Few areas of concern in e-commerce are more pressing than logistics. Thanks to mega-retailers like Amazon and international marketplaces like Alibaba, consumers all over the world expect cheap, fast shipping no matter where they live. It’s hard for online businesses to meet this demand, especially for those that are just starting, yet effective delivery and efficient e-commerce logistics is incredibly important to customer satisfaction and a company’s overall success.
Thankfully, many start-ups have recognised the need for an effective e-commerce logistics solution. Here’s how these companies are changing how online orders are processed and delivered:
One of the great benefits of e-commerce and globalisation is that the two allow businesses to reach customers in previously inaccessible markets. Canadian online retailers can easily ship products to customers in South Korea and vice versa, yet there’s still a small subset of consumers who are difficult to access. Customers in India, Africa and parts of the Middle East – some of the fastest-growing e-commerce markets, as noted by The Wall Street Journal – often don’t have a home or business address and rely on local landmarks to describe their location.
In the past, these shoppers had to collect their purchases at a central location or delivery drivers had to call whenever they got close. Now, thanks to start-ups like what3words and Fetchr, businesses have easier access to these customers via mobile apps and new ways of global mapping. What3words, for example, divides the Earth into areas that are ten feet square and assigns each section a distinct, three-word phrase. Aramex, a logistics services company, already said it plans to use the technology from what3words to deliver e-commerce purchases.
A common complaint regarding traditional delivery companies such as FedEx and United Parcel Service is their limited hours. Customers often miss deliveries because they’re at work, with children, or otherwise away from their homes when their package arrives. After three or so failed deliveries, customers must go out of their way to pick up their purchase at a local facility.
Several companies realise the burden this places on consumers and have taken steps to make the delivery process more accommodating. Doorman, for instance, is an app that allows customers to schedule their own delivery times instead of relying on those automatically set by FedEx and others. As reported by TechCrunch, the app’s creators knew the service would greatly benefit apartment dwellers whose buildings don’t have doormen or package-receiving services.
“Fewer than seven per cent of available apartment rentals in Chicago have a doorman,” founder Zander Adell explained, detailing the company’s decision to expand into the Midwestern city. “As the number of package deliveries increase in cities, but the number of doormen do not, there are increases in the rate of package thefts – the ‘seasonal crime of opportunity’ at the holidays, but really a problem all year round for people who shop online.”
Companies like Doorman may ease the lingering anxiety some consumers have about shopping online – that it will be difficult for them to get their packages or that their purchases may be stolen off their doorsteps.
Online retailers face logistics difficulties on all sides – from serving customers in regions that are hard to access to accommodating the needs of those in thriving, densely populated markets. Thankfully, many start-ups are working to provide the solutions these businesses need, making the future of logistics look more capable and promising than ever.
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Renée Frappier is director of marketing for PacNet Services Ltd, an international ecommerce payment processing company.
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