For the last quarter of a century, e-commerce has significantly disrupted how businesses operate and has revolutionized how people shop and transact. Online shopping platforms and marketplaces allow companies to reach customers worldwide, expand user bases, and increase revenues.

However, despite the sector's massive growth, businesses must streamline operational efficiency and logistics to truly capitalize on the opportunities available.

The growth of e-commerce has led to a highly competitive landscape

In 2022, digital commerce accounted for more than $1 trillion in the US for the first time. This milestone marks the continued rise of the sector. Sales were obviously boosted by the pandemic, but the rapid increase has continued.

The global e-commerce growth rate is predicted to be 8.9% in 2023, which is a 1.8% rise compared to 2022, and brings worldwide sales to $5.9 trillion. By 2026, that figure is expected to be over $8.1 trillion.

Understandably, with such opportunities on offer, competition can be fierce, with thousands of new companies opening daily. There are currently around 26 million e-commerce sites worldwide, and while many products and services can serve completely different customer bases, there are always competitors in every niche. Even if a company completely understands its customers' needs and can sell highly desired products or services, it still might lose out to a more efficient competitor.

For example, product delivery times result from efficiencies in aspects like warehouse inventories, transport networks, and other logistic competencies. A study of click-to-door speeds between October 2020 and July 2022 found that in the US, Amazon, the most successful e-commerce company on the planet, had delivery times that were half that of other major retail sites like Target and Walmart.

To stay ahead of the competition, e-commerce companies need solutions and options that maximize the efficiency of their processes, logistics, and practices. More traditional bricks and mortar enterprises already use numerous approaches, but online sellers have new problems and needs. Fortunately, new businesses are springing up that target these issues.

A good example is Sellercloud, a company which helps online sellers at every stage of the e-commerce project. The CEO, Jeremy Greenberg, recognized the potential of e-commerce from the start but was also aware of the problems faced.

"In the early 2000s, I was consulting with various clients and helping them with their software needs. I started to notice a growing need for software in the then up-and-coming e-commerce industry. It soon became evident that helping people with individual pieces of software wasn't enough. So, I listened to what was needed and started to design products that were thought out from the seller's perspective," Greenberg says.

Technology solutions can help businesses compete and scale

"I started Sellercloud in 2010 and have since been using constant feedback from clients to develop software and products that improve workflows and operations. We now have products like Skustack, Skublox, 4D scale, Memaila, Turnstock, and others, that enhance every part of a seller's workflow. Efficient logistics is essential for an e-commerce business to survive and scale."

Having been so involved with finding solutions for online vendors from the early days of the sector gives Greenberg valuable insights into precisely what is needed and what works. Identifying specific needs and issues allowed Sellercloud to create solutions. "There are three primary aspects that e-commerce businesses need to focus on if they want to succeed," he says.

"The first is the importance of maintaining and synchronizing data across channels and marketplaces. It's essential to have accurate information on things like inventory counts, orders, or even profit and loss statements on specific Stock Keeping Units (SKU). We found that businesses often lacked a single solution to gather all the data necessary and so missed out on being able to notice trends, such as which SKUs were selling better. So, we developed a platform that gathers all information in one place."

Greenberg continues, "The second aspect is automation, which cuts costs and significantly drives efficiency. Many people know this but are unaware of just how many things can be automated with the right tools. To help with this, Sellercloud has tools that let users automate things like pricing adjustments, warehouse routing, shipping, inventory requirements and updating, order management, and even reconciling invoices."

Automation is a key trend that advances and increases workflow and profits. A recent report by McKinsey estimated that automation would raise global productivity by 0.8% to 1.4% annually. That figure is set to rise.

"Unlike others in the sector, we also strongly emphasize customization options, warehouse management systems, close integration with shipping companies, and software partnerships with companies like Amazon. These, combined with the first two aspects I mentioned, result in the third – the ability to scale and grow the business," Greenberg says.

To help with this, Sellercloud has added products to its portfolio to deal with some of the other challenges online sellers and retailers face.

"As e-commerce develops, so do the problems and solutions needed," Greenberg explains. "For example, we created a product called Skublox that eliminates the worry about errors in order fulfillment, a vital part of every warehouse workflow. It's easy to set up and is made to help sellers scale without hiring more employees and worrying about their manual errors.

"Another example of an issue that needed addressing relates to Warehouse Management Systems. Online sellers I have spoken to often wished they had a WMS that worked seamlessly with the other systems used to manage their business operations. So, we created another product called Skustack, which does just that. From purchasing to shipping, every step takes place in one easy to use system.

"Another key move for industry leaders is the ability to have visibility and insights into warehouse operations. To help with that, we developed Skustack Lens. This provides an open window into warehouses, allowing users to see where everything is, how much is there, what space is open and occupied, and who put what where. Every single move in the warehouse is traced and visible when it matters most. As e-commerce companies scale, keeping track of warehouse operations becomes increasingly important," Greenberg says.

"In response to demand and to further help e-commerce businesses stay on top of things, Skustack Lens also has a workforce management module that shows insights into how many items and orders each employee picked, sorted, fulfilled, shipped, and even moved. All in real time. You can even track working hours, hold employees accountable for every item they touch, and trace every movement across multiple warehouses."

Jeremy Greenberg
Jeremy Greenberg Jeremy Greenberg

Greenberg concludes, "All these solutions have been developed in response to demand from e-commerce businesses and provide an insight into how the industry is changing and expanding."

The e-commerce sector has exploded over the last couple of decades and was further boosted by the pandemic. The rapid rise in online buyers has led to immense opportunity and potential for entrepreneurs - but also, inevitably, fierce competition.

Companies like Sellercloud were quick off the mark to realize this new market needed cutting-edge solutions that would help businesses increase productivity and efficiency.

Success in online sales requires streamlined workflows, automation, up-to-date information, and logistical know-how. Technology brings opportunities and challenges, but it also provides solutions.