Page 37 - Logistics News - July August 2023

E-C O MMER CE

Challenges to logistics adapting to the Logistics and e-commerce have developed a symbiotic
business landscape relationship and created excellent user experiences – from the click
South Africa is only the 42 largest online shopping market, of a mouse at online checkouts to the fulfilment of the order at the
nd
despite being ranked 33 by per capita GDP. This difference customer’s chosen delivery location.
rd
can be attributed to several factors including inadequate
road infrastructure and sometimes insufficient address data. The evolution of e-commerce gives SMEs a unique opportunity
Logistics companies that remain technologically innovative are not just to boost sales, but also to position themselves for long-
looking to overcome such challenges by utilising GPS systems term success – although it is important to realise that competition
and robust delivery fleets. is stiff. As consumer expectations continue to evolve, SMEs reliant
on logistics service providers must be able to offer cost-effective
Beyond this, there is also unequal access to reliable Internet services that combine convenience with speed. To this end, many
connectivity, limited digital literacy and low technology adoption players are employing innovative technology to deliver more tailored
rates in certain communities, which hinder the growth of shopping and shipping experiences that increase the chances of a
e-commerce and logistics. sale.

Shipments are also expected to be quick and efficient. This One potential pitfall is the significant gap between SMEs’
makes it even more important for e-commerce businesses to assessment of how they’re meeting customer expectations and how
be supported by a reliable logistics company that can expertly consumers view the experience. Our analysis shows that the biggest
manage the delivery of the product and do it in a sustainable expectation gaps occur around having an efficient returns service
manner. and access to customer support.

Opportunities The delivery service can have a critical impact on a small
Logistics is an enabler of e-commerce. Data by logistics business’s reputation. For this reason, it’s increasingly important
consulting firm Knight Frank shows that the cost of for businesses to work with a logistics partner that can take their
transportation represents 50-75 percent of the retail price business to the next level.
of goods. With an estimated five billion Internet users and
a 2022 e-commerce sales sector valued at US$5.7-trillion, As the logistics landscape continues to grow, with increasing
this represents a massive proportion of the total value of the trust in the online retail sector, businesses of every size need to
e-commerce industry. consider an equitable partnership with an expert logistics company. •

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