Posted by Alicia Baumann

Trend in the Supply Chain: The Customer's Shipping Expectations

With the rapid growth of eCommerce, numerous recurring themes relating to the supply chain have appeared, including the increase in product diversity and membership programs. Here’s the third part of the ShipHawk supply chain series about the top trends impacting supply chain logistics right now and what you can do about it.

Higher Customer Expectations for Shipping

When it comes to shipping Amazon’s Prime program has created the new reality for online buyers expectations of eCommerce retailers. This “new normal” is a particularly important development considering that research shows shipping concerns now account for five of the top eight reasons customers abandon their shopping carts.

From the consumer perspective, rarely does the online shopper fully grasp the enormous undertaking required by supply chain logistics executives in order to meet this rising demands and expectations for faster shipping and delivery. While carriers such as FedEx and UPS have robust infrastructures that make expedited delivery and shipping transparency possible, the vast majority of carriers don’t have the means to facilitate such an operation within their current systems. This in turn puts increased pressure on smaller firms’ supply chains logistics channels, which ultimately struggle to make their supply chains both cost-effective and efficient. The ‘Amazon Syndrome’ has caused retailers of all sizes to struggle to adapt and manage fulfillment successfully.

The eCommerce ecosystem has already responded to this new reality with a range of diverse shipping options, from locker-box pickup and services like FedEx Location, to on-demand delivery services, that allow smaller companies to remain somewhat competitive in the marketplace. To learn about the other trends impacting supply chain logistics and how to proactively react to them, download our white paper Five Trends Changing the Supply Chain Landscape as We Know It