Today we can draw a parallel between e-commerce logistics and e-commerce itself. In both cases, there was a phase of development (e-logistician & pure-players), consolidation between specialists then takeover by major historical players in logistics and retail.
We are thus gradually approaching the omnichannel model announced for years: the logistician simultaneously manages flows for its client intended for several sales channels including e-commerce.
The brand, for its part, often sells in stores and has its own complementary e-commerce channel or on a marketplace.
However, in both cases, a large part of the model remains to be clarified because even if the customer has adopted omnichannel in a few years for practical reasons, the economic model is still very fragile.
The promised combination of “free” retail delivery, often to the home, within a short period of time or over varied time slots (appointment, Saturday, evening, etc.) makes the model very expensive and also has a strong impact on warehouse logistics.
The hammered marketing argument of free delivery has given customers the habit of not integrating the operational cost of processing this order into their purchasing decision-making. Ultimately the question is not asked in the following form: through which channel will I take possession of my product? in store, at a relay point, in a locker, at my home, in the evening, etc.? But it is simply said, what is most practical for me without costing me too much in €?
Thus, according to the pricing policy for delivery costs decided by the brand, the customer decides and does not hesitate to abandon his basket if he is not satisfied with the proposal. Obviously he does not take into account the real impact of his decision on logistics with the cost of processing his order which varies very greatly.
For their part, how many brands make money with their e-commerce today? The question often remains taboo because given the growth of this sales channel, it is becoming more and more difficult for a brand to ignore it. The major financial difficulties of many brands on both sides of the Atlantic (disappearance through filing for bankruptcy or repurchase for emergency rescue) materialize the dilemma between a sharp drop in store sales and an e-commerce channel that is too weak or not profitable. . To give an order of magnitude, it is estimated that more than 250 brands went bankrupt between 2010 and 2017 in the USA and more than 8,000 points of sale closed in 2017 alone!
The question today for e-commerce logistics is therefore not to know whether it will be able to respond technically and operationally to the new expectations of consumers but to know what place e-commerce logistics will have outside of very large merchants or places. European or global markets?
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