As the economies of the world start to heal, the rapid increase in consumer expenditure has contributed to a large proportion of the logistics trends that have impacted the e-commerce industry in 2021. This increase in demand has set off other logistics trends such as the rise in customer expectations, the necessity of visibility in logistics as well as the innovation of logistics to streamline global supply chain networks. 

The Driver: Pandemic-driven e-commerce boom causes a surge in demand for E-commerce brands in 2021

Increase in customer demand begins in the US 

According to a report done by Deloitte, customer spending is set to further increase beyond 2021. This is due to the divergence of spending away from big expenditure items such as real estate and vacations. The convenience of e-commerce has caused a global shift to an increase of e-commerce spending. The US will see a forecast of growth of 7.6% in consumer spending by the end of 2021. 

South-east Asian markets will mimic this growth 

Similarly. South East Asian markets have followed suit. According to a report done by Google, Temasek and Bain the e-commerce industry will be set to be valued at US$172 billion by the end of 2025. Parcel volumes have not decreased to pre-pandemic levels and are set to continue the upward trajectory with lockdowns easing. 

Europe is set to Surpass Previous Forecast

DHL’s Global e-commerce Logistics 2020 report highlighted that Europe faced slower growth compared to other regions of the world in terms of e-commerce market size. However, projected forecasts indicate an upwards trend. France, Germany, and the UK saw the most growth among the top e-commerce markets on the continent, accounting for about two-thirds of cross-border e-commerce revenues. Europe stands at being the most open and will thus see its fair share of revenue from the e-commerce trend. 

The global trend of an increase in demand has impacted logistics for e-commerce brands worldwide. This has caused an exponential increase in customer expectations, a pressurised rise in cost for last-mile operations and the increase of competition in the e-commerce market with the rise of social commerce players. 

Logistics Trends: 1. Customer Expectations are the Highest in Europe and North America Affecting Customer Retention 

Free Shipping Expectations have hit Europe the Hardest

Around 44 percent of French consumers expect free delivery from online merchants, with fast delivery coming in close at 43 percent. Moreover, around 38 percent expect delivery personnel to wear protection gear such as face masks following the pandemic era. In order to retain market share market leaders will have to move to innovate. 

Personalized Experiences have Become an Expected Norm Globally 

Personalized experiences have become vital to customer retention. E-commerce giants such as Amazon, have set the tone for other enterprise brands to have a coherent brand conversation with their customers throughout the online shopping experience. A survey by Epsilon and GBH Insights found that up to 80% of customers expect personalization from e-commerce brands as opposed to 50% in 2020. 

Branded Tracking Pages are an Easy Solution to Engage Customers 

Before e-commerce brands can even begin giving personalized experiences for their customers, they must have full visibility of their delivery services. In other words, a logistics management system that has all their carriers integrated into a single User Interface. 

This can be achieved with Parcel Perform’s standardized Tracking Data Integration. With over 700+ parcel and cargo carriers integrated into a single UI, e-commerce brands can look forward to smarter internal processes, thereby providing customers with accurate tracking information.

The Trends: 2. Challenges in Deliveries Contributing to Rising Last-mile Costs 

The Shift to More Convenient Deliveries

As demand puts pressure on brands globally, the pressure on carriers and the increase in the need for speedy fulfilment became a priority for brands globally. This naturally added to the cost of last mile operations for most brands that were not ready for the added pressure in parcel volumes. 

Not just an increase in parcel volumes but the desire for customers to get same day, free deliveries has grown exponentially in the last year. 68% of customers will only place an order if if fast delivery is available and 55% of customers abandon their cart if free shipping is not available.

A survey conducted by Digital Commerce 360/Bizrate Insights found that more than 36% of online shoppers have ordered online for same-day delivery from a web-only merchant within the last six months. This has risen significantly from the 24% of shoppers who said they placed an order for same-day delivery from a web-only merchant in the last six months in August 2020. Customers now expect to be provided with last mile tracking while their order is on its way. 

Missed Deliveries also Adds to Rising Costs

Even when same day delivery options are available, e-commerce brands can expect to see missed deliveries. WISMO inquiries can overwhelm customer service teams and lead to poor customer reviews but also rising costs and parcels need to be redelivered. 

Better Notifications can Cancel Out Rising Costs in the Long Run

E-commerce brands must ensure that they are engaging with their customers proactively at the right time and place in order to achieve successful delivery statuses. This can be accomplished by sending specific notifications triggers to keep their customers updated on their shipments. 

Notifications are not only beneficial cost-wise, but also the key to enhancing the post-purchase experience and combatting customer queries. With Parcel Perform’s Branded Tracking Notifications, brands will be able to select from an array of trigger events to inform customers of their delivery status.

The Trends: 3. Exponential Growth in Cross-border E-commerce Leading to Data Overload

According to a survey done by FIS Global, the popularity of online shopping has caused the cross-border e-commerce market to grow at double the rate of domestic e-commerce. Brands can no longer ignore that cross border logistics is a necessary investment for brands that want to take advantage of the e-commerce boom. Online shoppers are seeking competitive pricing and 55% of online shoppers are willing or have purchased from another country in the last 12 months. The Global Cross border e-commerce logistics market is expected to grow by USD$44.61 billion by 2025. Additionally, the recent Adobe Digital Economy Index also foresees that global e-commerce sales will reach $4.2 trillion this year, with U.S. consumers accounting for close to one-quarter of that spending.

Data-first Logistics Reports Help Brands Take Control of Growth 

Utilizing logistics reports that can not only give an accurate assessment of the data of parcel tracking but also analyze it can help alleviate the obstacles that come with trying to make sense of different data from different carriers. Parcel Perform’s software is integrated with 700+ carriers worldwide allowing brands to easily standardize, aggregate and report data across countries can help optimize logistics easily. 

Looking Forward: Adoption of Technology will Set Apart the Major Players in the E-commerce Industry 

Specifically when it comes to last mile operations and other complex logistics, technology that maps these processes and aggregates data in real time can leverage brands to grow beyond their current standing and gain customer loyalty. 

Parcel Perform integrates with 700+ carriers, leveraging their delivery data to build a one-stop tracking solution for your business. While you grow your business we’ll take care of your logistics data and the post-purchase customer service experience. Contact us today to start building a personalized post-purchase customer journey.