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The future of e-commerce logistics

The Future of eCommerce Logistics

The explosive growth of e-commerce creates many opportunities for the logistics industry. Today, a growing number of consumers expect fast and free shipping. In addition, there are increasing demands for flexibility to choose from a range of carriers. Major advances in the IT industry and the dominance of smart devices may have contributed to this changing mindset. Logistics companies must adapt to market needs and possess the ability to think creatively.
 
While services such as UK Mail and DHL have been hailed across the UK, it seems that same day delivery is of particular interest not only for consumers but also for e-retailers. But it can be a very long haul. What speaks against the trend is a statement from Amazon CFO: Thomas Szkutak: “We do not really see a way to do same-day delivery on a Broad Scale economically.” Yet choosing Amazon to test the concept on same day delivery in select markets like Seattle. And they are not alone, as does eBay, Walmart and USPS. Start-up companies who post Mates and Shutl utilises advances in IT industry, as well as the rise of smart devices and also provides same day delivery, mostly via courier.
 
Same-day delivery is not the only important issue at present. One must not forget the reinvention trend around package machines . These machines are typically located in high traffic locations, for example, physical stores. Amazon has tested this concept for some time in partnership with 7-Eleven, through its Amazon Locker service.
 
USPS is also testing the idea, in conjunction with the multi-comers like BufferBox and Kinek who are trying to challenge the traditional logistics companies in North America. While the BufferBox package provides automatic services in Canada, offering Kinek Canadians the opportunity to sign up for a US shipping address to save on international shipping and other costs. When are packets machines in American cities along the US / Canada border. It would be interesting to do a study to see if such a solution would work between the UK and Mainland Europe. It would probably be a success.
 
Shop Runner, for example, offers unlimited two-day shipping for free for a consortium of about 100 online stores that want to compete with Amazon. On the other hand, there are more creative solutions in the US that is slightly different, but with great potential. For example, Task Rabbit , where the user can send a delivery request and a maximum amount hen is willing to pay for the service. When you create a reverse auction where other members “compete” to see who can offer the cheapest delivery. Uber is another interesting startup businesses. Currently carrying the people, but they have expressed their interest to supply goods and works to achieve this diversification.
 
E-commerce has not only promoted the new concepts and ideas in the logistics industry, but also provided opportunities for new companies to emerge to address the logistical challenges posed by the rise of e-commerce. Something that the traditional logistics companies are not as quick to embrace.

Simon Wright

Marketing Manager at Parcelhub - Part of the Whistl Group

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