Logistics Trends 2023 (Part 3) – These Three Developments in E-Commerce Should Not Be Missed by Online Sellers
Logistics is a particular challenge for e-commerce, especially due to the continuously growing order volume and the countless packages and destinations associated with it. Many sellers often reach their limits with packages. However, the logistics trends for 2023 also provide insights for this exciting area, helping to manage the influx of packages while successfully addressing important issues like sustainability. In our third and final part on e-commerce trends for 2023, we will show you what to pay attention to in logistics in the coming year and how to implement these strategies effectively.
Logistics Trends 2023 – Focus on Sustainability, Delivery Modalities, and Returns
There are three central logistics trends for 2023 within e-commerce for the upcoming year. The most significant topic is sustainability. However, the way deliveries reach customers will also become a key success factor for online sellers in an increasingly competitive market. Lastly, the industry is grappling with the balance between sustainability and returns.
1. Sustainability, Social Responsibility, and Recommerce
Sustainability has been the trending topic in e-commerce for several years now. This is evident on multiple levels: ecologically, economically, and socially. Resource consumption is an issue that concerns customers today. Unfortunately, e-commerce often still struggles with a poor image regarding ecological sustainability – especially in segments like clothing and electronics. Customers are also paying closer attention to social and economic responsibility today, particularly with large retailers.
As a small seller, you should not only write sustainability on your agenda on paper but also 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.
Micha Augstein, founder and CEO of PARCEL.ONE, summarizes how online sellers can become more sustainable in shipping: “Sellers can adjust several factors in shipping to make it more sustainable. Starting with packaging materials: they have the option to use more eco-friendly cardboard or reusable shipping bags. These can be returned by customers free of charge and reused by the seller. Additionally, filling materials can also be made more sustainable. Instead of bubble wrap, corn pellets are a suitable alternative. When shipping, sellers can also rely on optimized routing to keep transport routes as environmentally friendly as possible.”
“Sellers can adjust several factors in shipping to make it more sustainable. Starting with packaging materials. They have the option to use more eco-friendly cardboard or reusable shipping bags. These can be returned by customers free of charge and reused by the seller. Additionally, filling materials can also be made more sustainable. Instead of bubble wrap, corn pellets are a suitable alternative. When shipping, sellers can also rely on optimized routing to keep transport routes as environmentally friendly as possible.”
Micha Augstein, Founder and CEO of PARCEL.ONE
Another aspect of sustainability is recommerce. More and more companies are transitioning to offering second-hand or refurbished clothing and electronics – typically at greater discounts. The idea behind this is simple: sellers act in the interest of sustainability by providing customers with 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. Sellers offering products in these categories can tap into new target audiences while also contributing to environmental sustainability, 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. Additionally, 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. Additionally, consumer price sensitivity will be another aspect that will accelerate this trend.”
Hagen Meischner, Partner Manager at Shopify
2. Delivery in Focus: A Key Factor for Customer Return
In particular, in 2022, issues with supply chains were repeatedly in focus for both sellers and customers. Due to the COVID-19 pandemic and the war in Ukraine, supply chains remain heavily strained for the time being. Empty shelves in warehouses and physical retail spaces represent a significant setback in the customer experience. The manner in which goods are delivered (or can be delivered) often determines whether customers will shop in the store again. However, it is currently questionable how delivery times can be maintained in 2023. In addition to proactive planning in logistics, especially regarding inventory ordering, sellers 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, it also raises the question of which partner companies sellers want to collaborate with for shipping. Some service providers already offer route optimization or have equipped their fleets with alternative drives.
3. When It Doesn’t Fit – The Key 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 continues to rise. In light of sustainability and increasing transportation costs, sellers will need to rethink their strategies in 2023. Already, some companies no longer offer free returns, as Micha Augstein notes: “The best shipments are, of course, those that do not result in a return at all – but in practice, this is hardly achievable. Moreover, some sellers 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 customers’ perspective. Only 36 percent of customers consider paid returns an absolute taboo. However, sellers should ensure that return costs are reasonable for customers and keep the process simple and transparent to avoid creating artificial barriers to 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 sellers offer their customers.
“The best shipments are, of course, those that do not result in a return at all – but in practice, this is hardly achievable. Nevertheless, sellers 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 key terms here. Additionally, sellers can transparently communicate the ecological footprint of a shipment and return, thereby providing an incentive to avoid returns. Lastly, some sellers 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 sellers. Those who want to be at the forefront of e-commerce in the coming year must evaluate their logistics processes and make adjustments based on the circumstances. Customers expect an excellent customer experience and greater ecological and social responsibility – and this applies not only during the ordering process but all the way to delivery.
Image credit: © lumerb – stock.adobe.com
