What is eCommerce operations? Ways To Improve

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E-commerce operations are the managerial functions that ensure an online business is operating efficiently.

These include inventory management, logistics, and customer service. If you’re a retailer who sells through the web or mobile devices, it’s essential to have an e-commerce operations management board or manager in your team.

An eCommerce Operations Administrator will help maintain accurate inventory levels while also being able to provide customers with exceptional customer service from any location in the world!

In this article, we’ll explore the key functions of e-commerce operations and how they can help your business succeed.

But first, let’s start with

What are e-commerce operations?

E-commerce (electronic commerce or e-business) is an activity in which organizations or individuals buy, sell, or trade online services or products.

The e-commerce focus areas are B2B (business to business), B2C (business to consumer), and C2C (consumer to consumer). eCommerce transactions can be done through various electronic devices such as computers, mobiles, tablets, etc.

It involves the process of marketing digitally, selling, and distribution of goods through online mediums. Ecommerce is supported by digital technologies like social media platforms, mobile apps, e-wallets, search engines, etc.

eCommerce operations are basically the various operation in business that require to be organized and managed for more successful eCommerce transactions.

Here are some of the most important e-commerce operations

Inventory Management

One of the most important aspects of e-commerce is inventory management. This refers to the process of ensuring you have the right amount of stock on hand to meet customer demand. Too much or too little stock can lead to lost sales and profit.

E-commerce operations managers use inventory management software to track stock levels and make decisions about reordering stock. They also work with suppliers to ensure that products are delivered on time and in the correct quantities.


Logistics is the process of getting products from suppliers to customers. It can include shipping, storage, and fulfillment. All e-commerce companies must decide how they will fulfill orders.

Some sell products directly from their own warehouses or storage areas to reduce costs.

Others work with third-party providers who are experts in logistics to handle this aspect of the process.

Customer Service

E-commerce operations managers oversee customer service.

They make sure that web and mobile shoppers are able to access the site easily, find what they want quickly, and complete transactions with ease.

In addition, they ensure customers have a positive experience throughout the purchase process as well as after their purchase including returning items, getting refunds, and resolving any customer service issues.

E-commerce operations managers are responsible for making sure that the shopping experience is smooth and easy for customers while also ensuring that the business is running efficiently.

By using the key functions of inventory management, logistics, and customer service, they can help your business succeed in the online marketplace.

Importance of operations management in e-commerce?

As online sales continue to grow, the role of operations administration in e-commerce is becoming increasingly critical.

While traditional sales operations management focuses on maintaining inventory levels and buffer stocks to meet demands.

It expands the scope of such functions by including aspects such as electronic sales, internet marketing, and logistics management.

A well-planned process aims to meet customer demands by creating optimal inventory levels, while simultaneously minimizing operational costs.

Control of operations typically involves the following:

  • measuring performance against targets
  • identifying significant factors that cause variation
  • making decisions to control operations
  • monitoring actual performance against control limits

Planning may involve allocating resources for production to match inventory targets with sales forecasts based on product segmentation, geographical distribution, seasonality, and historical demand patterns.

Control may entail planning production schedules so as not to overproduce or underproduce materials.

Alternatively, businesses can employ just-in-time (JIT) methods aimed at reducing work in progress (WIP). JIT is a process management strategy involving the rapid turnover of finished goods.

Common job duties of an eCommerce operations manager?

An entry-level eCommerce Operations Manager can perform clerical tasks such as answering phones, taking messages, filing paperwork, sending a fax, or entering data into a computer.

A more experienced eCommerce Operations Manager may be responsible for the following:

  • Developing and managing policies and procedures related to all aspects of eCommerce
  • Overseeing customer service
  • Managing inventory
  • Coordinating logistics
  • Tracking sales and analyzing data
  • Managing internal and external resources

Qualifications required to be an eCommerce Operations Manager?

A bachelor’s degree in a business-related discipline such as marketing, finance, economics, business administration, or management is usually required.

Strong written and verbal communication skills are essential since you will often work with employees from a variety of departments as well as with external vendors

Excellent computer skills, including knowledge of typical office software.

What are Multichannel automated operations in e-commerce

Multi-Channel automated operations allow the business to manage orders and inventory through a single system, regardless of the selling channel.

Channel automation is the process of automating business processes across multiple sales channels.

With multichannel automated operations, you can streamline your eCommerce business processes and improve your customer service.

When customers purchase from you through multiple channels

  • You can view each customer’s order history
  • Because of the differences between eCommerce and brick and mortar businesses, some companies have chosen to handle inventory separately.

However, multichannel automated operations allow for easier inventory management by entering product data only once.

What is the difference between e-commerce and e-business?

In e-commerce transactions are limited to just online purchase/sale of products/services from one website to another website, usually from retail companies (eg., Flipkart) Internet users (ie., consumers).

In e-business transactions are not limited as the Internet can be used as a medium for any kind of business such as banking, stock market trading, etc.

The difference between e-commerce and e-business is that all types of businesses are made online in e-business, whereas only online purchase/sale of goods/services is done in e-commerce.

E-commerce can be also defined as the buying and selling of products or services through electronic transactions over the Internet.

The difference between a business and commerce is that a business commonly earns profits while a commercial enterprise serves other goals besides profit generation.

So now you understand the difference between commerce and business as it is revolutionized with the internet if you do it online you have to extend it with E (electronic) like E-Commerce and E-Business.

Let’s talk about the

Strategies to improve your eCommerce operations

One of the first steps to improving your eCommerce operations is to understand your current business processes and identify any areas that can be improved.

You should then establish a plan for implementing those changes, including who will be responsible for each task. The following strategies will help you improve your eCommerce operations:

  • In order for any e-commerce company to operate effectively from an operational point of view, levels on eCommerce products in your system to make sure you can always fulfill customer orders.
  • If inventory control is not properly handled then no matter how well your overall operations strategy is performed some customers will probably be very unhappy down the road.
  • An additional part of an e-commerce operations strategy that has also become more important over the last few years is warehouse management which deals with setting up a high-tech operation where goods are shipped out quickly and efficiently.
  • With warehouse management, goods are sent directly to occupied shelves or kept in storage until they are ready for shipment so you get the most use of each sq foot of space available in they need an annual plan to follow that coordinates with all areas of theirs.

This plan will ensure you are able to create a year-round promotion strategy, competitive price strategy, and customer service levels that are consistent with their brand image.

This is the main priority of the annual e-commerce operations strategy so you must be careful not to stray from it or try to take any shortcuts as this will only cause your company harm down the road.

The other important part of an e-commerce operations strategy is handling things like inventory control which deals with tracking all the products that enter into your system for sale. You should set up an Inventory Control that deals specifically with monitoring the inventory of e-commerce products you sell.

Inventory control should include serialized ID tags, barcodes, or other tracking systems that allow your company to monitor the status of each product as it moves through the system.

With this type of technology, your company can reduce its losses due to shoplifting, loss, damage, and obsolescence which will help to improve both customer satisfaction levels as well as employee morale too.

You should also create an effective distribution scheme for all your products so they are delivered wherever they are needed according to the needs of every customer who orders from their website or calls about them in person.

eCommerce Operations FAQs

What is e-commerce operations?

E-commerce operations encompass all aspects of running an e-commerce company, including fulfillment, marketing, product development, and many other days to day tasks that combine into what you might consider the important “back office” to an online retailer.

What are some typical salaries for eCommerce Operations managers?

Entry-level positions usually pay between $45,00 to $55,000 per year.
While an experienced eCommerce Operations Manager can make $75,000 to $115,000 per year.

What is an ecommerce operations manager

An eCommerce operations manager is responsible for ensuring customer satisfaction by managing the front-end logistics of their business. This includes everything from inventory to customer feedback and fulfillment, through ethical pricing schemes.

How eCommerce operations can be improved?

1. Get off the fence and choose the right platform for your business
2. Make sure you send out product updates to correctly reflect any pricing changes or other substantial things concerning your products while you’re busy building inventory
3. Never let your online store show lower prices than in-store prices, even if it’s wrong on occasion, this will create a false environment where buyers think you offer better deals elsewhere when they inconveniently purchase later from another retail channel at a higher price point
4. Ensure that your order management software has good inventory tracking capabilities to keep track of your business within the store

What is an ecommerce operations specialist?

An eCommerce operations specialist is an employee whose job revolves around the operations of an online business.

what does an ecommerce operatins specialist do

Ecommerce operations specialists do exactly what it sounds like. They support the ecommerce arm of a company, which means everything from merchandising products to understanding customer behavior and figuring out how to break into new markets. This person is usually in charge of making sure that both online and offline transactions are running smoothly while also creating new processes or coming up with innovative solutions for problems.

How to write operations plan for ecommerce startup

To do this, you will need a system that can handle a large volume of customer orders without losing track of what it’s doing. The best way to go about this is to make sure your company can handle the demand with its current resources and technology- or lack thereof. You’ll then want to start adding technology as necessary and scale up your staff as needed.

How to scale ecommerce operations

In order to scale your eCommerce operations, you need to plan strategically from the beginning. The first thing is deciding if you want a system that is self-hosted or hosted on a platform like Shopify, WooCommerce & Bigcommerce. The differences are significant, but the decision should be based on your goals, not just technicalities. You have to know that you can customize self-hosted systems, but it takes more work.


The strategies to improve your eCommerce operations will help you get organized and increase customer satisfaction. You can use these approaches for any type of business, whether it’s an online store or not.

One way is by creating a distribution scheme that delivers products where they are needed according to the needs of customers who order from their website or call about them in person.

We hope this information will help you improve your eCommerce operations.

Leave a comment below if you have any questions about eCommerce operations! Thanks for reading! 🙂

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