Key Trends in E-Commerce Logistics

In recent years, logistics has become one of the most significant and dynamically developing sectors of service in the e-commerce market. The influence of logistics processes on online trading is so high that this segment cannot be considered in isolation from the entire e-commerce industry.

When it comes to logistics 2020, there will be a significant increase in a logistics market for electronic commerce compared to previous years. A volume of parcels passing through logistics companies is growing, which allows them to develop infrastructure and improve their solutions. According to experts, e-commerce, even in times of crisis, grows by 25% per year (mainly due to large online stores). An increasing number of online stores, both large and small ones, outsource logistics, as it is profitable and saves their resources.

As of today, it is safe to say that the logistics industry has become standardized when it comes to postal & accounting data exchange, new courier services’ emergence and much more. Now the market is continuously working on delivering goods to a client and ensuring minimum delivery terms for minimum money while eliminating issues in supply chain management.

Main logistics trends

Customer interaction automation

Improvement of an information system for the logistics service comes to the fore. Companies are trying to increase the efficiency of a business by using innovative methods, and this is possible primarily through automation, which brings the IT field to the forefront. As for key changes in the ecosystem, it should be noted that new segments have been added to the IT component, such as warehouse management, mobile employee monitoring, CMS modules, customer information, and automation of delivery solutions. IT is becoming a major factor in survival of a logistics company in the Internet market.

Development of fulfillment services and specialized delivery

The market is expecting an increase in the supply of specialized segments of goods such as ready-made food, which cold chain logistics deals with, jewelry, pet products, and remote sales of alcohol and medicines (chemical logistics). The emergence of large DIY and furniture retailers online (OBI, Hoff, IKEA) is the main growth driver of outsourcing services in this segment. Speaking outsourcing or delegating things to others, you can visit this page - edubirdie.com/essay-writing-services-reviews - if you are a college student in need of some academic aid.

Consolidation of the market

The market continues to consolidate. Logistics companies with different competencies rally around to provide customers with the best service regardless of the delivery method.

Decentralization of logistics

Regional logistic services are developing; large players are opening distribution centers in the smaller cities. This forms the offer for a new service: delivery from region to region, bypassing the capital trans-shipment point.

Parcel automats and pick-up points

The delivery through the network of parcel automats or pick-up points is gaining significant importance. In 2016, there was a definitive consolidation of the parcel automats as an independent delivery channel for online retail. The experience of using automats to receive orders has already been acquired by a huge number of online buyers throughout the world.

This method of delivery offers a higher level of service than the classical delivery options. The absence of lines and an extended work schedule are the main advantages. Moreover, in most parcel automats or pick-up points, payment options by credit card or cash have already been realized without the involvement of a human operator.

Parcel automats and pick-up points are becoming part of the infrastructure of trade in residential areas of cities and settlements. Parcel automats and pick-up points are cheap, easy to use, secure, and give the ability to more accurately plan the reception of the order (no need to wait for a courier), which is very important for Internet buyers. Since the cost of delivery is one of the most important factors in choosing a particular store, the ability to pick up a parcel through parcel automats and pick-up points can have a significant impact on the sales of the online store. The growth in the number of buyers who choose delivery through the above-mentioned means has led to the fact that the stores began to massively connect to the pick-up point networks. This trend began in 2016 and will continue to grow.

Large online stores offer buyers more product categories building their development strategy around this. Logistics companies are forced to learn to deliver new categories of goods to meet market requirements.

Logisticians are increasing acting as intermediaries. Such a thing makes it easier for stores to interact with contractors, service companies and, in cooperation with each other, get more customers than they do on their own. It is important that companies offer not only logistics related services (financial, marketing, etc.) but also resell the delivery services.

2018 is the time for e-commerce companies to concentrate on their own services and to provide the market with convenient and technological services. The development of courier services, the expansion of the parcel automat and pick-up point network and fulfillment will make it possible to make logistic services more accessible and to have full control over the quality of the service rendered in the e-commerce domain.

 

Sandra Hayward is an e-commerce entrepreneur having her own online store where she sells beauty-related goods. She has a Master’s degree in Business, which she gained at The University of Massachusetts, US. In 2015, Sandra discovered her passion for writing and started sharing her expertise through contribution to various online resources. 

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