The world of eCommerce has undergone significant changes over the last few years. With global online sales surpassing $6.3 trillion this year, the sector continues to expand at an unprecedented pace, fueled in part by the pandemic and shifts in consumer behavior. Shopify, a major player in this transformation, reported $2 billion in Q2 sales alone this year.
Behind this eCommerce surge, however, lies a complex infrastructure of tools and services—known as the Modern Operations Stack—that helps businesses manage their day-to-day operations. These tools, often software-driven, have streamlined everything from procurement and transportation to customer service and accounting, ensuring that businesses can keep up with global demand and scale their operations smoothly.
What is the Modern Ops Stack?
The Modern Ops Stack is a suite of tools that enables businesses to manage physical inventory and operations more effectively. These tools span the entire supply chain, providing businesses with the technology to streamline complex processes such as procurement, fulfillment, transportation, and customer experience. Over the past decade, companies across these domains have developed solutions that integrate seamlessly into the eCommerce landscape, allowing businesses to operate with greater visibility and efficiency.
Key Components of the Modern Ops Stack
Procurement
Managing procurement can be a logistical challenge for eCommerce companies. Selecting manufacturers, handling production schedules, and tracking shipments across global networks often involve countless emails and spreadsheets. There are tools that have simplified procurement by offering production management and supply chain visibility solutions. These tools enable companies to manage complex procurement processes without the need for additional staff, helping businesses remain agile.
Inbound Transportation
Shipping is one of the most intricate components of supply chain management, requiring coordination across multiple parties such as manufacturers, customs officials, hazardous materials specialists, truck carriers, and ocean freight brokers. Moving goods globally often involves navigating numerous logistical hurdles at each stage of the process.
Flexport, a leader in the field since its founding in 2013, has developed a comprehensive platform that combines technology with a team of expert freight managers. Their team’s deep knowledge, ranging from pandemic-related impacts on shipping in Asia to labor negotiations in North America, helps businesses overcome these challenges. Flexport has also expanded its offerings by launching a trade finance division and investing in logistics startups to further support companies in their network.
For domestic trucking, companies like Loadsmart (established in 2014) and Transfix (founded in 2013) have simplified the process of connecting shippers with carriers. By leveraging technology to create vast networks, these platforms enable businesses to optimize capacity and streamline their transportation operations.
Warehousing and Fulfillment
Fulfillment remains a critical aspect of eCommerce operations. While core functions like receiving, picking, and packing are standardized, companies like Stord and ShipBob have revolutionized how warehouses operate by connecting directly with platforms like Shopify. This allows businesses to maintain seamless fulfillment operations while enhancing visibility into their inventory across channels.
Outbound Transportation
Shipping solutions are dominated by familiar players like USPS, UPS, and FedEx, but emerging companies like Veho and are helping eCommerce brands compete with fast shipping promises. These companies have developed proprietary networks that enable two-day delivery, ensuring businesses can meet consumer expectations for speed.
Tracking & Reverse Logistics
Shipment tracking has become vital for both businesses and customers. Tools like NarVar, AfterShip, and EasyPost allow eCommerce companies to track shipments in real time, improving customer transparency and delivery reporting. In addition, companies like Loop Returns are simplifying reverse logistics, helping businesses manage returns more efficiently while reducing operational costs.
Customer Experience
Customer service tools have also evolved to meet eCommerce’s unique demands. Solutions like Gorgias and Kustomer integrate directly with eCommerce platforms, enabling businesses to engage with customers across multiple channels—whether via email, social media, or even text messages. This ensures that companies can provide a consistent and responsive customer experience, building stronger relationships with their buyers.
Accounting
Accounting software has seen less disruption compared to other parts of the stack, with QuickBooks and Xero remaining dominant players. However, newer solutions, like Bench, cater to small businesses, offering integrated tools that connect accounting functions directly to procurement, transportation, and fulfillment systems.
The Power and Pitfalls of the Modern Ops Stack
The Modern Ops Stack has undeniably made running an eCommerce business easier, especially for smaller teams that don’t have the resources to manage logistics in-house. By relying on these tools, businesses can streamline operations, scale quickly, and enter markets that were previously inaccessible.
However, the ease of outsourcing operations has also created a disconnect between many eCommerce companies and their operational costs. With so many moving parts handled by third-party platforms, businesses can lose sight of key metrics like material costs, shipping fees, and warehousing expenses. This lack of visibility can make it difficult for companies to assess their true profitability.
Maximizing the Modern Ops Stack
To make the most of the Modern Ops Stack, businesses must focus on three key areas:
Real-time Visibility
While many tools offer real-time visibility, data can still be fragmented across multiple platforms. Centralizing that data is crucial for getting a true, up-to-the-minute view of your operations. Whether you’re tracking inventory levels or monitoring shipments, having all information in one place will improve decision-making.
Operational Intelligence
Operational intelligence goes beyond raw data—it’s about connecting insights across different systems. For instance, knowing when to reorder a product requires understanding current stock, past sales trends, and future marketing plans. By connecting these data points, businesses can make smarter, faster decisions that positively impact both the bottom line and customer satisfaction.
Unified Business Modeling
Ultimately, understanding the cost of running an eCommerce business means integrating data from every stage of the supply chain. Businesses need to centralize data related to manufacturing, shipping, warehousing, and fulfillment to get a complete picture of how much each product costs and what margins look like. Only by unifying all this information can businesses optimize their operations and profitability.
Settle: At the Heart of Your Modern Ops Stack
At Settle, we’re helping eCommerce businesses manage their financial operations more efficiently by integrating directly with the tools you already use. From procurement to fulfillment, we provide a unified platform that helps businesses automate key processes like order tracking and cost forecasting, giving you the visibility you need to make informed decisions.
If you're ready to get more control over your operations and financials, Settle is here to help. Reach out to us today.
