It is essential to improve logistics in e-commerce to meet the increased demands
*By Waldir Bertolino
It is indisputable that e-commerce has been gaining more and more strength and has become a great ally for companies, especially during the pandemic. These digital channels, which dynamically offer products and services to consumers, revolutionized B2C retail and were responsible for attracting and completing sales with the most varied customer profiles.
According to Neotrust, Brazil showed a 4.3% growth in the number of e-commerce orders in the second quarter of 2022. Although e-commerce adoption in Latin America is lower than in other emerging regions, data from Statista estimate that sales on these platforms will reach approximately 160 billion by 2025. Also according to Statista, Brazil represents 31% of online retail in the Latin American market, competing directly with Mexico, which represents 28%.
As much as the migration to digital retail has happened quickly and on a large scale, it does not always occur in a dynamic way, being, generally, confusing and unstructured. This is because companies only think about launching a sales platform as quickly as possible, without considering, for example, customer satisfaction and the integration of other technological resources, such as the cloud or the use of algorithms.
Technology as an ally of logistics chains
Even if it seems unconnected, logistics directly influence the customer's perception of a store. If he buys a product through e-commerce and is faced with obstacles to follow the route of the merchandise from the storage place to his home, there is a certain distrust in relation to the company and questions such as “will the product arrive?” start to appear.
A platform developed with little or no logistics studies and a company unprepared to deal with large flows of transactions, cause problems such as difficulties with delivery times, returns, poor traceability, item losses and, consequently, consumer dissatisfaction. These situations get worse at times like Black Friday, as e-commerces are overwhelmed with shopping demands and with the increased movement of products along the chain.
Black Friday is one of the most important dates of the year for retail (physical and online) and, thanks to the discounts offered by stores, it attracts millions of consumers every year. According to a projection by the Brazilian Electronic Commerce Association (ABComm), this year, this date should move around R$6.05 billion in Brazilian e-commerce and the number of orders should exceed the mark of R$8.3 million.
From that date, retail enters a particularly busy time on account of Christmas. In addition, the year 2022 has the World Cup, which will drive sales even more this quarter. For e-commerces to withstand the even greater flow of consumers, logistics must be more efficient, allowing real-time counting and tracking of products along the chain.
To improve the logistics chain, it is necessary to invest in technology. The cloud offers several benefits that, when aligned with solutions such as IoT (Internet of Things), Big Data and Artificial Intelligence (AI), can help managers by providing daily KPIs on the functioning of the product chain, tracking goods, in addition to offering accurate insights into order demands and stock availability, which help manage warehousing, picking, transport and even reverse logistics.
Cloud technology enables companies to strategically manage the logistics chain, also contributing to the integration between all processes carried out in the operation and the members of the chain ecosystem. This integration, in turn, maximizes the results of activities and enables the company to grow without major concerns about infrastructure, allowing them to focus on their core business.
Digital channels and expanding the reach of e-commerces
In addition to optimizing logistics processes, at this time of year, companies need to focus on maintaining their visibility on both e-commerce platforms and other digital channels. Social networks have become a great way to advertise their products and attract more customers, and it is important that companies are also present in them.
The second edition of the State of Commerce report, published on Salesforce, brought data on the use of digital channels to leverage sales in e-commerces. According to the study, digital channels account for about 30% of companies' commercial revenue in 2022, and by 2024 this number is expected to reach 54%. In other words, investing in alternative digital channels is a great way to expand the reach of e-commerce.
By adopting technological solutions that improve the functioning of the chain, brands deliver to their customers not only quality products, but also transparency and security. In an increasingly competitive market such as online retail, being present in digital channels, being transparent and conveying security to consumers, together with the delivery of a quality service and an organized logistics chain, are the key for retail companies. make the most of this quarter that promises to be the busiest of the year.
*Waldir Bertolino, Infor Country Manager in Brazil
Notice: The opinion presented in this article is the responsibility of its author and not of ABES - Brazilian Association of Software Companies
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