When the fear of giving card information to a machine faded, due to natural evolution and with the push of necessity given by the pandemic, the question that remained in consumer expectations was: when will it arrive? For retail, the answer is based on three factors: the availability of the product, the structure and capacity to ship it and the logistics.

The first two are typical of retail, and we must assume that they are controlled by definition, but the third leg is different, not only because it is generally delegated to third parties but because it is the most sensitive nerve of digital sales, the last mile, the delivery of the product which, at the same time, is the last step of the process and a golden opportunity to make that satisfied customer buy again.

These three factors were recently analyzed by consumer products retail distribution expert Julien Bourdinière, in an article published by capgemini.com. Regarding product availability, he recommended defining whether the store will have a common stock for physical and digital sales, as do retailers who opt for in-store pickup and use the same inventory for both types of customers. For the dispatch of products, the specialist differentiated between the human procedure, slower, and automation and robotics, better in results but surely affordable only for large vendors, although there is the possibility of a mixed system. Finally, and aiming squarely at distribution and distances, Bourdinière questioned how close is close enough, noting that using pickup points means lower costs and for many buyers can be an acceptable policy.

There are products and products

Differences can also be made in logistical complexity by analyzing it by types of consumption. In a BOXpoll survey on logistics and e-commerce in the United States, 57% of consumers said that a delivery time of 5 days can be considered fast and acceptable, but for groceries and essential products, they did not allow more than one or two. The increase in online purchases of essential products, food and beverages, was notable during the pandemic and imposed a different rigor on logistics. Waiting for a television is not the same as waiting for a package of diapers, or for meat and vegetables.

It is also not necessary to use the same methods for all objectives. Bourdinière maintains that drones will make the last mile profitable, although it will take some time to achieve that globally. Meanwhile, modalities such as dark stores and services such as Glovo are advancing, which in Europe already delivered in express mode for brands and supermarkets and is now launching Quick Commerce in Spain, with its own dark stores where it will store third-party products that promise to deliver in half an hour.

Costs and profitability

For channels, the great challenge is to make the last mile profitable and at the same time continue to provide agile responses. Fast and free delivery is installed in the minds of many buyers, and if ecommerce maintains its current levels, it is likely that this demand will be maintained or increased.

66% of those interviewed for the BOXpoll survey said that they would accept paying a differential for faster shipping of essential products. What was surprising to pollsters was that the average amount Americans were willing to shell out for expedited shipping was $11.41, raising the expectation that expedited shipping could end up improving profitability, rather than hurting it.

Of course, in an economy like Argentina's, with constant deterioration in purchasing power, at that amount, which considering a dollar of only 87.50 pesos (*) would be around 1000 pesos, it would be impossible to take it into account even if it were in survey mode. The paradox is that we live with local economic and financial resources and at the same time, thanks to communications, we know and desire the benefits that large global marketplaces provide, with speed and cost policies that cannot be applied in all channels and markets.

Time to time

In ecommerce, delivery times are no less important than the cost of shipping. Some positions maintain that in situations of unpredictable increase in demand and logistical bottlenecks, it is preferable to sell a little less if this will satisfy, and even exceed, the expectations of those who trusted, bought and they already paid.

Consumer anxiety was not born now either. Luis Doncel, general manager of GLS Spain, recalled in a webinar organized by Market4ecommerce that delivery in 24 hours is nothing new. It already existed more than 30 years ago and, as he said, we are now evolving towards immediate delivery, which must be achieved with technology, personalization, tracking and notifications that accompany the online buyer while waiting for their product.

For a good proposal you need courage

The value proposition, the central axis of any commercial offer and any corporate website, in ecommerce inevitably has to include logistics. Just as geographically differentiated delivery times determine the cost of each shipment, the choice of the logistics operator becomes part, then, of the retail value proposition towards that tide of online buyers who in a hurry, and without pause, jump from channel to channel all the time.

The last mile is an external factor for the seller, but for the online buyer it is all part of the same thing. The importance of logistics in electronic commerce should not be in the natural obligation to deliver what has already been charged, but in the opportunity that by delivering what was sold in a timely manner, the door is opened for future sales.

There are always second parts for those who make a good first impression. On the contrary, it almost never happens.

(*) Dollar net selling value Banco Nación (12/14/2020)