Just as technology has changed the way we buy things, it’s also changed the way we ship them. In this blog, we’ll look at how enterprise e-commerce logistics is evolving to meet the demands of high-volume shippers in a growing, customer-led e-commerce industry.
According to Australia Post’s 2025 eCommerce Report, 2024 broke eCommerce records with 9.8 million households spending more than $69 billion online. This dramatic shift put pressure on our national supply chain and forced major logistics landscape changes. While some carriers rose to the challenge, others struggled to maintain pace.
But regardless of how stretched the system has been, customer expectations have only increased. Today, delivery is no longer just a functional step in the purchase journey – it’s a competitive advantage.
Gary Starr, Executive General Manager Business, Government & International Australia Post, said in Australia Post’s 2021 Delivery Experience Report:
“Shoppers’ expectations have shifted, and the delivery experience is increasingly becoming the defining element of the online retail experience, making it critical that retailers get it right.”
What Is Enterprise E-commerce Logistics?
All e-commerce businesses need product storage, a warehouse, delivery services, and a way to manage operations efficiently. At the enterprise level, e-commerce logistics becomes more complex, involving sophisticated warehouse management systems, inventory management, and route optimisation.
Small businesses have plug-and-play logistics solutions for platforms like Shopify or WooCommerce. But enterprise-level e-commerce companies need logistics providers that offer scale, real-time tracking, analytics, and automation capabilities.
There are two major types of enterprise e-commerce businesses: B2C (business-to-consumer) and B2B (business-to-business). While their customers differ, they both face supply chain challenges that require robust logistics operations and management systems.
How Logistics Works for Australian Enterprise E-commerce
B2Bs and B2Cs may have very different needs and very different customers – but from a supply chain perspective, they’re actually quite similar.
Behind the scenes of the biggest retail brands (with e-commerce arms) in Australia – think sausage sizzles or your favourite uncle Dan – there’s an intricate network of warehouses and carriers. Some may operate with one centralised warehouse, and just one or two carriers. Others may have a warehouse in every capital city, and up to 20 different carriers depending on the job. It’s simply a matter of freight volume and geography.
As these organisations grow, the question becomes how they manage their inbound freight from suppliers domestically and overseas (if they don’t make their products) and how/where they receive and store their products for the lowest price and quickest delivery (if they do).
On the sending side, it’s all about creating and maintaining good relationships with carriers, juggling multiple rate cards and being on top of invoicing so everything matches up at the end of the month, and there’s no money left on the table as a result of carrier invoice miscalculations.
These are deep operational challenges that enterprise e-commerce businesses must constantly strategise for. Enterprises must balance inbound and outbound freight to optimise performance and improve supply chain visibility. Key areas of focus include:
- Freight from local and international suppliers
- Warehouse locations for delivery efficiency and cost reduction
- Carrier selection, rate card management and invoice auditing
- Customer satisfaction via fast delivery and transparent shipment tracking
The result is a complex logistics process that requires predictive analytics, automation, and the ability to adapt quickly to market changes and high demand.
Top E-commerce Logistics Challenges for Enterprise Businesses
As the e-commerce logistics market matures and customer expectations grow, enterprise businesses face mounting pressure to deliver faster, cheaper, and more efficiently. But doing so isn’t without its hurdles. From fragmented systems to rising costs and inventory visibility issues, here are some of the most pressing logistics challenges enterprise businesses must navigate today:
- Rising delivery costs
- Need for fast, accurate fulfilment and last-mile delivery
- Inventory management and order visibility
- Handling reverse logistics and managing returns
- Meeting customer expectations and enhancing the delivery experience
- Lack of integration between systems
- Managing relationships with multiple logistics providers
- Sustainability and the environmental impact of logistics operations.
Addressing these issues requires thoughtful logistics planning, greener delivery solutions, and careful evaluation of partners’ environmental practices – all of which tie into an enterprise business’s broader logistics model.
Common Logistics Models for Enterprise E-commerce
In-house logistics
Some enterprise e-commerce businesses manage their logistics in-house. They often do this because they are committed to owning the entire customer experience.
In this scenario, you’d have a team that receives goods, somewhere to store them, and people to pick and pack them when an order is made. Then, you’d partner with your business’ preferred local parcel courier and bulk freight carrier combination – say, Australia Post, DHL, and CouriersPlease – who collect the orders and deliver them to your customers.
You can even take it a step further, like Amazon, and take over the actual delivery of the orders, but that’s an extreme case.
Bringing logistics in-house has benefits, but cost isn’t one of them. Knight Frank’s analysis shows that every $2 billion (AUD) of online sales requires approximately 1.36 million sq ft of warehouse space.
Dropshipping
Dropshipping is used to minimise inventory requirements, holding stock at the supplier and shipping direct from supplier to customer, it’s an interesting tactic and worth mentioning here.
It’s a relatively simple setup whereby the retailer doesn’t ever see the items they’re selling. Once a purchase is made, it’s sent from the manufacturer (who may be in another country) to a third-party provider who takes care of the rest. Many third-party logistics providers (as we’ll mention below) offer this as part of their service.
While dropshipping is simple and hands-off for the retailer, it has its downsides. For one, you’re not in control of the carrier relationship, so you can’t be sure you’re getting the best shipping rate. You also don’t have any contact with the product – so if you’re selling a faulty batch of products, you won’t know until the returns start piling up.
Third-Party Logistics (3PL)
A 3PL partner takes over storing, picking, and sending inventory for you. You send your products to their warehouse, and they do the rest – dealing with carriers and looking after customs brokering, freight forwarding, contracts, and more (depending on the provider).
This is great for high-volume businesses that don’t have a lot of space or don’t want to deal with the hassle (and resource drain) of managing their logistics function themselves. Your 3PL partner will have their own relationships and rate cards with carriers, so you should get a good rate.
You do lose some flexibility and agility around freight and returns, but that’s the price of handing it over.
Fourth-Party Logistics (4PL)
A 4PL logistics provider is less about physical infrastructure and more about relationships and business strategy.
To work with a 4PL you’ll need to have a few parts of your supply chain already in place – for example, a warehouse, and staff to manage goods and pick orders. Your 4PL partner will take it from there.
This is a good option if your volumes are high, but you’re not getting the best rates from your carriers.
Read more about the difference between 3PL and 4PL providers (and which you should choose) here.
Why Enterprise Businesses Choose MachShip
MachShip is a freight management platform designed to optimise logistics operations for all e-commerce businesses. Our API and integration capabilities seamlessly connect with your warehouse management systems, ERP platforms, and major carriers to enhance supply chain visibility and operational efficiency.
We integrate with leading e-commerce platforms like Shopify and WooCommerce, and link with 3PLs, 4PLs and almost every carrier in Australia – so whatever logistics solution you’re using, we can help streamline your operations.
Our platform helps enterprise e-commerce businesses:
- Streamline logistics processes: Automate quoting, booking, and shipment tracking.
- Enhance customer experience: Provide real-time tracking and branded delivery notifications.
- Optimise freight spend: Select the best carriers, audit invoices, and model logistics costs.
- Improve customer service: Equip support teams with visibility into every shipment and delivery system.
Whether you’re managing a complex e-commerce supply chain or navigating the challenges of last-mile delivery, MachShip helps you handle logistics with confidence and efficiency.
Ready to Overcome E-commerce Logistics Challenges?
Book a demo now with one of our cloud logistic consultants to find out if MachShip can save you time and money.
Frequently Asked Questions (FAQs)
What are the challenges in e-commerce?
Common challenges include delivery delays, inventory management, customer experience, and the rising costs of logistics operations.
What is logistics in e-commerce?
Logistics in e-commerce refers to the processes involved in managing the storage, shipment, and delivery of products from seller to customer.
What is the challenge of logistics?
Logistics challenges often include high costs, lack of visibility, inefficient systems, and complexity in managing multiple carriers and routes.
What are some important issues in logistics?
Important issues include supply chain visibility, demand for last-mile delivery, route optimisation, warehouse management, and meeting consumer expectations.