These days, many consumers turn to the internet every time they want to make a purchase. While traditional retail still exists, the convenience of shopping online has turned consumers from all walks of life into online shoppers. Believe it or not, the global value of e-commerce sales in 2019 is expected to hit $3.5 trillion. So, what does this mean for transportation logistics? Keep reading to find out.
The Logistics Industry is Growing
Since most consumers have jumped on the online shopping bandwagon, the logistics industry is working to keep up. The transportation industry is increasing at such an exponential rate that he U.S. Department of Transportation predicts that by 2040, annual freight volume will rise by 45% to 29 billion tons.
How Consumer Demand Impacts Logistics
Regardless of what type of e-commerce store they order from, customers have high expectations. They are no longer satisfied with waiting weeks or even months for their goods to arrive. They expect speedy delivery as well as cutting-edge tracking features. Many have come to expect or demand free shipping.
These consumer demands have created quite the challenge for the logistics industry. E-commerce stores must use the most up-to-date technology and employ or outsource the best logistics practices and teams. They are primarily focused on:
Reducing Lead Time
As stated, consumers don’t like to wait long for their goods. Fast shipping is almost an expectation rather than a perk in today’s increasingly competitive e-commerce landscape. Therefore, e-commerce retailers are focusing on how they can improve their delivery times while maintaining costs and profit margin.
Hiring More Truck Drivers
Since ordering goods is now the “norm,” truck drivers are in high demand. The Bureau of Labor Statistics predicts that they’ll grow by 6 percent from 2016 to 2026. Unfortunately, this demand for drivers isn’t new, and is an issue the trucking industry has been struggling with for the last few years.
Outsourcing Transportation Logistics is Becoming Popular
An efficient transportation logistics strategy for e-commerce companies can be quite difficult to develop and maintain. That’s why many e-commerce retailers are outsourcing their logistics needs to companies who can help them stay competitive and meet their goals while helping the business maintain its cost structure.
Outsourcing also allows them to focus their time and energy on other things like product development and innovation. In addition, it can give them the opportunity to save money and offer “free shipping” and other perks that they may not have been able to in the past.
Amware Supports E-Commerce Companies
As a 3PL specializing in transportation logistics, Amware has helped many e-commerce companies streamline their fulfillment and transportation needs. Additionally, Amware can help e-commerce companies structure their pricing so that shipping actually becomes a profit center rather than a cost center. For those e-commerce businesses utilizing parcel service, Amware can review, audit, negotiate, and help recover funds from current parcel carriers.
If you’d like to ensure your e-commerce company is keeping up with its transportation logistics, we encourage you to contact Amware today to learn more about our services. We look forward to hearing from you!