The large number of online orders has major implications for logistics and the free shipping costs that are often offered. According to experts, the maximum capacity has almost been reached, necessitating action to prevent the logistics apparatus from being completely derailed.
Overload threatens
Britain counts as a yardstick for predicting what will happen next. British consumers shop a lot online and this has created a huge burden on the logistics apparatus. According to Nando van Essen, logistics consultant specialising in e-commerce, the country cannot handle the high demand for long. "In Britain, the parcel distribution market has been on the brink for some time," he reveals in De Volkskrant.
Webshops take measures
Webshops need to take measures and thus several online retailers in the UK are already using a 'Last order date before Christmas' around the holidays. In this way, they want to prevent parcels from not being delivered on time. The risk of consumers being disappointed is thus reduced. Otherwise, the companies can no longer cope with the large storm of orders. Besides the many orders placed a few days before Christmas, British companies are struggling with a huge shortage of truck drivers with major consequences for the logistics process.
Free shipping under pressure
UK companies are also cutting back on free shipping in a bid to cut costs. According to Van Essen, free shipments are no longer realistic, putting pressure on profits. Mainly, the volume of parcels is causing excessive costs that are no longer proving profitable for the companies.
Free shipping remains
Other companies have said they consider free shipping very normal and a good service to customers. They fear they will miss out on orders the moment shipments will no longer be free. Among others, Donna Darthuizen, country cluster head at Zalando, indicates in the Volkskrant that the online retailer will stick to free deliveries. "You don't have to pay money on the high street to walk into Zara, do you? Or pay money as soon as you hang a dress back after trying it on?"
Editorial LogistiekProfs
