E-commerce is booming business. According to numbers in the articles, Dutch e-commerce companies have managed to generate a record revenue of €26 billion in 2019 out of 260 million orders. This comes down to 700.000 purchases each day. It is expected that 95% of all the retail purchases will be made through the internet by 2040. In the US, 10% of retail sales is already purchased online, and this number is growing with 15% each year. In the Netherlands this growth is 8%.
The end of the year is the busiest season for e-commerce companies. While the Christmas period has always been a time of increased retail spending, it is Singles Days, Black Friday and Cyber Monday that have started smashing sales records.
Online shopping is part of our lives now. 90% of all Dutch people choose to shop online sometimes due to the wide selection, cheap prices and comfort. But at the backend of this process, e-commerce has to cope with two important bottlenecks.
Bottleneck 1: Logistics
You are probably familiar with those delivery vans driving through town, loaded with parcels that need fast delivery. Did you know that 50% of these parcels will be sent back? It is very common for people to order three different sizes and return the two pieces that didn’t fit. It is also very common to order five pieces and return five. The costs for delivery and returning the parcels is free anyway. It’s this kind of shopping behavior that concerns e-commerce companies.
Next to that, e-commerce companies have problems during the shopping seasons because the logistic processes are calculated on an average through the year. The process is designed to be as efficient as possible. When the amount of orders increases dramatically, there is simply a shortage of employees and devices to be able to process the orders. How can you anticipate on those busy seasons?
Bottleneck 2: Network and mobile devices
Many companies simply cannot handle the extremely busy period in the last two months of the year. Their network is inadequate, they do not have enough devices and the devices they do have are often not able to process that amount of orders.
Some e-commerce companies got the message. They optimize their processes to be more efficient. They invest in robust mobile devices and printers to minimize the chance of problems and malfunctions. If there is a problem, they can anticipate very well due to good tracing. They implement a powerful network and work with robust devices and trained staff. On top of this, they work with a good partner that provides Enterprise Mobility Management and keeps an eye on processes to avoid malfunctions.
But even these parties have difficulties taking care of it all by themselves. So, what do you do when you’re a smaller company?
Good devices can be hired
No matter how well-coordinated you are as an e-commerce company, in November and December you will have a shortage in the amount of people and devices. You need to upscale. Because the purchase of new devices is expensive, many large e-commerce companies came to us and asked us if we could also offer devices temporarily. Does Dalosy also offer rental equipment?
Dalosy’s complete solution
We’d be happy to help our clients during busy seasons! As a matter of fact, we already support different e-commerce companies with extra seasonal equipment. We offer a range of mobile devices, wireless infrastructures and label printers. For some clients, we even have the devices ready with their specific configurations.
These devices need to fully function, which is why we make sure every device is in good condition. Logistic is the backbone of e-commerce companies. Hence, all the mobile devices, computers and wireless network in this process need to work perfectly.
After all, the consumer of today expects next-day-delivery and delivery in the evening or weekends. Even during the busy seasons. These high expectations are to be fulfilled by the logistics department.
One of the advantages of this solution is that we already deliver Enterprise Mobility Management services to most of our clients. They get their required extra equipment when needed, already configured and ready to use. Secondly, we monitor their systems and (rental) devices so we are able to solve malfunctions before they become a problem for our clients.
2020 has just started. This is a great moment to review what could be improved this year. What will your company do differently this year?