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Are there any Leftovers

Posted on by Aditi sinha

We are in peak season, and the logistics provider can attest – Late nights, chasing down the few questions from customers, and ensuring they are providing the best customer service. According to NRF, an estimated 166.3 million people in the US will shop between Thanksgiving and Monday (Cyber Monday). That is across all channels and considering the US population is about 331 million people, that is an impressive number over 4 days. This means we are at prime peak season.

Many of the retailers had discounts deeper than last year to ensure to pull folks into the Thanksgiving weekend shopping window. As of Sunday 11/27, online spending reached $9.12 billion this year which is up 2.3% increase over last year and sops the $9 billion spent in 2020. While many are bracing for a recession based on the deep discounts it seems the holiday shopping season has started phenomenally. Online buying has been further enhanced by the buy now pay over time option that almost all online retailers are now utilizing. 

In-person, shopping has been affected. The deep discounts in the stores are not driving traffic. Many believed that there would be a new vigor for in-person Black Friday antics. However, it is not the case, analysts stated there was brisk traffic and that may be the ongoing trend this year with online activity being more the norm – especially with cyber-Monday still to come. I think there has been a permeant shift in US buying behaviors and the person will continue to be the loser with the trends in place. 

All this online purchasing will mean impacts on small parcel delivery. In many areas of the country, the last mile is coming under increased pressure. Today last mile is about 53% of the delivery costs. And customers are becoming increasingly worried about their packages and getting them into their hands. UPS and FedEx are allowing, buying, or partnering with Gig workers to help alleviate the costs and customer issues of the last mile delivery. These issues range from deliveries being stolen to their items just not showing up. In many ways the customer journey can be most impacted by a poor delivery experience – we will need to see how 2022 stacks up to the issues in 2021. 

The Christmas season seems to be off to a good start. But we have a lot of headwinds with inflation, a possible recession, China’s covid impacts, and the war in Ukraine. As of this blog being written, I am confident that e-commerce will be beating expectations let’s make sure your customer’s packages get there on time.

Remember to be Thankful

Posted on by Aditi sinha

It is Thanksgiving here in the US, and in my opinion, the best holiday in the US. I love it because it is the truest American holiday. After all, it is celebrated regardless of where you are from, your religion, or even your political affiliation. It is about your family and friends looking backward and giving thanks for what has transpired this year. We at SmartKargo have a lot to be thankful for in 2022.

My first thought is around our culture – We are a global company with clients on five continents. We speak over a dozen languages with the best teams. This mix of customers’ languages and geographic distribution helps unpin the key parts of our culture which quite simply is you need to be “nice.” In today’s world being nice may not often be considered a “positive” attribute. However, our founders believe it is paramount to our success. Our empathy for our customers, our respect for our teammates, and our reverence for our local communities feed our culture. In my two years here, I am amazed at how nice we are, every day, from the CEO to the newest hired college teammate – it is how we operate.

We are thankful for the amazing customers. We have several customers coming on board this year, whether it’s for a better cargo platform or e-commerce and small package delivery. We know our customers are looking to transform their companies, innovate to drive better margins, and create new revenue streams. We have had many customers extend their relationship with us and that is the greatest vote of confidence in our culture and expertise. Moreover, we have worked with a customer to create a new product that extends global e-commerce shipping internationally.

I am very thankful for my teammates. We have a global team that is always there to help and make sure we have shared success. Our technology team is innovative and always pushing to build their skills and wow our customers. Our support functions like Finance, HR, and Operations are dedicated experts making sure we operate at the highest efficiency level.

Finally, we are thankful for our partners. From our technology partners to our delivery partners, we have solid integrations into the commerce ecosystem. We are so glad to work with so many companies dedicated to innovation and transforming the Air Cargo and Logistics market, numerous of who share many of our cultural attributes.

We should always take a break and look at what we need to be thankful for, and I am thankful for my two years here at SmartKargo. I am a foodie & as an American, I look forward to my turkey, mashed potatoes, and mushroom but being of Polish descent I also enjoy my Kielbasa, Czernina, and Gołąbki for dinner. I hope all of you enjoy a day of thanks. Happy Thanksgiving to all.

All I want for Christmas is Assessorial fees

Posted on by Aditi sinha

When I was young this is about the time of year, I created my Christmas list and like most kids made sure I was being a very good boy to ensure I optimized my gift count! I did not want coal in my stockings. But coal is exactly what many small package shippers are getting this year.

Now I am grown up and working in the logistics field – this changed my Christmas list-making. Today, I give more gifts than receive and after approximately 20 years at UPS, I know what it takes to get packages from one city to another. During my time at UPS, there were consistent but unwritten rules. One was the 4.9% rule – This meant every year General Rate Increase (GRI) was 4.9%. I knew it, my customers knew it, and believe it or not the competitors knew this as well. The other was fees. There are fees for fuel surcharges, residential and so many others.

I knew my customers needed a different approach that was focused on ensuring fast 2-day time and transit while providing customer service and ensuring small package shippers are focused on their customers not the rates from the large established delivery partners. It was amazing to me that customers just accepted the 4.9% yearly increase. But that changed; in 2022 it went to 5.9% and in 2023 it will be an increase in GRI of 6.9%. I guess some rules were meant to be broken.  

Breaking the rules or the status quo is why I am here at SmartKargo. I believe that there should be an agreement on a price that price. All the assessorial fees mean that a price is not really, the final price. Many of the main delivery partners let the assessorial fees drive their margins and to add additional complexities, they may spring the changes on a customer with only a few days before they are life. It is impossible to plan and ensure SVPs, VPs, and Directors of logistics can be within their budget. Moreover, if you pass these fees onto your customers, it impacts sales or at least margins. I know all these logistics leaders are focused on cost but also on being the strategic last part of the customer journey.

I work at SmartKargo because it is an ‘Alternative Delivery Network.’ What is that? Well, it means we do everything the big guys do but with advantageous pricing and 2-day time and transit across the United States. We do not have a list of assessorial fees that we publish or use as “Levers” to drive more revenue. We want to help you meet your SLAs. Be within budget and make 2-day delivery a reality across the US. A bonus for me is we are also sustainable. Because we use an airline partner we are using “belly space” on passenger airlines. With over 800 flights a day, these passenger planes fly no matter what, and using this space does not increase fuel consumption and optimizes the flight for its carbon impact. 

When you look at Uber, Airbnb, and other innovative companies they saw an opportunity to upset the status quo. That is exactly what we are doing here. Let’s disrupt the status quo together.

The Right Choices make the Best Foundations

Posted on by Aditi sinha

What makes SmartKargo unique is it was born in the cloud using Microsoft Azure and all the Microsoft capabilities. This may sound like an easy decision today but when SmartKargo initially began there were still client server and legacy systems with a thin veneer of front-end usability for the Air Cargo industry. However, there was no flexibility nor speed for development and deployment. So, the founders of SmartKargo decided to build from the ground up as a cloud solution by leveraging Microsoft Azure. Our product was envisioned, designed, and built on the cloud and inherently leverage all aspects of the modern-day holistic, seamless, and secure cloud infrastructure provided by Microsoft.

We have seen tremendous growth over the last few years and there are two main factors to our success in the Air cargo and small package delivery market. First, we have expertise in all facets of Air Cargo and Small Package Delivery, ranging from Sales, Marketing, Operations, International shipping, and Technology. Technology leads us to the second factor which is our platform. It is flexible enough to wrapper around existing systems and extends all the new products and revenue-enhancing solutions we have in the cloud like eCommerce and Portal.

Microsoft Azure provides SmartKargo and our customers with an ever-expanding set of cloud computing services to meet their business challenges, including the freedom to build, manage, and deploy applications on a massive, global network using select tools and frameworks. The platform empowers our customers to operate hybrid, with an EDI-enabled solution providing seamless visibility between partners—managing environments with tools, apps, and services.

Continuous innovation from Microsoft supports our vision and our customers’ requirements for development today—and supports our product visions for tomorrow by enabling innovation anywhere, across on-premises, multi-cloud, and edge environments, On-premises, in the cloud, and at the edge. We can go anywhere we need around the globe to support global commerce through the air.

We can connect, communicate, and evolve our solutions constantly. We easily connect to the Air Cargo and Small Parcel ecosystem with the Microsoft Azure stack. And this is not a technical proof point but a solution that drives revenue for airlines.

Breaking the Status Quo

Posted on by Aditi sinha

Change is so hard. We often need a big event to help usher in change – a wedding to quit smoking, New Year to lose weight, or saying you will exercise more if your team wins this game! We do this because we are not ready for change and according to Psychology Today- not being ready is one of the main reasons why transitioning is so hard. That confuses me much about e-commerce and small package shippers – they should be primed and ready for change.
The pandemic showed the weaknesses in much of our economy when we were shut down, not to mention starting back up. However, these unprecedented times reflected the tremendous opportunity that e-commerce provides around the globe. E-commerce is expected to be $1 Trillion this year alone. But this exponential growth in e-commerce has also caused supply issues, cascading into shipping delays, missed pick-ups, and contract cancellations by the established shipping players.

Fees are every shipper’s biggest complaint. Many negotiate fantastic rates for their shipping with established players like UPS, FedEx, and USPS – but we know that is not the real cost. Fees like fuel surcharges, weekend delivery, and so many others balloon your price per package and drive shipping costs higher and higher. Moreover, we have heard of the established players raising prices and only giving five days’ notice – very difficult to manage with a partner that may not be that great for your bottom line.

It seems the Vice Presidents and Directors responsible for logistics should be ready for change. There are many reasons you should explore using alternatives to established players. That is the simplicity of our solution for e-commerce and small package shippers – we utilize existing assets to make 2-day delivery a reality across the country. Since we use the existing first and last-mile partners with a major US passenger airline with over 800 flights a day for the mid-mile, we do not need to keep “fee-ing” you to cover their capital expenses. While we are on change, we know sustainability is a factor for all of us. Since we utilize existing assets and use passenger airlines that will fly on their schedule whether the cargo bay is full or not, we help to lower our carbon footprint.

Again, it is not easy to change. Change is not often all at once – I said I would never switch from my Blackberry, and I am now on my 7th iPhone, all it took was the initial iPhone purchase. Start small to make the change lasting because we are coast-to-coast with our airline partner. You may want to start with a small part of your shipments, maybe Atlanta to Los Angeles, which we can do in 2-days, easy. All of you who deal with the establishment know you need some alternatives, so think of SmartKargo as your change agent and better yet, your New Year’s resolution.

Innovation Wins

Posted on by Aditi sinha

I am an avid 49ers fan, the 5-time Superbowl winning 49ers, to be exact. Now I believe their success has been a result of the marriage of offensive innovation and strong defensive commitment – In other words, changing with the times when needed that is how I am seeing the logistics and supply chain business today. I am heading to Home Delivery World in 2 weeks, and I am hoping to see insightful presentations, meet with peers, and visit some of the booths.

First and foremost are companies embracing new approaches, technologies, and partnerships? I have noticed that many of the new companies that entered the logistics market are keen on challenging the status quo. As someone at one of the companies that are creating a new way to deliver small packages across the country, I want to see how interested companies are truly challenging the established logistics players. In my experience, many want an alternative to UPS and FedEx, but it is difficult for many to try new approaches – it is a very risk-averse industry.

Another factor I hope to gain insights into my company and find very important is the customer journey. I find it amazing that even with all the technology in the front office cart abandonment rate of about 70%. Now one of the top 3 reasons for customers leaving their carts are the fees that are charged as part of the checkout process and shipping is one of them. So, how are marketing, sales, and logistics working together to ensure a simple seamless customer experience?

The speed of shipments truly fascinates me because of the “Amazon effect.” All companies are trying to combat Amazon – many of the start-up companies that are driven by innovation are helping to combat that effect. We all know customer want their products as fast as possible and want to match 2-day delivery. Does 2-day delivery the standard we need to meet to make customers happy? And now that Amazon is testing 1-day delivery is the pressure going to be ramped up for all to move even faster? I want to know what my peers think at Home Delivery World.

Innovation is important whether the San Francisco 49ers or a jeans apparel company. Events are important it does provide us a venue to discuss items openly, learn from our peers and see what is going to be possible. And as I am excited to see Chris Grey present “Alternative Delivery Networks” to disrupt and benefit the bottom line in the home delivery world – Chris is the George Kittle of SmartKargo!

Disruptive Innovation is a Necessity

Posted on by Aditi sinha

I am heading to “Home Delivery World” in about a month and am excited to go to a show that is manically focused on logistics and supply chain. I have years of working with e-commerce, pharma, & manufacturing organizations, that require small parcel delivery and I can never think of a more exciting time in the space. Now when I go to an event I am there to learn and gain insight to connect with my partners and customers!

Now I am very intrigued by the decision to resurrect brick & mortar presence though most large retailers have seen massive spikes in e-commerce purchases. Considering Shopify is laying off workers because they believed that the e-commerce growth would continue, are companies seeing a long-term pullback in e-commerce? Or just a short-term abatement? I am looking to my logistics experts at the show to share their ideas.

Inflation is the issue so many companies are now learning to deal with daily- choosing to raise prices or eat margin will always be a difficult decision. So, I further wonder, are large retailers handling the constant increase in shipping costs without passing the charge off to customers? Many platforms can rate shop, which eases the pain of cost increases. Nonetheless, all carriers are raising costs within weeks, if not days of each other meaning there is no escaping it for the shippers. I never forget that the price of something will always reflect the sum of its cost inputs.

“Necessity is the mother of invention.” This is an old proverb we take for granted but it applies today more than ever. We have inflation, pull forward in e-commerce demand, supply chain issues, workforce concerns, delivery limitations, tremendous growth in surcharges and so many more worries. Innovation is not only needed but paramount for the logistics area. What are new companies doing in technology, last mile, and alternative delivery networks? Moreover, are retailers going to be more innovative? As an example, American Eagle created Air Terra, forcing carriers to start bringing transformation and value to the table. What innovation and value are large retailers and B2B players looking for in today’s market?

I am attending this event with open ears and an open mind. I know some of our partners like Fillogic are revolutionary and technically savvy and will be at the event as well. . We know we are innovative and challenging the norms in the small package delivery space. It is time for a break in tradition and a change of direction. We are a new method…a new way.. that will forever change the face of logistics.

 

Psyched about Home Delivery World

Posted on by Aditi sinha

I’ve been working for 10 years in Logistics and much of that time was at UPS. I am always amazed at how much innovation is being done in this space – That is why I am so excited about the upcoming Home Delivery World. The depth of the event looks like it will handle all components of the logistics and supply chain industry. I am even more excited since we will be speaking and have a booth on the busy expo floor.

I do have a few specific items I am truly interested in as they impact my world with all the e-commerce, pharma, electronics, and other companies I interact with daily. The easiest is how are UPS and FedEx dealing with their declining delivery performance and how are the market and new entrants taking advantage of this opportunity?

Another piece of information I am interested in learning from the presenters and many of the logistics professionals at the event is accessorial costs and their impact on their business. I look at these fees like the caveats that are voiced over pharma commercials on television or online. They always say something like – “It may cure your migraine headache, but your nose may turn green.” as an extreme example. But think about the list of fees customers need to be very aware of every day – Their shipping prices initially look very reasonable until the customer factors in fuel surcharges, weekend delivery, delivery area surcharge and so, so, many more.

We just had the prime day. And every time there is a prime day each company looks to evaluate their loyalty program, their shipping fees, and the overall “Amazon effect.” Considering Amazon is now the 3rd largest logistics service in the US, I want to understand how logistics leaders are dealing with their internal teams to compete with the 800-lb. gorilla.

I missed events during the pandemic -I get to have direct, fun conversations with professionals with all kinds of experience. More importantly, I learn and ensure I look at this great industry and the innovations that are being built and evolved.

7 Amazing Ways to Improve Customer Service in E-commerce Logistics

Posted on by Nethority Nethority

With the exponential growth in e-commerce, it is not just about offering quality products to customers anymore; it is also about e-commerce businesses offering a good experience to a customer’s journey. Right from placing an order to the timely door delivery, this experience plays a crucial role in keeping customer loyalty intact and staying at the top of the game. 73% of all people point to customer experience as an important factor in their purchasing decisions. 86% of consumers are willing to pay more for improved customer experience.

As consumers increasingly rely on online shopping, their expectations for better customer experience also continue to rise, which is why e-commerce customer engagement is critical today. Whether you have just set up an e-commerce business or have been running one for years, you might need to take a closer look at the quality of your customer engagement practices and e-commerce enhancement listed below.

7 ways to Optimize and Improve Customer Service in E-Commerce Logistics:

 

  1. Real-Time Tracking

Today’s technology advancement offers all-day tracking in real-time for customers to track their orders, and know about delivery timelines or transit issues. This disruption is not just a boon for consumers but also for e-commerce businesses and logistics providers, reducing costs and saving time.

SmartKargo EDI-enabled e-commerce solution shares real-time information at every step of the supply chain for increasing efficiency. With real-time tracking and reporting, bottlenecks are easily identified.

  1. Routing Service

With GPS support, locating a consumer’s delivery location has turned into convenience and has enhanced the overall delivery experience for customers in receiving the packages on time.

SmartKargo uses geofencing capability to improve routing for its drivers to take the most efficient paths to reach the designated locations that benefit in saving cost, energy, and time.

  1. Speedy Delivery

Ground-level transportation is hampering the supply chain and customer’s happiness due to bottlenecks such as traffic issues in the cities, delivery to remote areas, the uncertainty of timely delivery, tedious and time-consuming road journeys, etc. E-commerce businesses need to opt for an e-commerce solution that not only removes the bottlenecks of the e-commerce supply chain but also caters to the expectation of customers.

SmartKargo, a unique e-commerce shipping solutions associated with IndiGo airline, gives wings to the middle mile phase and makes it possible to deliver e-commerce packages at a record time of 20 hours timeframe throughout India.

  1. Technology Advancement

With an exponential increase in e-commerce sales due to tech-savvy customers, e-commerce brands must stay on top of the ladder of innovation and technology advancement. IoT is one of the technologies that offer to track and streamline the delivery process.

SmartKargo’s IOT integrated solution offers to optimize the end-to-end e-commerce package delivery journey. The AI and ML capabilities enable real-time track and trace functionality cutting down bottlenecks, and making the e-commerce package delivery process efficient, cost-effective, and timely.

  1. Better Coverage

To deliver faster to Tier 2 and 3 cities, the e-commerce retailers have to partner with multiple logistics providers increasing nothing but costs for the business.

SmartKargo partners with IndiGo Airline and enables e-commerce packages for a pan India coverage to be delivered in not more than 24 hours timeline.

  1. 360° Customer Experience

Consumers today expect an intuitive and easy-to-use digital experience across every communication and sales channel. Brands must focus on delivering engaging Omni channel experiences throughout the customer journey.

SmartKargo acts as a catalyst between the airlines and e-commerce businesses to provide their customers with speedy cargo shipping through real-time visibility, next-day delivery for their customers, and door-to-door service through EDI enablement service.

  1. Last-mile Experience

E-commerce delivery is the most complex process of making a product reach the doorsteps of a buyer. It requires the highest amount of attention, assurance, and effectiveness to achieve customer loyalty and retention rate.

SmartKargo enables airlines to track the shipment end-to-end, enhancing the supply chain process, speeding up last-mile deliveries, and offering a fantastic customer experience till the real-time doorstep delivery.

In a world of abundant options, consumer satisfaction should be the yardstick to measure. This is why it’s critical for an e-commerce brand to partner with an e-commerce logistics solution provider for not only the fastest or cheapest delivery but also for additional services like live order tracking updates, real-time customer support, airspeed delivery on ground rates, delightful customer experience, etc. One of the solution providers that tick these boxes is SmartKargo.

Contact us today, for more details: indiaecom@smartkargo.com

 

Redefining Logistics with Airlines

Posted on by Nethority Nethority

E-commerce is growing in India both customers and businesses alike have frequently wondered how great e-commerce logistics works, given the phenomenal expansion of social commerce and e-commerce businesses. To develop their business and reach millions of clients, online firms in all genres require continual assistance and partnership with e-commerce logistics suppliers. With millions of customers opting to shop online, an e-commerce business needs more efficient and productive logistics solutions to handle increasing volumes and retain their customers.

Collaborating with a dependable and trustworthy logistics partner is simply the first step for e-commerce companies. E-commerce logistics businesses come in several versions – they help online stores with shipping, packaging, and picking. They also provide a variety of different shipping services that might assist a company in expanding and reaching a wider audience.

 

Indian E-commerce Market Scale Up:

It is no surprise to all as a result of the pandemic that in India, from April-May 2020, a consumer report found that there was already an increase of 11% in first-time online shoppers – 16% in new category online shoppers and 30% in online shoppers with larger purchases in existing categories.

The country’s e-commerce market is estimated to grow at a 30% compound annual growth rate over the next five years and serve 300-350 million shoppers by 2025. The number of e-commerce users is expected to grow by 47% to 948 million users in India by 2025

Facts of the e-commerce Industry in India:

  • 46% of the population in India shops online
  • According to the analysis, India is the eighth largest market for e-commerce with a revenue of US$63 billion in 2021
  • According to a Forbes Report, e-commerce In India Set To Reach $120 Billion In 2025
  • According to ITLN, tier II and tier III have a faster growth rate than tier I

 

Rising Importance of Quick Delivery and Fast Logistics in E-commerce:

No matter what the end customer wants their packages fast and cheap. The Amazon effect has many consumers around the globe expecting packages the next day or 2-day delivery.

Most transportation is via ground, it is the primary delivery mode and it becomes the cheapest and the easiest network to establish. But how can fast logistics in e-commerce be achieved via ground only transportation in India? It is an advantage for companies that have more capital. Larger companies equip several warehouses or Distribution Centers (DCs) around India in strategic areas to make sure they meet the customer’s desire for fast and inexpensive delivery.

This means there are increased costs for e-commerce companies on real estate (buy or rental), inventory, insurance, security, and other costs to ensure customers can get their orders fast via ground transportation.

For any e-commerce company the crucial for quick delivery is last-mile delivery. The process of delivering an order from a warehouse (or fulfillment center) to the customer’s delivery address is known as last-mile delivery. In e-commerce fulfillment, the major purpose of last-mile delivery is to deliver an item to a consumer as quickly as possible, making the entire fulfillment process swift and painless. Improving last-mile delivery can now help you provide lightning-fast shipment, resulting in a positive customer experience, and repeat customers.

Furthermore, with speedy shipping options, you can stay ahead of the competition in this overcrowded e-commerce scene by lowering shopping cart abandonment and raising conversion rates. Finally, by enhancing the order fulfillment stage, you may deliver items to customers faster, please them, and encourage repeat purchases.

 

Changing Behavior of Customers:

The e-commerce business has caught up with a significantly more westernized youth seeking new options and prospects. e-commerce is rapidly changing, with numerous new technologies and trends on the horizon. The pandemic forced the offline retail market to close and operate at a reduced capacity. That is why; the pandemic situation became one of the key drivers fueling this expansion, as is the customer’s transition to the internet. Customers now want speed and transparency in the process of delivery.

Future of Commerce Report (India) suggests that 85% of young consumers (18-34 years) and 90% of middle-aged consumers (36-54 years) moved to online shopping during the pandemic. So, brands had to focus on creating digital experiences that met their expectations. e-commerce companies and their customers want a seamless experience to track from the cart-to-the door.

 

Adaptation of Innovations for Indian E-commerce Companies:

The Indian e-commerce market should learn from the US and other more mature e-commerce markets while balancing the uniqueness of the Indian e-commerce sector. How?

  • Look for innovation to drive your complete customer journey including your delivery purpose
  • Think of ways to reinforce the brand value and meeting the brand promise
  • Search for organizations that utilize innovation to shorten delivery time
  • Increase ROI by utilizing true value which is not exclusive to just the delivery costs
  • Align the following technology and services to the total cost of expansion with multiple delivery options:

 

  1. The same day, the Next day, and 2+ days
  2. Costs of expansion and DCs by utilizing air options, not just ground options
  3. Extend options to customers
  4. Ensure technology is integrated into the e-commerce ecosystem, from e-commerce platforms like Shopify to deliver at the customer’s door

 

How SmartKargo can help E-commerce Companies:

Our expertise lies in providing airspeed and ground value to e-commerce companies. We deal with e-commerce logistics across the globe, and we do not believe in a one size fits all market – we customize a solution. We ensure we are a part of the e-commerce company’s growth approach. With Air transportation you can have faster delivery – that’s a given. Our Partnered airline is already going to where your customers are –

Global Presence Air Cargo Services

We offer other alternatives to spending large amounts on DCs. You may not need as many DCs while using SmartKargo can be said as “Warehouse in the air” and provide fast delivery across the country which is paramount for next day delivery. One of the central issues with DCs is that it always accounts for every product all the time. Air is always fast.

Our innovative technology provides all the aspects from the purchase on the e-commerce engine to the delivery to the customer. Some of our pivotal innovations include:

  • AI engine for route optimization for the last mile
  • Integration into e-commerce engines out of the box
  • Geolocation
  • Customer Alerts
  • Touchless Delivery
  • Real Time insights and reporting

 

Speed and Value are Paramount Factors:

For e-commerce companies their logistics partner’s objective  is to oversee the pick-up, and successful delivery of all orders placed with them. However, in the case of e-commerce logistics, the breadth of services is much broader. To be the most efficient, e-commerce logistics businesses must make use of the most recent technical breakthroughs.

Simply delivering the product isn’t enough in e-commerce because it serves such a broad number of demanding and eager clients. Customers expect to be able to easily track their orders and receive timely information from the e-commerce shop where they made their purchase. Proper inventory, order generation, tracking, NDRs, and returns management systems can ensure that your logistics partners make the entire process transparent to you and your consumers.

E-commerce logistics providers should ensure your customer’s journey is aligned with your brand and its brand promise. Look for those innovative companies that will extend your brand and provide the insights and analytics needed to keep you customers coming back.

 

Quick Delivery: Why it matters in E-commerce

Posted on by Nethority Nethority

Due to the epidemic, more people preferred going online to shop because stores were closed or understaffed, and people wanted to avoid being inside. In the world of e-commerce, delivery is a critical aspect in turning visitors into real buyers. Customers now look at the cost of various delivery methods first, while speed remains their second priority. According to Baymard Institute research, 16 percent of them abandon their cart because delivery is too slow.

Reasons for abandonments during checkout

 

What effect do delivery times have on conversion rates?

The customer’s delivery time can be a source of anxiety. The average cart abandonment rate on a website is about 70%. Customers will abandon their shopping carts less frequently if it is faster, and they will return more frequently if it is slower. Abandonment of shopping carts can happen for a variety of reasons:

  • Speed of site
  • Payment options
  • Exorbitant shipping fees
  • Lack of delivery options

If the customer’s delivery alternatives do not satisfy their expectations, customers will not hesitate to shop at another online store. An e-commerce store can be more successful thanks to quick delivery alternatives.

Schemes Marketplaces Offer For Fast Delivery

Customers like things that can be delivered quickly. By narrowing their search, the customer can discover just things that are delivered soon. Furthermore, platforms such as Amazon and eBay provide this type of product more visibility.

  • The Amazon Buy Box: The yellow button with the words “add to cart” inscribed on it. It not only allows you to place the order faster, but it also allows you to stand out in such a crowded product flow.
  • Amazon Prime’s Same-Day Delivery gets customers their products as fast as 5 hours.
  • eBay Guaranteed Delivery: Sellers boost product visibility, and consumers receive their orders in as little as three days. It also allows for better reviews and shorter delivery times. There is a Fast ‘N Free safeguard if the deadlines are not met.

Customers are willing to spend more for a faster, more affordable delivery promise. 48% of consumers in India say they will pay more for a product if it promises swifter shipping. That’s a compelling case for e-commerce retailers and businesses to up-level their logistics business model to support fast delivery.

Nearly a quarter (24%) of customers indicated they would pay more to receive products within a one- or two-hour window of their choosing, while 41% of consumers are willing to pay a fee for same-day delivery.

Many big consumer companies and their shippers are re-evaluating everything from package shipping caps to pricing methods in general as a result of the growing emphasis on same-day delivery and shorter delivery windows.

 Multiple Shipping Choices 

84 percent of Internet users are willing to switch websites if they don’t have enough delivery options. E-commerce will be more appealing and will have more opportunities to convert prospects into consumers if they have speedier and more profitable logistic options.

This technique also allows for case-by-case adaptation, allowing it to better fit the needs of purchasers. It could be the key to acquiring a larger market share and a more favourable position among competitors.

Five Advantages Quick Delivery Offers

  • Reduce shopping cart abandonment
  • Increase conversion rates
  • Increasing customer happiness and loyalty
  • Increase product awareness in marketplaces
  • Gain market share and become more competitive

Optimizing For Fast Delivery Without Investing Billions of Dollars

If online retailers and e-commerce businesses want to stay relevant in an Amazon-first world, they must find a solution that enables them to offer same-day or next-day delivery—affordably. They need to make the right investment to bring goods closer to their customers and optimize for the last mile. E-commerce businesses must seriously consider how they will live up to today’s consumer demands and stand out in the market because quick delivery is no longer just a nice-to-have alternative. It’s a must-have!

The solution? Add cost-effective e-commerce dedicated logistics solution that provides supply chain process optimization and delight to end customers.

SmartKargo’s E-commerce Logistic Solution enables retailers and e-commerce brands to stay agile in an ever-changing ecosystem and to meet the increasing demand for fast and cost-effective delivery. Our solution provides e-commerce businesses with a new value proposition, setting them apart from competitors. While the SmartKargo e-commerce solution brings the benefit of ultra-fast service to customers, there are plenty of advantages for e-commerce businesses too:

  • We ensure to reduce last-mile transportation time and costs to offer faster delivery.
  • We offer pan-India e-commerce packages delivery within a record time of 20 hours with live tracking.
  • SmartKargo powered by IndiGo gives its e-commerce clients an edge in the market by providing airline support in the middle mile transportation, making the delivery process faster and more efficient. The airline’s existing belly capacity is used to ship packages, at the speed of flight.
  • We maintain full transparency to customers with real-time tracking.

Bottom Line

As observed, timing is important when it comes to delivery alternatives for order fulfilment or retail operation. The effect of ecommerce is only going to grow, posing new issues when it comes to balancing delivery goals with consumer expectations.

This challenge, on the other hand, offers a lot of possibilities. Technology advancements, along with a re-evaluation of shipping and logistic methods, can go a long way toward assisting a company in meeting consumer expectations and assuring customer happiness.

Finally, in today’s corporate world, giving fast delivery alternatives is both required and critical. After all, fast delivery isn’t just something that customers want—something it’s that they’ve learned to expect.

Competing with E-commerce Delivery Giants is NOW Possible!

Posted on by Aditi sinha

Is there an e-commerce company that doesn’t keep a close eye on Amazon? E-commerce organizations are always looking for a peak day, as well as information about their logistics and technical skills. Although many online shops do not have physical stores, almost every online retailer has a warehouse. It doesn’t matter what you sell, from batteries to clothing, motor parts to pharmaceuticals – if a consumer knows a local source that can always supply fast, they’ll come back when they’re ready to shop again.

Amazon: The Top Achievers in the Logistic Industry 

According to the eMarketer article, “the next 14 biggest digital retailers will make up just 31%” of the US e-commerce sales. Only roughly 30% of all other e-commerce businesses in the United States are left. Companies in the logistics industry are watching Amazon to see what they will do next. It is anticipated that

Amazon will account for about 40% of all US online sales

What is impressive is Amazon is now 3rd behind USPS and UPS and ahead of FedEx for US Parcel volume in the United States – and they continue to invest in the logistic of their business. Furthermore, Amazon partners with other airlines to fly Amazon parcels for themselves and their partners, increasing e-commerce competition.

Best Ways to Compete with Amazon

When you sell on your own website and ship from your warehouse or even a retail store, how can you compete with Amazon?

 

5 Ways to compete with Amazon

 

  • Immediate Delivery: Provide the same level of immediate delivery, which for many online businesses today means next day delivery, but Amazon Prime Now is increasingly giving same-day delivery.
  • Brand Promises: So, if you run an e-commerce company you may be thinking it’s a long task to compete. True, but competing and winning against Amazon requires focusing on your brand and its promises. Make your customers truly champion you and your brand.
  • Innovation: E-commerce businesses typically employ people who are fairly tech-savvy. They use their smartphones, tablets, computers, and even kiosks to make transactions. Make the internet infrastructure as smooth and intelligent as possible so that customers can make purchases and payments quickly.
  • Speedy Shipping: Ensure your shopping and buying processes are simple and fast. Additionally, ensure that you have detailed shipping policies and procedures that clients can simply locate and comprehend. I read and follow Neil Patel, and in his blog about competing with Amazon, he had a brilliant suggestion concerning shipping. His concept of “doing something radical with shipping” was brilliant.
  • Lower Shipping Charges: Because shipping charges vary greatly among carriers, it is advantageous for business owners to shop around for the best deal. So, to swiftly discover the cheapest choice without delaying order fulfillment, use an optimized platform or application.

SmartKargo:  Offering a Delivery Approach Comparable to Amazon

At SmartKargo, innovation is in our DNA, and we believe in being innovative when it comes to shipping services for e-commerce businesses. We can assist e-commerce enterprises in the India, Mexico & United States in becoming more like Amazon Prime. We work with local airlines to deliver e-commerce products in one to two days – it’s easy for us because our airline partners are already flying to all of the country’s major population centres. This means you can compete with Amazon Prime’s 2-day shipping model, allowing you to focus on providing a terrific online experience for your important customers. It’s a fantastic deal that gives you airspeed at ground rates.

ecommerce logistics

It may appear difficult to compete with Amazon, but you can do so and succeed. Make sure you concentrate on your core consumers and provide a basic and straightforward customer experience. Take risks where you can, and remember that the customer journey does not end with the purchase  e-commerce  delivery can be a crucial distinction for your customers.

One Weak Link

Posted on by Aditi sinha

I am a marketer, and we, the marketers, especially in the B2B world, are focused on new customers and retaining and growing current customers. We focus on the customer journey in every aspect, as each part is critical if you want to delight the customer and ensure repeat business. This means for e-commerce companies, delighting the customer cannot stop until the package reaches the customer’s door at the right time, is secured, and is in great condition.

The focus on the entire e-commerce logistics process should be part of your customer communication strategy. We all know the logistics process starts at the purchase from the shopping cart to the first-mile pickup to middle-mile transportation and finally, to last-mile delivery until it is ultimately in your customers’ hands. There may be short warehousing stops, but that is the basic equation.

Now your brand needs to be prevalent throughout the process which is why communication is important to reinforce the brand. You need to generate brand trust. It all starts at the purchase where your company should already have your delivery partner integrated with your e-commerce platform. Most e-commerce companies have an omnichannel approach to communicating, so this should continue. Your company should be communicating via multiple channels like email, SMS, Mobile apps, WhatsApp, voice, and the web. Your customers will want to pick and choose the channels of communication they see fit, so you will want to ensure you have or are working with solutions that enable these options.

To continue building trust in your e-commerce brand you must provide transparency about the package’s journey to the customer. Partners that cannot do this seamlessly really do put your brand in danger. Customers want to know where the package is from first to the last mile at all times. This provides them with the convenience they require and expect. Real-time updates are the foundation of the e-commerce company and their customer, these real-time updates, driven by scans of the e-commerce packages, are the bedrock to great communications and insights for the customer.

Some additional components for the delivery equation are the ability to schedule, adjust drop-offs at the delivery address, contactless delivery, and as well a functionality called geofencing (location triggers) that generates a countdown to delivery communications. All of these should be driven across the entire journey regardless of your mode of transportation whether all ground or with air middle mile constant communication ensures a great customer journey. But anyone misstep in the linkages of the process will ruin a great customer experience.

Sky’s the Limit

Posted on by Aditi sinha

We are at the end of Q1 in 2022, and I have been thinking about Air Cargo. I was at the Air Cargo Americas event a few weeks back. I had the opportunity to participate in the “trends to Watch” panel discussion with Amar More, Michael Zahra, Ed de Reyes, and Emir Pineda as the moderator. While at the show, I spoke to peers, customers, and prospects; as a result, I can say that the future of Air Cargo should be Meteoric.

First and foremost, being at this event in person was delightful. Nothing is like meeting face to face with my peers and learning about their challenges, ideas, and successes. Much of the conversation was about the global economy getting better and the next steps coming out of the pandemic. We all discussed the tragedy in Ukraine and the impacts on the supply chain worldwide because of this unfortunate event.

We heard one of our phenomenal partners, Amerijet, had their CEO speak about: the expansion of his fleet and that more will be coming. On my panel, the future of drones will provide air cargo with additional innovative air transportation. And one thing was consistent; all the players in the air cargo space are looking to advance in innovation and efficiency using technology. Air Senegal was there, and we discussed their approach and use of our platform – They are leading innovation in cargo.

One topic talked about the most in Miami was e-Commerce. There were discussions on the stage, at the dinner meetings, and even in the hotel lobby. It’s easy to see why the e-commerce market is huge, growing fast, and expected to be a $6 trillion market by 2025. This phenomenon leads to a vast opportunity for airlines that embrace e-commerce air cargo transport. Many of our peers wanted to understand the best way to take advantage of our platform to drive e-commerce from the cart to the door on our platforms like some of our customers: Azul, Wideroe, Rivo, and Volaris, do today. The air cargo market will drive at a 4% CAGR, which the industry will continue to experience for many years to come.

It was great to see my peers again, learn about the new opportunities in the industry, and meet with our great partners like Amerijet, Air Senegal, Copa, and so many others. However, there is no doubt anyone working in the air cargo industry is in a great market, immersed in innovation, and one that is taking off.

A four-letter word

Posted on by Aditi sinha

I have been working in logistics for some time now, and I know the first topic of any sales call will always be “How much?” – Cost is paramount for e-commerce shipping. That’s why I joined SmartKargo. They help e-commerce shipping costs go low while ensuring speed is there for the customers.

Now there are so many issues that are going on that distress shipping costs. We are finally getting past the pandemic issues that forced so many of us to rely on e-commerce, but we are all watching for other mutations. We now have the tragedy of Ukraine affecting oil prices and subsequently disturbing gas prices. There is the “Great Resignation” which is causing employee costs to rise to attract drivers, warehouse workers, and logistic specialists.  Moreover, there is the issue of overall inflation which is a result of the Fed’s response to the pandemic and the other issues listed above.

What is the impact on costs for e-commerce delivery? Higher costs and climbing fast – FedEx and UPS had already announced 5%- 6% rate hikes for this year. Surcharges are on the rise, and they will put a big hit on e-commerce companies’ shipping. Surcharges could hit as high as 30% for shippers as economics, geopolitics, and pandemic issues move. The reality of these costs is that they will be passed onto their customers.  Nevertheless, many platforms, e-commerce companies, and retailers have announced increases in shipping costs from eBay to Etsy and of course Amazon.

Now, I know the Head of Logistics for e-commerce companies doesn’t care how the package gets to their customer – Just if it’s delivered for the right cost, safely, when the customer expects it! That is what is unique about SmartKargo, they have an interesting solution for the middle mile. They utilize the existing airline’s belly space to ship e-commerce shipments but what is unique is the airlines are already heading to the destination in the lane because the passengers are heading that way. For greater distances, it becomes very economically feasible even in a rising surcharge environment. So, finally, a positive impact on cost.

Costs are always first in my conversations, but there are innovative solutions that will help e-commerce shippers to have options to attack rising costs and ensure their customers are delighted. Cost does not need to be a four-letter word we avoid.

Delivery can be luxurious

Posted on by Aditi sinha

The luxury market is exploding this year and is expected to reach the 2019 sales levels. According to Bain “over the next four years, with the personal luxury goods market reverting to annual growth rates between 6% and 8% until 2025.” Although coming off a loose base of 2020 due to the pandemic growth has returned. Additionally, the USA and China showed were the marketing with the largest growth rates for 2021. However, will we just go back to the 2019 levels, or has the luxury market changed.

The pandemic reduced luxury purchases – Luxury furnishings were the only part of the market that grew because of all the time we were spending at home. Many of the luxury brands were very reticent to sell online. It did not mesh with their brand image and the in-person concierge service that many of the brands tries to foster. Many of these companies are changing faster than expected according to Deloitte. But they are changing.

Expansion into the e-commerce channel was inevitable for the brands that were dragging their feet to move into the e-commerce channel because of the pandemic. But there is also the rise of the Gen Z segments and the addition of the Gen Alpha.  In the Deloitte report,  Gen Alpha (those born since 2010) will consist of over two billion consumers and have a key impact on luxury brands and their growth. Traditional large luxury brands have an advantage over the new and smaller brands to change and adapt new technologies even is many of them were late to digitalization.

Many of the luxury brands will look to adopt technologies that will enhance and be in line with the brand and its promise. Utilizing video for cosmetics or accessories like handbags and jewelry is already being adopted. Extending the brands into social and apps and partnerships with other brands will continue to expand. But the metaverse is even more appealing to many of the brands. They can extend their brand to the virtual world – Many brands have announced their exploration of the metaverse, but we will see where it develops.

A key to luxury brands’ success is the same as non-luxury brands. Keep your customers delighted and that includes getting the e-commerce packages into the hands of your customers as fast as you can for the right price. Given the margins that many of the luxury brands generate they can take advantage of unique delivery experiences to enhance the customer experience.

Supply Chain Issues Continue

Posted on by Aditi sinha

We know of the supply chain disruptions and the impact they have on the economy. We see grocery stores with bare shelves, inflation rising with scarce goods and even impacts on payment disputes among trading partners. At the same time, we see economies around the globe opening up and hitting growth numbers not seen in decades. For instance, the US saw a  booming economy with a growth rate of 5.7% for 2021 –  but will we see an end to the supply chain issues in 2022 or even in 2023?

Let us be honest, Covid will not be going away. As countries roll-out vaccinations to their population, you will see more countries roll back mask mandates and allow economies to get even stronger. However, the effect of all that positive news is more stress on already fragile supply chains. More people out and about traveling, shopping and dining out mean more consumer demand. 2022 will be a year where things will improve slightly at the end of the year but the supply chain disruptions will move into 2023. And we cannot forget that we have no idea whether there will be another Covid variant that may have an impact. This undoubtedly leads to uncertainty, especially in 2022.

Ports continue to suffer from delays. For some ports, like the Port of Long Beach, there can be a waiting time as long as 6 weeks. These delays further intensify the supply chain issue. Interestingly, this has led to some retailers beginning to hoard and use excess warehousing capacity. Again, this is a short-term issue but it further demonstrates the reality of current supply chain issues.

Of course, all of this has exacerbated inflation. Costs have rocketed for every mode of transportation in the supply chain. According to Bloomberg, there was an increase in trucking cost of 18.3%, a rise of 29% in ocean freight costs as of January of last year, and the cost of shipping by rail had the biggest growth in 12 months ever. Finally, inflation, according to Bloomberg, was the “highest in a decade.”

All of the existing economic factors, combined with other external issues, continue to support air cargo growth. However, supply chain disruptions were slowing growth because of labor shortages, quarantined employees, and shortages in warehousing at some airports. Moreover, the issues with processing delays because of the end of the year activities further drove cost increases for air shipping. Given the current conditions, these costs will likely be passed onto their customers.

We will continue to keep an eye on the supply chain issues and the impact on air cargo, but it’s very unlikely we will see significant improvements in 2022 – which means 2023 will be even more interesting.

Zoned Out

Posted on by Aditi sinha

Sticking with a Superbowl theme I want to talk about zones, not end zones, but ground delivery zones. UPS, USPS, and FedEx each have their respective zone maps, and there is a direct correlation between zone and price, “How much to ship to zone 8?”  The next correlation is time, “How long will it take to reach zone 8?”  This factor directly impacts customer experience and by extension sales and consumer loyalty.

In the current industry state, all retailers are programmed to operate within the constraints of the zone models dictated by the carriers.  The available solutions to address these constraints include setting up multiple distribution centers or using warehouse and fulfillment partners.  These solutions can be costly and complex to implement but do help retailers optimize shipping costs and enhance customer experience.

At the 2022 NRF and Manifest tradeshows, I was able to view a huge variety of services, technologies, and people trying to change this approach. According to the Wall Street Journal, “Supply-chain technology startups raised $24.3 billion in venture funding in the first three quarters of 2021” We all know retailers and manufacturers want cheaper and faster, with greater transparency. So, my biggest question is, how do we start?

When I joined SmartKargo in October of 2021 I wrote a post about how excited I was to join the team.  Since then my excitement has grown exponentially.  When we power the e-commerce delivery engines of our partners like Volaris and Indigo, we disrupt the status quo. By empowering airlines to transport e-commerce packages on their airplanes and existing flights, we can provide retailers with an innovative solution. We can get a package from New York City to Los Angeles much faster than moving a ground package from zone 2 to zone 8 for far, far, far greater value.

For an innovative retailer, they can truly differentiate their delivery as part of their brand by moving their product further distances at greater speed and exceeding the expectations of their customer. And do it while getting far more value – because the airplane is already heading in that direction, in some cases, 3-4 times a day, this allows us to offer a cost-competitive with a ground rate.

Looking at innovative solutions like SmartKargo can help your bottom line and enhance your customer experience. You just need to worry a little less about the zones and think about faster time, greater distance, and higher value –all of which we need a little bit more of today.

 

Air Transportation Optimism Prospers

Posted on by Aditi sinha

There is truly a reason to be optimistic – In case you had not seen UPS had a great quarter.

They beat expectations and beat FedEx and UPS with 97% on time deliveries over the holidays. The one thing I took away is, there are still great opportunities in the logistics market. Whether you are an air cargo company, airline, or e-commerce delivery – the opportunity is great, and the window is now.

There are still supply chain issues as the globe navigates Omicron and the pandemic. And we will continue to see these issues throughout 2022. We will see divergent changes in the globe. China has been in lockdown to stop the spread of Covid. Other Countries are beginning to move forward and dropping pandemic safety measures like Sweden. This will further open the opportunity for air travel as we get back to pre-pandemic travel levels. This will open further opportunities for airlines and extend into e-commerce specific revenue.

Air cargo is benefiting from the continuing supply chain issues.  The challenges at many of the global ports provide an opportunity for Air cargo companies to take advantage of the congestion and Omicron supply chain disruptions.  According to the International Air Transport Association (IATA), demand for air cargo rose by 7.9% in 2021 (compared to 2019) and is on track to grow by another 13.2% during the coming year.

We will see global e-commerce sales reach $5 trillion in 2022 and $6 trillion by 2024. And countries like Mexico, India, and Brazil are seeing significant growth rates of over 20%. This is an organic opportunity in many of these countries. Airlines do not need to worry about affecting their current partnerships, utilizing their excess space in the bellies of planes can drive a new revenue stream by using e-commerce delivery.

All of us in airlines and air cargo should all be optimistic. We see logistics providers generating great returns and utilizing technology to make the companies more profitable. Countries will open from the pandemic throughout the year and begin to look at air travel for family visits and vacations. The supply chain disruptions will continue to provide opportunities for air cargo and e-commerce. Although countries are opening, they will be opening at a different rate will means air transportation may be the best option in 2022.

The Need for Speed

Posted on by Aditi sinha

I am a movie fan, and when I heard that the next Top Gun is coming out, I was reminded of the scene with one of the film’s most famous quotes, “I feel the need for speed, the need for speed.” Now, this sentiment is completely relevant to today’s e-commerce customers. E-commerce companies are in a constant balancing act. The e-commerce market is huge, growing fast, and is expected to be a $6 trillion market by 2025. Retailers want to ensure they are paying the lowest cost to get a package from point A to point B, while their customers want ASAP service, As-soon-as-Possible. Current consumer expectations for delivery are next day or at the absolute minimum, two days for delivery, even with known constraints of ground transportation in many countries.

Given the growth and adoption of e-commerce and the speed of change due to Covid across the globe, the expectations of e-commerce customers are to get their packages fast. It is becoming the norm across the globe, with expectations growing fast in countries like Mexico, Canada, and Brazil. Moreover, e-commerce is growing far faster in other countries, compared to the US. According to eMarketer, India, Brazil, Russia, Argentina, and Mexico all grew over 20% in retail e-commerce sales in 2021. And these countries will continue their double-digit sales growth.

However, many of these countries are vast lands and, unlike the US and Western Europe, do not have well-established ground transportation networks. In addition, many countries have terrain that makes ground delivery difficult in certain geographical areas. This creates limitations for the e-commerce company, and more importantly, extends these limitations to your customer. As a result, many companies choose air transport – considered a pricey option for many retailers. And recent studies have shown that many customers are not willing to pay extra for a faster delivery option. So, are you left with giving your business to the ‘Amazons’ of the world with their own logistics and global contracts with carriers like DHL, FedEx, etc.?

This is where new partners in e-commerce shipping and delivery such as Azul, Wideroe, Indigo, Volaris, and Air Canada can help. These well-known passenger air carriers can deliver at great distances. because they are heading there every day with scheduled service. And SmartKargo powers its e-commerce solutions with advanced technology that streamlines the shipment journey from the online transaction to the end customer. As an example, Indigo already has flights to and from Mumbai Guwahati and they can easily deliver e-commerce packages to and from the area. Since Guwahati is a difficult terrain to navigate, air transport provides a natural advantage. All of the partners mentioned have the air advantage and can provide next-day air delivery, at near-ground rates. These partners are experts in air travel and have the security and the innovative technology to ensure your package gets there at the right time and at the right price, all to the delight of your customer.