Move over Brick and Mortar, Logistics Must Gear for E-Commerce
November 29, 2022 – If you found yourself making most of your daily and big ticket purchases from the Internet during the Covid-19 pandemic, you were not alone.
E-commerce is now the dominant mode of shopping for 68% of consumers, a jump from 52% in 2020. E-commerce sales will form a full fifth (20%) of all retail sales in two years’ time (2024). The worldwide market for E-commerce Logistics was estimated at US$243.4 billion in the year 2020. It is projected to reach US$819 billion by 2027, growing at an annual rate of 18.9%.
The biggest regional markets were in China, Indian and Japan, as the e-commerce space became incredibly competitive with Amazon beating Walmart to become the largest retailer in the US, capturing 14.1% of all online sales in the country in 2020.
The message could not be clearer for logistics players as they seek to prioritise the growing e-commerce (and associated mobile commerce, m-commerce) markets by tackling key fulfilment challenges such as shipping, chronic labour and warehouse space shortages, as well as technology and inventory management challenges. E-tailers have also moved to personalise and localise their offerings, with Amazon, for example, adopting local languages such as Marathi, Punjabi and Hindi in India, and Catalan in Spain.
As large as the market’s potential is, problems remain for many players, ranging from business issues such as customer conversion, small margins, returns and refunds, to potentially crippling challenges such as ensuring safe, secure transactions and protecting customer data.
As e-commerce becomes the new retail norm, how can retailers better protect customers’ personal and financial data?
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