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No longer do we see the internet as an untapped source of revenue growth for companies, rather, the competition in the eCommerce world is tougher than ever before. We saw eCommerce giants generating billions of dollars in the 3rd quarter of 2016 alone. Companies, now, more than ever, need to make the selling process as easy and enjoyable as possible for the consumer. A huge part of that is making the delivery process as painless as possible. In order to do this, companies must face and beat the challenges of last mile delivery.
eCommerce companies must send out their products in a timely manner and send them out without any flaws. They need to minimize cost and friction, while maximizing efficiency and transparency in the situation. The last mile of delivery, or the process of moving goods from a fulfillment center to their final destination, is where most companies fall short in customer satisfaction and where the biggest costs emerge. Customizable courier software allows for both the buyer and the shipper full transparency and efficiency in the purchase to delivery process.
Cost is not a new issue in business, but it is still a crucial factor in devising the correct strategy for any eCommerce company’s shipping and delivery execution method. There are plenty of shipping methods offered, but today’s consumers like newer, faster ways of shipping, especially for small niche items. The cost of last mile delivery accounts for 28% of total delivery costs to a business. With courier and dispatch software and GPS tracking, you can minimize cost per order by eliminating hiccups in the last mile.
It’s no secret that today’s consumers have an endless information supply at their fingertips. It’s in the numbers: eCommerce revenue growth has increased 47% in the past 5 years. To adapt to the expectancies of their clients, companies have added tracking codes to orders, but this still does not provide full vision of the process. Having this transparency is vital in today’s age. Courier software ensures seamless delivery and real time tracking, giving customers access to all the information they need from their shipping provider.
The business world is fast paced and unforgiving. 62% of customers are less likely to shop with a company again if the product comes 2 days later than expected. It’s obvious to eCommerce companies that fulfilling orders correctly and on time is vital to every eCommerce site. In order to be fully equipped to handle the last mile delivery, the company needs to have the correct technology. In regards to same-day deliveries, a company needs to find the optimal route concerning the correct delivery person, the right spot, at the right time. Driver management applications streamline communication, leading to much higher efficiency. Customer retention will not be achieved so easily today with just a good product. The process in which they receive the product is key.
The less problems in any business process will maximize efficiency and minimize costs. However, due to unique situations, it is not always possible to have a frictionless process. You can minimize friction in transactions with the proper technology and readily available communication between vendor and customer. Courier management software, built specifically for the Same-day & Next-day industries, can be customized to your business to automate the flow of information. Global B2C eCommerce will reach $2.3 trillion in 2017, don’t miss out on this opportunity due to poor communication.
In order to be a company people can rely on, you have to be well constructed. No matter the size of your eCommerce business, you have to be consistent in your delivery. Having a poor infrastructure results in additional costs, time lags and brings down customer retention over time. These are all controllable elements that companies can handle correctly with the right technology. eCommerce companies who switch to outsourcing infrastructure in particular services find a 19% improvement in quality and 18% improvement in on-time delivery. Monitoring drivers and updating buyers on their packages in real time can save money and increase customer satisfaction. The shipping industry is very dynamic, but distribution software will allow you to meet your customers needs every time.
Customers today are demanding fast, frictionless, cheap, and efficient processes for purchasing and receiving their online orders. In order to fulfill these requests in an effective manner, eCommerce sites should have the latest courier software technology for tracking these orders accurately. The technology mentioned above is what will combat these five challenges of last mile delivery and allow average sized eCommerce to play on equal footing in the big leagues.
