E-commerce companies, by being agile and responsive to sales and marketing in their supply chains, are able to sell more products.
E-commerce is a very dynamic business environment. The sales and marketing policies and market conditions are changing fast. When the sales and marketing departments change their policies, the e-commerce supply chains should be responding to these changes very fast. Because most of the sales and marketing campaigns and policies show the real effect in supply chain and logistics transactions and eventually the products and services that are delivered to the customer. Most advanced warehouse management systems(WMS) that are flexible and agile enough, provide the agility and responsiveness to e-commerce supply chains.
E-commerce companies have 2 groups of costs that have the highest portion. Marketing costs and logistics costs. Their margins get directly affected by these costs. The competition for e-commerce companies is mostly based on pricing. The logistics management systems, especially warehouse management and order fulfillment systems are able to achieve 15-20% logistics cost savings in e-commerce operations. When an e-commerce company achieves these savings, there are 2 ways that they will go one step ahead in the competition.
Since their margins are increased by lowering logistics costs, either they can be more flexible with their pricing or they can spend more on marketing. Either ways, they are able to sell more.