Internet Shopping – The New Retail Revolution, but a Logistics Cost black-hole ?

To many businesses, Internet Shopping represents an increasingly important part of their sales mix. It may be that their retail customers demand that they provide a home-delivery service for product sold through the retailer’s web-site or from store. Alternatively, some manufacturers and wholesalers have found that it is a cost effective way to develop direct sales to end consumers, without a traditional retail distribution chain. All forecasts indicate that sales volumes via the internet will continue to increase for the foreseeable future. However, logistics and distribution unit costs rise exponentially as volume increases.

Despite initial concerns over fraud, and the dot-com bubble, Broadband Britain has taken to Internet Shopping with a passion. Going on-line is easy, and clicking through a purchase is fast and convenient. Unfortunately, sometimes the actual delivery of the goods is less so.

Traditional methods of delivery, using Parcel Carriers or Royal Mail may be fine for small letter size packages to business premises, but once the goods are too big for the letter box, or a domestic address is involved, some method of convenient secure receipt must be found. In the modern world, nobody may be available to take receipt of goods during the traditional working day, and having to take a half-day or day’s holiday may be sufficient to kill an otherwise attractive purchase.

Many goods now sold over the Internet are just too bulky to be delivered using the traditional carriers, or may require some amount of assembly or fitment on delivery. It may take more than one person to manhandle the products from the delivery vehicle to the customer’s premises.

Unfortunately, in many respects, Logistics Suppliers are failing to keep up with both volume, and service requirements. Whilst the providers of delivery networks of the 20^th Century are well developed, and highly effective to the needs of high-street supply-chains, many have so far failed to adapt to the service and cost requirements of their customers for the Internet Shopping market of the 21^st Century.

The ERA Logistics Team is up to speed with supplier provision in this area and continues to monitor developments for the benefit of clients. So if you are not happy with the cost or service achieved for the delivery of your goods sold over the internet, why not call us now for a detailed review ?

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