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In the Industry 4.0 era, the development of the internet has changed the shopping habits of customers. Instead of shopping at stores, more and more people choose to stay at home and shop online. Customers do not need to squeeze into the mall or queue up at the store when they have promotion anymore. Now customers just go to the website, choose to buy products and wait for delivery. Therefore, the e-commerce market has grown rapidly and widely, corresponding to the economic growth of nations.
The items ordered on Internet must be delivered, and the ecommerce delivery market also has great potential for growth. In fact, many companies are entering this potential market such as leading companies such as Alibaba, Amazon, DHL, EMS, United State Postal Services. The main objective of this report is to analyze the potential of e-commerce delivery, a model of this delivery service.
I am an online shopping fan. Instead of going out on the streets in hot weather, waiting for a long time to overcome traffic jams and get to fashion stores, I can shop online on websites and choose home delivery.
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Proficient in: Online shopping
5 (204)
“ She followed all my directions. It was really easy to contact her and respond very fast as well. ”
Thanks to my online shopping habits, I see the growing potential of e-commerce delivery. This delivery service brings a lot of benefits to customers and increases the competitiveness of brands. Therefore, I decided to analyze the potential of e-commerce delivery services in this report.
The first chapter of this report includes the introduction, motivation, and outline of the report. The second chapter analyzes the model of e-commerce delivery service, including information and data on the e-commerce delivery model and infrastructure.
The third chapter presents the potential of the e-commerce delivery service industry, including the popularity of this delivery service, the role, and the superiority. The final chapter is conclusion.
Deliveries are made through various working steps. Products are sorted by weight, delivery location, choice of delivery type. Depending on the weight and nature of the product, the shipping service price will vary. Products of high value, easily broken, brittle, the shipping cost will be higher. Heavy, bulky products will have a higher shipping cost than light and portable products. The delivery location and delivery method are also important criteria affecting the delivery fee.
As the process in figure 1, an e-commerce delivery consists of 4 basic steps. The first step is receiving the order. When an order is made on the website, the system will automatically check the name, delivery address, phone number, payment method. After checking all the information, the order is set, and the customer receives an email or a message notifying that the order has been received. Then the order processing begins, the customer completes the order successfully, the order will start to be prepared. Seller will pack carefully to ensure safe shipping. Orders will be delivered to shipping services. Each order will have a code so customers can track the shipping process of the order and the sticker on the order. This label includes information such as address, recipient and contact phone number, weight, dimensions, and shipping ID. The next step is shipping. Real-time data allows customers to track their orders by shipping ID. Therefore, it is very convenient to connect your store to the delivery system to update the status of your order for customers to review by their accounts. After going through the previous 3 steps, the package is delivered to the customer, who will sign a receipt proving that the order has been delivered. After handing over the order, the supplier or the intermediary website will ask to assess the level of customer satisfaction with the product and service. (The ecommerce process on Research Ethics 2018).
The process of delivery is connection among retailer, delivery company and customers. Thank to Internet, the process of delivery is easier than what we did in the past. Starting with the purchase of a customer's product, order processing, delivery to the shipping unit, and delivery information are all stored as cloud data on the company's computers and systems.
Clients today have a great deal of decision with regards to accepting the products they purchase on the web. This has prompted an all-out change in mentality towards how conveyance should function. 24-hour conveyances aren't only advantaged any longer, they're anticipated. In this way, if your business isn't giving an assortment of conveyance alternatives, it could be passing up plenty of potential clients.
Conveyance is additionally the last impression a client has of your business. Along these lines, if they experience an issue, it will leave them with a negative perspective on your image, and they'll be probably not going to purchase from you once more.
According to a European Commission report in 2013, e-retailers believe that delivery service is one of the key determinants of consumers' decision to shop with them. A variety of services offers flexible hours, discounts and fast delivery. Currently, e-commerce buyers and retailers are interested in safe, fast delivery. Delivery plays an important role in enhancing e-commerce. E-commerce retailers choose the best delivery services for their products to increase their competitive advantage over competitors.
Consumer surveys and market analysis show that the delivery of services provided by e-retailers is one of the key factors influencing consumers' decisions to continue shopping with that brand (Gulevičiūtė 2015).
The graph shows the amount of Internet users who bought or ordered goods or services for private use in the previous 12 months by age group from 2009 to 2019. There is dramatic increasing in this period. More and more people order and buy online products, specially customers from 16 to 24 years old. More than 7 out of 10 internet users from the 12 months prior to the made online purchases in the same period. In conclusion, the share of e-shoppers among internet users is growing, with the highest proportions found in the age groups 16-24 (78 %) and 25-54(76 %).
The proportion of e-shoppers varied considerably across the EU.
Three fundamental classifications of key conveyance administrators have been distinguished: national postal administrators; worldwide integrators; dispatches and different express and bundle transport pros. The biggest web-based business in Europe are Germany, England, and France. The most noteworthy level of online customers is in the UK, where 93% of the populace between the ages of 15 and 79 states they shop on the web (Postnord Annual report 2018).
Due to the increasing demand for online shopping, the demand for e-commerce delivery is playing an increasingly important role. Delivery companies are getting more and more popular, delivery services are more diverse and convenient. In both domestic and international deliveries, cross-border e-commerce is a reality. Cross-border e-commerce is motivated above all by consumers seeking lower prices, products not being available in buyers' countries, looking for a specific brand or they realize that the international product is better than domestic one. More than half of Europeans who shop online buy clothes and shoes, making these items the most purchased product online in Europe. Customers choose online shopping and e-commerce delivery to save time on shopping and find products more easily.
The development potential of commercial e-commerce goes hand in hand with the development of online purchases. Thanks to online orders, the delivery service is more widely used. In the age of technological development, people become busier, so they spend more time on Internet experiences. Commercial trading activities will become a trend in both developed and developing countries. E-commerce delivery helps customers experience the purchase easily, quickly and conveniently. Just one click and wait, the item will be delivered to your home.
Moreover, the safety of e-commerce delivery also stimulates customers' buying habits. Customers can limit the risk of shipping the item. For example, transporting fragile items such as glasses, glass forks or bulky items will cause a lot of inconvenience to customers, but with e-commerce delivery, they can choose products and delivery service will bring products to them. In European countries, going to the supermarket to buy goods in the winter will be very difficult, now they can trust the electronic delivery service. For the elderly, e-commerce delivery helps them a lot, they can buy products more easily.
Originating from the increasingly diverse needs of customers, e-commerce delivery is growing to meet those needs. Nowadays, as society integrates and moves towards globalization, buying products from abroad is no longer a strange thing. As a result, e-commerce delivery services have been increasingly improved and enhanced performance.
The literature study revealed several incentives within the food production and consumption system for e-commerce to minimize GHG emissions. GHG emission reduction potential has been quantified through the implementation of different e‐grocery home delivery strategies. Based on the home delivery model used, GHG emissions from grocery shopping can be decreased by 18% to 87% compared to the situation in which members of the household go to the store themselves( Hanne Siikavirta, 2008). Therefore, e-commerce delivery is good for environment. It also helps customers saving money and time.
Beside the potential of e-commerce delivery, there are also some limits. All e-commerce business and delivery service providers must face a popular last-mile problem of delivering stuff to the customer within a trick delivery time window. The reason for these difficulties has been detected. Most of the customers are online and are requesting products at their doorsteps. So, the volume of goods shipped and returned has been increased. Urban areas are full of traffic jams, the delivery process is taken longer. In remote areas, there is not enough vehicle to deliver, it takes time and effort to reach, thereby negatively impacting economics. Moreover, carbon footprints are incurred as many-a-times vehicles used for shipments are not fully utilized. For example, a customer, who lived in city A, wants to buy items in city B, it's 1000km from city A to city B. A delivery process for this order will take a long time. Logistics companies must find a solution to solve the problem and have the best delivery choice.
To address customer constraints and distribution challenges, several businesses have come up with smart solutions to smooth and speed the delivery process to the final customer. They use clever ways to solve the final problem so they can perfect their delivery process, thereby improving the experience and confidence of the end customers.
Hyper-local delivery systems are gaining momentum worldwide, thanks to projects and companies making use of these to deliver products to customers within defined limits of a big city. These are particularly true for online retailers that seek to sell perishable goods such as fresh fruits and vegetables, grocery stores and gourmet food quickly. Amazon Flex program lets ordinary people work with the retail giant as independent contractors to accelerate the last-mile distribution and distribute Amazon packages using their smartphones and vehicles (Kapil 2015). In many tactics, Amazon dominates the e-commerce market. Amazon has built up a cutting-edge approach for its last-mile problem which also gives it a competitive edge in this arena. It offers free two-day delivery and discounted one-day deliveries within the US with its Amazon Prime loyalty scheme. Amazon has a vertically integrated order fulfillment and delivery system sidestepping conventional delivery companies such as United Parcel Service and FedEx. In the United States, the organization has 79 broad satisfaction centers and a fast-growing network of small sortation centers strategically located to reduce delivery times throughout major metropolitan areas. Products are sent from these centers to depots and then, through the company's own branded trucks, to customers (Jeff 2018). Amazon is a good company because of its speedy deliveries and thus providing a fast shopping experience. These are some solution of big companies to improve their services and save delivery time.
Developed countries have an immense rise in online sales over the last decade, creating demand for delivery services, primarily to homes. Transportation companies already provide delivery services to stations and pick-up points, providing consumers with destination information, thus helping to reduce congestion and environmental pollution caused by urban freight shipments. Delivery service is a top concern for both e-buyers and e-retailers.
E-commerce delivery service brings many benefits to customers. The shift from traditional shopping to online shopping is a new turning point for the shipping service industry. The growing e-commerce delivery industry has brought success to e-commerce and transportation companies such as Alibaba, eBay, Amazon, DHL, Postnord, United State Postal Servie, DB Logistics, FedEx. Following that appeared the new transportation companies such as Grab and Uber. E-commerce delivery does not only benefits businesses and customers, but also intermediaries and the environment, and it creates jobs for people.
The Development Potential Of E-Commerce Delivery. (2022, Apr 16). Retrieved from https://studymoose.com/the-development-potential-of-e-commerce-delivery-essay
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