Logistics trends 2023 (Part 3) – these three developments in e-commerce should definitely be noted by online retailers
For e-commerce, logistics is a special challenge. Especially due to the constantly growing order volume and the countless packages and destinations associated with it. Many retailers often reach their limits with packages. However, the logistics trends 2023 also offer impulses for this exciting area to manage the flood of packages on one hand and successfully consider important topics such as sustainability on the other hand. In our third and final part on e-commerce trends 2023, we show you what to pay attention to in logistics in the coming year and how to successfully implement it.
Logistics trends 2023 – Sustainability, delivery modalities, and returns in focus
There are three central logistics trends 2023 within e-commerce for the coming year. The probably biggest topic is sustainability. But also the way deliveries reach customers will become a success criterion for online retailers in an ever-growing competition. Last but not least, the industry is concerned with the balancing act between sustainability and returns.
Sustainability – Nachhaltigkeit – has been the trend topic in e-commerce for several years now. And that on multiple levels. On one hand ecologically, on the other hand economically and socially. Resource consumption is a topic that concerns customers today. And unfortunately, e-commerce often still struggles with a poor image regarding ecological sustainability – especially in segments like clothing and electronics. Customers today are also paying closer attention to social and economic responsibility, at least to some extent. Particularly with large retailers, customers are increasingly focusing on this aspect.
But even as a small retailer, you should not just write sustainability on your agenda on paper, but develop holistic sustainability concepts: starting from the product range (sustainably produced goods) to shipping and handling returns (more on this in points 2 and 3) to working conditions in the value chain.
How online retailers can become more sustainable in shipping is summarized by Micha Augstein, founder and CEO of PARCEL.ONE: “Retailers can adjust several factors in shipping to make it more sustainable. Starting with the packaging material: Here, they have the opportunity to rely more on ecological cardboard or to use reusable shipping bags. These can then be returned by customers free of charge and reused by the retailer. But even filling material can become more sustainable. Instead of bubble wrap, corn pellets are a suitable alternative. In shipping, retailers can also rely on optimized routing (i.e., pathfinding) to keep transport routes as environmentally friendly as possible.”
“Retailers can adjust several factors in shipping to make it more sustainable. Starting with the packaging material. Here, they have the opportunity to rely more on ecological cardboard or to use reusable shipping bags. These can then be returned by customers free of charge and reused by the retailer. But even filling material can become more sustainable. Instead of bubble wrap, corn pellets are a suitable alternative. In shipping, retailers can also rely on optimized routing to keep transport routes as environmentally friendly as possible.”
Micha Augstein, founder and CEO of PARCEL.ONE
Another point regarding sustainability is recommerce. More and more companies are transitioning to offering clothing and electronics second-hand or refurbished – usually with larger discounts. The idea behind this is simple: retailers act in the interest of sustainability by providing customers the opportunity to conserve resources together.
Recommerce is not only a trend in clothing and electronics but is also well-known in the books and multimedia segment. Retailers offering products in these categories can tap into new target groups with recommerce while also contributing to the environment, as Hagen Meischner, Partner Manager at Shopify, confirms: “The importance of sustainability among consumers and brands will continue to grow, and second-hand will play an increasing role in this. Furthermore, consumer price sensitivity will be another aspect that will accelerate this trend.”
“The importance of sustainability among consumers and brands will continue to grow, and second-hand will play an increasing role in this. Furthermore, consumer price sensitivity will be another aspect that will accelerate this trend.”
Hagen Meischner, Partner Manager at Shopify
2. Delivery in focus: A decisive factor for customer return
Especially in 2022, problems with supply chains were repeatedly in focus for retailers and customers. Due to the COVID-19 pandemic and the Ukraine war, supply chains are and will remain heavily strained for the time being. Empty shelves in warehouses and physical retail spaces are, however, a significant setback in the customer experience. The way in which goods are delivered (or can be delivered) often determines whether customers will shop in the store again or not. However, it is currently questionable how delivery times can be met in 2023. In addition to proactive planning in logistics, especially regarding product ordering, retailers should keep an eye out for alternative products and pay particular attention to transparency in customer communication. This will not only be crucial during the supply chain issues but will also remain an important topic beyond that.
As mentioned, sustainability is playing an increasingly important role in logistics. Sustainable packaging materials and optimized shipping routes can help in this regard. However, the question also arises as to which partner companies retailers want to collaborate with in shipping. Some service providers already offer route optimization or have equipped their fleets with alternative drives.
3. When it doesn’t fit – The crucial point of returns
Lastly, developments in the area of returns will be a logistics trend in 2023. Sustainability also plays a central role here. According to Statista, 315 million packages were returned in 2020. With the growing number of orders, the number of returns is also increasing. In terms of sustainability, but also due to rising transportation costs, retailers will need to rethink in 2023. Already now, free returns are no longer possible at some companies, as Micha Augstein points out: “The best shipments are, of course, those that do not result in a return at all – in practice, however, this is hardly feasible. Nevertheless, some retailers are now making free returns the exception, especially in combination with improved product information.”
As part of a holistic sustainability concept, this step is understandable – also from the customer side. Only 36 percent of customers consider paid returns an absolute taboo. However, retailers should ensure that return costs for customers are reasonable and keep the process simple and transparent to avoid creating artificial barriers for orders and thus conversions. The current study “E-Commerce Returns Study 2022” even shows that customers are significantly more willing to pay for returns when shipping is free on the way there. Therefore, how returns are handled also depends on the overall package that retailers offer their customers.
“The best shipments are, of course, those that do not result in a return at all – in practice, however, this is hardly feasible. Nevertheless, retailers can reduce their return rate. Especially by optimizing product information in the online shop and raising customer awareness on the topic. Improved product information can also be provided through the integration of new technologies: virtual reality and augmented reality are the keywords here. Furthermore, retailers can transparently communicate the ecological footprint of a shipment and return, thus providing an incentive to avoid returns. Last but not least, some retailers are already making free returns the exception, especially in combination with improved product information.”
Micha Augstein, founder and CEO of PARCEL.ONE
Conclusion: Sustainability and smooth deliveries for a better customer experience
In logistics, as in 2022, everything will revolve around sustainability and the optimization of delivery. Customers expect nothing less from online retailers. Those who want to be at the forefront of e-commerce in the coming year cannot avoid evaluating their logistics processes and making adjustments based on the circumstances. Because customers expect an excellent customer experience and more ecological and social responsibility – and not just during the ordering process, but all the way to delivery.
Image credit: © lumerb – stock.adobe.com
