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Opinion

Right on trend

Adam Robinson, marketing manager at CerasisBy Adam Robinson, marketing manager at CerasisApril 16, 20194 Mins Read
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Adam Robinson, marketing manager at Cerasis, outlines the latest e-commerce parcel global trends and how they will impact the postal industry

E-commerce is growing at an annual rate of 10%, and if this accelerates further, 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 over the next year.

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 to 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 common as carriers and shippers look for ways to give consumers access to their packages, regardless of location.

E-commerce parcel volume will increase
The volume of shipments in e-commerce will increase over the next year. This is the result of increased growth in e-commerce, but a strong economy will inevitably result in more purchases being made online and in stores. Actual growth for 2019 could thus easily exceed the 10% threshold. With an industry already under duress due to the driver shortage and the capacity crunch, shippers will face a crisis when it comes to securing available parcel capacity. As a result, 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 and consider external influences, such as government shutdown or holiday shopping volume increases. Meanwhile, predictive analytics and descriptive analytics will empower shippers and carriers by helping them understand where issues arise, in particular understanding problems and what caused them. As a result, they can work together to reduce the likelihood of recurrence and to enhance the 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 up purchases, 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 huge 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-CommerceBytes, 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 USA 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 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.

About the author
Adam Robinson oversees the marketing strategy for Cerasis. Working with the business development department, he creates messaging that attracts the right decision makers, gaining inbound leads and increasing brand awareness, while shortening sales cycles. With the Cerasis leadership, Robinson works to differentiate Cerasis in the freight logistics world.

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