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Today, we cannot think of a world where e-commerce does not exist. E-commerce has evolved and changed drastically over the years. It has transformed the way we shop, live, work and do business. With the recent pandemic, we have come to rely and depend on e-commerce for almost everything, including basic and essential items. The pandemic also saw groups of people who were previously unused to online shopping turn to e-commerce to fulfill their day to day needs.
This industry continues to grow, and businesses are venturing into this segment and exploring the benefits it offers. Global e-commerce sales jumped to $26.7 trillion in 2019, four times more than the previous year, according to data from the UN. This trend is here to stay, with consumers realizing the convenience of online shopping and home delivery. For small and medium industries, e-commerce provides access to global markets, wider customer reach and the chance to grow and become immensely profitable – but only if they are able to put in place an effective delivery mechanism. Orders must be fast, accurate and delivered without any issues. Merchants either choose to work with aggregator online marketplaces that have delivery partners in their business ecosystem, or establish their own online channels, which means they need to put in place their own delivery mechanisms.
E-commerce and e-commerce shipping
E-commerce refers to online shopping or trade, where individuals or firms can buy and sell their goods and services from a website or mobile app, and have these products delivered to them. E-commerce shipping is the way in which products ordered online are delivered to the location of the buyer.
Direct to consumer brands now increasingly rely on online channels for sales and managing and handling the delivery logistics is an important aspect for them to manage. In many cases, logistics and delivery is not a core competency of the company, and they prefer to partner with an e-commerce delivery partner to fulfil their orders and deliver these safely to the customer.
E-commerce delivery services usually include:
Types of delivery
There is no fixed formula where only a particular type of shipping and delivery system works. Based on the nature of business, targeted customers, product type, shipping strategies vary. Usually businesses can work with e-commerce logistics providers to understand what works best for their business. Companies can expect variations of these:
Shipping costs are also a factor to be considered, which are usually based on the volumes expected, destination, size, dimension value of contents. Sometimes e-commerce businesses also offer ‘free shipping’, and factor this into the product cost.
Delivery in e-commerce is a strategic advantage and drives business success
Logistics companies play an important and vital role in the success of the e-commerce business, as customer satisfaction is directly related to the handling of the shipment. The packaging and safe delivery of the product is a factor that keeps the customer happy and ordering more from the e-commerce site. An e-commerce business needs to have a strong and effective strategy in place for the shipping and delivery of goods and services, as this is a competitive differentiator as well in the market.
As e-commerce relies on shipping and transportation, the shipping services should be top-notch – reliable, knowledgeable and with an extensive network as well as technology-enabled tracking and monitoring. Responding to this need for efficiency and professionalism, the logistics industry has evolved its processes, and invested in state-of-the-art delivery systems.
Euromonitor International projects that half of the absolute value growth for the global retail sector will be digital by 2025, reaching 1.4 trillion USD. With e-commerce here to stay, there is a demand for efficient, cost-effective and faster delivery alternatives. The e-commerce business relies on e-commerce logistics to deliver its products. Logistics companies are investing in innovative and smart technology solutions that integrate human aspects, analyze data for efficiency explore new ways of delivering using drones or automated vehicles. For retailers, small businesses and startups, e-commerce logistics providers have made it all the more easy to enter the market and succeed. All they need to focus on is a great product and their brand, and the experts will look after e-commerce delivery.
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