3 important tips for managing product delivery
The final stage of product delivery, where the delivery process ends, is considered one of the most important stages in product delivery. In today's mini-article, we intend to examine two main challenges faced by e-commerce businesses, such as online stores, in managing product delivery and delivery costs.
Changing Customer Buying Behavior
Whether a business is small or large, it doesn't matter; you always need to have competitive advantages to attract more customers to increase sales.
A few years ago, when an online store was launched, the most important competitive advantage that made a difference was the ability to deliver the purchased product within 24 hours.
In an article titled "From Clemente to Fogg, Examining Customer Buying Psychology", which discussed customer buying behavior and tips for improving product delivery, it was mentioned that to compete in the competitive e-commerce market, it is necessary to examine customer needs and develop our business accordingly.
However, same-day delivery is not something that can be achieved so easily. Statistics show that many customers are willing to pay more during purchase to receive their order on the same day.
According to "Business Wire", in 2019, the growth of online stores in the United States was about 40 percent. Among customers who preferred same-day delivery, it brought in $500 million in revenue for these businesses.
This shows that by managing product delivery in online stores, the revenue generated from sales can be significantly increased.
Delays in Order Delivery
Incorrect address, untimely delivery, customer absence, unsuitable urban structure, and high traffic volume are all factors that can affect timely product delivery.
Other factors that can negatively impact product delivery include:
- Technical issues with the fleet and vehicle breakdowns
- Driver unfamiliarity with the route
- Excessive stops by the driver along the route
- Accidents and unforeseen incidents
So, what solutions exist for solving delivery management challenges? We will address them below.
1. Crowdsourced Delivery Model
In the Crowdsourced Delivery model, e-commerce businesses use local couriers for same-day deliveries and product delivery.
According to a survey reported on the reputable site "Business Insider", this method, which has been implemented with a 57 percent approval rate among internet users in the United States, is aimed at competing with Amazon in the e-commerce sector.
Using the crowdsourced delivery method is an approach that can greatly assist online stores and e-commerce businesses in achieving same-day product delivery.
2. Using Fleet Management Software
Smart solutions in today's businesses always work. One of the cost-effective solutions in delivery management is using fleet management software.
The main feature that makes fleet management software a solution for delivery management is its routing and destination sequencing capability. For example, we can refer to Logiico's fleet management software.
Logiico's fleet management software's intelligent routing algorithm, by examining traffic levels, order priorities, and their numbers, informs the driver of the sequence and route. This way, there is no need to worry about getting lost, taking high-traffic and crowded routes.
3. Increasing the Number of Distribution Centers
A hub or distribution center can bring a lot of order and speed to order deliveries. Many large businesses worldwide, such as Amazon, Walmart, and others, use this method to improve delivery management.
For example, when a customer purchases a product, by creating a coordinated platform between these distribution centers, same-day delivery becomes possible for the customer.
In Conclusion
The aim of the mini-article was to take a detailed look at the challenges of same-day delivery, delivery management, and Last Mile Delivery. This part of product delivery in online stores and e-commerce businesses is of great importance. Managing this part of the supply chain in e-commerce can significantly reduce costs and increase efficiency.
