Virtuous Cycles Improving Service And Lowering Costs In ECommerce Case Solution

Service is an exchange where employee serves a client while self-service is where customers and employees produce the service together. Self service has been made possible by employing newer and better technologies by the service provider. This new technology has helped customers to accomplish the services themselves. Self service allows companies to reduce their costs to great extents and allow them to improve the value they provide to their target market.

Many e-commerce companies offer products, as well as, services. The physical nature of the products means that the company has to rely on more than just the technological aspect of the business. Delivering services and logistics are an important element of the business. Organizations that use internet to sell merchandise, customer experience ranges from ordering the product to receiving it at their doorstep. The overall customer experience decides the level of loyalty the client attaches to the company.

When incomplete attention is paid to any single element of the whole process, disastrous results are a consequence. Companies who outsource any part of their process have to face several issues regarding the sale of the product because their whole cycle is not in sync. Failed companies usually outsourced either customer services or logistics to other sources, which result in complete mismanagement. These companies targeted high growth without considering the growth that their customer support and logistics can handle. There are two reasons for the importance of customer services and logistics in e-commerce.