If you’re an eCommerce retailer, you’ll want to make sure these logistics trends are on your radar. 2019 was a banner year for eCommerce growth around the world, increasing over 20 percent from the previous 12 months. Experts estimate that 2020 will see online sales reach a mind-blowing $4.2 trillion and kickstart a shift in shipping industry trends to cope with this rapid growth. Of course, as an eCommerce retailer, you’re going to want to grab a slice of that pie. Here are 3 trends to keep an eye on:
Trend#1 Fulfillment: When it comes to fulfillment, two trends are going to come to the forefront in 2020: personalization and efficiency will be key shipping industry trends.
Personalization: Great packaging can now lift customer satisfaction, improve the purchasing experience, and bridge the gap between online and offline shopping. That’s why customization – from packaging and tracking to returns and customer service – is one of the biggest logistics trends for 2020.
Efficiency: Customers are looking to find quicker delivery for less. With this in mind, you’ll see a rise of new methods, such as drone delivery or multi-warehouse eCommerce operations to support global dispatch at high speeds. In fact, drones may just be one of the biggest future trends in the shipping industry.
Experts predict that there will be 2.6 million commercial drones in operation in 2020 and that shipping companies will save $50 million over the year. Amazon is leading the way with over 80% of their products capable of being delivered by drone. Packages can be delivered within 30 minutes for just a $1 delivery cost. So is it any wonder why these flying machines are set to affect the shipping industry growth rate?
Trend#2 Real-time Data is a Necessity
The New Year will see us continue to grow increasingly interconnected as more marketplaces, logistics providers, carriers, payments, consumers and other stakeholders enter the ecommerce ecosystem. As a result of this connectivity, real-time data will play a significant role in an organization’s demand planning, order fulfillment, shipping execution processes and more.
As consumer expectations around shopping experiences and acceptable delivery times continue to put pressure on retailers, it’s crucial that organizations are positioned to meet these needs, and analytics can better inform strategies and decision-making practices both in the marketplace and in the warehouse.
Trend#3 Shipping as a Growth Strategy
Build trust with tracking. Customers love knowing where their shipments are during the delivery process. That’s why offering end-to-end tracking on your packages can build trust with your customers. They get a good customer experience without any anxiety about if and when they’ll receive their order, and you’ll both get peace of mind.
Offer free shipping (but protect your profits). Free shipping may seem like a good idea. But costs can quickly add up, so it’s not realistic for many SMBs. That doesn’t mean you can’t do it, though. Just be smart about it. Why not only offer free shipping for orders over a certain value? That way, the customer feels happy about avoiding delivery costs, and you won’t have to sweat your profit margins.
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