Shipping, Fulfillment & Logistics Flashcards

What is the significance of the 'last mile' in ecommerce logistics?

Answer: The final step of delivery from a local hub to the customer's door, which is often the most costly

Last-mile delivery is the final step of the logistics chain delivering a package to the customer, and it is typically the most expensive and time-consuming segment.

What is a distributed inventory strategy in ecommerce fulfillment?

Answer: Storing inventory across multiple warehouses to reduce shipping distance and delivery time

Distributed inventory places stock in multiple fulfillment centers geographically closer to customers, reducing shipping zones crossed and speeding up delivery.

What is the difference between DDP and DDU shipping terms in international ecommerce?

Answer: DDP means duties are paid by the seller; DDU means duties are collected from the buyer upon delivery

DDP (Delivered Duty Paid) means the seller pays all import duties upfront, while DDU (Delivered Duty Unpaid) means the buyer is responsible for paying duties at delivery.

What is cross-docking in ecommerce fulfillment?

Answer: Transferring incoming shipments directly to outgoing trucks with minimal warehouse storage time

Cross-docking is a logistics strategy where products are unloaded from inbound shipments and immediately loaded onto outbound vehicles with little to no warehousing.

What is the primary purpose of dimensional weight (DIM weight) pricing used by carriers?

Answer: To charge based on the space a package occupies rather than just its actual weight

DIM weight pricing calculates shipping costs based on a package's volume (L×W×H divided by a divisor), ensuring carriers are compensated for space occupied by light but bulky packages.

Which returns metric measures the percentage of orders that result in a return?

Answer: Return rate

Return rate is the percentage of sold orders that are sent back by customers, a key metric for assessing product quality and description accuracy.