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Survey Says: 86% of Consumers Willing to Delay E-commerce Delivery in Favor of Sustainability

One of Logistyx’s long-time partners, Blue Yonder, published its 2022 Consumer Sustainability Survey, revealing retail consumer preferences related to sustainable shopping habits after surveying more than 1,000 U.S. consumers on their sustainable shopping opinions and behaviors. Among the key findings:

  • 86% of consumers are willing to delay e-commerce deliveries for the sake of improving sustainability if given an incentive to do so
  • 64% of consumers are willing to spend more for sustainable packaging
  • 40% of consumers agree there should be a purchase threshold to qualify for shipping

In a recent column at Forbes titled “Sustainability Vs. Instant Gratification: Shopping And Shipping In 2022,” Logistyx President Ken Fleming explored the impact of consumerism and instant gratification on shipping sustainability, arguing shoppers need to alter their mindset to focus on sustainability for the good of the planet:

“The fundamental shift in mindset about how we shop is likely to have the greatest effect of all. When we prioritize sustainability over instant gratification, shop with companies that prioritize sustainability, and demand more sustainable options from shippers and carriers, then we’ll see a dramatic shift in our impact on the environment.”

The Blue Yonder survey is encouraging on that front. Speaking with Supply Chain Management Review, Edward Wong, senior vice president, global retail sector leader at Blue Yonder, stated:

“As retail emerges from pandemic-era practices, sustainability is back in focus. The findings of this study reflect the paradigm shift toward a more environmentally friendly supply chain as consumers are now willing to do their part to embrace more sustainable shopping habits.”

That’s music to Logistyx’s ears, but retailers and carriers must also play their part. From Ken’s column at Forbes:

Retailers must:

  • Offer ecologically friendly packaging
  • Present eco-friendly shipping options

Carriers must:

  • Continue to invest in alternative fuel vehicles to reduce emissions
  • Emphasize alternatives to daily at-home delivery
  • Expand eco-options globally

Be sure to review Blue Yonder’s report and infographic.

Contact Logistyx today to see how we can help you with your sustainable shipping efforts.

McKinsey Projects Cross-border E-commerce to Exceed $1 Trillion by 2030

McKinsey and Company published new cross-border e-commerce projections in its recent article “Signed, sealed, and delivered: Unpacking the cross-border parcel market’s promise,” quantifying the growth tied to a shopping trend we explored last year in our cross-border survey “Embracing the Cross-Border E-Commerce Opportunity.” McKinsey’s numbers verify what we expected: cross-border e-commerce offers a significant opportunity for retailers prepared to capitalize.

Graph: Cross border e commerce will grow to a $1 tr market in by 2030 with potential of double that size in a bold scenario

According to McKinsey:

“Even conservative estimates project that cross-border e-commerce in goods—the fulfilment and parcel dispatch of an order taking place in a country different from the customer’s final delivery destination—will expand to around $1 trillion in merchandise value by 2030, from its current value of approximately $300 billion (Exhibit 1). In a bolder scenario, e-commerce penetration of the total world retail market would approach today’s levels in China: more than 30 percent. If the cross-border share of e-commerce came close to 20 percent, the overall cross-border e-commerce market could total $2 trillion in merchandise value. We also expect cross-border supply chains to change significantly.”

This aligns with the results of our cross-border survey, which found:

  • 57% of online shoppers around the world made at least one online purchase from a company in another country in the last 12 months – while a further 22% considered doing so.
  • 43% agree or strongly agree that doing more online shopping in general during the pandemic means they are now more willing to consider cross-border e-commerce purchases.

While this presents a great opportunity for retailers, it’s not without its challenges. Again, from our survey:

  • 59% of online shoppers agree (24% strongly) they are less likely to give a company in another country a second chance if they make a mistake with their order.
  • 66% of respondents believe cross-border purchases will arrive later than promised.
  • 47% believe purchases are more likely to be damaged in transit.
  • 69% believe delivery charges will be higher for international orders.
  • 59% believe they will have to pay additional fees or duties which have not been made clear at checkout.

Meeting consumer expectations to provide a positive experience is paramount for sustained success. Luckily, we also identified seven factors likely to do just that:

Factors that would encourage cross-border purchases: Free returns (72%), online tracking (71%), no additional fees (70%), on-time delivery or money off (67%), local service/repair (64%), free support in native language (60%), buy now, pay later (54%)

Download “Embracing the Cross-Border E-Commerce Opportunity” to learn more about opportunities and overcoming challenges in cross-border e-commerce. Contact Logistyx to see how we can help.

Expecting the Expected: Research Confirms E-commerce Here to Stay

New e-commerce research shows it is here to stay and is firmly established as a go-to option for consumers.

Digital Commerce 360 published two articles recently examining the ballooning growth of e-commerce.

A decade in review: Ecommerce sales vs. total retail sales 2012‑2021” analyzes a decade’s worth of data from the U.S. Department of Commerce, finding 10 years after e-commerce accounted for only 8% of total retail purchases, online sales now represent nearly 20%.

Coronavirus pandemic adds $219 billion to US ecommerce sales in 2020-2021” explores the role of the pandemic in accelerating e-commerce well beyond expected growth. According to the article:

“From March 2020 through February 2022, U.S. consumers spent $1.7 trillion online, $609 billion more than the two preceding years combined (2018 and 2019), according to new data from The Adobe Digital Economy Index.”

and:

“Overall, in 2021, consumers spent $870.78 billion online with U.S. merchants, up 14.2% from $762.68 billion in 2020. If the pandemic would not have happened, Digital Commerce 360 estimates ecommerce sales would not have reached $870.78 billion for two more years, until 2023. And online sales would have only reached $754.33 billion in 2021.”

 

Add to those the results from the Logistyx consumer survey in which:

  • 57% of the participants, who were all online shoppers, made a minimum of one online purchase from a company outside their own country between August 2020 and August 2021.
  • 43% of the respondents said that the increase in their online shopping resulting from the pandemic made them more likely to “consider cross-border e-commerce purchases.”

US ecommerce sales as a % of total retail* sales - 19.1% in 2021, 8% in 2012

It’s clear confirmation of what we’ve come to expect: e-commerce is not only here to stay but is firmly established as a go-to option for consumers. For shippers, dealing with increasing order volumes and rising customer expectations can be a challenge, especially with ongoing supply chain issues, carrier capacity constraints, increasing shipping costs, weather delays, and labor issues complicating everything.

 Pandemic adds extra $218.53 billion to US ecommerce sales in 2020-2021

Luckily, there are solutions. As we detailed in our blog post “Why E-Commerce Demands Multi-Carrier Shipping Systems”:

Using a cloud-based multi-carrier shipping system with a Control Tower can help you future-proof your order fulfillment workflows against these market changes by giving you the flexibility you need to swiftly initiate:

  • New carrier services
  • Ship-from-store deliveries
  • Ship-to-store deliveries from distribution centers or other stores
  • Online order pickup at curbside or in-store
  • Advanced parcel management, including
    • Automated carrier rating and rate shopping to identify the lowest cost carrier service according to point of origin, point of destination, delivery timeline, and any applicable business rules
    • Parcel consolidation to control costs
    • Mode shopping to find carrier service alternatives
    • Automated cross-border compliance and documentation
  • Parcel shipping activity and status reviews at both large scale and granular levels
  • Automated delivery event alerts

And the features and functionality don’t stop there. The long-term value of cloud multi-carrier parcel shipping technology lies in its inherent ability to grow with you, enabling you to land an integrated transportation strategy worldwide – consistently improving on-time delivery rates and saving money with each parcel journey, no matter what you’re shipping, where you’re shipping, and with whom you’re partnering in the warehouse or on the road.

eBook - eBook Peak Season Parcel Shipping Thrival Guide

Contact Logistyx today to see why we’re Digital Commerce 360’s #1 Fulfillment Software Provider for three years running and to discuss how we can help you optimize your e-commerce fulfillment operations.

Instant Gratification vs. Sustainability: Logistyx President Ken Fleming Explores the Environmental Impact of E-commerce Parcel Shipping at Forbes

Climate change is harming our planet and our health, and e-commerce parcel shipping is contributing to the problem as retailers and carriers turn orders around fast to please customers. Greater shipment volume and frequency create more carbon emissions and more waste.

In his latest article for Forbes, Logistyx President Ken Fleming argues to fix this problem, retailers, carriers, and consumers all must make meaningful changes. In short:

Retailers must:

  • Offer ecologically friendly packaging
  • Present eco-friendly shipping options

Carriers must:

  • Continue to invest in alternative fuel vehicles to reduce emissions
  • Emphasize alternatives to daily at-home delivery
  • Expand eco-options globally

Shoppers must:

  • Prioritize sustainability over immediate gratification

“The fundamental shift in mindset about how we shop is likely to have the greatest effect of all. When we prioritize sustainability over instant gratification, shop with companies that prioritize sustainability, and demand more sustainable options from shippers and carriers, then we’ll see a dramatic shift in our impact on the environment.”

Read Ken’s full article, “Sustainability Vs. Instant Gratification: Shopping And Shipping In 2022,” for the dirty details on the impact of consumerism superseding concern for the environment and how we must all play a role in changing the equation.

While visiting Forbes, be sure to read Ken’s other articles.

Logistyx President Ken Fleming Shares the Keys for Keeping up with Food and Beverage E-commerce for Food Logistics

Two years into the global pandemic, consumers have grown accustomed to shopping online. Food and beverage retail e-commerce revenue in the United States hit $34.2 billion in 2021, up nearly 97% from $17.4 billion in 2019. The pandemic-driven change in the way customers shop is expected to remain long-term, meaning e-commerce growth is projected to persist.

In an article for Food Logistics, “Keeping Pace with Surging E-Commerce Requires Modern Fulfillment Strategies,” Logistyx President Ken Fleming shares the keys for food and beverage retailers to handle the increased volume while keeping customers happy and costs down:

  • Employ an omnichannel approach
  • Expand transportation networks
  • Tap into shipping data
  • Leverage automated shipping technology

Read Ken’s full article for full details on what each key unlocks.

E-commerce Continues to be a Key Driver for Logistyx Clients

Over the last two years, consumer intent to purchase goods through e-commerce channels has increased significantly and this trend promises to stick over the long term as people become more accustomed to purchasing online. According to recent research from McKinsey, more than 50% of consumers expect to continue their online shopping habits after the pandemic subsides, a pattern that will fuel the growth of online sales, which forecasts suggest could account for nearly half of all retail revenues by 2024.

Retailers increasingly respond to these shifts in consumer shopping behaviors by adopting more innovative approaches to successfully navigate e-commerce order fulfillment. For instance, the following Logistyx clients recently made the news for the success they achieved in implementing creative solutions to help improve e-commerce results.

Home Depot

Thanks in part to the uptick in home improvements during the pandemic, Home Depot has been an essential retailer over the last couple of years. With growing online orders and a strong buy-online-pickup-in-store model, Home Depot has churned out strong results on virtually all measures: earnings, revenue, margins, and e-commerce. In fact, Home Depot’s stock soared 56% in 2021 and this momentum is expected to continue into 2022 as the robust housing market remains strong. With 90% of the U.S. population residing within 10 miles of a Home Depot, it’s no wonder 55% of online orders were fulfilled through a store.

Oxford (Owner of Tommy Bahama, Lilly Pulitzer, and Southern Tide)

Leading apparel retailer, Oxford Industries, had a record Q3, with full price retail sales rising 13% and full-price e-commerce sales growing 100% compared to the third quarter of fiscal 2019. The results continue strong e-commerce sales over the last year.

Webinar - How to Drive your Carrier Network to Success

Walgreens

Walgreens exited first-quarter fiscal 2022 with better-than-expected earnings and revenues, with the continued acceleration of Walgreens’ omnichannel offerings a notable upside. The leading pharmacy-led health and beauty retail company also recently shared how it’s leveraging artificial intelligence-based digital search capabilities to help customers find relevant items available locally using omnichannel shopping and fulfillment features, such as same-day delivery and curbside pickup.

We applaud these retailers for their advanced approach to e-commerce. Logistyx proudly works with innovative companies on their e-commerce fulfillment capabilities to ensure superior service, enhanced customer experiences, and significant cost-savings.

To learn how you can elevate your e-commerce fulfillment strategy and successfully meet increasing demand, contact Logistyx today.

Why E-Commerce Demands Multi-Carrier Shipping Systems

Uncover the top ways a multi-carrier shipping system can help you navigate e-commerce fulfillment and prepare for the future.

Online shopping has grown in the past year and is on a trajectory to increase further. Research shows 86% of consumers plan to continue shopping more online well after the pandemic, and 42% hope to make fewer trips to stores in the future. While this trend is good news for retailers, it’s important to remember consumers demand a smooth user experience from the moment they click “check out” to the moment their package is deposited on their doorstep. Failing to satisfy at both the “discover” AND the “deliver” phases of the purchase experience can erode customer loyalty.

Under this intense pressure to fulfill orders on time and in full, retailers were already feeling a strain in their warehouses in 2020 and early 2021. But add peak season-like consumer demands, production bottlenecks, unprecedented cargo logjams, carrier capacity constraints, and skyrocketing freight costs to the end-of-the-year supply chain equation, and suddenly there were plenty of opportunities for e-commerce fulfillment to go wrong. And at the risk of being the bearer of bad news, the new year has not brought new relief to the extent everyone hoped.

Fortunately, our technology has evolved to support these challenges. In this blog post, we will uncover the top ways utilizing a multi-carrier shipping system can help you successfully navigate e-commerce fulfillment and prepare your organization for the future.

Get More Out of your Order Fulfillment Workflows

Regardless of which products you’re shipping, having complete control over – and visibility into – your order deliveries is key to ensuring on-time arrival. Sadly, this kind of control is often hard to come by. Many retailers find the parcel shipping landscape challenging given fluctuations in carrier constraints, changing shipping regulations (looking at you, Brexit), and unexpected carrier fees and surcharges.

But using a cloud-based multi-carrier shipping system with a Control Tower can help you future-proof your order fulfillment workflows against these market changes by giving you the flexibility you need to swiftly initiate:

  • New carrier services
  • Ship-from-store deliveries
  • Ship-to-store deliveries from distribution centers or other stores
  • Online order pickup at curbside or in-store
  • Advanced parcel management, including
    • Automated carrier rating and rate shopping to identify the lowest cost carrier service according to point of origin, point of destination, delivery timeline, and any applicable business rules
    • Parcel consolidation to control costs
    • Mode shopping to find carrier service alternatives
    • Automated cross-border compliance and documentation
  • Parcel shipping activity and status reviews at both large scale and granular levels
  • Automated delivery event alerts

And the features and functionality don’t stop there. The long-term value of cloud multi-carrier shipping technology lies in its inherent ability to grow with you, enabling you to land an integrated transportation strategy worldwide – consistently improving on-time delivery rates and saving money with each parcel journey, no matter what you’re shipping, where you’re shipping, and with whom you’re partnering in the warehouse or on the road.

Even better, when you choose a solution that’s built on an open platform, there’s no end to the “integration” in “integrated transportation strategy.” You’ll be able to seamlessly exchange data with all your business-critical systems as well as with your carriers without building custom UIs. Ultimately, you’ll improve the time to value of your multi-carrier shipping technology investment and optimize the infrastructure for your business long-term in the cloud, in the data center, and in your tech stack.

Boost Your Customer Experience

Not only is multi-carrier shipping technology convenient for your warehouse and order fulfillment teams, but it will also be convenient for your customers as well.

In this digital age, many customers put themselves first and purchase based on convenience. This is a huge driver behind most e-commerce sales.

To continue to keep sales high, sophisticated retailers are integrating their multi-carrier shipping technology with their OMS and WMS solutions to quickly include in-store pick-up as one of their delivery options. When bringing customers in-store, they’re not only decreasing their carbon footprint by reducing the environmental impact of parcel packaging and travel emissions, but they’re also increasing the total purchase value by encouraging in-store foot traffic. (There’s a reason people joke about entering big box retailers for one item and then leaving with $100 worth of merchandise: impulse purchases!)

Furthermore, when retailers integrate their multi-carrier shipping technology with their e-commerce technology, customers can also track their order delivery online on the retailer’s website. This provides peace of mind and a positive brand experience.

And the same positive brand experience can be created with returns. Smart retailers leverage their multi-carrier shipping technology to pre-print a return label and any other required labels (such as hazmat) and include them in the original parcel. This streamlines the returns process for the customer and bonus: it enables the retailer to execute the return shipment at the lowest possible cost – a critical strategy for those that provide free returns.

Free Download - eCommerce Checklist for Peak Season

Looking for the right multi-carrier shipping technology?

Multi-carrier technology is more than just a warehouse solution. It is a combination of broad carrier network access, supply chain technology integrations, and expertise.

With Logistyx, you get all the above. We work to create a partnership with you and your carriers that will help you ship millions of parcels worldwide at the lowest possible cost. Learn more about Logistyx today.

How E-Commerce Accelerates Demand for Omnichannel Parcel Shipping Strategies

Looking ahead to peak season 2021, e-commerce order fulfillment is under the same – if not more – pressure than peak season 2020. Consumer demand continues to overpower the supply chain, and shippers are scrambling to overcome production bottlenecks, mitigate skyrocketing freight costs, and find more parcel capacity to achieve on-time delivery.

The key to success in this no-longer-unique-but-still-challenging landscape is agility, specifically in the form of omnichannel distribution strategies. Successful shippers will have the ability to pull multiple e-commerce order fulfillment levers – such as ship from distribution center or warehouse; ship from store; buy online pickup in store (BOPIS); buy online pickup curbside (BOPIC); and buy online, return in-store.  But to pull these various levers, shippers must have a distribution infrastructure in place that includes:

  • A cloud multi-carrier shipping system: A cloud multi-carrier shipping system seamlessly integrates with a retailer’s WMS, OMS, e-commerce, and ERP solutions to automate high volume, multi-carrier, omnichannel shipping. Regardless of which delivery option a customer chooses, the system automatically selects the right carrier service for each order according to parcel origin, parcel destination, carrier contracts, and business rules; and creates or acquires the tracking, labels, and documents. Therefore, retailers can satisfy customers’ delivery requirements and drive down the cost of shipping while transforming logistics into a profit center within the business.
  • A diversified transportation network: In addition to the traditional “big 3” carriers and regional logistics providers, an omnichannel distribution strategy that includes ship-from-store requires a local carrier network catering to the retail footprint; this network increasingly should include gig economy fulfillment carriers such as Shipt, Postmates, DoorDash, Instacart, and others, to meet fulfillment schedules (often same or next day)

Strategies to Improve E-Commerce Parcel Shipping

The truth is, if you don’t already have omnichannel distribution strategies in place, it might be too late for peak season. But that doesn’t mean you can’t start planning now for next year. Here are some things to consider:

  • Prioritize cloud. Executing shipping fulfillment workflows with an on-premise software system requires manual touches from people and equipment to help parcels move efficiently. Shipping operations are dependent on their own servers to scale, maintain security, and remain compliant with ongoing carrier updates. Not surprisingly, when faced with a surge in demand or a supply chain disruption, bottlenecks occur. And when orders don’t make it out the door in time, customer satisfaction is at risk.In contrast, a cloud-based supply chain improves a shipper’s abilities to anticipate risk, improve transparency and coordination across order fulfillment workflows, and manage issues that arise from increasing distribution complexity. With the cloud, you can maintain on-time delivery rates while reducing operations costs in any shipping landscape. The right solution will perform no matter the number of parcels moving through your distribution network each day, and you can integrate your parcel shipping system in the cloud with supply chain technology such as WMS, OMS, and e-commerce systems – quickly simplifying the complexity of omnichannel distribution by seamlessly sharing critical order fulfillment information throughout the organization. Suddenly, you can execute any parcel movement – ship-from-store, BOPIS, same-day-at-home delivery, and more – all at the optimal cost and with no manual intervention.
  • Implement Control Tower and Business Intelligence Technology Numerous shippers have started prioritizing improvements in parcel delivery tracking and transparency across all carriers in their transportation network by utilizing Control Tower technology, which provides greater visibility into a product’s delivery journey and flags potential delivery disruptions to improve customer service.And when a cloud-based Control Tower is paired with Business Intelligence technology, shippers can normalize shipping data and execute quick, real-time analyses. Companies have loads of information at their fingertips and can look at their transportation costs in a deeper way, identifying problems, zeroing in on their root causes, and uncovering opportunities to improve. With better information, shippers gain the necessary flexibility to continuously optimize their fulfillment and shipping strategies in any shipping scenario and transform fulfillment processes while slashing costs over the long term.
  • Expand your carrier network. Capacity crunches impede a shipper’s ability to meet their customers’ on-time delivery expectations. With major carriers like UPS and FedEx routinely announcing increased shipping surcharges and daily package capacity caps for peak season, while also dropping smaller freight clients altogether, shippers are rightfully seeking more regional and local carriers to incorporate into their carrier networks to pick up the slack. Regional and local carriers can usually offer next-day ground delivery within 400 miles of a shipment’s origin – often at a lower rate and with fewer surcharges than national carriers.

Power Omnichannel Distribution with Logistyx

The right technology will improve e-commerce order fulfillment and enable you to successfully meet increasing demand. To learn more about how Logistyx can modernize your workflows for peak season and beyond, watch our webinar: Embrace the Unprecedented Pace and Scale of Parcel Shipping Technology.

How Carrier Capacity Impacts E-Commerce Shipping Solutions

Understand how carrier capacity can negatively affect e-commerce shipping rates and delivery timelines.

Online retail sales gained traction once again in the first quarter of 2021, up a dramatic 39%. The cause? An uptick in online shopping due to COVID-19. But while the trend may have begun because of shutdowns and store closings, it’s expected to continue into peak season due to convenience – even as stores reopen their doors.

Unfortunately for e-commerce retailers, this demand for online shopping may outweigh its rewards. With national carriers at capacity, many retailers aren’t enjoying typical benefits such as discounted rates and shipment pick-up flexibility, largely due to vehicle and manpower shortages.

In this blog, we’ll help you understand how carrier capacity can negatively affect e-commerce shipping rates and delivery timelines as well as outline how a multi-carrier shipping solution can help you surmount carrier capacity issues – setting you on the path to success in 2021 and beyond.

How Carriers at Capacity Affect E-Commerce Retailers

National shipping carriers can’t keep up with the increase in e-commerce demand brought on by the pandemic. Although shipping carriers are trying to expand their capacity as quickly as possible, a lack of workforce and ships, trucks, and planes have left them behind.

The Wall Street Journal stated last month, “Shipping costs have tripled since last year, but merchandise comes in up to 45 days late.” This dynamic has made it difficult for retailers to compete with same-day/next-day delivery behemoths such as Amazon and compromised their customer relationships. Without the ability to meet customers’ demands for “delivery now,” once-loyal customers have instead turned to brands who promise convenience in the form of 2-day shipping and easy returns.

What’s more, carriers aren’t offering the benefits they usually would. For example, an e-commerce retailer may have a warehouse outside their shipping carrier’s typical pick-up range. Traditionally, however, if the retailer is a big customer, the carrier may make an exception and pick up the parcels outside of the range.

But with an increase in demand, the carrier may not have enough trucks or workers to drive an hour out of the way to the retailer’s warehouse without charging extra or taking a long time to pick up the shipment. This either forces the retailer to pay more to ship their goods (which can lead to price inflation) or to look for a new carrier. Either way, customer satisfaction suffers, goods are delayed, and shipping is more expensive.

Though not every e-commerce retailer receives special pick-up benefits from their shipping carriers, almost all have been subjected to substantial surcharges and rate increases over the last 14+ months, as many large national carriers kept their 2020 holiday surcharges in place in early 2021.  Even more daunting: many national carriers are already announcing new holiday surcharges.

States FreightWaves about the most recent surcharge announcement from UPS, “The holiday surcharges, which kick in Oct. 31 and run until Jan. 15, will, as they did in the 2020-21 cycle, whack UPS shippers that tender the highest volumes. In extreme cases, surcharges will run as high as $6.15 per package.”

While e-commerce demand may diminish slightly as stores re-open, it’s not expected to get better anytime soon. And even though shipping carriers are increasing their workforce and fleets, it may take time for supply to meet demand – all of which means e-commerce retailers need a way today to find the best shipping options to get their packages to their customers efficiently, and at a low cost.

One answer? A multicarrier solution. Read on for the benefits of this smart shipping strategy.

The Benefits of a Multi-Carrier Shipping Solution

By integrating a multi-carrier e-commerce shipping solution into your supply chain tech stack, you don’t have to ship with just one carrier.  Instead, you can tap into an extensive carrier network that includes dozens of regional carriers, making it easier and faster to add and maintain carriers’ rates and services and enabling you to quickly react to carrier capacity limitations, surcharges, and rate increases to better control costs and maintain on-time delivery KPIs.

When you use a multi-carrier shipping solution to compare carriers, you gain visibility into which carrier really works best for each of your shipments, based on:

  • Location
  • Capacity
  • Shipping rates
  • And more

With this visibility in place, you can see which national, regional — and in some cases last-mile — carriers can help minimize the cost and maximize the speed of your shipment, automatically.

Note: Customers are concerned with convenience. If your e-commerce store has a physical location, consider integrating same-day carriers, like DoorDash or Instacart, as a shipping option. This takes the shipping burden off you and integrates a third party to satisfy your customer faster.  

And by adding a multi-carrier shipping solution like Logistyx to your supply chain tech stack, you also:

  • Create an agile logistics infrastructure that withstands complex supply chain issues
  • Improve transparency and coordination across your supply chain
  • Leverage Business Intelligence to make informed business decisions based on your shipping data, such as:
    • Change your inventory footprint: Move products from distribution centers to brick-and-mortar stores to better meet delivery timeframes, etc.
    • Expand your carrier network: Add new carriers to handle parcel deliveries, be it international or local
    • Compare last-mile/regional services against those from major carriers: Which carriers are best suited to meet delivery and cost expectations
    • Determine what types of orders can be shipped versus orders that customers can pick up

 

A multi-carrier shipping solution like Logistyx can minimize the effects of carrier capacity limitations on your business by giving you easy access to several different carrier options and more. To learn more about Logistyx’s solution, download our whitepaper, Simplifying Multi-Carrier Parcel Management for Peak Season and Beyond.

Digital Commerce 360 Top 1000 Report: Enormous Growth of E-Commerce in 2020, Wide Embrace of Omnichannel Services

The massive surge of online shopping experienced during the COVID-19 pandemic was substantiated in recent key findings from Digital Commerce 360’s 2021 Top 1000 Report, an annual ranking of North America’s largest merchants by e-commerce sales.

The Top 1000 retailers collectively increased their global online sales by 45.8% in 2020, by far the largest year-over-year growth in the decade since Digital Commerce 360 began tracking North America’s 1,000 e-commerce leaders.

While U.S. retail sales increased 6.9% in 2020, online purchasing grew more than four times as fast, growing by 32.4%. E-commerce accounted for the bulk of retail industry growth in 2020 – 74.6% – a big jump over 54% of retail growth in 2019.

The report notes, “As consumers across North America searched, often desperately, for essential items during the pandemic, they not surprisingly turned first to the best-known retailers.” Just the 12 largest retailers by web sales accounted for 70.9% of the growth in Top 1000 sales from 2019 to 2020, growing collectively by 54.8%.

In Digital Commerce 360 and Bizrate Insights’ omnichannel survey of 1,047 online shoppers in February 2021, 64% of survey respondents said they intend to order more online in the next six months, suggesting a persistent upward trajectory. As the online shopping landscape continues to rapidly evolve, retailers must consider advanced e-commerce strategies to meet customer expectations and stay competitive.

Growing Importance of Omnichannel Retail Services

Digital Commerce 360’s Top 1000 Report found wide embrace of omnichannel activities by online shoppers in 2020, with 58% checking product availability at their local stores and 43% ordering products online and picking up in-store.

Of the 75% of surveyed shoppers who completed an in-store or curbside pickup in the past six months, 22% did so 11 or more times. Shoppers were largely satisfied with these delivery alternatives; 48% of respondents scored omnichannel experiences a 9 or higher, while 46% issued a grade of 6-8.

Of the Top 1000 retail chains – companies that primarily sell through physical stores – the percentage offering in-store pickup of web orders grew to 73% in 2020 from 61.9% in 2019. There was a much bigger jump in the number of chains offering curbside pickup, which increased to 54.2% from 9.9%. Many retail chains also increasingly offered in-store returns, growing to 88.3% of store-based Top 1000 retailers in 2020 from 66.8% a year earlier.

Overall, online shoppers widely embraced omnichannel options from a variety of merchants, with specialty stores, grocery stores and retail powerhouses including Walmart and Target all attracting significant attention. In turn, the countless stores that adopted these options drove positive results and fostered growing interest.

A Cloud Multi-Carrier Parcel Shipping Solution Sets Retailers Up for Success

It’s clear that, as consumer demands for affordable shipping and quick delivery  continue to grow, for today’s leading retailers, adopting and building an omnichannel strategy is critical to remaining competitive. A successful omnichannel approach requires an optimal balance of e-commerce, brick-and-mortar retail, and fulfillment and distribution capabilities. Having the ability to pull multiple e-commerce order fulfillment levers – such as ship from store; buy online pickup in store (BOPIS); and buy online, return in-store – is a critical differentiator for retailers, as detailed in the key findings of Digital Commerce 360’s 2021 Top 1000 Report.

To successfully implement an omnichannel retail strategy, companies need a comprehensive multi-carrier shipping strategy to support fast delivery times and meet customer expectations. For retailers striving to scale their business, while optimizing customer service and increasing profit margins, an effective omnichannel strategy must include a cloud multi-carrier shipping system.

A cloud multi-carrier shipping system seamlessly integrates with a retailer’s WMS, OMS, e-commerce, and ERP solutions to automate high volume, multi-carrier, omnichannel shipping. Regardless of which delivery option a customer chooses, the system automatically selects the right carrier service for each order according to parcel origin, parcel destination, carrier contracts, and business rules; and creates or acquires the tracking, labels, and documents. Therefore, retailers can satisfy customers’ delivery requirements and drive down the cost of shipping while transforming logistics into a profit center within the business.

Logistyx was named the #1 fulfillment software provider to Digital Commerce 360’s Top 1000 retailers for two consecutive years. As e-commerce continues to surge, Logistyx ensures top retailers and others with large fulfillment operations have the right mix of shipping and omnichannel capabilities at their fingertips, while tapping into more than 550 global carrier integrations for an optimal transportation strategy to effectively achieve omnichannel fulfillment.

To learn how you can improve your omnichannel shipping strategy to take advantage of e-commerce growth, contact us today.

E-commerce Sales Continue to Soar Among Logistyx Clients

E-commerce sales experienced massive growth during and following the COVID-19 pandemic, accelerating a shift already underway in people’s shopping preferences. According to Digital Commerce 360’s estimates, consumers spent $861.12 billion online with U.S. merchants in 2020, increasing 44% year-over-year (YoY); the highest annual U.S. e-commerce growth in at least two decades and nearly triple the 15.1% jump in 2019. 2021 shows no signs of slowing, as highlighted by two Logistyx clients recently in the news for quarterly earnings.

Home Depot

For Q1 2021, Home Depot’s online sales grew 27% YoY, accounting for 14.3% of total sales. Interestingly, with sales booming and shipping capacity shrinking, Home Depot has secured its own ship to help optimize its supply chain.

Oxford (Owner of Tommy Bahama, Lilly Pulitzer, and Southern Tide)

Full price e-commerce sales grew 55% to $74 million compared to the first quarter of fiscal 2019, with growth in all branded businesses, helping the company achieve total net sales of $265.8 million in Q1 2020.

Kudos to both companies for taking steps to capitalize on unprecedented e-commerce growth! Logistyx is proud to work with innovative companies on their e-commerce fulfillment capabilities to ensure excellent service, customer satisfaction, and substantial cost-savings.

To learn how you can optimize your omnichannel shipping strategy to effectively take advantage of the ongoing e-commerce surge, see how Logistyx can help.

Logistyx President Ken Fleming Examines Marketplace Fulfillment Excellence at Forbes

Online marketplaces, both large and small, have become enormously popular in recent years, driving VC investment, acquisitions, and IPOs, as well as tech investment for payment solutions, site personalization and recommendation engines, and advertising. Perhaps the most critical component to sustained success is also the most-often-overlooked: order fulfillment as a chief driver of customer satisfaction.

In his latest article at Forbes, Logistyx President Ken Fleming examines current fulfillment approaches for various marketplaces, how technology can improve the process while also easing the burden on sellers:

“Technology can help counteract [rate] increases in several ways. It can aid sellers by helping identify the best and most cost-effective carrier service based on business rules; it can audit historical shipping data to uncover efficiencies, new carriers, or services; and it can monitor every shipment to ensure carriers perform services as contracted and flag discrepancies, offering invaluable data for billing accountability and rate negotiations.

Technology can ease the burden on sellers by automatically providing shipping options to buyers at checkout, including an array of carriers and service levels, automatically generating the correct label for the seller and providing end-to-end tracking information and alerts about problems while in transit to manage off-track shipments.”

Read Ken’s full article, “Online Retail Marketplaces Must Lessen The Fulfillment Burden On Sellers To Stay Competitive,” to find out the questions marketplaces must answer for a successful technology implementation and how it can set them apart from the competition.

While visiting Forbes, be sure to read Ken’s other articles.