The holiday season is right around the corner, and the peak season for last-mile delivery is getting underway as retailers and supply chains prepare for the influx of demand.
According to a recent Statista report, ecommerce sales are expected to reach $4.5 trillion in 2021, once again reinforcing the need for rapid and reliable delivery services to bring home the entire customer experience for brands.
Per usual, delivery carriers like UPS and FedEx are making it a tougher climate for logistic rate negotiations during peak season. FedEx recently announced, “As the impact of the virus continues to generate a surge in residential deliveries, we are entering this holiday peak season with extremely high demand for capacity and are experiencing increased operating costs across our network.”
Delivery surcharges have increased by up to 50% over the last three years, thanks in part by the increase in rural and extended deliveries – in fact, both UPS and FedEx added new surcharges for rural zip codes. But these surcharges rarely, if ever, give retailers and ecommerce shoppers higher quality service or faster delivery times.
This is bad news for retailers, because customers’ delivery expectations have risen even more dramatically than surcharges. John Haber, CEO of Spend Management Experts, believes companies such as Amazon have built customer expectations of free and same day shipping – so now other ecommerce and retail businesses are paying that price. “Everything is getting there faster,” he shared, “Most companies can’t afford to compete with Amazon. We don’t see free shipping long-term as sustainable.”
Yet, shipping costs are one of the top reasons for ecommerce shopping cart abandonment. For those looking to increase brand loyalty, it’s imperative that you consider how your shipping logistics plays a key role in the entire customer experience. When it comes to delivering products, customers are going to expect a range of variables that will add to their overall buying experience, including how fast they can get their hands on an item, how much visibility customers have in tracking their packages, how much delivery will cost, and what the return process looks like and costs.
So, if delivery is the “customer experience” of the logistics world, what kind of customer experience are you offering your customers – especially during the hectic holiday season?
When it comes to affording the massive surcharges imposed by delivery fleets like UPS and FedEx, you may be sacrificing not only your bottom line, but also your overall customer experience. After all, these delivery companies are under enormous pressure during the holiday season and are only expected to get your products from Point A to Point B. They won’t be concerned about optimizing your customer’s last mile experience.
Meanwhile, third-party logistics providers like GEODIS | City Delivery offer agile solutions based on your customers’ specific needs, all while improving and expanding on last-mile delivery options - even during peak seasons! GEODIS | City Delivery’s Same Day and Next Day delivery services were created with the customer experience in mind. By offering flexible delivery options like “Buy Online Pickup In Store” (BOPIS), “Buy Online Return In Store” (BORIS), and “Buy Online Deliver From Store” (BODFS), your shoppers can get their hands on the goods much faster, all while reducing your shipping costs without worry of additional surcharges or delayed service.
GEODIS | City Delivery also offers different ways to maximize your distribution footprint by leveraging your brick and mortar stores as micro fulfillment centers or nano warehouses. This enables Same Day or Next Day delivery solutions and accelerates your speed to market.
Using the GEODIS | City Delivery network allows your team to craft the perfect plan to get your product into your customers’ hands quickly and easily, creating a more branded experiential delivery, all while optimizing your delivery costs. Working with a dedicated 3PL also cuts out companies with enormous peak season surcharges, and totally transforms your Last Mile delivery experience for the customer. Optimize your supply chain and see how your entire customer experience is radically transformed, from first mile to last mile.
GEODIS | City Delivery is a premier third-party and fourth-party logistics partner who can help you bridge the gap between your last mile delivery service and the overall customer experience, offering unparalleled support through even the busiest parts of the holiday season. The GEODIS | City Delivery mission is to help you overcome your logistical constraints, especially during peak seasons where optimized efficiency is non-negotiable.