commerce
purchases, it makes sense that focusing on the
most exciting and revolutionary aspects of online
shopping needs to be done.
Omni channel retailing has already changed the
way that consumers shop and interact with their
favorite brands, and about 7 out of every 10
consumers now prefers to shop online. The best
way to stand out in a crowded online marketplace?
Give your shoppers choice – choice over products,
over delivery, and more. Consider the following
stats:
• 44% of shoppers want to be able to buy
online and pick up at the store if they desire
• 62% want to make returns in store even if
they buy online
• 47% want promotions delivered right to a
smart phone
• 81% say that ease of check out is
something they're satisfied with
Page 04
• Only 44% are satisfied with the ability to
choose a time for delivery
• 49% are satisfied with the ability to choose
a delivery date
Those last two things highlight something very
important – that while other aspects of online
shopping are completely satisfying to shoppers, the
shipping and delivery system can use some
improvement. And while 68% of online shoppers
prefer to shop with a multi-channel retailer, they
want better shipping options.
That means that businesses today need to focus
intently on making sure that they harness the
opportunities from online shopping and ensure that
they have taken steps to satisfy their customers
completely. That often comes down to
personalizing the experience, and the following tips
can help with this. Here's what to focus on.
• Personalized Services – Customer service
and support begins with making things easy
for your customers. By offering different
navigation options and product filters in
search engines, you can let each shopper
customize their experience with your
interface, which in turn leads to better
satisfaction.
• Advanced Content – There's a fine line
between content overload and a lack of
good content. Try to design a website that
helps track locations, interests, and other
demographics. This can help you deliver
better content to each visitor – especially
return visitors.
• Multi-Device Functionality – The number of
people using their mobile devices to shop
online is expected to surpass those using
desktop computers by the end of the
decade. As a result, it's important that you
make certain to provide a multi-platform
website. Make certain that your site can be
optimized to fit any screen – and this
includes your shopping cart services. Easy
checkout is sometimes overlooked with a
mobile site.
Cerasis White Paper: E-Commerce & Logistics

• Social Media – Never ignore social media
and what it can offer to you. Social media
lets you interact with customers, gather
feedback, track questions and concerns,
and develop new strategies that can take
your site and your service to the next level.
• Personalized Email – Don’t' just send out a
copy/pasted email with no personalization at
all. Even a standard form letter with
personalized greetings for each customer is
enough to help them realize that you
actually care about them. If you go even
further and add personalized messages like
a birthday greeting or a thank you for their
last order, they'll respect that.
Omni-Channel supply chains need to be
personalized in order to stand out in today's
crowded market. The strategies above can help
you do just that.
What About DIM Pricing?
Before we get further into setting up your logistics
framework for ecommerce, it's worth touching on
DIM pricing – 3 dimensional pricing, as it's also
known. This refers simply to a process of charging
based on space rather than weight and distance,
and it could change the face of the $35 billion LTL
shipping sector.
In the old model, shipments are priced based on
their weight and the distance traveled instead of
their dimensions. But with LTL shipping continuing
to rise due to online commerce, certain industry
leaders are looking at using DIM pricing models.
There are numerous aspects to consider here.
Page 05
• It can boost carrier's profitability
• It can also make it easier for manufacturers
to set up their shipping strategy
• Packaging will change since there will be
penalties for wasted space
It's important to note that a number of shipping
companies are already charging additional fees if a
package exceeds certain sizes. And with many
carriers beginning to look at LTL as the future of
shipping, it's likely that DIM will need to be given
careful attention. It's unlikely to take hold within the
next year or two, but if the industry starts making
concentrated steps towards it, you may find
yourself developing your shipping strategies based
on size and space rather than weight.
Developing Your Reverse Logistics
Strategy
There is no question that you have numerous
options when developing your overall E-Commerce
based LTL shipping strategy, and it will have a real
impact on your company. But it's also vital that you
don't overlook the other side of this coin – the need
for a solid reverse logistics framework. In short,
while you may know how you're planning on
sending goods out, you need to know how to
accommodate returns as well. This helps build
customer satisfaction tremendously when you
consider the following:
Cerasis White Paper: E-Commerce & Logistics
 • 89% of online shoppers say that return
policies have an impact on which retailer
they use
• 66% of online shoppers are influenced by
whether or not they can return via mail
• 62% would rather return items through mail
than visit a store
• 85% of shoppers report that they will stop
using an online store if their return process
is a hassle
• 40% of shoppers don't shop online simply
because of difficult returns
• 95% of customers report that they will use a
business again if the return process is
accommodating and simple
• 58% are influenced by whether or not they
can exchange for another item
• 85% said they would shop elsewhere if they
couldn't receive credit back on their credit
card
Obviously, returns are important. And since you'll
be handling returns in an LTL format as well, this
can be viewed as an extension of your existing
shipping strategy. There are several key
components here that need to be understood, and
throughout the process of doing so you will need to
make certain that you satisfy the customers using
your business without damaging your bottom line
too drastically. Here's a rundown of the different
things to keep in mind.
Page 06
Returns Policy
The first step is simply setting up your return
policies. This will be a key factor in building brand
loyalty, and it's important that you make sure it's
explained to customers clearly. You'll need to set it
up with several key factors in mind. Here are the
main things to remember when designing your
policy.
• What items can be returned or exchanged
• Reasons for exchanges or returns
• Costs for return goods
• Who must be contacted to arrange a return,
if anyone
• Where and how goods can be returned
• How long a customer has to initiate a return
• Who pays for shipping for the return and the
replacement
• When the customer will receive their
replacement or credit
Try to remember that when designing your
policy, you're creating an extension of your
brand. For example, a 'no hassle, no questions'
return policy could help get your business
noticed and respected. So could free
exchanges wherein you take the cost of all
returns on yourself. It's important to set up the
right return policy no matter what since it is the
foundation on which the rest of your reverse
logistics framework is built.
Cerasis White Paper: E-Commerce & Logistics
 Returns Preparation
This is another area where you need to strike a
good balance. It's important that you make it easy
for customers to return their items, but at the same
time you need to ensure that you don't have to deal
with a huge hassle when processing the returned
items.
Many companies may start by using the same
process that a manufacturer utilizes, wherein
approval must be granted prior to a return. This
allows for planning and to make sure a valid return
is being initiated. But it can also scare off
customers who don't want a hassle-filled return
process.
The good middle ground is to provide customers
with very clear explanations about how to package
and prepare a good for a return. There are a few
elements that can help with this including:
• Clear return instructions printed on
materials included in the shipment
• A return form that allows the customer to
explain reasons for the return and more
• Return labels that customers can apply to
the return to make it easy on your receiving
team to sort and process the return
• Prepaid shipping labels or information to
offset the cost of a return shipment for the
customer
The key is to design a return preparation system
that is easy for the consumer to follow and that
helps make it simple for your team to sort upon
arrival. The simple steps above can make it easy to
do just that.
Page 07
Receiving
After the goods are shipped back to your location,
you need to have your return team ready to
process the incoming shipment. This is where
things can become difficult, and it's vital that the
process be setup as smoothly as possible to avoid
lost revenue and productivity. Top things that you'll
want to pay attention to include:
• Who returned the freight?
• What goods are in the shipment?
• What condition is the shipment in?
• Does the shipment match the original
purchase?
There are a lot of options for designing your return
process, and most begin by trying to set up a kind
of assembly line system. However, remember that
even with clear instructions, most of your
customers won't fully follow them. This can make it
much more difficult to process their return and to
issue them their return credit quickly.
Speed and accuracy are important where receiving
is concerned, and there are several issues that can
arise including long delays, confusion, and reduced
customer satisfaction. In short, you need to make
certain that your receiving team has all the tools
and skills needed to do the job properly.
It's also important that you pay careful attention to
the way that you issue credits and exchanges. The
key here is, once again, accuracy. You'll need to
ensure that the items you receive as a return
clearly match the original items purchased. It's easy
for items to go missing and for credits or exchanges
to be given when they aren't actually deserved. Pay
attention to this and follow good receiving steps in
order to make sure you get the best results from
the process of issuing your credits.
Cerasis White Paper: E-Commerce & Logistics
 The Importance Of Good Inspection
And Sorting
No matter how well you set up your return policies
and your reverse logistics strategy, it can all fall
apart if you lack good inspection and sorting upon
the arrival of a return. The key here is to move the
return forwards in a way that will help net the
largest potential recovery of value.
It begins by simply making sure that you bring in
the items, sort them, and confirm that they match
up with the original purchase. From here, you'll be
processing credits and satisfying the customer who
returned the item. But now, you need to make the
right steps for your company. That comes down to
getting the highest value from the return.
This sadly isn't a system that can be automated to
cut costs – you need experienced, well-trained
employees who can identify items and understand
them, then make the right decision on what is the
best step for them. They'll need to identify each
item, its condition, and then tag it to speed up the
processing system. There are a few final
destinations for returned items. These include:
• Restock – These are unopened,
undamaged items that can simply be
restocked and resold
• Repackaging For Sale – These are items
that have been opened but never used or
damaged, and can be repackaged and
resold as new.
• Disposition – This refers to items that still
have some value, but won't be able to be
resold through the website for various
reasons
• Return to Vendor – These items will go
through another return process as you
actually return them to the manufacturer or
vendor you ordered them from
• Scrap – Goods that are obsolete or too
damaged to do anything with of value
Page 08
Each of these items has its own value, and each
needs to be considered through the spectrum of
asset recovery. In other words, they're each assets
that can bring some form of profit to the business
depending on how they're managed. Even scrap
can net some form of return since large amounts of
it are often sold to certain businesses.
Outsourcing Your Ecommerce
Logistics Needs Could Be the Right
Call
When you review all of the different aspects
involved in reverse logistics – not to mention the
challenges that come from the basics of
ecommerce based supply chains – it becomes
clear that it might be a better option to outsource
your logistics framework.
However, if you decide to do so, it's important that
you take a moment to review the information above
and determine just what you need. Figure out
exactly which of the various processes you require
and then look into what outsourcing can do to solve
those needs for you. It can reduce the workload on
your team, improve productive, get you better
results, and help your bottom line.
Once you understand what needs to be done, how
to accomplish it, and how to measure success, you
can team up with an outsourcing partner and
develop the strategy that is sure to give you the
best results possible.
Take the time to look at how your company is
managing its online storefront, its reverse logistics,
and its supply chains as driven by online shopping
and you'll likely see some areas that can use
improvement.
Need Help with e-commerce LTL solutions? With
Cerasis and WebShopApps, bring the ease of e-
commerce logistics management to open up new
revenues and channels without sacrificing current
LTL processes or having to take the time to
implement yourself.
Cerasis White Paper: E-Commerce & Logistics
In an exclusive partnership with Magento “Platinum
Industry Partner”, WebShopApps, Cerasis now
Don’t Have a Magento e-Commerce Site
offers anyone needing e Commerce freight or Not Sure How To Use the Magento
shipping solutions the availability of the first end-to- LTL E-Commerce Freight Shipping?
end LTL Freight Shipping Extension for Magento
shopping cart owners ever created Contact Cerasis today and we can help
integrate our LTL e-commerce solutions to
Never before have e Commerce freight solutions,
such as the one provided through this partnership any shopping cart.
with WebShopApps, been available to those info@cerasis.com
looking to sell larger items, which require Less-
Than-Truckload shipping, through an e 1-800-734-5351
Commerce shopping cart with such ease of use for
the end consumer. Now shopping cart webmasters http://cersais.com
have full access to the Cerasis suite of products
and services to include reporting and analysis of
freight shipments, ability to see open invoices, and
access to a dedicated customer service
representative and the Cerasis freight claims
management services.

Outsourcing Your Ecommerce Logistics

Needs Could Be the Right Call
 Retrieve freight rates from over 25 Cerasis
Select Carrier Partners.
 With the option to offer e commerce freight
solutions only when an item marked as
freight is in the cart, or if a pre-defined
weight limit is exceeded, this extension is
ideal if you sell a mix of freight and non-
freight items.
 Use with the Dropship extension to specify
standard shipping rates on items from one
location and freight rates on items from
another.
 Use with the Dimensional Shipping
extension to send dimensions into the e
commerce freight shipping extension.
 Use with Shipping Override to only offer e
commerce freight shipping in specific
countries / regions.
Have full access to the power of the Cerasis Rater,
meaning you have the ability to view invoices
online, run freight analysis reports and activity
reports, and access to our freight claims
management and freight auditing services
Don’t Have a Magento e-