E-commerce logistics trends in 2020

E-commerce logistics trends in 2020

E-commerce is changing rapidly, creating new challenges and opportunities for retailers every day. According to Forbes, the global e-commerce market may reach US $ 6,700 billion by 2020 and greatly affect logistics.


As everyone wants to pursue their goal of becoming No. 1 in their own field, the number of "big players" in the e-commerce industry is increasing. And, the involvement of those brands has affected logistics and the operation of this industry.


Same day delivery


Along with costs, today consumers are also interested in another factor that has a significant impact on e-commerce sales, which is the time of receipt. The increased competition among retailers in the same space created a trend of day-to-day delivery commitments.


According to a study by Business Insider, the value of the day-to-day delivery market at the end of 2018 is estimated at US $ 3-4 billion and a portion of customers are willing to pay more for faster delivery.


Some customer segments, such as the Millennials (the Y generation) - those born from the early 1980s to the early 2000s, were the factors that created and promoted the entire e-commerce trend. Millennials want their orders to be delivered quickly, and they mostly place orders with the expectation of instant gratification.


Products such as food, luxury goods, mobile devices, and other electronic devices are popularly sold with a commitment of same-day delivery. On the supplier side, Amazon, Google, Uber, and many other corporations are working hard to provide day-to-day delivery, while trying to make this condition cost-effective.


Applying digital technology and automation


According to Stanford University's artificial intelligence (AI) research for many years, AI will disrupt and take over logistics services, transforming what people are familiar with today. The signs of AI driving e-mail performance in e-commerce are appearing more and more.


Big e-commerce businesses are using big data and AI to collect customer preferences, thereby proposing the right items. This technology is also being used for customers to respond quickly after receiving the goods.


AI and automation are emerging in the exchange between points in the supply chain. There are companies that use AI to communicate from dispatch to delivery, returned goods, and to record data that occurs in the e-commerce distribution chain. AI and automation make these processes more accurate, quick, and easier.


Chatbots (software that automatically takes care of and stores customer information) are also starting to appear in e-commerce and become smarter and more effective in managing conversations. E-commerce platforms are using the data collected by chatbots to understand users' preferences and serve them better, faster.


Automation also helps to check information and data are saved safely. AI is also being used to optimize routing based on data of distribution addresses and distances distributed. Mobile logistics solutions are using technology such as geolocation and AI to help save costs for customers and retailers.


What has been promised by Google (Google Glass) may soon come true and meet the wishes of executives in the e-commerce industry. Two large businesses, Ikea and Amazon, have used virtual reality (VR), and augmented reality (AR) to create virtual product browser systems as well as test better experiences for customers. Augmented reality can have a huge impact on logistics because products that have been tested for good results are less likely to be returned.


Finally, mobile wallets like Google Pay are making it easier for customers to make purchases via mobile devices. It can be seen that the context of e-commerce changes with the increasing application of technology. This trend will affect logistics significantly, which is more beneficial for both e-commerce businesses, logistics companies, and consumers.




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