Full Speed Ahead: Logistics & E-commerce

Full Speed Ahead: Logistics & E-commerce

With the advancement in technology came the rapid increase of e-commerce. Retailers have taken note and increased offerings from the typical fare such as clothing and general merchandise, to medicine and fresh produce. That being said, over the past few years, the growth of delivery services has grown immensely. In fact, there have been 53 million to 106 million transactions from 2011 to 2015.

The demand for the online products is rapidly increasing because it is more convenient for the customers. If all you had to do is click a button and the products of your choosing were delivered to their doorstep, wouldn’t you take it? The answer is a resounding yes. To the point where this often becomes hard for small independent retailers, to big conglomerates to manage. But there are some ways in which they are trying to keep up.

Proximity

Most of the ecommerce stores are building their warehouses near their target market.

  • It helps them to deliver the products quickly
  • They can offer quickly deliver the products to their customers
  • They have the services only for the local customers because they know that they can manage them easily.

In addition, the close proximity enables them to employ the follow delivery methods.

Last Mile Delivery

There are many ecommerce stores that are providing the last mile delivery. In this service, they set a time limit in which they have to deliver the products and late delivery never happened. Most of the delivery service providers have claimed that 50% of their local delivers were the last mile delivery. These are easily manageable by the ecommerce business owners and they get the chance to win the trust of their customers.

Same Day Delivery

One of the most famous types of delivery is the same day delivery. In this process in which if customers place the order within the given time, they will get the delivery within 24 hours. Some of the business owners offer these services as the emergency delivery in which customer can place the order anytime they like. With the introduction of the intelligence system, the growth of same-day delivery by 2018 will grow to $3 to $4 billion.

It seems that everything is slowly becoming an online transaction or part of a delivery service. What’s interesting to keep in mind is we haven’t even reached peak saturation. In order for retailers to remain competitive they must find a way to get their product in the customers hands faster and more efficient than ever.


Author:  Christine Duff

Christine wants to live in a world filled with cutting edge fashion, beautiful words and and an endless supply of leather jackets and boots. A product development grad of FIDM, she was the Editor-in-Chief of MODE Magazine where she reignited her love of storytelling. She has diverse experience within the industry with trend research, art direction and styling editorial spreads. She gained her most notable experience working in Los Angeles at the satellite operation for GQ and Vogue Thailand. Christine is passionate about social science and the role it plays in the consumer goods industry and apparel in particular.


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