While demand for fast and free-shipping e-commerce services is higher than ever on the consumer side, the puzzle of making that expectation a reality (and still reaping a decent profit) is one that logistics leaders are still scratching their heads over.
Today, DHL Express released results from a study on the purchasing habits of online shoppers examining the relationship between user interface experience and sales. Its newly launched marketing campaign, “Where Everything Clicks” is an effort to appeal to shipper clients who desire a better understanding of how to capitalize on the e-commerce market.
The company said that 68 percent of millennials are likely to choose a retailer based on delivery options offered. With e-tailer giants like Amazon offering free and fast shipping, why purchase a product from the retailer’s website and pay $5.99 for shipping when you could find the same product on Amazon’s website, avoid the shipping cost and receive the product more quickly?
Yes, Amazon has set a precedent for low-cost and free shipping. The question then becomes, who eats all of the associated shipping costs that the consumer is no longer paying for?
John Pearson, CEO of Europe and Head of Commercial for DHL Express, doesn’t seem worried. “We’re convinced that cross-border e-commerce has a huge upside that many merchants – B2C and B2B – have not yet tapped,” he said, but we aren’t quite as confident yet.