Growing E-Commerce Impact on Commercial Shipping

Dawn Downes July 29, 2023 Industry – eCommerce

The advent of eCommerce has revolutionized how consumers shop, transforming traditional brick-and-mortar retail into a digital landscape where purchases can be made with just a few clicks. As buyers increasingly turn to online platforms to fulfill their shopping needs, the ability to ship quickly from an eCommerce platform has become both profound and undeniable.

In 2022, U.S. eCommerce sales topped $1.03 trillion for the first time. In Canada, around 80% of people shop online. Numbers like that prove the importance of eCommerce regarding commercial shipping.

Why Online Sales Affect Shipping
How eCommerce Delivery Works
The Overwhelming Impact of eCommerce on Commercial Shipping
3 Methods for Elevating the Buyer Experience in eCommerce Shipping
Find the Best eCommerce Shipping Solutions With Purolator International

Why Online Sales Affect Shipping

The shift toward online sales has disrupted traditional retail models, prompting businesses to adapt and optimize their shipping processes to meet the demands of online buyers. The eCommerce industry is projected to reach around $8.15 trillion by 2026, and 24% of retail purchases are expected to take place online by the same year.

Several key factors contribute to the profound impact of eCommerce on commercial shipping:

Expanding consumer base: The convenience and accessibility of online shopping have attracted a vast and diverse customer base. Online shoppers are drawn to the ease of browsing and purchasing from the comfort of their homes. This surge in demand has put immense pressure on commercial shipping companies to efficiently transport and deliver packages to customers in various regions.
Increased package volume: With the surge in online sales comes a significant increase in shipping volume. Every eCommerce platform processes and ships a staggering number of orders daily, resulting in an exponential growth in the number of packages that need to be transported. Commercial shipping companies face the challenge of handling and delivering these packages efficiently, often requiring them to adopt new strategies and technologies to accommodate the mounting volume.
Speed and timeliness: Online shoppers expect swift delivery times and reliable service, and eCommerce platforms strive to meet these expectations by offering expedited shipping options and setting shorter delivery windows. Failure to fulfill expectations can result in dissatisfied customers and potential damage to the reputation of both the eCommerce platform and the shipping provider.
Fulfillment and logistics optimization: eCommerce businesses rely on efficient fulfillment and logistics operations to fulfill customer orders accurately and promptly. From inventory management and order processing to warehouse operations and last-mile delivery, every step in the fulfillment process must be optimized to meet the demands of buyers. Commercial shipping companies play a vital role in this optimization, providing the necessary infrastructure, transportation networks and expertise to ensure seamless eCommerce parcel delivery from the seller to the buyer.

How eCommerce Delivery Works

Understanding how eCommerce delivery works provides valuable insights into the intricate processes that enable timely and efficient fulfillment of orders. The following is an insight into the inner workings of eCommerce delivery, shedding light on the seamless mechanisms that ensure packages reach customers’ doorsteps precisely.

Order placement and processing: Customers use a carefully orchestrated process when placing orders online. Once an order is confirmed, the information is transmitted to the seller or fulfillment center. A series of meticulously designed workflows kick into motion, including inventory management, order processing and quality control checks. These processes are the foundation for ensuring accurate and error-free delivery.
Packaging and labeling: A critical step in eCommerce delivery is the proper packaging of products. Sellers employ various packaging materials to protect items during transit, including boxes, bubble wrap and packing peanuts. Simultaneously, packages are labeled with essential details such as the buyer’s address, tracking number and barcodes. This careful packaging and labeling facilitate smooth handling and tracking throughout the delivery journey.
Logistics and shipping providers: eCommerce businesses collaborate with logistics and shipping providers to facilitate the movement of packages from fulfillment centers to customers. These providers specialize in navigating transportation and delivery, utilizing vast networks, advanced technology and optimized routes.
Tracking and transparency: eCommerce platforms leverage advanced tracking systems to provide real-time updates on the whereabouts of packages. Through unique tracking numbers, buyers can monitor the progress of their orders from the moment they leave the fulfillment center to their final destination. This transparency instills confidence and reassurance in the delivery process.
Confirmation and feedback: Once a package is successfully delivered, buyers are prompted to confirm receipt and provide feedback on the delivery process. This feedback loop helps eCommerce businesses evaluate their shipping partners, make necessary improvements and maintain high service standards in the future.

The Overwhelming Impact of eCommerce on Commercial Shipping

The rise of eCommerce has ushered in a new era of consumer behavior, reshaping the landscape of commercial shipping in unprecedented ways:

Propelling demand: Driven by convenience and time-saving attributes, shoppers have embraced eCommerce wholeheartedly. This exponential surge in online shopping has led to an increase in the need for efficient shipping services. Commercial shipping companies now face the monumental task of accommodating a staggering volume of packages, necessitating innovative strategies to optimize processes and meet customer expectations.
Leveraging innovation: Commercial shipping has undergone a technological revolution to keep pace with the eCommerce boom. Industry leaders are investing in state-of-the-art shipping technologies — including automated sorting systems, robotics and artificial intelligence — to bolster efficiency, accuracy and speed.
Niche is the new norm: From fulfillment centers offering warehousing and order processing services to last-mile delivery specialists adept at navigating urban environments, these niche players play a pivotal role in meeting the unique requirements of eCommerce sellers and catering to the buyer’s demand for swift and reliable delivery.

3 Methods for Elevating the Buyer Experience in eCommerce Shipping

Elevating the buyer experience in eCommerce shipping requires a customer-centric approach and attention to detail. By embracing transparency, offering diverse shipping options, meeting delivery deadlines and maintaining proactive communication, commercial shipping companies can exceed the expectations of methodical buyers. This fosters customer loyalty and establishes a reputation for authoritative and reliable shipping services in the competitive eCommerce landscape.

1. Empowering Buyers With Real-Time Tracking and Unparalleled Visibility Into Shipping Processes

Online buyers crave transparency and control over their orders. By providing real-time tracking capabilities, commercial shipping companies empower buyers to monitor the progress of their packages at every stage of the delivery journey. Buyers can access timely updates, estimated delivery times and any potential delays from fulfillment to transportation and last-mile delivery.

2. Diversifying Shipping Options to Accommodate Varied Buyer Preferences

eCommerce has affected shipping in terms of shoppers evolving to want flexibility when it comes to shipping options. Offering a range of delivery methods, such as standard, expedited or same-day delivery, allows buyers to choose the option that aligns with their needs and priorities. Moreover, providing opportunities for in-store pickup or delivery to alternative locations caters to the preferences of buyers who may prefer alternative delivery arrangements.

3. Keeping Buyers Informed and Assured Throughout the Shipping Process

Business eCommerce shipping companies should proactively communicate with buyers, providing updates at milestones, promptly addressing any concerns or inquiries and notifying buyers of any unexpected delays or issues.

Find the Best eCommerce Shipping Solutions With Purolator International

Purolator International — a supply chain logistics solution and eCommerce commercial freight provider — stands out in terms of comprehensive coverage and commitment to exceptional service. With a vast connected distribution network spanning hubs, airports, offices and qualified transportation providers, Purolator International achieves complete coverage across the United States and Canada.

Recognized as a leader in cross-border shipping, we go above and beyond to provide the highest level of service and satisfaction to our customers. Our dedication and attention to detail remain unwavering.

With us as a trusted partner, commercial shipping companies can tap into a wealth of expertise and resources to enhance their eCommerce shipping operations. By leveraging Purolator International’s broad coverage, robust network and customer-centric approach, businesses can elevate the buyer experience and cement their position as authoritative players in the eCommerce commercial shipping sphere.