Logistics is more than just the closing of any online sale. Crucial factors such as time, costs, profitability and the different types of products to be delivered revolve around shipping. But also the possibility that each delivery, if made in a timely manner, is a powerful loyalty tool and a seller in the future.

Por Rodolfo Pollini

When the fear of giving card information to a machine faded, and with the push of necessity given by the pandemic, the consumer question that remained was when does it arrive? To answer it, retail relies 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, because it is generally delegated to third parties and is the sensitive nerve of digital sales, the last mile, the delivery of the product and a golden opportunity for that satisfied customer to buy again.

These factors were recently analyzed by consumer products retail distribution expert Julien Bourdinière, in an article published by capgemini.com. About product availability, 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 the dispatch of the products, He differentiated between the human procedure, slower, and automation and robotics, better in results but affordable only for large vendors, although there is the possibility of a mixed system. Finally, Bourdinière questioned how close is close enough, noting that using pickup points reduces costs and may be an acceptable policy for buyers.

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 5 days can be considered fast and acceptable delivery, but for groceries and basic necessities, they did not grant more than one or two. The increase in online purchases of essential products was notable 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 there is still a long way to go to achieve that globally. Meanwhile, modalities such as dark stores and services such as Glovo, which in Spain launched Quick Commerce, 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 challenge is to make the last mile profitable and provide agile responses. Fast, free delivery is in the minds of many buyers, and that demand is likely to remain.

66% of those interviewed for the BOXpoll survey said that they would accept paying a differential for faster shipping of essential products. The surprising thing was that The average amount they were willing to pay for fast shipping was $11.41, creating the expectation that fast shipping may end up improving profitability, rather than hitting it.

In Argentina, with a dollar of 93.75 pesos (*) that amount would become about 1070 pesos and it would be impossible to collect it. The paradox is that we live with local resources but we want the benefits that large global marketplaces provide, with policies that cannot be applied in all channels and markets.

Time to time

In e-commerce, delivery times are no less important than the cost of shipping. Some positions maintain that in the face of an increase in demand and logistical bottlenecks, it is preferable to sell a little less if this meets the expectations of those who trusted, bought and paid.

Consumer anxiety was not born yesterday either. Luis Doncel, general manager of GLS Spain, recalled in a webinar organized by Market4e-commerce, that 24-hour delivery existed more than 30 years ago and now we are evolving towards immediate delivery, which must be achieved with technology, personalization, tracking and accompanying the buyer during the wait.

For a good proposal you need courage

An online value proposition has to include logistics and the choice of the logistics operator becomes part of the retail value proposition.

For the seller, the last mile is an external factor, but for the online buyer it is all part of what they buy and pay for. The importance of logistics in electronic commerce lies in the opportunity that by delivering what is sold in a timely manner, the door is opened for future sales. There are always second parts for those who get the first part right.