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Iceni Magazine | July 17, 2018

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3 Ways E-Commerce is Changing Logistics

3 Ways E-Commerce is Changing Logistics

Providing convenience for shoppers and with more choice than ever before, e-commerce is continuing to boom.

This is having a knock-on effect on a variety of industries, but none more so more than logistics. With an increase in demand and faster services becoming the norm, firms in this sector are facing a variety of changes.

With e-commerce showing no sign of slowing down – in fact, by 2021 e-commerce sales worldwide are expected to reach $4.5 trillion – logistics companies are seeing huge changes and as such, beginning to adapt for the future.

Larger Shipment Volumes

As ecommerce continues to grow and the number of goods purchased online increases, this will result in the volume of shipments across the globe continuing to rise. For logistics firms, this means additional space will be required in order to handle, process and ship larger quantities, in both distribution centres and delivery fleets.

By expanding in this way, delivery companies can meet customer needs and benefit from the e-commerce boom, allowing them to fulfil more orders and expand their networks.

Faster Shipping Methods

While customers may previously have been happy to wait for slow, standard delivery options, they now have more choice. With companies like Parcel2Go offering comparison services, competition is growing – something that is only expected to rise as e-commerce expands and customer expectations increase. As such, as more customers shop online, the demand for next and same-day delivery is predicted to increase.

In order to keep up with demand, logistics companies must invest in better warehouse procedures and larger delivery fleets, to be able to deliver higher quantities at faster rates.

Increase in Technology

In addition to hiring additional warehouse staff and delivery drivers to meet both business and customers needs, logistics firms are expected to become increasingly technology focussed. While we are already seeing this with firms beginning to utilise AI in their warehouses, technology will begin to dominate this sector. Fromblockchainto automation and the debate surrounding drones, these changes are essential to meet the increasing demands of both e-commerce and consumers, providing the opportunity to compete in this growing industry. As such, tech is set to shape the future of logistics, changing the way the industry operates.

E-commerce has already altered the way consumers shop, with the ability to shop anywhere any time giving rise to new trends, such as the vampire shopper. While it has already started to have an effect on the logistics industry, ecommerce is set to drive further change in this sector. From the introduction of tech to larger warehouses, this will be essential to meet customer demands and keep up with the ecommerce boom.


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