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Descartes’ Annual Ecommerce Study Shows Online Buying Grows but 67% of Consumers Face Delivery Problems

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Global Logistics, Global Trade Daily, News

Descartes’ Annual Ecommerce Study Shows Online Buying Grows but 67% of Consumers Face Delivery Problems

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ATLANTA, Georgia and LONDON, U.K. May 7, 2024 (GLOBE NEWSWIRE) — Descartes Systems Group, the global leader in uniting logistics-intensive businesses in commerce, released findings from Online Buying Grows, But Too Many Consumers Still Experiencing Delivery Woes, its third annual consumer sentiment study of ecommerce home delivery. The study shows that 39% of respondents made more online purchases in the period surveyed this year compared to last year, and that 57% made purchases in at least one new product category this year. While the study revealed that consumers in every demographic are increasing the volume and frequency of their online purchases, 67% of those surveyed encountered delivery problems. 

Read also: Descartes Releases April Global Shipping Report: March Volumes at Top West Coast Ports Increase Significantly

What’s more, delivery issues were also cited in the study as a potential barrier to future online buying. When consumers were asked what would put them off making more online purchases in the future, 21% indicated they have had negative delivery experiences, 20% said deliveries are not reliable and 17% have been dissatisfied with the delivery process. Additionally, according to the study, 63% of those who experienced delivery problems took some form of action that had negative consequences for the retailer or delivery company (see Figure 1). 

Figure 1: Consumer actions in the face of delivery problems

Source: Descartes & SAPIO Research

“While the third year of this study reveals the industry is achieving small, year-over-year improvements across a number of dimensions related to home delivery performance, the level of consumer dissatisfaction remains high,” said Chris Jones, EVP Industry at Descartes. “Mediocre delivery performance and inconsistent delivery experiences are, however, solvable problems. There are market proven strategies, operational best practices and technology solutions that retailers and delivery companies can consider to cost-effectively provide an optimal home delivery experience tailored to consumers’ delivery preferences.” 

Descartes and SAPIO Research surveyed 8,000 consumers in Europe and North America on their ecommerce buying behavior during the first three months of 2024. The goal was to gain a comprehensive view of the state of ecommerce and home delivery performance by understanding, for example, the reasons for increases or decreases in ecommerce purchases, the different types of goods purchased, the frequency of purchases, delivery preferences, delivery experiences and the impact of delivery failures on retailers and their delivery agents. The study also examines how consumer behaviors and perceptions vary across demographics. For the full report, read Online Buying Grows, But Too Many Consumers Still Experiencing Delivery Woes. 

Learn more about Descartes’ Home Delivery Solutions and its Ecommerce Shipping & Fulfillment Solutions. 

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Global Logistics, Global Trade Daily, News

Ecommerce Logistics: Challenges and Solutions for 2024

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As an ecommerce business, you’ve probably experienced the following scenario: 

Your customer finds the perfect product on your site, buys it, and excitedly awaits its arrival. But then, disaster strikes – the package gets lost, arrives late, or is damaged.

Read also: Fulfillment in Logistics: How Does It Work and Why Is It Important in Ecommerce?

Cue the dreaded negative review and a potential loss of future sales. 

Sound familiar? If so, you’re not alone. Research claims that about 20% of online purchases fail to be delivered to the customer.

As 2024 further unfurls, the challenges in ecommerce logistics are evolving, but so are the solutions. In this article, we’ll break down the top logistics hurdles that online retailers face today and provide you with battle-tested solutions to conquer them.

1. Managing Seasonal Spikes in Demand

For businesses like Balsam Hill, which specializes in Christmas decorations, managing the dramatic rise in demand during the holiday season is a massive challenge.

The seasonal spike can lead to inventory shortages, overwhelmed shipping processes, and stressed customer service teams. This surge, while profitable, demands precision planning and robust logistics to ensure that the joy of the season isn’t dampened by operational hiccups.

To successfully navigate seasonal demand fluctuations, here’s a clear plan of action:

1. Improve demand forecasting.
Utilize historical sales data to predict future demand accurately. Tools that analyze trends and patterns can help forecast what you’ll need to meet customer expectations without overstocking.

2. Strengthen supplier relationships.
Build strong partnerships with suppliers to ensure they can meet your increased needs when the season peaks. Consider negotiating for flexible terms that allow for last-minute adjustments based on actual demand.

3. Leverage technology for inventory management.
Implement advanced inventory management systems that update in real time. This technology helps track stock levels across multiple locations, ensuring that you can redistribute resources swiftly if certain items run low.

4. Expand your fulfillment strategy.
Include multiple shipping partners and consider temporary fulfillment centers closer to your main markets to speed up delivery times and manage costs effectively.

By adopting these strategies, companies can transform the challenge of seasonal peaks into an opportunity for streamlined operations and enhanced customer satisfaction.

2. Minimizing Risk when Handling High-Value Returns 

For luxury brands like Hermès, known for their exquisite bags and apparel, managing returns efficiently, especially for high-value items, poses a unique challenge. The process needs to be quite careful to maintain product integrity and customer satisfaction.

The stakes are high – a mishandled return can damage both the product and the brand’s reputation, not to mention the financial losses involved.

To effectively handle high-value returns, here’s a strategic approach:

1. Streamline the returns process.
Create a clear, straightforward returns policy that’s easily accessible to customers. Simplify the steps involved in returning a product, but ensure each step maintains the highest security and quality checks.

2. Quality control checks.
Implement rigorous inspections upon return to ensure products maintain their condition and authenticity. This step is vital for luxury items to ensure they can be resold at maximum value or properly restored if necessary.

3. Enhanced packaging solutions.
Invest in high-quality, durable packaging for returns. This ensures the item is protected during transit and maintains its premium condition.

4. Leverage technology for tracking.
Use advanced tracking systems that allow both the company and the customer to monitor the return shipment. This transparency reduces customer anxiety and improves the return process.

By employing these solutions, companies can manage high-value returns effectively, preserving their brand’s prestige and maintaining customer loyalty.

3. Effectively Delivering and Installing Outdoor Structures

Companies that design and sell outdoor structures, like Pergola Kits USA, face the challenge of ensuring that delivery and installation are seamlessly coordinated.

This is essential for this niche, where timing and proper assembly directly impact customer satisfaction. The complexity increases with the size and customization of each order, requiring precise logistics planning to ensure all components arrive on time and in perfect condition.

To tackle the difficulties of delivering and installing large outdoor structures, brands can implement these actionable strategies:

1. Optimized logistics planning.
Use advanced logistics software to plan and track delivery routes efficiently. Ensure that delivery schedules are tightly aligned with installation appointments to avoid delays or miscommunications.

2. Detailed installation guides.
Provide comprehensive, easy-to-understand installation guides with each kit. Consider creating online video tutorials that customers can access via QR codes directly from their packaging.

3. Customer communication portal.
Establish a dedicated communication channel, such as a customer portal, where customers can track their delivery status, access installation guides, and communicate directly with support teams.

4. Training for installation teams.
Regularly train your installation teams on the latest assembly techniques and customer service practices. This helps meet high-quality standards and speeds up the installation process.

Focusing on clear communication and enhancing your logistical coordination can go a long way in ensuring that every customer enjoys a hassle-free installation experience.

4. Shipping Oversized Items in Bulk

Bulk-shipping large products is another huge challenge in ecommerce logistics that’s also particularly common in the outdoor structures niche.

Companies like Greenhouse Emporium, which specializes in gardening and greenhouse supplies, often grapple with the difficulties of transporting large, bulky items efficiently and economically.

These products require more space and careful handling, which can significantly increase shipping costs and logistical complexities.

Here’s how to tackle this challenge effectively:

1. Optimize packaging design.
Develop custom packaging that fits the specific dimensions and shapes of your products. Efficient packaging reduces wasted space and can lower shipping costs by fitting more items into each shipment.

2. Leverage freight consolidation.
Combine shipments through freight consolidation. This method allows multiple orders to be shipped together, maximizing space usage in transportation vehicles and reducing costs.

3. Select the right transportation partner.
Choose logistics partners with experience in handling large shipments. Look for carriers that offer flexibility in load sizes, have a good track record with bulky items, and can provide scalable solutions as your business grows.

4. Implement advanced routing software.
Use routing software to plan the most efficient delivery routes. This technology helps in reducing delivery times and fuel costs by optimizing driver routes.

Focus on these areas, and you can improve the logistics for bulky items, enhancing efficiency and customer satisfaction while controlling costs.

5. Safely Shipping Fragile Items across the Globe

Shipping fragile items internationally presents a real challenge in ecommerce logistics.

Products like artisan ceramics and home decorations, such as those offered by Katharine Pooley, require extra care due to their delicate nature. Mishandling during transit can result in damaged goods, leading to customer dissatisfaction and costly returns.

Here’s how to ensure fragile items reach their destinations intact:

1. Invest in premium packaging.
Use high-quality, robust packaging materials. Opt for a double-boxing method where the item is placed in a smaller box, which is then secured inside a larger box with ample cushioning like foam or bubble wrap.

2. Choose specialized carriers.
Partner with shipping carriers that have expertise in handling fragile items. Evaluate their handling procedures and opt for those that offer specialized services for delicate goods rather than choosing based on cost alone.

3. Secure shipping insurance.
Always insure your shipments. Clearly communicate to your customers that all fragile items are insured, enhancing their confidence and trust in your service.

4. Monitor and adapt.
Continuously monitor the shipping process and solicit customer feedback on the arrival condition of their items. Use this data to tweak and improve your packaging and handling processes regularly.

By implementing these steps, companies can minimize risks and ensure that their valuable, fragile products arrive safe and sound.

6. Dealing with Supply Chain Disruptions

Supply chain disruptions can significantly impact businesses that rely on specialized materials, such as Loro Piana, a premium fashion brand known for its high-quality clothing, shoes, and accessories.

These products are crafted from unique materials and fabrics sourced authentically from specific regions, making the supply chain complex and sensitive to disruptions. Whether it’s due to political instability, natural disasters, or pandemics, any interruption can delay production and affect sales.

Here’s how businesses can approach this challenge:

1. Diversify suppliers:
Avoid reliance on a single supplier by diversifying your sources. This strategy can help mitigate risks if one supplier faces a disruption. Establish relationships with multiple suppliers in different locations for the same raw materials.

2. Enhance inventory management.
Implement robust inventory management practices. Use forecasting tools to predict demand more accurately and maintain safety stocks of key materials to buffer against supply chain disruptions.

3. Strengthen supplier relationships.
Build strong, collaborative relationships with your suppliers. Regular communication can help anticipate potential disruptions and quickly find solutions. Consider long-term contracts to ensure a more stable supply chain.

4. Invest in supply chain visibility.
Use technology to gain real-time visibility into your supply chain. Systems that track materials from source to production can alert you to delays or issues early, allowing for quicker response times.

Implement these steps to successfully manage your unique supply chain. That way, you’ll be able to maintain the quality and availability of your premium products, even in the face of disruptions.

Final Thoughts

The strategies we’ve discussed here are more than solutions. They’re opportunities to transform your operations and lead your market.

Don’t wait for the next disruption to force your hand. Take proactive steps today to fortify your logistics, enhance customer satisfaction, and secure your business’s future.

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Global Logistics, Global Trade Daily, Uncategorized

Revolutionizing National Postal Operators: A Strategic Move into E-commerce Logistics

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National postal operators have been tracking a decline in mail activity for years. This declining market share may have started with the rise of email, but it has taken a precipitous downward trend during the pandemic. When e-commerce activity increased during the COVID-19 era, integrators like UPS, FedEx, and DHL were well positioned to handle the ramp-up in parcel activity, taking even more work from national postal operators. To counter this lack of activity, postal operators have increased rates, affecting customer happiness. 

“Parcel and postal markets have clearly reached the point at which incumbents have no choice but to transform their operations and networks,” McKinsey researchers found in 2019 after surveying the international postal market. “At the same time, these incumbents are also at the start of an exciting transformation journey – one that can help them win the B2C e-commerce race.”

The fact that universal postal tonnage is more than 40 percent lower than before the pandemic is unavoidable. Due to shifts in consumer behavior, that tonnage is likely never coming back. The United Nations’ Universal Postal Union (UPU) predicts letter services will account for only 29 percent of global postal revenue by 2025, down from more than 50 percent since 2005. Many postal operators around the globe are still confronting lingering staffing and operational challenges nearly four years after the onset of the COVID-19 pandemic, and the predictability of deliveries has still not come back to pre-pandemic levels. While some postal operators bounced back from the pandemic to a relatively healthy new normal, there are some areas of the world where the post is still struggling.

For instance, the Australia Post called earlier this year for the government to remove the legal requirement for everyday delivery due to a 66 percent decline in letter volumes since 2008. This led to a $189 million loss in the letter portion of the postal service in the first half of 2023.

Market share for national postal operators is eroding at every corner. Some postal operators have created new revenue streams by partnering with parcel consolidators to help their customers leverage longer lead times and bulk shipping for savings. This arrangement is a win-win for postal operators and their customers.

Though the major global integrators saw revenues decline this year, UPS, FedEx, and DHL still dominate the marketplace. Landmark Global and Ascendia, while smaller than the Big 3, have successfully built a small parcel business of their own.  

According to BoxC’s CEO, Chad Schofield “e-commerce has continued to support integrator revenues, but national postal operators who strategically develop e-commerce parcel services have a chance to take back market share from this competition.” 

“By partnering with a technology provider that focuses on international e-commerce logistics, postal operators can diversify their revenue streams, create a focused small-package shipping operation and increase customer happiness”, added Schofield. 

These third parties can also assist national postal operators looking to win back e-commerce market share, aiding their quest by increasing their use of technology. By arming national postal operators with data – lead times, track and trace, and Customs documentation, for starters – these third-party agencies can equip national postal operators for the new normal. The UPU has found that “information about delivery is just as important as the actual delivery. The seller needs to have access to delivery information through a user-friendly, standardized, and widely available IT structure.”  

Third parties can also assist postal operators by creating opportunities to share in e-commerce revenues. Local operators are in the best position for last-mile shipping success, so creating lasting collaborations with top international shipping services is one way to diversify revenue streams without trying to directly wrestle business away from entrenched integrators like UPS and FedEx.    

National postal operators no longer can rely on letter service revenue and must develop an aggressive plan to win e-commerce small parcel activity from private competitors. When competing with entrenched competitors, there’s strength in numbers. That’s why national postal operators have historically utilized Universal Postal Union networks to enhance international cooperation. These networks, though, only served postal operators well in the old way of doing business. In this new normal of postal services, dictated by e-commerce parcel activity, UPU networks have been slow and unreliable.  

Challenges for postal operators are around every corner. Government regulations regarding delivery dues can have a wide-ranging impact on not only international postal pricing but also the popularity of certain shipment lanes. Simply put, no delivery dues or Customs regulation decision is made in a vacuum. Altering the fees in one area can significantly affect postal operators in adjacent regions. Postal operators must keep track of data regarding not only regulatory changes that directly impact them but also need to understand the broader international postal operator system and how regulatory and fee shifts in one part of the world will shift their business.

Members of the Universal Postal Union provide a needed service that stretches into remote sections of the world, but some see the UPU as a barrier to innovation. While the UPU claims postal operators need to be utilized more, a lack of funding and other support means that the innovation needed to fully use postal operations is a long way off. To create a better global impact and tap into the growing e-commerce markets in lesser-developed parts of the world, postal operators should embrace e-commerce shipping like the large integrators. To get there, partner with a trusted technology provider with the experience to create new revenue streams by capitalizing on the e-commerce trend.

It is not too late for national postal operators to adopt a new strategy. Postal operations are a significant economic driver; the UPU recently found that the complete absence of a national postal service would bring about a nearly 7 percent hit to GDP. But economic importance is not enough. To thrive, postal services need to upgrade their methods and think beyond letter delivery. Partnering with a logistics management platform provider that enables clients to control all aspects of international e-commerce logistics is the first step. Postal services are still relevant today, and they will be needed tomorrow, but to tap into the full potential of e-commerce delivery, they’ll need a little help.  

 

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Global Logistics, Global Trade Daily, News

HWArobotics Revolutionizes Canadian E-commerce Logistics with Cutting-edge ASRS Technology

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HWArobotics, a pioneer in shuttle ASRS technology, is making waves in North America with its groundbreaking solutions. Recently, the company partnered with Canadian e-commerce logistics leader, Darwynn, to implement advanced robotic automated storage and retrieval systems (Shuttle ASRS) at its Toronto facility. This collaboration represents a significant advancement in the North American warehouse automation landscape.

Darwynn, known for its commitment to utilizing state-of-the-art warehousing solutions, sought to optimize its order fulfillment operations and enhance sustainability. With HWArobotics’ Shuttle ASRS technology, comprising a multi-level shuttle system featuring 24 carts, 10,368 storage locations, and 6 goods lifts, Darwynn aimed to meet the demands of its expanding business while improving efficiency, safety, and environmental impact.

The implementation of HWArobotics’ technology has delivered immediate and long-term benefits for Darwynn and its customers. With the capacity to handle 20,000 individual SKUs and achieve a throughput of 2,400 bins/hour, the Shuttle ASRS system has significantly optimized inventory management, increased operational efficiency, and expanded storage capacity. Additionally, the integration of picking stations and WCS systems has enhanced warehouse space utilization and reduced overall business costs.

Moreover, HWArobotics’ solution ensures reliability, ease of maintenance, and lower error rates, contributing to a seamless fulfillment experience for Darwynn’s clients. The system’s adaptability and scalability further future-proof Darwynn’s operations, enabling it to meet evolving demands and sustain growth.

Sky Chen, General Manager of HWArobotics, expressed satisfaction with the project’s success and emphasized the potential for further expansion and partnership with Darwynn. With a dedicated team in North America, HWArobotics aims to continue its growth trajectory in the region, leveraging its extensive industry experience and innovative ASRS solutions.

Furthermore, HWArobotics’ success extends beyond North America, with a diverse portfolio of global deployments spanning industries such as retail, automotive, and consumer co-operatives. The company’s commitment to excellence and innovation has earned it recognition as a finalist for the prestigious IFOY Award 2024, highlighting its contributions to the evolving logistics landscape.

As HWArobotics continues to drive advancements in ASRS technology, its partnership with Darwynn serves as a testament to the transformative impact of innovative warehousing solutions in the e-commerce sector.

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Global Logistics, Global Trade Daily

E-commerce Returns Management: Strategies for Handling and Reducing Returns

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Returns are a certainty in the world of e-commerce. While they may seem inconvenient, they’re an integral part of the online shopping experience. As an e-commerce business owner, understanding and effectively managing this issue can be the difference between success and struggle. Here, we will delve into the world of e-commerce returns management, exploring strategies to handle them efficiently and reduce them. From streamlining processes to embracing technology, we’ll equip you with the knowledge you need to successfully navigate this challenging aspect of your business.

Understanding E-commerce Returns

Unlike traditional brick-and-mortar stores, e-commerce faces unique challenges regarding returns. Buyers often make purchase decisions based solely on product descriptions and images, sometimes leading to discrepancies between expectations and reality. Sizing issues, damaged items during shipping, and the occasional buyer’s remorse all contribute to the high return rates in online retail.

To effectively tackle this, e-commerce business owners must acknowledge that returns are not merely a problem to be solved but a natural part of the online shopping experience. By understanding the root causes and motivations behind them, you can begin to implement strategies that handle this area of your business efficiently and work towards reducing their occurrence.

The Cost of Inefficient Returns Management

Inefficiencies in managing e-commerce returns can have far-reaching financial and reputational consequences for businesses. The financial toll is two-fold: businesses incur direct costs associated with processing and restocking these items and face potential revenue losses due to damaged or unsellable goods.

Perhaps even more detrimental is the impact on customer satisfaction and loyalty. Customers who experience a cumbersome or frustrating returns process are less likely to return for future purchases, and they may share their negative experiences with others, tarnishing your brand’s reputation.

Moreover, inefficiency doesn’t only lead to unnecessary costs; it’s a revenue-draining pit that can erode profitability and hinder growth. Therefore, implementing effective management strategies is an investment in the long-term success and sustainability of your e-commerce business.

Key Strategies for Effective E-commerce Returns Management

Navigating the intricate landscape of e-commerce returns demands a strategic approach. So, let’s explore key strategies that empower e-commerce businesses to manage this area and foster customer satisfaction effectively.

Streamlined Returns Process

Simplicity and clarity are paramount in a successful returns process. One of the most common e-commerce mistakes is not clearly outlining refund and exchange policies. So, to avoid this issue, begin by designing an intuitive, user-friendly returns portal that guides customers through the process seamlessly. Furthermore, ensure you communicate return policies and timeframes, making them easily accessible on your website.

When returns are initiated, aim for efficient processing, with prompt communication to keep customers informed at every step. A streamlined process enhances customer satisfaction, reduces the burden on your team, and minimizes costs.

Accurate Product Descriptions and Imagery

Reducing returns starts with setting accurate expectations. Invest in high-quality product descriptions that leave no room for ambiguity. Utilize professional imagery that showcases products from various angles. Encourage customer reviews and feedback to provide authentic insights. When customers know what to expect, the likelihood of returns due to mismatched expectations decreases, bolstering your e-commerce success.

Quality Control and Packaging

Maintaining high-quality standards from your suppliers and conducting thorough quality control checks before shipping can significantly reduce returns due to product defects. Packaging is equally important – ensure items are well-protected and correctly labeled to prevent damage during transit. Investing in these aspects lowers return rates and enhances your brand’s reputation for reliability and quality.

Customer Support and Communication

Responsive customer support also plays a pivotal role. Ensure your support team is readily available to promptly address customer queries and concerns. Transparent communication throughout the process is essential. Keep customers informed about the status of their returns, processing times, and expected resolutions. You foster trust and loyalty among your customers by providing exceptional support and clear communication.

Data Analysis and Feedback Loop

Harness the power of data to identify trends and root causes of returns. Analyze return data to pinpoint recurring issues and areas for improvement. Implement a feedback loop that incorporates customer insights into your operations. Refine your processes based on data-driven feedback so you can proactively address issues, reduce return rates, and ultimately enhance the overall customer experience.

Technology and Automation

Modernize your e-commerce returns management with technology and automation. Implement software solutions that streamline this process, from efficiently initiating returns to restocking items. You can also leverage e-commerce platforms with built-in return management features. Automation is an excellent option for e-commerce businesses because it can help reduce human errors and ensure consistency in handling returns, ultimately saving time and resources. 

Reducing Returns Through Size Guides and Reviews

When it comes to fashion e-commerce, accurate sizing information is paramount. Provide detailed size guides and measurements to assist customers in making informed choices. Additionally, encourage user-generated reviews and photos that offer real-world insights into product fit and quality. Equipping shoppers with the tools and information they need can significantly minimize the difficulties stemming from sizing issues and enhance their confidence in purchasing from your store.

Post-Purchase Customer Engagement

Engaging with customers after they’ve made a purchase is another powerful strategy. Send personalized follow-up emails or messages asking for feedback and offering assistance. Provide valuable content and tips related to the purchased products. In addition, keep the connection alive by offering exclusive discounts or loyalty rewards. By staying engaged with your customers, you can address any issues early on, build trust, and minimize the chances of returns due to dissatisfaction.

Monitoring and Measuring Returns

To improve this aspect of your e-commerce business, you must measure the effectiveness of your strategies. Establish key performance indicators (KPIs) such as return rates, processing times, and reasons for returns. Regularly monitor these metrics to identify trends and areas for improvement. By setting benchmarks and analyzing the data, you can continually make informed decisions to optimize your returns process. 

Navigating the Returns Maze for E-commerce Success

Understanding and efficiently managing returns is pivotal. Inefficient e-commerce returns management can incur substantial costs, both financial and in terms of customer loyalty. By embracing streamlined processes, product accuracy, responsive customer support, data-driven insights, and modern technology, e-commerce businesses can effectively tackle returns, reduce their frequency, and foster a loyal customer base, ultimately ensuring long-term success.

Author bio

Anna Stevens is a seasoned e-commerce expert with a wealth of knowledge in online business operations. She brings her expertise from her role at Good Neighbors Moving Company LA, where she continually enhances operational efficiency and customer satisfaction in the moving industry.

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Learn how to improve your e-commerce returns management to boost customer satisfaction and reduce costly returns!

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Global Logistics, Global Trade Daily

E-Commerce Boom and Its Impact on Logistic Operations

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Introduction

The world of commerce has undergone a seismic shift in recent years, with the relentless rise of e-commerce. In this article, we delve into the profound implications this e-commerce boom has had on logistic operations. As online shopping becomes the norm, logistics has emerged as the unsung hero of the digital age, playing a pivotal role in ensuring goods reach consumers efficiently and on time.

The Challenges of E-Commerce Logistics

Last-Mile Delivery Complexities

In the realm of e-commerce, the final leg of delivery—the last mile—is often the most challenging. Navigating through congested urban areas and ensuring timely doorstep deliveries poses logistical puzzles that demand innovative solutions. Drone deliveries and autonomous vehicles are just a glimpse of the technologies reshaping the last mile.

Inventory Management in the Digital Age

E-commerce demands a level of inventory agility that traditional retail seldom does. Real-time inventory tracking and demand forecasting are now paramount. Warehouse automation and RFID technology are helping businesses stay ahead of the curve.

Seasonal Fluctuations and Demand Forecasting

Seasonal shopping peaks and unforeseen demand surges require logistics to adapt rapidly. Machine learning algorithms are being employed to analyze historical data and predict future buying patterns, enabling more agile supply chains.

Returns Management and Reverse Logistics

The convenience of online shopping has given rise to a corresponding surge in product returns. Efficient returns management and reverse logistics are now integral parts of e-commerce logistics, demanding sophisticated processes and infrastructure.

Technological Advancements in E-Commerce Logistics

Automation and Robotics in Warehousing

Warehouses are transforming into high-tech hubs. Automated robots are efficiently picking, packing, and even conducting inventory checks, reducing labor costs and enhancing accuracy.

Data Analytics for Demand Prediction

The power of big data is harnessed for predictive analytics. Algorithms crunch vast datasets to anticipate consumer preferences, allowing for proactive stock replenishment and optimized distribution.

Artificial Intelligence for Route Optimization

Logistics providers are harnessing AI to optimize delivery routes, considering factors like traffic, weather, and real-time demand fluctuations, ensuring quicker deliveries.

Blockchain for Supply Chain Transparency

Blockchain technology is elevating supply chain transparency to new heights. Consumers can trace the journey of their products from source to doorstep, fostering trust and integrity.

Sustainable Practices in E-Commerce Logistics

Eco-Friendly Packaging Solutions

The environmental impact of e-commerce packaging has raised concerns. Biodegradable and recyclable materials are being embraced, reducing the carbon footprint of e-commerce logistics.

Green Transportation and Carbon Footprint Reduction

Logistics companies are adopting electric vehicles and exploring alternative fuels to reduce emissions. The focus on eco-friendly transportation is in line with growing sustainability expectations.

Sustainable Warehousing Practices

Energy-efficient warehouses with smart lighting and climate control systems are becoming the norm. Solar panels and rainwater harvesting further exemplify sustainable warehousing.

The Global Impact of E-Commerce Logistics

Cross-Border E-Commerce and International Shipping

E-commerce transcends borders, making international shipping an everyday occurrence. Navigating customs regulations and ensuring timely global deliveries are now integral aspects of logistics.

Customs and Trade Compliance Challenges

As e-commerce connects buyers and sellers worldwide, customs compliance becomes paramount. Navigating intricate trade regulations requires expertise and precision.

Supply Chain Resilience in a Globalized World

Global supply chains, while offering vast opportunities, are vulnerable to disruptions. Robust contingency plans and diversified sourcing are critical for supply chain resilience.

The Evolution of Fulfillment Centers

Multi-Channel Fulfillment Strategies

E-commerce businesses often operate on multiple platforms. Streamlined multi-channel fulfillment strategies are essential for efficiency and consistency.

Micro-Fulfillment Centers for Urban Efficiency

In urban centers, micro-fulfillment centers are emerging to meet the demand for swift deliveries. Compact, tech-savvy hubs are reducing last-mile delivery times.

Dark Stores and Their Role in E-Commerce Logistics

Dark stores, or retail locations solely dedicated to fulfilling online orders, are reshaping logistics. They facilitate faster picking and packing, reducing delivery times.

The Importance of Customer Experience in E-Commerce Logistics

Timely Delivery as a Competitive Advantage

In the era of e-commerce, timely delivery is a competitive differentiator. Logistics that fail to meet delivery promises risk customer dissatisfaction and attrition.

Personalization and Customer Expectations

E-commerce logistics isn’t just about delivering products; it’s about delivering experiences. Personalization and catering to unique customer expectations are crucial for brand loyalty. 

This becomes especially vital in the context of fashion products, such as stylish leather pants, suits, jackets, and the like. Personalization has the potential to significantly impact customer satisfaction and loyalty, as it enables customers to feel appreciated and recognized in a competitive digital marketplace

Managing Customer Communication

Effective communication throughout the delivery process, from order confirmation to tracking information, is vital in managing customer expectations and building trust.

E-Commerce Marketplaces and Their Influence on Logistics

The Dominance of Amazon and Its Logistics Network

Amazon’s logistical prowess has redefined e-commerce. Its vast network, including fulfillment centers and delivery services, has set new standards for speed and efficiency.

Emerging Marketplaces and Their Logistics Models

As e-commerce diversifies, new marketplaces emerge with distinct logistics models. Understanding these models is essential for businesses seeking to expand their reach.

Independent E-Commerce Retailers and Their Unique Challenges

Smaller e-commerce players face distinct logistic challenges. Balancing cost-effective logistics with customer expectations is a constant juggling act.

The Future of E-Commerce Logistics

Hyperlocal Delivery and Instant Gratification

Consumers are increasingly expecting hyperlocal deliveries and instant gratification. Hyper-local fulfillment centers and real-time delivery tracking are poised to meet these demands.

Integration of Augmented Reality in the Supply Chain

Augmented reality is revolutionizing logistics training, maintenance, and even order picking. Its integration promises greater efficiency and reduced errors.

Sustainability as a Key Driver of Innovation

Sustainability isn’t just a trend; it’s a driving force behind logistic innovation. Businesses that prioritize sustainability are poised to lead in the evolving e-commerce landscape.

Conclusion

Adapting to the E-Commerce Boom: Key Takeaways for Logistics

In closing, the e-commerce boom has fundamentally transformed logistics. To thrive in this digital age, logistics operations must adapt, innovate, and embrace sustainability. The future of logistics is intertwined with the continued growth of e-commerce, and those who navigate these changes effectively will emerge as the leaders of tomorrow’s supply chain landscape.

 

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Slowing E-commerce is Putting a Strain on Logistics 

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E-commerce growth has slowed leaving pandemic-fueled firms in a bind. Blue Apron, American Eagle Outfitters, and Shopify are just a few of the companies that ramped up their logistics networks in 2020/21 with customers homebound and purchasing online. Amazon has been the gold standard in this arena, but few firms can achieve scale. Now that online commerce is back to pre-pandemic levels, delivering goods at the same speed to home after home is proving to be a strenuous undertaking. 

American Eagle was especially aggressive over the last three years having established a logistics subsidiary, Quiet Platforms, to facilitate increased demand. The company spent hundreds of millions of dollars to scale, eventually offering its services to similar and even rival retailers. Management reports that delivery costs were indeed streamlined, but the overall performance of Quiet Platforms in 2023 is not meeting expectations. As a result, the workforce has begun to undergo a trim.

A major component of the e-commerce ramp-up was the construction of last-mile delivery services. Namely, centralized systems, warehouses, sorting and loading solutions, and the corresponding transport to the customer’s residence. Buyers will always want their product as quickly as possible, but the most time-consuming and expensive part of the shipping process is the “last mile.” One estimate places 53% of the shipment’s total costs just on the last mile. Moreover, chain inefficiencies can result in up to 25% losses during this stretch alone. 

It took Amazon roughly two decades to build its logistics network. This spans trucks, planes, warehouses as well as the collaboration of FedEx and United Parcel Service. Yet even the Seattle behemoth has had to pull back on logistics growth in this challenging economic environment. Blue Apron is another example of a company that scaled rapidly during the pandemic. Their pre-measured meal kits with attractive and easy recipes were supported in great numbers by a slew of homebound clients. In the face of rising demand Blue Apron hired 1,200 new employees and opened two warehouses. Today sales are stagnant and Blue Apron is selling its logistics assets to a specialized firm. 

Shopify was another company seeking to rival Amazon during 2019 and 2020. They acquired two logistics firms but are now selling their fulfillment operation to Flexport. Shopify, like Blue Apron, is focused on the merchant experience and letting third parties handle the logistics. The pandemic demanded a strategic shift, but the shift back to pre-pandemic markets has been costly.  

 

   

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Archives, Global Logistics, Global Trade Daily, Warehousing

MyFBAPrep Expands eCommerce Warehouse Network to More Than 100 Warehouses & 85-Million-Square-Feet of Global Warehouse Space

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MyFBAPrep, an eCommerce warehouse and logistics network, announced today that it has added an additional 70-million-square-feet of warehouse space to its existing network, bringing the total to 85-million-square-feet of warehouse space globally. The expansion brings the network to over 100 warehouses and a presence in key international markets including Mexico, Europe, the United Kingdom, and Canada.

The additions add depth to MyFBAPrep’s warehouse network, which is strategically located in major metros and allows merchants to leverage a comprehensive suite of eCommerce logistics solutions at a global scale. This suite of logistics and warehousing services includes Amazon 1P and 3P (FBA); DTC fulfillment with nationwide 1-2 day shipping; retail replenishment (B2B) including Walmart, Target, Amazon and grocery; storage; cold chain services; reverse logistics; domestic trucking; container drayage; and value-added services (VAS) including kitting, bundling, assembly and more.

Complementing its already robust network in the U.S. as well as in various countries across Europe, MyFBAPrep’s recent expansion also brings access to key new warehouses in the following international cities:

  • Toronto, Ontario (Canada)
  • Brantford, Ontario (Canada)
  • Montreal, Quebec (Canada)
  • Chilliwack, British Columbia (Canada)
  • Wrexham, Wales (United Kingdom)
  • Ipswitch, England (United Kingdom)
  • Preston, England (United Kingdom)
  • Bochum, North Rhine-Westphalia (Germany)
  • Manzanillo, Colima (Mexico)
  • Guadalajara, Jalisco (Mexico)
  • Nuevo Laredo, Tamaulipas (Mexico)
  • Altamira, Tamaulipas (Mexico)
  • Monterrey, Nuevo León (Mexico)
  • San Luis Potosí, San Luis Potosí (Mexico)
  • Heroica Veracruz, Veracruz (Mexico)
  • Lázaro Cárdenas, Michoacán (Mexico)
  • Mexico City, Mexico (Mexico)

Recently recognized ninth on the Inc Regionals 2023: Southeast list of fastest-growing companies, MyFBAPrep has had exponential growth since its inception in 2018, achieving more than an 8,000% growth percentage over the past three years. Like AirBnB connects travelers with vacant properties, MyFBAPrep matches top-tier eCommerce sellers with warehouses that can pick, pack and ship their products worldwide.

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Archives, Global Logistics, Global Trade Daily

8fig Launches “Freight with 8fig” to Bring Competitive Freight Rates to Ecommerce Sellers  

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The new offering from 8fig provides ecommerce businesses with a complete freight solution at favorable rates and repayment terms

8fig, the funding and supply chain management platform for ecommerce businesses, has announced the launch of Freight with 8fig. The latest addition enables online sellers to manage their entire freight cycle from within the platform and benefit from competitive freight rates and repayment terms.

8fig provides optimized funding for ecommerce businesses based on a comprehensive planning platform for supply chains, marketing, and sales. The funds are disbursed incrementally according to each business’s needs to maintain the necessary cash flow for scaling.

Now, with Freight with 8fig, ecommerce sellers can benefit from a streamlined process of requesting and receiving quotes.

The launch of Freight with 8fig concludes a year of stellar growth for the company, which saw its user count soar by 440% and its number of applications grow by 2515% over the course of 2022.

For small-to-medium online retailers, it can take months or even years to build the payment history and trusted relationships needed for freight providers to agree to 60 and 90 day repayment terms and competitive freight rates. Freight with 8fig opens the door for independent sellers to benefit from such rates and terms from day one, and to pay directly using 8fig funds.

Like 8fig’s mobile app and Sales Dashboard, a free management tool that analyzes sales metrics to identify sales trends, track revenue figures, and benchmark against similar sellers – all in a single location – Freight with 8fig is now widely accessible to the ecommerce community selling in the US.

8fig continues to work on expanding its offering, with more features on the horizon that aim to help sellers manage their back office logistics and operations, including white-glove freight services and additional store analytics tools. Its goal, aside from bringing ecommerce sellers to 8-figure revenues, is to become a one-stop shop for ecommerce business management.

About 8fig

8fig is an ecommerce funding and planning platform that aligns continuous, adaptable capital to supply chain demands. Their innovative planning and funding technology was built by payment processing and supply chain risk management experts Yaron Shapira, Assaf Dagan, and Roei Yellin. 8fig offers growth plans combined with low-cost capital, sales forecasts, unit economics, and profit breakdowns for ecommerce brands to uncap growth and eliminate the cash flow crunch. The company has offices in Tel Aviv and Austin, Texas. For more information, visit 8fig.co.

warehouse management You Need to Communicate Your E-Commerce Forecasting to Your Fulfillment Center
Archives, Global Logistics, Global Trade Daily, Warehousing

You Need to Communicate Your E-Commerce Forecasting to Your Fulfillment Center

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Fulfillment centers need insights just as much as executives and investors. In the e-commerce space, there can be global operations for warehouses in a single location or hundreds. Regardless of the size of the enterprise, e-commerce forecasting can provide projections to organize inventory and improve a business’s reputation and revenue. 

Forecasting order quantity means efficient stocking and expedited deliverables. Curating long-term business relationships with departments packing and shipping your products — internal or external — is advantageous for continued growth and support. The best way to do this is by communicating the forecasts with the fulfillment centers to drive results.

The Significance of Understanding the Supply Chain

Every point during the supply chain is a variable. Each facet creates accurate forecasts, from third-party logistics to an internal fulfillment center that packs and ships goods. 

A business cannot just rely on last year’s sales numbers to create a comprehensive forecast. Expenses, outliers and unexpected scenarios must be considered for it to be sturdy. It’s crucial to communicate e-commerce forecasting to your fulfillment center because it can help you understand the variables in its step of the process:

  • Sourcing multiple materials puts deliverability at risk.
  • International merchants need to allot charges to process payments.
  • Overseas shipping creates delays in deliverables.
  • Businesses operating in your country may have higher production costs.

Fulfillment centers must know that most revenue comes from existing customer bases — this is the foundation for projecting accurate e-commerce forecasting. This grows as a company acquires new customers, creating exponential growth in the baseline for projections. Communicating this growth as it happens to fulfillment centers will help their momentum as your e-commerce business ages.

Forecasts will also help fulfillment centers become aware of your marketing strategies. This creates a more intimate relationship between fulfillment, analytics and marketing teams for the most effective satisfaction. This ties into their work, as owned audiences are people you could convert using free methods like email and social media marketing. 

Companies can make predictions about the success of these campaigns. It’s essential to consider paid acquisition methods such as unsolicited offers and conversion rates based on how much your teams are investing in marketing for your e-commerce.

The Challenges in E-Commerce Forecasting for Fulfillment

Considering all these participants equally will create more accurate data for your fulfillment centers, but it isn’t just about that initial forecast delivery. Communication includes when adjustments are made and new data is measured. The consumer market is not impossible to predict, but the one constant forecasters can rely upon is oscillations.

Sharing this information can help fulfillment centers prepare for dips and spikes in sales and inventory, but it is sometimes hard to adapt. However, it may become more commonplace if every company becomes aware of how e-commerce forecasting could help change fulfillment center productivity. Fulfillment centers could adjust by changing hiring methods or executing updated storage solutions based on these forecasts.

Demand forecasting will be the focal point of these adaptations, as the different variations detail diverse business outcomes:

  • Passive demand: Using past sales to predict future demand
  • Active demand: Using the competitive environment and production rapidity to predict demand and create growth plans
  • Long term: Focusing on a long time frame, usually more than a year, to help provide an exhaustive picture of seasonality patterns and output
  • Short term: Focusing on a single day or small time window, such as a holiday
  • Macro and micro: Analyzes outside forces that could potentially interrupt commerce, taking a micro or macro lens depending on the company’s objectives
  • Internal business: Analyzes internal assets to see if they can keep pace with demand, including staffing needs

Companies could tell their third-party or internal fulfillment centers there will be a severe increase in inventory. This could allow them to face that challenge by implementing new systems like automated warehouse picking or more useful order management software to streamline stock control.

Another challenge comes with the attainment of the forecast. Developing it can take time, as market research happens and experts create projections based on that insight. In the meantime, fulfillment centers that could become reliant on these projections to forecast order quantities may be waiting in limbo while it’s perfected. 

Imperfect, rushed or incomplete forecasts could mitigate the boom forecasts typically provide for fulfillment centers and decrease inventory expenses. So many available fulfillment centers have to juggle this, mainly if they house multiple e-commerce entities.

How Will the Forecast Order Quantity Help Your Fulfillment Center?

E-commerce forecasting can help fulfillment centers prepare for the busiest seasons — for some, that’s related to holidays and for others, it’s connected to trends. They must be all-encompassing, usually outlining more than the average number of units or a simple percentage increase over the previous year. What happens if a celebrity influencer stops endorsing your product and that affects sales — how will your forecast reflect this hurdle so fulfillment centers know how to acclimate?

A forecast also details promotions, sales and event fluctuations that could affect forecast order quantity. Depending on the scope, all estimates should gradually be developed immediately after the previous sales period. They should consider everything from competition to season, considering the type of products and the market available for them in the present.

Fulfillment centers will appreciate forecasts that clearly outline their company goals and standards, so they know inventory specs and what they can do to maintain a trusting relationship. Though it may be a third party or not, they have just as much, if not more, of an effect on customers than the business itself.  

Your fulfillment center will appreciate you communicating inventory needs and expectations. It will help them organize and remain compliant with contractual agreements, especially as they navigate an unprecedented demand increase for e-commerce fulfillment responsibilities. Better communication equals greater organization, leading to snappier shipping and better customer satisfaction.

It will also create accountability across sectors. Inconsistent data is a considerable issue in supply chains as products exchange countless hands. Communicating with fulfillment centers about expectations lets them report back with accurate information because it was from you, not a third party. It’s another set of checks and balances to ensure every item reaches its destination.

E-Commerce Forecasting for Fulfillment Centers

Creating a business that will survive in a sea of many means you must communicate your e-commerce forecasting to fulfillment centers. Improve customer loyalty by creating a solid forecast foundation. You can decrease financial risk because everyone is on the same page regarding sales expectations.

This will create strong business relationships, which is better for any bottom line and the customer who receives the package.