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What’s Your E-Commerce Plan B?

October 19, 2021

Ed Burek

Ecommerce Plan B

The deadline to solve for the 2021 global holiday seasons will soon be in the rear-view mirror for most e-commerce companies. With only 24 days to the beginning of Diwali, 48 days to Hannukah, 75 days to Christmas, and 76 to Boxing Day, time is quickly running out to figure out how to get packages to consumers on time. Do you have your strategy and messaging approach ironed out yet? What about your logistics plan?

We know that we are in the ASAP economy. Essentially, consumers demand close to immediate gratification when they shop online, more often than not. This drive for speed continues to drive incredible stress on logistics partners across the globe. With current disruptions in the supply chain, we are not anticipating a smooth and seamless Q4 for e-commerce retailers. If you haven’t already, now is the time to set expectations with customers that their packages may be delayed if not ordered well in advance.

The reality is that stress on e-commerce retailers has never been more evident than what we see at present, with the possible exception being the peak of the global pandemic in 2020.Right now, there are cargo ships backed up in ports all over the world, a lack of containers available for product transport, worker shortages, and traffic congestion. And we are just a little over three weeks out from Diwali, one of the earliest of the more global holidays.

For example, in the United States, the USPS just announced starkly slower and more expensive service for first-class mail—a whopping30% slower, on average, than previous delivery times. Furthermore, they plan to increase package delivery rates throughout the holiday season and increase the use of ground transportation over faster and more reliable air to cut their internal costs. In short, the result for e-commerce companies is slower delivery, higher prices, and, undoubtedly, lower customer satisfaction.

UPS and FedEx, likewise, are increasing rates for Q4 by way of implementing surcharges. FedEx recently said, “We are entering another holiday peak season during which we expect continued high demand for capacity and increased operating costs across our network. ”UPS is anticipating a whopping five million packages daily over capacity, which will create an incredible bottleneck and delayed delivery for e-commerce retailers. To offset this, UPS plans to focus on higher-margin deliveries, air logistics, and adding two million square feet of additional cargo space.

So Now What Should E-Commerce Retailers Do?

First, we cannot stress enough that you need to establish expectations now that deliveries may not make it on time during the holidays. And, you need to have some sort of backup plan for customer inquiries like setting up online chats and 24/7 customer service lines.

Second, now is an excellent time to examine (or begin) relationships with 3PLs and key logistics partners. They can help satisfy the growing ASAP demand of consumers while increasing the chances of getting your products to the right place at the right time. These logistics partners have the underlying expertise to automate many aspects of the logistics relationship for e-commerce retailers. There are new entrants to the field that take care of the infrastructure needed to fulfill e-commerce goods. According to ShipBob, 3PLs enables e-commerce retailers to meet customer orders better using specialized technology, warehousing, and inventory management. Whether it be a 3PL or another logistics partner, there has never been a more opportune moment to explore your logistics options. The major integrators are making that abundantly clear.

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