Efficient Logistics form Successful e-commerce

In May I attended e-commerce Stockholm and listened when Pär Svärdsson, CEO, at Apotea, and Anton Jacobsson, CEO at Babyland talked about their recipe to success. We have written about the crucial final mile, before, they talk about transport approach with bouncy steps. In the e-barometer for Q1 2016 we can read that three of four consumers think that it is important to select in which way a product is delivered, but that only 46 % believed that they had the opportunity to select delivery method at their latest e-commerce order.

Efficient logistics

Driving Forces for Changes in Retail

They talked about driving forces that can change retail. When people want to shop in the evening, and on Sundays, it isn’t working all the way when this isn’t offered to the customers. One of the great benefits of e-commerce is of course that it is always available, and that there is no crowd, you can shop in peace and quiet. It been posts lately about Black Friday and Christmas shopping, and it is not a bad idea to start planning for it already, I can’t see any reasons why it shouldn’t set new records this year. There is a lot to gain in securing that the site delivers even when the pressure is increasing. Don’t miss our articles about load testing, and contact us if you want any assistance in this. This is a service that we offer both new and existing customers.

If different stores offer the same products and prices, you often shop where you always have been shopping. But if something would happened with the prices or products, it is a possibility to attract new customers – or lose them if you change something for the worse. If I order groceries online, and can’t get the yoghurt or cereals I usually buy, and still end up going to the grocery store, the entire thing lacks in purpose. Convenience is more important for every time, and no one wants to be set off and make a bad deal. Everyone who have looked at apotea.se can probably agree that a huge amount of products, and low prices are a hit, add a large selection of delivery methods, free or low delivery costs, and fast deliveries, and you get why they soon have a turnover of 1 billion SEK.

Obstructive Factors

Then we will be there sometime between 9 AM and 4 PM, we don’t carry the parcel inside, only to the building door. What happened to the flexibility? They also talked about examples of obstructive factors. If you need to stay at home an entire work day to receive a parcel, home delivery is not that tempting anymore, especially if it is not that bulky. In the same way as shopping, most consumers want to receive parcels in the evening or during the weekend. If you are alone, it is not that interesting to have the big TV delivered to the lawn. If you can make it to an add-on-service, or even free over a certain order amount, because there are those who are willing to pay to have it exactly as you want it – an exceptional delivery means that the customer selects and decides. One fourth of the consumers have paid extra during the last year to be able to select the delivery option that is best for them according to the e-barometer.

Delivery time 2-7 working day, why present such a big span? The people living in the big city regions are not interested in knowing how long a delivery takes to the northern parts of Sweden, and they in return don’t want to be jealous in fast deliveries to Stockholm.

Selecting Delivery Method

Every time I talk about the ability to select delivery method with someone, Apotea arises as an example. It is a brilliant example, and even if it turns up more and more that not only provides the possibility to select service point per transporter, but also offer full freedom to select for example Postnord, Best, Schenker, or DHL, it is a long way for evident. To be able to select when, where, and how depending on what is best for that specific delivery. With Best, you cover half of the househoulds in Sweden with free home delivery 6-10 PM for orders over 600 SEK at apotea.se, and 1,000 SEK at Babyland. Perhaps you want to pick up close to the office, or a certain service point that you pass every day. Perhaps one that is better if you are going to the grocery store, or the mall, or one that is close to the summer house. The delivery must fit the customer’s everyday Life.

We can also read in the e-barometer report that 18 % aborted the order and selected another e-commerce store since they didn’t offer the possibility to select delivery method. 18 percent that intended to shop in a web store, but in the end didn’t follow through, who probably would have checked-out if they were offered to select how the parcel would make it all the way home. You don’t want to miss them.

Sofia Winterlén

Sofia Winterlén Head of Marketing