The world of logistics is changing due to emerging technology trends, including changes in consumer habits and advanced efficiencies. And one of the largest changes we have seen is the influx in ecommerce platforms requiring a warehouse and shipping facility to help manage, organize, and distribute their popular goods.
With Internet fulfillment on the rise, it is no surprise that approximately 20-25% of McKenna’s sales orders are through internet fulfillment and ecommerce fulfillment purchases. And whether a product is being shipped to a consumer’s home or a business, we help to get those orders where they need to go.
The Big Question
While there is still something to be said about the in-store experience of a traditional retail store, ecommerce continues to put on the pressure for the virtual buying and selling of goods.
But, why has ecommerce fulfillment become so popular?
The U.S. Department of Commerce reported that the total value of transactions from U.S. consumers on Amazon.com reached $147.0 billion last year, a 31.3% increase compared with $112.0 billion in 2015.
In this article, we explore the six main reasons consumers and retailers are flocking to online marketplaces to make purchases and to sell goods that require Internet fulfillment:
1. No Need For A Physical Store
As ecommerce fulfillment continues to grow; start-up companies no longer feel the pressure to establish a pricey storefront. Start-ups can now test the popularity of their products without having to make a large investment into a physical buying room. This reduces risk and can save entrepreneurs money that they can eventually use to invest in logistics solutions that will help them to run their business more efficiently.
2. Free Shipping & Sales
Consumers are naturally drawn to online stores that offer free shipping above a certain purchase amount – “Shipping is free on purchases over $50!” The word “free,” articulates that a great deal is being offered and it often helps to convince a person to spend more than they had originally planned to.
By managing shipping solutions through a logistics facility, companies can offer quality deals to consumers that incentivise larger purchases and quicker, yet less expensive, shipping times – as most consumers refuse to pay for expedited or expensive shipping.
“(45%) of consumers expect delivery within two days, with 35% expecting it within three to four days” – Deliotte
In result, quick and affordable ecommerce fulfillment draws repeat customers and brand loyalty. And when these customers spend more and more overtime, their purchases come to cover the costs of logistics shipping management and solution – originally fronted by the company itself. This is a win-win for the company and customer.
3. Receiving Mail & Real-Time Data
The in-store experience has been surpassed by the excitement of tracking, receiving, and opening mail. People thoroughly enjoy when packages arrive as their anticipation has been building over days or weeks.
Consumers also enjoy the user experience of receiving real-time data on their package, which may be travelling to them from the other side of the world! With shrinking attention spans, businesses are often left with no choice but to partner with an Internet fulfillment company that can provide instant gratification to their customers through the most efficient product picking, shipping, and delivery.
“In this era of instant gratification, consumers heavily consider the time it will take to receive their goods from the retailer before clicking the “Buy” button on their screens.” – Michel da Silva
4. Cross-Border Shopping
Online shopping offers the convenience of ordering items not found in-store or within the country you live. Being able to access items from around the world allows consumers to take advantage of deals and one of a kind purchases – such as those found on the hand-crafted market platform Etsy.
“BI Intelligence estimates that, with current policies in place, global cross-border e-commerce will generate more than $1 trillion in sales for retailers by 2021.” – Business Insider
However, cross-border shopping isn’t always idyllic
Cross-border internet fulfillment can be pricey, as local currency conversions are not always listed upfront. Cross-border ecommerce is also unreliable, as tracking items over borders is more difficult, and trading laws and taxes frequently change and fluctuate.
That’s where logistics solutions most help businesses to thrive. At McKenna, we understand internet fulfillment and stay up to date on all cross-border shipping rule changes and regulations. This allows companies and customers to feel comforted – as we can take care of and manage these concerns on their behalf.
5. Ecommerce Convenience
The reality is, some people like to take their time when shopping and feel too pressured when faced with retail managers who continue to say, “you look great in that,” while trying to secure the sale. It is then not surprising that 51% of Americans prefer to shop online, as with online shopping, you can fill your cart with items you may want and then take days to consider and adjust your purchase.
Even more convenient, should you receive a damaged item in the mail, or an item that is the wrong size, most retailers will pay for you to return the item for exchange, refund, or store credit. Logistics companies will connect with the retailer on your behalf and ensure the item is processed efficiently and correctly.
Online shopping also reduces the rush and makes life easier (you no longer need to carry heavy bags around the mall!). You also don’t have to schedule your shopping around store open and close times – the endless Internet shopping aisle is always open for business.
6. Marketplaces & Diverse Selection
It is reported that 55% of all ecommerce sales are done through branded stores, whereas 45% of ecommerce is performed via marketplaces. Of the 45% of sales through marketplaces, the most common destinations are: Amazon – 36%, eBay – 8%, Etsy and others – 1%.
Marketplaces like Amazon and Etsy are successful because they sell a wide variety of different goods in smaller quantities, rather than thousands of skids of one specific product. Within an online marketplace, the endless shopping aisle can offer unique socks, food, electronics, memorabilia, blankets, home décor, and shoes. A person can, therefore, perform all of their shopping in one place – paying for it all in one cart, through one bill.
Diverse and adaptable, large logistics providers can stock and carry these varying products – creating a unique environment that fits the dimensions, temperature requirements, and other needs of each different good. Storing these items in the same building allows for quick stock retrieval and for the company to maintain just one partnership with a trusted logistics provider who can provide it all.
McKenna & Ecommerce Fulfillment
Capable of handling large ecommerce fulfillment orders, McKenna allows ecommerce companies and marketplaces to stock and store sizable amounts of various skids that are ready to be shipped at any time. We work with businesses to synchronize their ordering, tracking, and delivery process to ensure customers stay happy and feel involved in their purchasing process.
To learn more about our ecommerce fulfillment capabilities, please contact us today at 1-800-561-4997.