Tuesday, August 2, 2016

Home Delivery business 2016

The Home delivery business - processes and technologies involved has been a point of interest for this blog so was very interested to read and analyse new research from Chainlink Research 2016 


Some highlights from this research (some surprising and some not so) are

  • While ecommerce continues to juggernaut along the brick and mortar stores r not going away any time soon
  • Retailers with all their gadgets and systems still struggle with the perennial of what where and how much to stock in their warehouses
  • Retailers who offer free shipping find an impact of 5% to 9% margin loss on their online sales. Last year the cost of free shipping to Amazon amounted to $5 billion, or 5.1% of Amazon's sales; up from $4.2 billion, or 5% of sales in 2014; thus, Amazon’s recent change to their shipping policy—increasing the minimum order from $35 to $49 to get free shipping. Well there is and was a cost of delivering stuff to peoples homes so duh 
  • While 3 PL and parcel carrier companies are getting a majority of the business, major retailers are also investing in private carrier fleets. Though since this is not their primary business I wonder for how long before they sell em off to the professions 

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