Digitalization

The last-mile challenges for this BlackFriday 2022

The last-mile challenges for this BlackFriday 2022

October begins and BlackFriday is getting closer and closer, it's time to get ready and be ready for its arrival. In this article we want to discuss the challenges faced by e-commerce and the last mile today.

Cumulative sales between BlackFriday and Christmas account for 30% of annual turnover for some e-commerce sectors. That is why it is very important for the sector to be able to know what challenges it will have to face this year.

In recent years, e-commerce has grown steadily, especially with the momentum it gained in 2020 as a result of the covid19 pandemic. Now in 2022 and with another economic context, it seems that this growth is slowing down and is almost stagnant. Specialists anticipate that this year there will be fewer offers, due to the economic context, lack of stock and reduced production.

In this context, new challenges are presented for e-commerce. First, end customers continue to push for speed, flexibility, and convenience. Get everything delivered to your doorstep. However, on the other hand, they also prioritize companies that are more sustainable and reduce their emissions. In any case, many forget about this aspect and the perception of the negative impact on sustainability is reduced compared to the convenience of receiving their order at the time they want. Then there is a dichotomy for logistics companies: to be faster or to be more sustainable. Perhaps the answer is neither of these two options but rather the convenience in delivery.

Second, there is an accessibility problem. In recent years, the Internet has allowed access to e-commerce everywhere, even the most remote, and this pushes distribution to go further and further. But in terms of logistics and especially infrastructure, not so much progress has been made, which is why it is costly and even difficult to reach remote towns and areas, especially in less developed countries.

Thirdly, the post-pandemic era, the modality of free returns for online purchases has become widespread, which presents a Great reverse logistics challenge. Offering free returns also poses a duality since it is not sustainable for packages to travel long distances and then return, wasting fuel and generating costs and emissions. In the future, it should be reviewed if it is convenient to provide a free returns service, if it is necessary to charge it or encourage the customer to approach a physical store to add this reverse logistics, minimizing trips.

Finally, another challenge is to improve the user experience: essential in this era when people place a lot of weight on the opinions of other customers, in addition to their own, and decide to repeat their purchases where they have received the best service. To improve reliability, there are tools such as order tracking, proof of delivery, direct communication with the customer, satisfaction or opinion surveys, among others. Taking care of and improving the user experience throughout the year is possible when you use a logistics service that has these tools, allowing more reliability and transparency for the end customer. The quality of the service is what sets you apart from the competition.

Our main recommendation for this BlackFriday is to anticipate. There is still time left, specific strategies can be planned for this date, not only for marketing and advertising, but also for logistics, to be prepared for increases in demand. In addition, we believe that technology is the main solution to many of the challenges posed in last-mile distribution.

That's why we encourage you to try Routal, a digitalization tool where you can optimize your delivery routes, use the restrictions your operations need, control routes in real time, send direct communications to the customer to keep them informed and reduce failed deliveries, collect proof of delivery, send customer and driver satisfaction surveys, as well as reduce costs and time in your operations. Test Routal free for 10 days by clicking hither.

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