Ecommerce model and how supply chain of online shopping works

Ecommerce Model and How Supply Chain of Online Shopping Works

Nowadays, everyone shops online. We buy everything online and either pay directly to the e-commerce merchant or pay cash on delivery via platforms like Amazon, eBay, etc. But have you ever wondered how the e-commerce model actually works? Let's dive in and take a closer look:

The Consumer

The process begins with the consumer. For example, you decide to order something on eBay or Amazon. You input the necessary information on your computer, laptop, or smartphone into the e-commerce portal, such as Amazon or eBay.

Order Management

Once you log in and place your order, that order information is sent to the order management team. This team is responsible for processing the orders from consumers and then shares that information with the central warehouse.

Central Warehouse

The central warehouse then shares the order information with suppliers and their local warehouses, which are located in different cities. Based on the available stock in these warehouses, a decision is made regarding how much needs to be purchased from the supplier.

Supplier Coordination

Once the decision is made, this information is passed to the supplier. The supplier then ships the requested products to the central warehouse.

Distribution

From the central warehouse, the shipment is sent to local warehouses. Finally, from the local warehouses, the products are delivered to the consumers through last-mile delivery services.

Keyword

E-commerce
Online shopping
Supply chain
Order management
Central warehouse
Local warehouse
Supplier coordination
Last-mile delivery

FAQ

What is an e-commerce model? An e-commerce model involves the online sale and purchase of goods and services. It includes various processes such as order processing, inventory management, supply chain coordination, and delivery.
How does the order process work in e-commerce? Once a consumer places an order online, the order management team processes it and coordinates with the central warehouse. From there, the order information is shared with suppliers and local warehouses for delivery.
What role does the central warehouse play in the e-commerce model? The central warehouse coordinates the flow of goods by sharing order information with suppliers and local warehouses. It serves as a hub for inventory management.
What is 'last-mile delivery'? Last-mile delivery refers to the final step in the supply chain, where the ordered product is delivered from the local warehouse to the consumer's doorstep.
How are suppliers involved in the e-commerce supply chain? Suppliers provide the necessary products to the central warehouse based on the order requirements and inventory levels in local warehouses.