The great shift forward in E-commerce

Igor Shkrumelyak, Managing Director - Zula Technologies

Our world is moving quicker than ever before with more of us shopping online every day. This has caused e-commerce to quickly become an integral part of our everyday lives, offering convenience, variety and choice. However, this has brought about a number of challenges not only for brick-and-mortar retailers and Eretailers but legacy supply chains such as traditional post services and couriers.

Change is inevitable, but is your business ready for the e-commerce revolution? As e-commerce has matured, consumer demands and expectations have shifted from two-day delivery to today delivery to two-hour delivery. According to the study done by Walker sands, a leading multi award-winning B2B tech integrated marketing agency, the biggest opportunity for brands and retailers to gain market share lies with creating more efficient supply chains and offering ultrafast delivery.

In a recent study by Auspost found that next day delivery demand have grown by 31.7% YOY, with another study by PwC, finding that 41.0% of consumers report they would be willing to pay more for same day delivery, while nearly a quarter (24%) of shoppers said they would pay more to receive packages within a one or two-hour window of their choosing. What is more surprising is that 80% of e-commerce shoppers want same-day delivery to be an option at checkout and 56% of Millennials expect it.

The increase in demand for speedy delivery coupled with the COVID-19 pandemic has caused legacy supply chains to struggle to keep up. This has led to delays, frustrated customers and careless delivery drivers, all impacting the overall customer experience, company image and bottom line of e-commerce businesses. This can be detrimental in the best of times, however with 2020 being one of the worst years in modern history for business, these factors can be disastrous for business survival.

A recent study has shown that in the last 15 years 52% of fortune 500 companies have disappeared with the average life expectancy of a company falling from 61 years in 1958 to less than 14 years today. However the best companies have adapted to this new reality, creating alternative supply chains to not only survive but thrive. Companies like Amazon have made two hour delivery free for all Prime members.

The Iconic launched 3-hour Sydney metro delivery in 2011. As well as Woolworths & Dan Murphy's innovating from strength to strength by offering groceries and alcohol deliveries within 2 hours in the midst of a pandemic. What’s the common thread? They have all embraced change and provided on demand fulfillment, constant innovation and ultra-fast delivery.

What does the future of e-commerce look like? Two to three hour delivery will be the norm. Customers will purchase an item before bed and have it at their door when they wake up. Brick and mortar stores will become fulfilment and distribution centres powering e-commerce and deliveries will occur 24/7 not just 9-5. More importantly businesses that embrace the shift will dominate their fields.

Today, putting together the right infrastructure for two-hour delivery is difficult and expensive. This is why we built Zula - to level the playing field by making one hour & same day delivery easy, affordable and available to businesses big and small #sorryamazon.

We exist to help businesses dominate their fields by delivering items in as quick as one hour, providing an exceptional customer experience and offering easy returns. All while championing sustainability with the rise of the conscious consumer through initiatives such as reusable packaging and carbon neutral delivery.

Best of all we are offering new businesses 2 weeks of complimentary deliveries (*limits apply & offer expires January 15th 2021).

Should you wish to find out further information on this offer or if you would like your business to get ahead of the curve or have any questions regarding improving your supply chain, please contact Zula via email hello@ridezula.com or on 1300 760 116.