What Do Shippers Need to Do to Weather the "Amazon Effect"?Posted on July 03, 2018
When you’ve spent more than a quarter of a century in and around parcel shipping and logistics, you gather a wealth of information and insights. But, it is what you do with that information that matters most.
Pierbridge Managing Director Bob Malley believes that sharing that information for the good of shippers in all industries is the best way to give back and to help them do their best.
In a recent podcast with Inbound Logistics, Malley spent some time expanding on our recent white paper looking at the “Amazon Effect” on eCommerce logistics and how e-tailers and others can adapt to the changing landscape of parcel shipping.
“eCommerce is obviously a big phenomenon in our lives, but still only accounts for 8 percent of all retail sales, so there is still a lot of room for growth,” Malley told the podcast audience. “Amazon accounts for about 53 percent of eCommerce growth and 43 percent of the eCommerce market, so they dominate it.”
One of the ways that Amazon has impacted the logistics and shipping of eCommerce, and really shipping in all industries, is by setting the bar for fast and free delivery services.
“Amazon has changed consumer delivery expectations,” Malley said. “All carriers and eCommerce companies alike are on notice that they need to step up to the plate and meet those expectations.”
However, Malley said, Amazon’s impact isn’t limited to just eCommerce. With parcel shipping costs growing at 10 percent per year, all industries are paying the price for the carrier capacity crunch and driver shortages.
“People that work in business-to-business environments are also consumers. Manufacturers who traditionally supported B2B processes are now having to gear up and adapt to B2C drop shipping supplier requirements for their retail customers,” he said.
To hear more about the impact of the “Amazon Effect” on shipping and ways to weather that storm from cartonization to omnichannel shipping to advanced analytics, check out the entire podcast here. And get the full story on “Overcoming the ‘Amazon Effect’ and the Cost of Free Shipping” in our White Paper.