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E-commerce and Supply Chain
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Dropshipping
A retail fulfillment method where a store doesn't keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer.
Omnichannel Retailing
A multichannel approach to sales that seeks to provide customers with a seamless shopping experience, whether they are shopping online from a desktop or mobile device, by telephone, or in a brick-and-mortar store.
SKU (Stock Keeping Unit)
A unique code consisting of letters and numbers that identifies each product in a warehouse or store. It helps track inventory and sales, which is crucial for supply chain management in e-commerce.
Fulfillment Centers
Specialized warehouses that prepare and ship orders. E-commerce businesses use these centers to outsource warehousing and shipping.
Just-in-Time (JIT)
A supply chain management strategy where materials are produced or acquired only as needed for use, reducing inventory costs and increasing efficiency. Common in manufacturing and can be applied in e-commerce for on-demand production.
Last Mile Delivery
The final step in the delivery process where a product reaches the end consumer. It is a critical and often the most expensive and time-consuming part of the shipping process in e-commerce.
Shopping Cart Abandonment
Occurs when a customer adds items to their online shopping cart but exits without completing the purchase. A significant issue in e-commerce that can impact sales and supply chain planning.
Blockchain in E-commerce
The use of blockchain technology to enhance transparency, security, and trust in various aspects of e-commerce, including supply chain processes such as provenance tracking and payments.
Customer Relationship Management (CRM)
A strategy for managing a company's interactions with current and potential customers. It uses data analysis about customers' history with a company to improve business relationships, focusing on customer retention, and driving sales growth.
Inventory Management
The supervision of non-capitalized assets, or inventory, and stock items. A component of supply chain management, it supervises the flow of goods from manufacturers to warehouses and from these facilities to point of sale.
Cross-docking
A logistics practice where incoming shipments are unloaded directly into outbound vehicles, with minimal or no storage in between. This reduces inventory handling and storage costs, but requires precise coordination.
Payment Gateway
An e-commerce service that authorizes and processes payments for online retailers. It is a critical component that connects merchants, consumers, and financial institutions.
Marketplace
An online platform where vendors can sell their products or services to customers. Marketplaces like Amazon and eBay connect buyers with sellers and often handle the payment processing.
Return Policy
A set of rules a retailer creates to manage customer returns and exchanges. An efficient return policy is critical for customer satisfaction and can affect inventory management and supply chain.
Multi-Channel Retailing
A marketing strategy that offers customers multiple channels to make purchases, including websites, mobile apps, and physical stores. This affects supply chain complexity and inventory distribution.
Electronic Data Interchange (EDI)
The computer-to-computer exchange of business documents in a standard electronic format between business partners. It automates transactions and links systems which speeds up the flow of information in a supply chain.
Agile Supply Chain
Supply chains that prioritize flexibility to respond quickly to market changes and customer needs, often seen in e-commerce due to the fast-paced nature of the online market.
Conversion Rate
The percentage of visitors to a website that complete a desired action (such as making a purchase), a key measure of e-commerce success affecting inventory forecasting and demand planning.
E-procurement
The business-to-business purchase and sale of supplies and services over the Internet. It streamlines processes, reduces costs, and provides better control over spendings in the supply chain.
Demand Forecasting
The practice of predicting which products customers will buy, how much they will buy, and when. It is crucial for supply chain managers in e-commerce to balance inventory levels with customer demand.
Order Fulfillment
The process from the point of sale to delivery of a product to the customer. Effective order fulfillment is vital for customer satisfaction and reducing supply chain costs.
Big Data Analytics
The process of examining large and varied data sets to uncover hidden patterns, market trends, customer preferences, and other useful business information to make informed supply chain decisions.
Sustainable E-commerce
E-commerce operations that consider environmental impact, such as using eco-friendly packaging or carbon-neutral shipping methods, and focus on the long-term sustainability of the supply chain.
Customer Acquisition Cost (CAC)
The cost associated with convincing a potential customer to buy a product or service. In e-commerce, lowering CAC can improve overall supply chain cost efficiency.
Reverse Logistics
The process by which companies collect and handle products that are returned, with the goal of recapturing value or properly disposing of the material. An important aspect of e-commerce due to high return rates in online shopping.
Click and Collect
An online shopping model where customers buy or reserve products online and pick them up in a store. This option has supply chain implications for inventory placement and customer convenience.
Social Commerce
The use of social network(s) in the context of e-commerce transactions. Involves using social media to make online shopping more interactive and to influence supply chain decisions based on social trends.
B2B E-commerce
Online transactions between businesses, as opposed to between a business and a consumer. B2B e-commerce typically involves more complex and larger scale supply chain operations.
Supply Chain Integration
Process of aligning and coordinating the flow of goods, information, and finances among all the parties involved in a supply chain. For e-commerce, integration includes suppliers, manufacturers, and distribution centers.
Mobile Commerce
The buying and selling of goods and services through wireless handheld devices. As mobile commerce grows, supply chains must adapt to accommodate increased flexibility and real-time demand.
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