Ecommerce Trends 2019
Within the last decade, the ecommerce industryhas experienced some dramatic changes and this is only set to continue in the coming years. But what are the current trends and how is this impacting logistics as a whole? Let’s take a look!
Large Landscape Changes
Every year, the amount of time between click and delivery is decreasing. In years gone by, delivery would take many business days but now consumers expect their packages within two, three, and maybe four days (at a push!). As a result, last-mile distance should also reduce in the coming years. In fact, the current percentage of expenditure going towards this aspect of business is around double that of traditional retail stores (up to 18% compared to 9%).
In addition to this, companies are deciding to employ stock-keeping units (SKUs) and Amazon seem to be leading this trend. With hundreds of thousands of SKUs placed strategically across the US, they’re now able to promise a much faster delivery. With more companies investing in third-party logistics (3PL) partners or their own internal logistics teams, lead and delivery times should continue to become even quicker.
Although it should come as no surprise, ecommerce is still growing rapidly; 15% per year compared to 1–2% in the retail industry. By 2022, ecommerce is expected to account for 16% of all retail sales (around $1 trillion). The years of businesses pushing are coming to an end, and it’s being replaced by consumers pulling the products towards them. This is affecting the supply chain by moving the location of assets, increasing investment in analytics, and changing delivery (as we’ve already seen!).
Sales/Fulfillment Costs
In 2016, around $30 billion was spent on picking and packing in distribution centers in the US. Around the same amount went towards last-mile transportation; including crowdsourced platforms, national carriers, and regional short-haul shippers. Currently, market share between these three stands at <1%, 85%, and 12% respectively. As consumers demand faster deliveries, we could start to depend more on local and crowdsourced shippers compared to the national giants. With the crowdsourced solutions, these lean more towards same-day deliveries.
Same-Day Delivery
Leading from the previous point, retailers are always working towards reducing lead time and same-day delivery has seen a huge boost in recent years. In 2018, we’re expecting same-day volumes to reach $4 billion and this is helped mainly by niches that lend themselves towards a fast turnaround time including food, luxury items, and consumables.
The increase in demand actually coincides with the increase in millennials making their own purchasing decisions, over six in every ten EXPECT same-day delivery. As well as the big names of Google and Amazon, many crowdsourced platforms are trying to reduce delivery times including Deliv and Uber.
Technologies and Automation
Finally, ecommerce logistics are currently (and should continue to be) influenced by the investment in automation and other technologies. With machine-learning algorithms, robot deliveries, and more, the industry will continue to push forward and those who adapt to the new logistics patterns will find themselves in the driving seat for success!
Bonus! Marketing Tools:
2. Bilbi AI: Daily Marketing Campaign Insights
