Shipping and logistics challenges are the biggest hurdles facing e-commerce companies launching into new markets.
Vendors can overcome these obstacles by forming the right connections with carrier companies, according to nShift, a provider of delivery management software.
International expansion
International expansion represents a major growth opportunity for online retailers and webshops as demand for e-commerce soars around the world. In Southeast Asia, for example, the e-commerce market is set to grow threefold over the next three years. Meanwhile, in Africa, the number of active online shoppers is set to pass 500 million in 2025.
Yet considerable logistical difficulties stand in the way of retailers looking to tap into these opportunities. Almost half (44.5%) of business owners face challenges navigating customs requirements. Cross-border logistics create issues for 37% of business owners while 33.5% struggle with cross-border returns. Over a third (34.5%) came up against issues managing delivery expectations while 27.5% had problems tracking deliveries.
Challenges of shipping and logistics
These shipping and logistics challenges can be overcome by partnering with the right delivery management software. Experts at nShift recommend the following strategies:
- Make the right carrier connections – shipping internationally requires relationships with carrier companies that serve the relevant territories. Given the time it takes to set up the carrier connections, this can risks restricting a retailer's room to manoeuvre. This is best overcome by using delivery management software that offers ready-made connections to a large number of carriers.
- Prioritise the customer experience – when shoppers are ordering from a vendor that has only recently entered their market, they must be assured that their delivery is in safe hands. Regular and relevant communication to the customer during the shipping process is an essential means of building trust. If this communication is branded and user-friendly, it also creates opportunities to remarket to the customer at a time when they are most engaged with the brand.
- Make returns easy – some shoppers might be nervous about buying from a retailer outside their country. But if they can quickly see that there is a clear and simple returns process in place, they may be more likely to purchase.
Author's quote
nShift's carrier library contains ready-made connections to over 1000 carrier companies"
Mattias Gredenhag, Chief Technology Officer at nShift said: "International expansion represents a huge opportunity in ecommerce. Vendors that are new to a market have to build trust quickly by getting the customer experience right. The minutes and hours that follow the customer hitting the 'buy' button are the moments of truth. It is often how the delivery process is managed that determines whether shoppers will buy from the retailer again and recommend it to friends."
He adds, "nShift's carrier library contains ready-made connections to over 1000 carrier companies around the world. We make it easier to manage shipping rules and calculate international freight costs. With our range of solutions, we enable growing e-commerce companies to create a great customer experience from checkout to returns. With nShift, retailers can build a global customer base that is every bit as loyal and engaged as at home."
