The State of Shipping in Commerce

Shipping is a critical topic for online retailers. Most retailers ship somewhere between 101 and 1,000 online orders each week. Online shopping is no longer a novelty — it’s an everyday staple, and the online shopper is now an internet-savvy buyer who knows what he or she wants. Retailers recognize the need for a shift in their shipping strategies, but not all companies are quick to make the necessary changes. Temando took a dive into this industry with The State of Shipping in Commerce report. Here’s what the company found.

Unfulfilled Shipping Wish Lists for Online Shoppers

Shipping in Commerce

Online shoppers know what they want from their shipping services, but they’re not always getting it. Same-day shipping is an important feature for 42 percent of online shoppers, but only 29 percent of businesses offer this option. Guaranteed weekend or after-hours delivery is a desirable service for 46 percent of shoppers, yet just 25 percent of businesses can meet this need. Forty-three percent of online shoppers want a specified timeslot for delivery , but this is only available from 30 percent of retailers. Filling these needs is a powerful way for businesses to differentiate their services and reach new customers.

Apparel Retailers Are the Most Used Online

Businesses that are marketing clothing and accessories are particularly well-suited to the online landscape, with 70 percent of shoppers buying online in this category. This made apparel the most popular of the five industries surveyed. Others included books and stationery, physical movies and music, electronics and appliances, and health and personal care. Each of these categories captures between 42 and 36 percent of the online market.

Warehouse Use and 3PL Providers

Micro and small businesses tend to use a single warehouse for their retail shipping. Mid-market businesses are most likely to scale up to using multiple warehouses for their orders. This is a popular choice for enterprise companies as well, with 80 percent relying on more than one warehouse to get their shipping done.

It’s clear that growth requires more space, but adding the management of additional warehouses is a costly and complex process for a growing company. This is where drop shippers and 3PL companies often step in to streamline growth.

The use of 3PL providers is most common among enterprise level companies, where 27 percent are taking advantage of this type of service. Sixteen percent of mid-market companies use 3PL services as well. Turning shipping over to a specialized service provider is an efficient and powerful way to enhance these services.

Nearly half of retailers acknowledge the need to automate shipping and fulfillment, and 43 percent of retailers found that their revenue increased when they offered better shipping choices. Though many companies would readily acknowledge the need for better shipping practices, not all businesses know how to make this a reality.

If you’re looking for a better way to manage your shipping and fulfillment services, consider working with a 3PL provider. Get a free consultation from The Apparel Logistics Group to learn more about how we can improve shipping services and customer satisfaction for you.

Posted: 1/24/2018 5:21:35 PM by Global Administrator | with 0 comments

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