In this interview, Maimoon Saleem, Pathways Operations Manager, analyses the essential role of operations in e-commerce platforms. Operations as a function is becoming central to business performance and managing high-order volumes and complex logistics. Maimoon, the tech and operations specialist, discusses how an efficient operational infrastructure sets successful platforms apart, what challenges they face, and what the future of operations will look like.
Can you explain what you mean by “the invisible backbone” of e-commerce?
The invisible backbone of e-commerce refers to the behind-the-scenes infrastructure that frames every online store while remaining unseen by customers. The infrastructure includes data storage, backend and payment systems, and logistics. E-commerce competition is intensifying. Besides Amazon, there are many influential players, such as Walmart, Mercado Libre, and Shopify. Therefore, creating a strong and adaptable operational infrastructure is necessary. I foresee this not being a nice-to-have but table stakes in the next 2-3 years.
How do efficient operational processes differentiate successful e-commerce platforms from their competitors?
Successful e-commerce platforms are marked by reduced costs, fast order fulfilment, and improved customer satisfaction. Many operational tools and ways exist for platforms to develop a significant competitive advantage. This includes advanced analytics (identifying common return patterns through data analysis and monitoring delivery timelines) that can improve inventory management and logistics. On the other hand, the most recent AI technologies (customer behaviour to predict future demand more accurately) allow platforms to optimise personalised marketing, which helps develop platform loyalty.
What technologies do you believe are most important in optimising operations for e-commerce businesses?
Building on the previous answer, the most influential technology now is AI. Besides the benefits mentioned earlier, there are other fields where this technology is making a change. In customer support, chatbots and 24/7 virtual help answer FAQs and assist with order tracking and returns. Visual search allows customers to upload images and find visually similar products (used by retailers like ASOS and IKEA). In security, AI detects unusual buying patterns to prevent real-time fraud. AI is already integrated into various areas of e-commerce businesses and will continue to improve them.
What are some common operational issues e-commerce companies have today, and how can they overcome them to remain competitive?
E-commerce companies overcome many operational challenges, the most difficult of which are managing high order volumes and complex logistics. Online shopping is expanding daily, and more people are opting to shop online rather than in regular shops, saving time. As a result, companies must process thousands of transactions daily, and peak periods like holidays or sales events are incredibly challenging.
Concerning logistics, international shipping must comply with customs regulations and local laws. Additionally, in the last-mile delivery, the part I am responsible for at Amazon, the need to reduce carbon emissions, especially in urban areas, is gaining importance.
To solve these problems, companies invest in AI and automation (automated order management, for example) and partner with logistics tech providers, like Flexport, ShipStation, and NetSuite, to integrate warehouse and shipping data for real-time decision-making. Major e-commerce players are partnering with electric vehicle manufacturers to move from internal combustion engine fleets to electric ones. Companies that remain abreast of the developments and allocate funds to automation, electrification, and smart logistics will lead the next era of digital commerce.
In your experience, how important is collaboration between operational teams and other departments (like marketing, tech, and customer service) in e-commerce?
Collaboration between operational teams and marketing, tech, and customer service is vital for e-commerce. Without alignment across teams, delays and miscommunications arise even when operations work effectively.
Marketing needs inventory insights for timely promotions, tech must support order processing, and customer service cannot work without all information from departments about products and their updates.
Companies can only provide faster delivery, clear communication, and a positive customer experience when these teams collaborate. So, working together is not optional but fundamental in the long run.
How do you see the role of operations in the e-commerce field over the next five years?
We will see a greater dependence on AI and predictive analytics in e-commerce businesses. These will continue optimising fulfilment, reducing waste, and personalising delivery. Moreover, as customer expectations for speed rise, the perception of operations teams would transform from backend support to the central wheels of customer experience. Finally, last-mile innovation will be a top priority for these businesses, especially given the growing demand for delivery on the same day.
In a nutshell, the future of e-commerce will be driven by AI and big data analytics.
