The Maturation of E-Commerce Companies

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There's more to online shopping than just placing an order. E-commerce companies have gone a long way since their inception and have implemented new technologies to ensure customer satisfaction and provide excellent customer service. But receiving orders, processing them, and getting products to customers' doorsteps is not as easy as it might sound. And though shoppers may not need to go anywhere to get their hands on purchases, e-commerce companies need to do a lot of work to keep track of their inventory and make sure they get products to customers on time. Because they need to compete with familiar retail outlets where customers can get what they need immediately, it would've been reasonable to be skeptical of the e-commerce companies' prospects during their infancies. Now, however, they've begun to give brick-and-mortar stores a run for their money.

Product stocking and inventory management

That great selection you get from online stores doesn't fit in a box. Many online businesses offer so many products that they can't possibly keep all their inventory on-site. For this reason, larger e-commerce companies have invested enormous amounts of money in warehouses to protect their products from weather and provide an ideal environment for them. Products are stored using pallet racking and sometimes even automated storage and retrieval systems. Pallet racking is racking accessible by forklifts, and can be configured to hold items of various sizes. Products are differentiated from one another by internal SKUs. The SKUs are entered into databases to keep track of the items a business sells.

Since product warehouses require significant investments, many smaller e-commerce businesses turn to fulfillment companies to manage inventory,...

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...profit-maximizing solutions that they wish to make use of. Automation will also make vast improvements to the accuracy and efficiency of shipping systems — the CEO of the world's largest e-commerce company has already announced that testing has begun with drones that will one day directly deliver products from distribution hubs to customer doorsteps by air.


Though e-commerce can be a complicated business, e-commerce companies have matured and now have become formidable competitors of traditional neighborhood stores. Technological advancements will contribute to the industry's development and will push e-commerce companies' shipping speeds and service quality to levels that would have been completely unimaginable in the past. Knowing this, the future expansion of online shopping seems inevitable, and it's poised to make our lives more and more convenient.
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