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The “Buy Now” Button: Good for Sales; Bad for Parcel Shipping and Logistics?

The simple, ubiquitous “Buy Now” button on retail websites around the globe has made a significant impact on e-commerce sales by simplifying the purchase process for online shoppers with an existing account. One click, and the sale is complete. That’s great for the sales team but puts considerable strain on fulfillment operations. According to DC Velocity:

“For users who are already logged into a site, that simple button allows them to set the entire fulfillment chain in motion with just the tap of a finger. While that might sound great to sales executives, it can be a headache for logistics professionals, since the button encourages shoppers to order a single item at a time, instead of bundling multiple products into a larger order that can be transported more efficiently.

‘The buy-now button has led fulfillment centers that process e-commerce orders to throw more orders into smaller boxes and get them out the door as quickly as possible to meet their shipping and delivery promises,’ Huckeba says. “Carriers want to work with shippers who can be as efficient as possible—the more packages they can get on a truck, the more revenue they’ll make—but it’s not efficient to fill a truck by weight with large numbers of small order parcels.’”

The suggested solutions? Order consolidation, flexible packaging, no packaging, and dedicated delivery days. But don’t stop at fulfillment, also consider returns processes.

Adding to this list, Logistyx recommends carrier capacity management via multi-carrier parcel shipping software to lessen the impact of the “Buy Now” button on a shipper’s bottom line. As capacity crunches continue and annual rate increases rise, the need for these strategies and technologies only grow.

Of course, the most impactful solution might be reconsidering whether a “Buy Now” button is truly the best way for shoppers to complete their purchases. After all, a single click to purchase only encourages the behaviors exacerbating the issues in the first place.

Contact us today to learn how advanced multi-carrier parcel shipping can help you optimize your fulfillment operations.