How logistics and 'fulfillment' allow the growth of Spanish ecommerce

How logistics and ‘fulfillment’ allow the growth of Spanish ecommerce

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In Spain, e-commerce has grown by 6% in the first quarter of the year, compared to the same period in 2021, while in the rest of the world, revenue from this market has fallen by 3%, according to the Salesforce Shopping Index . This growth in the Spanish market can be maintained over time for years to comesince, through the Technological Fund, the Government plans to distribute 100 million euros among SMEs so that they can continue with their digitization, in this case, of commerce.

This growth in the demand for online products is accompanied by the growth of the logistics park, which has increased exponentially in recent years in order to cover said demand. Thus, according to the data published in the latest Logistics Parks Special Report, between 2019 and 2021 in Spain 82 new logistics parks were openedof which almost 85% were opened in Madrid, Castilla-La Mancha and Catalonia. In this context, Hubo, one of the providers of fulfillment with the highest growth in the United Kingdom, highlights four keys to how logistics and fulfillment are allowing the growth of e-commerce in Spain.

Democratization of online sales

Until a few years ago it was practically unimaginable that small and medium-sized companies, much less micro-businesses, could take advantage of the online channel to open new lines of business. However, according to a study carried out by DHL, since 2019 SMEs have increased by 70% their commitment to selling electronically.

This increase has been possible thanks to the outsourcing of logistics services by small and medium-sized companies, which have detected the need to open new sales channels for the survival and growth of their businesses. The pandemic has undoubtedly accelerated this digitization and, thanks to this outsourcing of logistics services, SMEs have been able to adapt to the market and come out of the crisis stronger, opening new sales channels while saving location costs.

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Greater efficiency in the delivery and returns process

The increase in online commerce also brings with it an increase in the number of deliveries and returns made. Thus, according to data from Cetelem Observatory, 36% of online shoppers in Spain stated that they had returned a product over the past year. But, in order to handle the high volume of deliveries and returns, it is necessary for companies to bet on a system of fulfillment that allows them to manage a large volume of orders and returns, especially in times of high activity, such as sales or Christmas.

This is even more important, if possible, if one takes into account that after the pandemic, the vast majority of Spaniards have returned to the offices and, as a consequence, an overwhelming number of orders currently placed are collected at designated points. In this sense, the outsourcing of logistics services allows companies to optimally organize their products and improve their delivery methods.

Cost reduction

Despite the fact that SMEs have opted for online sales, in practical terms, this bet requires a learning process as well as an investment in the event that the company wants to take charge of managing its own shipments. That is why many companies find that it is more operative to bet on outsourcing their online order management services to companies specialized in fulfillment services in order to reduce the costs of managing the sales process and thus be able to focus on improving the process itself. product.

Outsourcing product management will mean long-term cost savings for the company, which will not have to invest in setting up its own logistics center or distribution network, maximizing its profit margins, focusing its efforts on online growth and perfecting your product.

Improved customer experience

In the digital context in which we find ourselves, it is essential that companies take care of the customer experience at all times. Especially when it comes to online sales, in which it is increasingly difficult to retain customers. This is confirmed by a recent study by microsoftwhich reveals that up to 96% of customers say that good customer service is important in their choice of brand loyalty.

That is why the commitment to customer service in the pre-sale and post-sale service can make a difference for many companies. In this sense, fulfillment helps companies focus on personalized consumer care at all stages of the purchase process.





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