Accurately calculating freight costs and delivery times to make online sales profitable for companies are, in this context of the e-commerce rise, some of the most important challenges for the retail sector.
Friday, March 26, 2021
The changes in consumer habits reported in the context of the new commercial reality, which arose quickly as a result of the Covid-19 outbreak and the restrictions imposed on mobility, have forced companies to transform the way they operate.
This increase in the preference for online shopping generates new challenges for retail companies, which must balance competitive prices with the inclusion of all the costs associated with product delivery.
In the case of the logistical costs involved in shipping products purchased online to other countries, there are some parameters. Efraín Castro, commercial manager for Guatemala at DHL Express, explained to Prensalibre.com that "... international logistics has three variables: origin, destination and weight, but it is recommended that the freight price should not exceed 25% of the value of the product".
The internal regulations of the destination countries, the tastes and needs of buyers, are variables and factors that have gained relevance, in order to develop the product abroad.
Currently, specialists identify specific challenges for online sales. The article outlines that these consist of:
"Disruptive competition: by new players joining the market and is driven by e-commerce.
Investment in technology: customers want package traceability, tracking times, range of situations and those who do not pursue digitization may disappear.
Customer service also is key especially with delivery times.
Customer loyalty and retention: this is one of the most complex parts of the process, to achieve that total satisfaction, that they feel satisfied and that all their needs can be met."
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Reducing delivery times of products sold through digital channels and maintaining different supply and distribution options to face scenarios of trade restrictions are some of the challenges that companies face in this new business reality.
In Central America during 2020, companies had to adjust quickly to the demands arising from the health crisis caused by the covid-19 outbreak, as restrictions on consumer mobility and face-to-face sales were continuous.
Maintaining proper inventories to meet demand, having a robust logistics system and an electronic sales channel that protects your customers when they make a purchase, are part of the challenges that businesses face in this new reality.
With "Black Friday" and Christmas approaching, commercial establishments in the region are beginning to apply their sales and promotion strategies, with which they will try to recover part of their income.
In the new context of accelerated growth of e-commerce, most consumers claim to have had problems buying online, with delivery time failures and lack of service for their area being the most frequent complaints.
From June 8-12, a survey was conducted in Guatemala to measure people's perception of e-commerce, which has gained ground since Central American countries decided to decree severe household quarantines because of the covid-19 outbreak.
Identifying and correcting failures in the logistics process of product delivery, while maintaining the satisfaction levels of their customers, who demand facilities to buy online, is the main challenge facing companies in the new commercial "normality".
The outbreak of covid-19 in Central America and the severe home quarantines decreed by the governments, caused the market to undergo deep changes and to be deeply and rapidly transformed, to the point of establishing a new commercial reality.
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