Features

E-commerce: Turbocharged growth

Already growing at a healthy rate, e-commerce was fitted with a turbocharger during the pandemic and it shows no signs of slowing down.

Online shopping is becoming ever more popular with consumers, opening up new markets for retailers large and small, who can send their products all over the world. Sending products overseas can be a daunting prospect, so a professional logistics partner is essential so products reach consumers and keep them happy.

GEODIS launched GEODIS MyParcel in 2020, a small parcel delivery service from the US to 26 continental European countries, the UK and Canada with guaranteed delivery in two to seven days.

The service is designed for small, medium and enterprise brands to grow their e-commerce businesses on a global scale by offering the right balance between speed and price at a transparent, all-in cost.

This year, GEODIS plans to extend the service to Mexico, Australia and New Zealand.

Michael Lamia, Senior Vice President of GEODIS MyParcel and GEODIS eLogistics, says, “We launched GEODIS MyParcel to offer a reliable and affordable D2C delivery service from the US for companies seeking to develop their international online sales.”

The service has been successfully integrated into GEODIS’ end-to-end global transportation network, digital platform and e-commerce expertise across the team of logistics professionals.

Lamia says, “Since launching GEODIS MyParcel in 2020, we have continued to expand into new geographic regions and offer new services to enhance the product to ensure we are providing a seamless delivery experience to customers.”

Consumers are increasingly using platforms to purchase products, with data estimating that cross-border e-commerce will grow at a compound annual growth rate (CAGR) of 25.1% through to 2028, according to a report by Vantage Market Research.

Lamia comments, “Simply put, companies that are not prioritising cross-border e-commerce are at a disadvantage. We launched GEODIS MyParcel to offer domestic e-commerce brands with a simple way to go global.”

One major benefit of using GEODIS MyParcel is the Delivered Duty Paid solution, which covers everything from HS classification, before and after check duty and tax calculation, and a total landed cost guarantee to reporting, duty and tax payment to tax authorities, customs clearance and last-mile delivery.

Lamia says, “In addition to full cost transparency for the end consumer, no additional fees, duties or taxes are collected at delivery.”

GEODIS has recently added the Zone Skip Service, providing US retailers with a faster, more streamlined method to ship into most Canadian provinces. The plan is to extend the service into other geographic regions. It offers full end-to-end tracking visibility and manages the entire shipping process from pick up to customs clearance through to last-mile delivery.

Individual shipments are consolidated, bypassing multiple touchpoints and is beneficial to high-volume e-commerce shippers who are looking to increase operational efficiencies, lower shipping costs per package and reduce transit times.

“As e-commerce shippers continue to navigate consumer expectations for faster speeds, it’s increasingly vital to work with a trusted logistics partner with a full breadth of expertise across air, ocean, road and last mile — including alternative shipping methods like zone skipping — to remain competitive in today’s dynamic market,” explains Lamia.

One area that needs looking at is returns, as most retailers offer unlimited free returns to manage the customer experience. This is expensive for retailers and creates logistical challenges, adding further congestion to the already tight capacity.

Lamia says, “At the same time, it can encourage and reinforce unfavourable consumer behaviour. We’ll continue to see brands prioritise rethinking how they approach returns.”

E-commerce has grown rapidly and will continue to grow as consumers keep shopping online, taking advantage of the possibility of buying products from anywhere in the world.

Entering the world of crossborder e-commerce is no easy task, and it requires a professional logistics partner so sellers can offer their customers the best experience.

He says, “From an industry perspective, as e-commerce trends continue, capacity will remain a challenge as we continue to shift from traditional retail to D2C e-commerce to match consumer preferences. The rise in D2C e-commerce requires more fulfilment facilities and, consequently, more labour to operate them. This will continue to be a focus area for the industry in 2023 and beyond.”

This article was published in the February issue of Air Logistics International, click here to read the full issue.