E-commerce is growing at an annual rate of 10 percent, and if growth accelerates, the logistics industry could suffer a dramatic collapse of service and capability. However, shippers that understand the e-commerce parcel global trends can take steps to prepare and refine their shipping strategies to ensure a disruption-free operation. Let’s take a closer look at the top e-commerce parcel global trends to expect in 2019.
E-Commerce Parcel Global Trends Move to Meet Consumers’ Busy Schedules
One of the leading e-commerce parcel global trends will focus on how consumers receive their packages. Traditional e-commerce delivery was uncomplicated. Consumers could have a product shipped to their home, the workplace, or even in a nearby store. Unfortunately, consumers’ busy schedules are forcing retailers and shippers to reconsider where consumers can pick up purchases. Self-service kiosks and delivery lockers will become more apparent throughout the nation as carriers and shippers look for ways to give consumers access to their packages regardless of their location.
E-Commerce Parcel Volume Will Increase Throughout 2019
The volume of shipments in e-commerce will increase throughout 2019 as well. This is the result of increased growth in e-commerce, but a strong economy will inherently result in more purchases made online and in stores. Therefore, actual growth for 2019 could easily exceed the 10-percent threshold. With an industry already under duress due to the driver shortage and the capacity crunch, shippers will face a crisis in securing available parcel capacity. In response, carriers will look to shippers to make their freight more attractive. In other words, more shippers will work to gain shipper of choice status, reflecting the priority scheduling and tendering of their shipment over others. This effectively reduces the rate of freight rejections and ensures their shipments arrive as expected.
Predictive Analytics Will Empower Parcel Carriers and Shippers
According to FreightWaves, more carriers and shippers will look to predictive analytics to understand current forecasts, inventory, and demand on the logistics industry, and this will include parcels as well. Predictive analytics can help shippers and carriers plan for changes in demand, consider external influences, such as the government shutdown or allocating for holiday shopping volume increases. Meanwhile, predictive analytics and descriptive analytics will empower shippers and carriers by helping them understand where issues arise, especially understanding what problems occurred and how they came to fruition. As a result, they can work together to reduce the likelihood of recurrence and enhance the overall efficiency of the logistics network.
More Companies Will Use Storefronts as Distribution Center for Parcels
Retailers have an advantage over Amazon when using stores as a distribution center, reports Business Insider. While stores may give consumers the option of picking purchases up in store, using the storefront for distribution center processes will effectively free resources in the supply chain. In-store workers can pull items into packages and ship the parcels to consumers in the surrounding area. This lessens the burden of shipping parcels across states or even countries. The same process can have a significant impact on returns management of parcels in distribution centers too.
Imagine consumers returning online purchases in the store. Products can be reviewed for damage, restocked or even reshipped from the store.
Globalization Will Push Governments to Refine International Parcel Management Practices
As explained by Ina Steiner of E-Commerce Bytes, increased globalization of the supply chain will have a profound impact on parcel management practices. Governments from around the world will take an increased interest in international parcel management, and compliance concerns in other countries will start to make an impact on domestic parcel shipping as well. With companies in the U.S. shipping and receiving products from around the globe, keeping track of the latest developments in new and emerging markets, as well as those in the process of digital transformation and growth of e-commerce, will be critical to planning accordingly for parcel demand.
Know the E-Commerce Parcel Trends and Their Impact on Your Operation
The e-commerce parcel global trends reflect a world that is increasingly connected and relying on shippers and carriers overseas. Instead of trying to focus solely on domestic concerns, shippers should take a truly international view of their shipping strategies, from forward to reverse logistics. In addition, shippers that understand the e-commerce parcel global trends and their impact on operations can refine shipping schedules, improve inventory management practices and achieve cost savings.