E-commerce

Alsendo Insights: The Overview of European e-commerce

2025-02-28 przez Joanna Suwiczak

The European e-commerce landscape has undergone an amazing transformation in recent years. As digital commerce continues to mature across the continent, we’re witnessing the emergence of clear winners and losers, with some players fundamentally reshaping the market while others struggle to maintain relevance in an increasingly competitive environment.

The European e-commerce landscape is characterized by rapid change and increasing complexity. Success in this environment requires a combination of technological sophistication, operational excellence, and strategic agility. Recent developments have shown that while some traditional players have struggled to adapt to this new reality, others have successfully transformed their businesses to thrive in the digital age.

The Rise of Digital Marketplaces: A Tale of Market Dominance

The dominance of major digital marketplaces has become more pronounced than ever before. These platforms have essentially become the modern equivalent of traditional shopping malls, offering consumers an unprecedented variety of products and services under one digital roof. Their success stems not merely from their size but from their ability to leverage advanced technologies and data analytics to create increasingly personalized shopping experiences.

What sets these marketplace giants apart is their relentless focus on innovation and customer experience. They’ve mastered the art of predictive analytics, using artificial intelligence to anticipate consumer needs before they even arise. This technological edge has created a widening gap between market leaders and smaller competitors, fundamentally altering the competitive landscape of European e-commerce.

The Sustainability Revolution: A New Competitive Advantage

Perhaps the most significant shift in European e-commerce has been the elevation of sustainability from a marketing buzzword to an important business imperative. Consumers across the continent, particularly in Northern and Western European markets, are increasingly making purchasing decisions based on environmental impact. This shift has created a new breed of winners in the e-commerce space: companies that have successfully integrated sustainability into their core business model.

These sustainability-focused enterprises have discovered that environmental responsibility can be a powerful differentiator in a crowded market. They’re not just offering eco-friendly products; they’re reimagining entire supply chains, from sourcing to last-mile delivery. The most successful among them have managed to strike the delicate balance between environmental responsibility and economic viability, proving that profitability and sustainability are not mutually exclusive.

The Digital Transformation of Traditional Retail

The story of traditional retailers in recent years has been one of stark contrasts. Some established brands have successfully navigated the digital transformation, emerging stronger and more resilient. Others have struggled to adapt, finding themselves increasingly marginalized in an increasingly digital marketplace.

The winners in this category share several common characteristics: they’ve invested heavily in digital infrastructure, reimagined their physical stores as complementary assets rather than competing channels, and embraced data-driven decision-making. These successful transformations haven’t been cheap or easy, but they’ve proven essential for survival in the modern retail landscape.

Regional Disparities: The North-South Digital Divide

One of the most fascinating aspects of European e-commerce recently is the persistent regional variation in digital adoption and market maturity. Northern and Western European markets continue to lead in terms of digital penetration and consumer sophistication, while Southern and Eastern European markets present a more complex picture of rapid growth mixed with significant challenges.

This digital divide has created unique opportunities and challenges. In more mature markets, competition has intensified around customer experience and service innovation. In emerging markets, the focus remains on building basic digital infrastructure and establishing consumer trust in online shopping.

The Mobile Commerce Revolution

Last year smartphones have been the primary shopping device for many European consumers and it’s still actual. This shift has had far-reaching implications for how e-commerce businesses design their user experiences and structure their operations.

Successful players in this space have gone beyond merely optimizing their websites for mobile devices. They’ve created comprehensive mobile-first experiences that leverage device capabilities like location services, biometric authentication, and augmented reality. This has led to the emergence of new shopping paradigms that blur the lines between physical and digital retail.

The Logistics Challenge: Last-Mile Innovation

Logistics has emerged as a critical battleground in European e-commerce. The ability to deliver products quickly, efficiently, and sustainably has become a key differentiator for successful online retailers. This has led to significant innovation in last-mile delivery solutions, from automated delivery vehicles to urban micro-fulfillment centers.

However, the logistics challenge has also created a clear divide between winners and losers. Companies with the resources to invest in sophisticated logistics networks have gained a significant competitive advantage, while smaller players struggle to meet rising consumer expectations for rapid delivery.

The Payment Revolution: New Financial Technologies

The evolution of payment technologies continues to shape e-commerce success. The rise of buy-now-pay-later services, mobile wallets, and cryptocurrency payments has created new opportunities for innovation and market differentiation.

This financial technology revolution has particularly benefited companies that have managed to integrate multiple payment options seamlessly into their platforms while maintaining high levels of security and user convenience. It has also contributed to the growth of cross-border e-commerce within Europe, as payment friction between countries continues to decrease.

The Social Commerce Phenomenon

82% of consumers use social media for product discovery and research. It is no Wonder then that social commerce has emerged as a significant force in European e-commerce, with social media platforms increasingly functioning as direct sales channels. No matter whether it’s TikTok, Instagram or Facebook, the buyers are open to making purchases directly from stores in social media rather than having to click another link to move to a website and proceed to the checkout. This trend has created new opportunities for brands to connect with consumers, particularly younger demographics who are more likely to make purchases through social media.

Successful companies in this space have mastered the art of creating engaging content that seamlessly integrates with commerce functionality. They’ve learned to leverage user-generated content and influencer partnerships effectively while maintaining authentic connections with their audience.

The Data Privacy Challenge

As e-commerce has grown more sophisticated in its use of consumer data, privacy concerns have become increasingly prominent. The most successful companies have managed to balance personalization with privacy, creating trusted relationships with their customers while complying with stringent European data protection regulations.

This has created a particular challenge for smaller e-commerce players, who must invest significantly in data protection while competing with larger platforms that can spread these costs across a larger customer base.

The Future of European E-commerce

Looking ahead, several trends seem likely to shape the future of European e-commerce. The continued integration of artificial intelligence and machine learning will likely create even more personalized shopping experiences. Sustainability will become increasingly central to e-commerce operations, driven by both consumer demand and regulatory pressure.

We’re also likely to see greater consolidation in the market, as smaller players struggle to compete with the technological and logistical advantages of larger platforms. However, opportunities will remain for innovative companies that can identify and serve specific market niches or leverage new technologies effectively.

The ongoing story of European e-commerce is ultimately one of transformation and adaptation. As the market continues to evolve, the ability to embrace change while maintaining a clear focus on customer needs will remain the key to success in this dynamic and challenging environment.

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Last-mile automation: how is delivery optimization evolving?

2024-01-22 przez iLabs - Kamil

Automation in warehouses: the starting point for last-mile optimization

The final mile delivery process doesn’t begin with a delivery driver but starts earlier at fulfilment centres and distribution hubs. Here, automated systems are replacing traditional methods, increasing efficiency and reducing human errors. Technologies such as automated guided vehicles (AGVs) and autonomous mobile robots (AMRs) have become vital tools for logistics companies to handle increasing parcel volumes. These robots not only optimize the shipping process but also enable low-cost delivery by improving warehouse throughput by up to 40% .

The grehouse robotics sector is projected to exceed USD 51 billion by 2030, driven by the growing demand for automation in e-commerce. This is particurtant as the industry faces pressure to support same day delivery and next day delivery.

AI revolutionizing last mile delivery services

Another game-changing innovation in last mile logistics is artificial intelligence (AI). By analyzing vast amounts of data, AI enables delivery companies to optimise delivery routes, plan efficient schedules, and reduce extra costs. Algorithms can now predict the most efficient routes for drivers to navigate urban areas and rural areas, minimizing delays caused by traffic congestion.

AI is also enhancing the online shopping experience by powering last mile tracking technologies. Customers can monitor their parcels in real-time, ensuring transparency and building trust in the delivery process. For businesses, AI-driven route planning significantly reduces operational costs, enabling faster and more reliable deliveries even during peak seasons.

PUDO: expanding delivery points for greater convenience

The global expansion of Pick-Up/Drop-Off (PUDO) points is transforming last mile logistics, catering to both delivery companies and consumers. These systems, including parcel lockers and dedicated collection hubs, streamline deliveries by consolidating multiple shipments to a single location. This approach not only reduces carbon emissions but also addresses operational challenges, such as reaching final delivery destinations in densely populated urban areas or sparsely populated rural areas.

Poland stands out as a leader in this field, with over 28,880 parcel lockers installed nationwide, translating to an impressive density of 39 PUDO points per 10,000 residents. This network facilitates faster, more efficient delivery options and reduces the environmental footprint of the last mile delivery process. The country’s largest operator, InPost, has further expanded its reach by strategically installing parcel machines at high-traffic locations, such as Warsaw Chopin Airport, offering travelers the convenience of picking up or dropping off parcels during their journeys.

In Spain, a similar trend is emerging. A pilot program is underway to install PUDO points in metro stations across major cities like Madrid and Barcelona. These locations are chosen for their accessibility and high foot traffic, providing a solution tailored to urban commuters. This initiative aligns with the growing European focus on sustainable logistics, aiming to cut delivery-related traffic congestion in city centers. Globally, PUDO networks are expanding rapidly. According to the 2024 Out of Home Delivery in Europe Report, the number of PUDO points in Europe has grown by 30% year-on-year, with over 350,000 locations across the continent. This trend reflects the increasing demand for flexible, efficient, and cost-effective delivery solutions.

Drones and autonomous vehicles: the future of last mile delivery

Technologies such as drone delivery and autonomous vehicles are paving the way for a more sustainable and efficient last mile delivery ecosystem. Drones are particularly effective in reducing delivery times in rural areas, where traditional methods are less efficient, while autonomous vehicles excel in urban areas, handling high-volume deliveries with precision and minimal human intervention. Both solutions address the rising demand for low-cost delivery and the need to reduce carbon emissions, aligning with the preferences of environmentally conscious customers.

Recent data indicates that 54% of consumers prefer eco-friendly delivery options, and 37% are willing to pay extra for solutions that minimize environmental impact. Autonomous vehicles and drones directly support these preferences by lowering the carbon footprint of the delivery process. For example, a single drone delivery can reduce emissions by up to 30% compared to traditional vans, particularly when powered by renewable energy sources.

In addition to sustainability, these technologies improve the online shopping experience by offering faster, more reliable service, such as same day delivery or even deliveries within a few hours. This is particularly important as ecommerce sales continue to grow, with a projected annual increase in parcel volumes exceeding 20% by 2030. The ability to meet these demands while maintaining efficient and cost-effective operations will be critical for delivery companies to stay competitive.

Addressing key challenges: strategic insights for the future

While the adoption of automation in last mile logistics comes with challenges such as high initial costs and the need to adapt to evolving customer expectations, the outlook is overwhelmingly positive. Businesses that embrace innovation are poised to reap significant benefits, including reduced carbon emissions, enhanced route planning, and a transformative impact on customer satisfaction.

The integration of technologies like AI, autonomous vehicles, and parcel machines is reshaping the final mile into an opportunity for growth, efficiency, and sustainability. Far from being a bottleneck, the last leg of a product’s journey is becoming a platform for delivering superior service and meeting the rising demands of eco-conscious consumers. These innovations not only drive down costs but also create a customer experience that is faster, smarter, and more personalized.

Looking ahead, the future of last mile delivery is bright. As companies continue to invest in advanced technologies, such as drone delivery and AI-driven route optimization, they are not just addressing today’s challenges but also laying the groundwork for a more connected and sustainable supply chain. With the rapid evolution of e-commerce and growing parcel volumes, the industry is set to deliver solutions that are both efficient and cost-effective, ensuring businesses stay competitive in a fast-changing global market.

The journey toward a fully automated, environmentally friendly, and customer-centric last mile logistics system is underway — and its potential to positively impact businesses, consumers, and the planet is boundless. The future is one where the final delivery destination is reached with innovation, precision, and sustainability at its core.

Last mile delivery FAQs:

1. What is last mile delivery?

Last mile delivery refers to the final stage of the logistics process, where goods are transported from a transportation hub, such as a distribution center, to the customer’s doorstep or a designated final destination. This step is crucial as it often represents the most challenging and expensive phase of delivery operations.

2. Why is last mile logistics important?

The last mile logistics process directly impacts customer satisfaction by ensuring goods arrive on time and in good condition. Efficient management in this phase also allows companies to control costs, which can otherwise escalate due to failed deliveries or inefficient routing.

3. How does automation improve last mile delivery?

Automation enhances the logistics process by streamlining operations at transportation hubs and distribution centers. Technologies like AI, autonomous vehicles, and robotics help optimize routes, reduce delivery times, and enable more accurate tracking from the hub to the final destination.

4. What role do most last mile couriers play in the process?

Most last mile couriers are responsible for navigating the last stretch of delivery to ensure packages reach their customer’s doorstep. Automation is increasingly assisting these couriers by providing optimized routes, reducing the time spent in transit, and minimizing the environmental impact.

5. How do parcel machines complement last mile couriers?

Parcel machines serve as convenient final destinations, reducing the workload for most last mile couriers by consolidating deliveries at a single location. This not only helps to control costs but also provides customers with greater flexibility in picking up their packages.

6. How do transportation hubs support the last mile logistics process?

Transportation hubs like distribution centers are critical nodes in the logistics process. They facilitate the sorting, routing, and dispatching of parcels to their respective final destinations. Automation at these hubs ensures faster processing and more efficient allocation of resources, enabling couriers to deliver packages effectively.

7. Can automation reduce costs in last mile delivery?

Yes, automation helps companies control costs by minimizing inefficiencies in the logistics process, such as optimizing delivery routes, reducing fuel consumption, and cutting down on manual labor. Automated systems at transportation hubs and during deliveries allow businesses to achieve cost-effective operations.

8. What is the future of last mile logistics?

The future lies in the integration of automated solutions across the logistics process, from transportation hubs to the customer’s doorstep. Technologies like AI, autonomous vehicles, and parcel machines will not only ensure faster and more reliable deliveries but also help control costs and meet growing customer demands for convenience and sustainability.

Ultra Low Emission Zones – the new direction for European cities?

2024-01-15 przez iLabs - Kamil

Clean transport zones in Europe

As of June 2022, Europe had 320 active Low Emission Zones (LEZs), marking a 40% increase since 2019. This number is projected to rise by another 58%, reaching 507 LEZs by 2025, driven by new national laws in countries like France, Spain, and Poland that mandate or support the adoption of such schemes. For now Germany and Italy lead in the number of low emission zones implemented.

However the effectiveness of these zones is evident now in cities like London, where the largest clean air zone operates. The ULEZ in central London has led to a 46% reduction in nitrogen dioxide (NO₂) levels compared to what they would have been without the scheme. In addition, some London boroughs now meet World Health Organization (WHO) standards for PM2.5 levels, significantly improving air quality in both inner London and outer.

The impact of ULEZ on air quality, public health, and the economy

The introduction of Ultra Low Emission Zones (ULEZ) has proven to be a transformative measure for urban centers aiming to tackle air pollution, protect public health, and transition towards sustainable mobility. By targeting the most polluting vehicles and enforcing strict emissions standards, cities like as mentioned London have demonstrated measurable improvements in air quality, which translate into significant health and economic benefits.

Air quality improvements and public health benefits

Air pollution is a major public health issue, with the World Health Organization (WHO) estimating that exposure to poor air quality causes 7 million premature deaths annually worldwide. In urban areas, transport emissions are a leading contributor to air pollution, particularly nitrogen dioxide (NO₂) and particulate matter (PM2.5). The ULEZ implementation has directly addressed these pollutants.

Economic costs and operational adjustments

While the initial cost of implementing ULEZ and transitioning vehicle fleets to compliance is high, the long-term savings are significant. For businesses, particularly those in logistics and courier industries, the costs include:

Upgrading fleets: electric vans, often used to meet ULEZ standards, cost £30,000–£40,000, compared to approximately £20,000 for diesel cars.
Daily charges for non-compliant vehicles: vehicles that do not meet ULEZ emissions standards face daily charges of £12.50 for cars and vans or £100 for larger vehicles like lorries. For businesses relying on extensive urban deliveries, this can lead to significant operational costs if fleets are not updated.

Opportunities and benefits for the courier industry

In Poland, ULEZ has been in effect since July 1, 2024 in the capital, while Cracow and Wroclaw are planning to introduce these zones. The report “Transforming the Last Mile. Zero Emission in Urban Logistics” by the Foundation for the Promotion of Electric Vehicles (FPPE) highlights several implications of the move for the courier industry.

Reduction in delivery times

ULEZ areas, with fewer polluting vehicles and improved air quality, experience reduced traffic congestion. This has a direct positive impact on delivery times, especially for last-mile logistics, which is typically the most time-sensitive and challenging part of the supply chain.

Zero-emission vehicles: electric vans, increasingly adopted by courier companies, can move more freely within ULEZ areas without the need for paying daily charges. These vehicles also benefit from lower traffic restrictions and can use routes specifically designated for eco-friendly transport, such as bus lanes in some urban areas.
Improved traffic flow: studies from London indicate that areas with ULEZ implementation have seen smoother traffic flow due to fewer vehicles entering the zone. This allows couriers to make deliveries more quickly and efficiently.

Long-term cost savings

Although the initial cost of transitioning to ULEZ-compliant vehicles such as electric or hybrid vans and lorries is significant, the long-term economic benefits outweigh these expenses.

Lower naintenance costs: electric vehicles (EVs) have fewer moving parts than internal combustion engine (ICE) vehicles, resulting in reduced maintenance costs. Brake wear is also lower in EVs due to regenerative braking technology.
Reduced fuel expenses: with fluctuating fuel prices, the predictable and often lower energy costs of charging electric vehicles provide a financial advantage. For example, charging an electric van is up to 70% cheaper per kilometer than fueling a diesel equivalent.
Incentives and grants: governments and local authorities offer various financial incentives to support the transition, such as grants for purchasing electric vehicles or tax exemptions for ULEZ-compliant fleets. In London, the scrappage scheme provides funding for replacing old vehicles, further easing the financial burden.

Meeting customer demands

The rise in consumer awareness about sustainability and environmental impact has made green logistics a critical factor for customer loyalty and brand reputation. Businesses adopting ULEZ-compliant fleets are seen as responsible and forward-thinking.

Sustainability as a selling point: companies that highlight their commitment to reducing emissions, through measures such as investing in electric vans or using carbon-neutral delivery services, appeal to environmentally conscious consumers.
Enhanced customer loyalty: studies show that 71% of consumers prefer brands with a demonstrated commitment to sustainability. Offering ULEZ-compliant deliveries, which actively reduce air pollution, can help couriers strengthen customer relationships.
Corporate partnerships: businesses increasingly prioritize working with logistics providers that align with their sustainability goals. By adopting ULEZ-compliant fleets, courier companies position themselves as ideal partners for environmentally focused corporations.

Contribution to climate goals

Investing in ULEZ-compliant fleets helps courier companies align with broader climate objectives. Governments worldwide are implementing stricter emissions targets, and by complying with ULEZ regulations, businesses contribute to reducing greenhouse gas emissions.

Carbon neutrality: transitioning to electric or hybrid fleets aids courier companies in achieving their carbon-neutral goals, which are becoming a requirement for many multinational partners.
Future-proofing operations: as regulations tighten globally, businesses that adapt early will face fewer disruptions in the future.

Costs and benefits: a closer look

ULEZ compliance delivers indirect financial benefits through improved public health and reduced environmental damage. These improvements contribute to healthcare savings. Reduced rates of respiratory and cardiovascular diseases are expected to save the UK healthcare system approximately £4 billion over the next decade. Environmental benefits include a reduction of approximately 800,000 tonnes of CO₂ emissions in Greater London over four years, equivalent to removing 175,000 cars from the roads annually. Such reductions support broader climate goals, including the UK’s commitment to achieving net-zero emissions by 2050.

However the implementation of Ultra Low Emission Zones (ULEZ) entails both challenges and opportunities for businesses, particularly in the courier and logistics sectors. Businesses that adapt to ULEZ requirements also gain competitive advantages. Courier companies that transition to zero-emission fleets position themselves as leaders in sustainable logistics, appealing to environmentally conscious customers and corporate partners. For example, DHL’s introduction of electric cargo bikes in London’s ULEZ areas has reduced delivery times during peak traffic hours by 25% while eliminating emissions from those routes.

While ULEZ implementation presents challenges, such as significant upfront investments, the long-term economic benefits—ranging from lower operating costs to public health savings—make it a transformative approach for sustainable urban development. The experiences of cities like London demonstrate the potential for ULEZ to drive economic growth, improve public health, and combat climate change.

How changing delivery expectations shape customer loyalty in e-commerce?

2024-01-08 przez iLabs - Kamil

Multiple delivery options continue to drive purchases

Over the past years, online shoppers have greatly appreciated the variety of delivery and collection options available in online outlets. In both 2021 and 2024, more than half of respondents considered them an incentive to buy online. This consistency highlights the importance of flexibility and choice in meeting consumer expectations and ensuring customer satisfaction.

Variety in delivery methods is not just a convenience but a key factor in retaining customers. Research shows that loyal customers spend more on brands that consistently meet or exceed their expectations. Providing diverse delivery options is a practical way to enhance the customer journey, making it more likely that satisfied customers will return for repeat purchases. For example, offering express delivery, same-day shipping, or environmentally friendly options can significantly improve the overall customer experience.

The dominance of parcel lockers

In 2021, parcel machine delivery was already the most popular method of collecting online purchases. It was used by 65% of consumers, with direct delivery chosen by 50%. The third most popular method was delivery by a postman (30%), followed by delivery to a partner outlet (20%) and to a post office (8%).

A survey conducted three years later (2024) highlights some clear trends. Parcel machines are now used by up to 84% of shoppers. Direct delivery by courier is chosen by 40% of respondents, which indicates a decline. Partner outlets are used by 18% of shoppers, while 16% still prefer the postman. Only 5% of online shoppers now visit post offices to collect their purchases.

This shift underscores the growing demand for convenient, flexible, and environmentally friendly delivery solutions. Parcel lockers, with their 24/7 availability, have become a preferred option for engaged customers seeking minimal effort and maximum flexibility in the delivery process. Retailers that prioritize these delivery methods are more likely to build a loyal customer base.

The role of delivery in building customer loyalty

Consumers increasingly expect smooth and reliable delivery experiences. According to industry reports, 80% of shoppers consider delivery options as important as the product price. This statistic underscores the impact of delivery services on customer satisfaction and customer retention strategy.

To improve customer loyalty, online retailers must focus on the following:

Fast delivery: 68% of customers state that fast delivery encourages repeat business.
Affordable shipping costs: high delivery costs are a primary reason for cart abandonment.
Eco-friendly options: over 45% of consumers are willing to pay more for sustainable delivery solutions, reflecting growing environmental awareness.

By addressing these priorities, businesses can retain customers and increase customer lifetime value, ensuring their most loyal customers remain engaged over time.

Personalization of delivery as a loyalty strategy

Personalization is a crucial element of modern customer loyalty strategies. Providing tailored delivery options, such as preferred time slots, delivery locations, or packaging choices, can significantly enhance the customer experience. For instance, offering “green” delivery for environmentally conscious customers or priority shipping for loyalty program members strengthens brand relationships.

Impact of customer loyalty programs on delivery choices

Loyalty programs can also influence delivery preferences by offering incentives for specific methods. For example, some retailers provide discounts or bonus points for using parcel lockers, which are more cost-effective and sustainable compared to direct delivery.

Key benefits:

Promotes cost efficiency for retailers.
Encourages eco-friendly consumer behavior.
Builds long-term customer relationships through rewards and personalized benefits.

A successful loyalty program integrates seamlessly into the customer journey, ensuring that every interaction -from purchase to delivery – enhances customer engagement.

Social media and WOMM in delivery perception

Positive delivery experiences often lead to word of mouth marketing, where satisfied customers recommend brands to friends and family. According to recent data, 64% of consumers trust peer recommendations over traditional advertising, making delivery performance a critical aspect of building brand advocacy.

Retailers can amplify positive feedback by encouraging customers to share their experiences on social media. For example, campaigns highlighting hassle-free delivery or the use of eco-friendly packaging can attract new customers while reinforcing loyalty among existing ones.

Modern technologies in delivery and their impact on customer loyalty

Innovative technologies play a growing role in enhancing the delivery process and cultivating customer loyalty. Key advancements include:

Real-time tracking: 88% of shoppers value the ability to monitor their package status.
AI-powered delivery predictions: artificial intelligence improves accuracy in delivery time estimates, reducing customer effort.
Drones and autonomous vehicles: emerging technologies promise faster, more sustainable solutions, aligning with the expectations of tech-savvy customers.

Moreover, the introduction of warehouse robotics and automated sorting systems is revolutionizing order fulfillment. These technologies enable companies to reduce processing times by up to 30%, ensuring faster deliveries. Additionally, AI can analyze customer data to predict demand patterns, allowing businesses to optimize inventory levels and improve delivery efficiency. Such advancements not only enhance operational efficiency but also significantly contribute to satisfaction, making it easier to build and maintain a loyal customer base.

These innovations improve convenience, ensuring that happy customers are more likely to remain loyal.

Metrics to measure loyalty in delivery context

To understand the impact of delivery services on customer loyalty marketing, businesses should track key metrics, such as:

Repeat purchase rate: this metric helps evaluate how often customers return to make additional purchases. A higher repeat purchase rate indicates strong customer retention and satisfaction with the overall experience, including delivery.
Delivery satisfaction scores: these scores measure customers’ perception of the delivery process, including speed, reliability, and communication. Surveys and post-delivery feedback can provide valuable insights into areas for improvement.
Net Promoter Score (NPS): this widely used metric evaluates customer loyalty by asking how likely customers are to recommend the service to others. A high NPS indicates that customers are satisfied with their delivery experience and are likely to advocate for the brand.
Customer effort score (CES): this metric assesses how easy it is for customers to interact with the delivery service. Simplified processes, such as easy returns or hassle-free tracking, can significantly boost this score, directly impacting customer engagement.
First-attempt delivery success rate: this metric tracks the percentage of deliveries successfully completed on the first attempt. Higher rates of first-time success reduce customer frustration and operational costs, improving overall satisfaction.
Time-to-resolution for delivery issues: the speed and efficiency with which delivery problems are resolved directly impact customer experience. Quick and effective issue resolution builds trust and promotes customer loyalty.

By analyzing these metrics, businesses can identify strengths and weaknesses in their delivery processes, refine their customer loyalty strategy, and ultimately create a seamless, satisfying experience for their customers.

The future of delivery: trends and opportunities

The delivery landscape is evolving rapidly, with new trends reshaping consumer expectations. Future innovations include:

Same-hour delivery: catering to urban customers with immediate needs. As urbanization increases, the demand for same-hour delivery is expected to grow, particularly for essential items and groceries. Retailers investing in local warehouses and micro-fulfillment centers can meet this demand effectively, ensuring customer satisfaction and loyalty.
Sustainable practices: expanding the use of recyclable packaging and carbon-neutral transportation. Sustainable practices not only meet the expectations of environmentally conscious consumers but also enhance brand reputation. Companies that integrate electric delivery vehicles, implement carbon offset programs, or partner with green logistics providers can attract a loyal customer base that values sustainability.
Subscription-based models: offering unlimited delivery for a fixed fee to encourage repeat customers. Subscription services like Amazon Prime have proven highly successful in fostering customer loyalty. By providing predictable costs and added benefits such as faster delivery, subscription-based models create a sense of exclusivity and convenience, which encourages customers to remain loyal to the brand.
Flexible delivery options: allowing customers to choose delivery windows, locations, or even change preferences mid-shipment. Flexibility caters to diverse customer needs and builds trust by demonstrating that retailers prioritize convenience and satisfaction.

Retailers that stay ahead of these trends will secure a competitive advantage and grow their loyal customer base. By investing in innovation and aligning with customer values, businesses can create a delivery experience that not only meets but exceeds expectations, turning satisfied customers into lifelong advocates.

Changing consumer expectations of delivery present both challenges and opportunities for online retailers. By prioritizing convenience, personalization, and sustainability, businesses can enhance customer engagement and foster lasting loyalty. In an increasingly competitive e-commerce landscape, the ability to deliver exceptional service will determine which brands thrive and which fall behind. Investing in innovative delivery solutions and robust loyalty programs is not just a strategy for retention but a pathway to long-term success.

More progress on decarbonized transport: how political decisions affect the move toward climate neutrality

2023-12-18 przez iLabs - Kamil

More progress on decarbonized transport: how political decisions affect the move toward climate neutrality

The Paris Agreement aims to have the European Union achieve climate neutrality by 2050. It is estimated that transport is responsible for 1/4 of greenhouse gas emissions within the Union, and it is this sector that is currently doing the worst in implementing the commitment¹. What political decisions are about to change that?

Only zero-emission vehicles from 2035

In March 2023, the Council of the European Union adopted a rather radical solution to allow only the sales of zero-emission new passenger cars and vans in the Community from 2035. In addition, a 55% reduction in emissions for cars and 50% for vans is to be achieved between 2030 and 2035.

Heavy-duty vehicle tolls

In November 2021, the Eurovignette Directive was amended. The new regulations went into effect in March 2022, and require the drivers of heavy-duty vehicles to pay tolls for the use of certain parts of the road infrastructure in order to help reduce CO₂ emissions.

Euro 7

Cars contribute not only to CO₂ emissions, but to air pollution as well. For this reason, the European Union has been working on the Euro 7 standard which is expected to further reduce the level of additional pollutants, for example, from tires, brakes and batteries. The regulations, which have been in the works since September 2023, are expected to apply to passenger cars and vans as well as trucks.

It is worth noting that decarbonized transport solutions apply equally to passenger car and truck owners, forcing the logistics industry to take radical steps.

https://www.consilium.europa.eu/pl/policies/clean-and-sustainable-mobility/#goals

How are global brands adapting to sustainability requirements?

2023-12-04 przez iLabs - Kamil

How are global brands adapting to sustainability requirements?

ESG, the non-financial corporate assessment model being implemented by the European Commission, has made sustainability a hot business topic in again. How are e-commerce giants approaching it? Here are some examples.

Amazon’s ambitious goals

US Amazon certainly deserves its title of giant. The company has set itself an ambitious goal – to achieve climate neutrality by 2040. To this end, it is investing in renewable energy, such as the 3,900 solar panels that power its robotics centre in Świebodzin. The company is also committed to green transportation. It plans to be using 100,000 electric vehicles by 2030 to reduce CO₂ emissions by several million tons. In addition, Amazon is constantly improving its supply chain, promoting eco-friendly packaging and the idea of recycling¹.

Sustainability by Allegro

How is sustainability being implemented by Polish giants? Let us take a look at the 2022 ESG report presented by Allegro. In terms of ecology, it says that 98% of the warehouse waste generated by the company is recycled. Allegro boasts a 10.4% reduction in CO₂ emissions in its supply chain, as well as the introduction of nearly 4 million eco-friendly packages into the market.

There is an eco-friendly tint to Allegro’s One Box parcel lockers, as while they are powered by electricity from the grid, the company purchases energy certified with green certificates. In addition, the lockers are covered with vegetation and measure air quality in the area.

ESG strategy at Alsendo Group

The development of ESG initiatives is a priority for the Alsendo Group. Our business models are developed and implemented in accordance with UN recommendations aimed at minimizing the negative impact of businesses on the global environment. Demonstrating a strong commitment to environmental protection and social responsibility, we are committed to sustainability and environmental neutrality in every aspect of our operations. Part of this process is an emphasis on developing low-carbon forms of courier services, launching educational projects to promote environmentally friendly forms of sending and picking up parcels, and driving change in our daily work. The effects of our decisions are already visible – we have sent more than 50,000 emails encouraging the use of PUDOs and parcel lockers as the most environmentally friendly courier service option, our paper consumption has been reduced by 35%, and electricity by 15%. Alsendo Group expects to continue its sustainability strategy by launching new projects in the area of environmental impact, labour and social relations, and corporate governance.

https://mycompanypolska.pl/artykul/7-sposobow-na-zrownowazony-rozwoj-w-e-commerce/12553

Ethics and digital awareness in online shopping: how do consumers respond to privacy and data security issues?

2023-11-13 przez iLabs - Kamil

The growing popularity of online shopping

According to the E-commerce in Poland 2024 report published by IAB Polska, 78% of Polish internet users shop online, maintaining a stable trend over recent years. Notably, 36% of respondents purchase from international e-commerce platforms, an increase of 6 percentage points compared to the previous year. Moreover, 61% of users now engage in second-hand online shopping, reflecting a shift toward sustainable e-commerce. As digital transactions continue to expand, so do opportunities for enhancing security, trust, and convenience in online shopping. Innovations in cybersecurity, improved data protection policies, and secure payment systems contribute to a more seamless and confident shopping experience for consumers worldwide.

The rising threat of cyberattacks in e-commerce

As e-commerce continues to expand, the importance of cybersecurity has become more evident. In 2024, Poland recorded over 110,000 cyber incidents, highlighting the growing need for robust security measures. While the public sector and critical infrastructure have faced particular challenges, businesses and institutions are increasingly prioritizing proactive security strategies.

Poland’s Deputy Prime Minister Krzysztof Gawkowski noted that cyber threats have doubled year over year, emphasizing the evolving digital landscape. As security practices advance, the focus remains on strengthening protections, increasing awareness, and enhancing resilience to ensure a safer online environment for consumers and organizations alike.

Most common cyber threats in e-commerce

Among the most significant cyber threats affecting online shoppers are:

Phishing attacks – deceptive emails and websites designed to steal login credentials and payment information.
Skimming – the use of malicious software to capture credit card data during transactions.
Ransomware attacks – where hackers encrypt data and demand ransom payments for its release.
Account takeovers – where cybercriminals gain unauthorized access to user accounts, often through credential stuffing or weak password security.

Consumer awareness of cybersecurity risks

While cyber threats are becoming more prevalent, there is still room to improve consumer awareness of key security risks. According to the Digital Security in Poland 2024 report, 53.7% of respondents have received suspicious messages, though not all feel confident in recognizing or responding to them effectively.

Similarly, the “Poles’ Attitudes Toward Cybersecurity” survey, conducted by the Warsaw Institute of Banking in June 2024, indicates that cybersecurity education could be strengthened to better equip consumers against potential online threats. As awareness grows and digital safety practices become more accessible, individuals and businesses alike can take steps to enhance protection and build a more secure online experience.

How do consumers protect their data?

Despite limited awareness, some security-conscious consumers actively implement protective measures, including:

Avoiding suspicious links and attachments – 78%
Using antivirus software – 63%
Being cautious when sharing personal information – 58%
Using strong, unique passwords – 54%
Avoiding public Wi-Fi networks – 48%

These actions indicate that while many shoppers engage in basic security practices, there is still room for improvement in awareness, resilience, and incident response.

Improving security in the e-commerce landscape

To combat growing security risks, both public institutions and private sector organizations are intensifying their efforts to strengthen cybersecurity and protect consumers.

Government and institutional initiatives

The “Cyber-Secure Municipality” program aims to enhance local governments’ security capabilities by conducting security audits, training programs, and network upgrades.

Security measures implemented by e-commerce companies

Leading e-commerce platforms and financial institutions are adopting advanced security operations, including:

Multi-factor authentication (MFA) to strengthen user verification.
AI-powered fraud detection for real-time transaction monitoring.
End-to-end encryption to protect customer data and payments.
Biometric authentication as an alternative to passwords.

The role of AI in cybersecurity

The integration of generative AI is transforming both cyberattacks and defense mechanisms. While cybercriminals leverage AI to develop sophisticated phishing attacks, businesses use AI to:

Detect and prevent fraudulent transactions in milliseconds.
Monitor security threats in real time and automate rapid response.
Analyze attack patterns to predict future risks.

Experts predict that deepfake technology will become a major tool for social engineering attacks in 2025, necessitating greater investment in AI-powered cybersecurity solutions.

The future of secure online shopping

As e-commerce continues to expand, cybersecurity remains a critical challenge. Ensuring secure online transactions requires a collaborative effort between consumers, businesses, and government institutions. By combining awareness programs, AI-driven security solutions, and stronger regulatory frameworks, the future of online shopping can be more secure, resilient, and efficient. Only through proactive cybersecurity policies, consumer education, and technological advancements can we create a safer digital shopping experience in this new era of e-commerce.

Fullfilment, dropshipping, own warehouse – how to tailor logistics solutions for cross-border e-commerce?

2023-10-20 przez iLabs - Kamil

How can sellers fulfill customer orders efficiently while keeping shipping costs low and delivery speeds competitive? What role do fulfillment centers, distributed networks, and automation technologies play in optimizing the process? This guide explores the advantages and challenges of different fulfillment models, helping businesses navigate the complexities of international logistics and make informed decisions.

What is fulfillment in e-commerce?

Fulfillment refers to the entire process of storing, managing, packing, and delivering customer orders from an ecommerce business to the buyer. A well-optimized fulfillment process ensures that customers receive their products quickly, minimizing transit times and enhancing the customer experience.

To streamline international orders, many retailers turn to third-party fulfillment centers, which handle order picking, packaging, shipping, and returns on behalf of the seller. These fulfillment houses are designed to reduce costs, improve inventory management, and enable businesses to seamlessly handle high order volumes across different countries.

Advantages of using a fulfillment center for international orders

For ecommerce sellers expanding globally, working with a third-party fulfillment provider offers multiple benefits:

Faster deliveries – by using in-country fulfillment centers, businesses can significantly reduce transit times for customers quickly.
Lower shipping costs – local fulfillment centers help businesses avoid shipping tariffs and customs delays.
Scalability – businesses can handle customer demand fluctuations without worrying about unsold inventory or storage fees.
Improved order tracking – a distributed network of warehouses allows for better order monitoring, ensuring that customers receive their orders on time.

Choosing a reliable logistics partner that offers fast and affordable fulfillment is crucial for retailers looking to enter new markets while maintaining cost efficiency and service quality.

What is dropshipping in e-commerce?

Dropshipping is a fulfillment model where a retailer sells products without keeping moved inventory in stock. Instead, when a customer places an order, the supplier or manufacturer ships the product directly to the end consumer.

Why is dropshipping a popular option for international expansion?

Many businesses prefer dropshipping because it eliminates the need for warehouse space and excess inventory management, making it a low-risk, low-investment strategy for testing new markets. Some key benefits include:

Minimal upfront costs – no need to rent warehouse space or invest in storage facilities.
No risk of unsold stock – products are only shipped once a customer places an order, reducing waste and overhead costs.
Flexibility in product offerings – sellers can list existing products from suppliers in other countries without committing to large inventories.

However, dropshipping also has its downsides. Longer transit times, higher shipping fees, and limited quality control can impact customer satisfaction. Retailers must carefully select dropshipping partners that can ensure a smooth fulfillment process, follow address requirements, and manage shipping restricted items effectively.

Private warehousing: when does it make sense?

For some ecommerce businesses, operating their own fulfillment center is the best way to maintain full control over inventory, shipping, and customer experience. While renting or building warehouse space abroad can be costly, in certain cases, shipping products directly from Poland is a viable solution.

Private warehousing is most effective when:

The retailer offers customized, high-value, or premium products, where customers are willing to wait longer for deliveries.
The business needs greater control over inventory levels and fulfillment operations to meet specific address requirements or manage restricted items.
Shipping from Poland remains cost-effective compared to operating an international fulfillment center.

Optimizing logistics for cross-corder e-commerce – key challenges and solutions

Expanding into cross-border e-commerce comes with unique logistical challenges, from customs regulations to shipping costs and order fulfillment efficiency. To succeed in international markets, businesses need optimized logistics strategies that ensure fast, cost-effective, and reliable deliveries. Below, we explore key challenges and solutions to streamline global fulfillment operations.

The impact of customs regulations on cross-border fulfillment

One of the most critical challenges in international e-commerce is navigating customs regulations. Each country has specific import/export laws, taxes, and shipping tariffs, which can affect the overall fulfillment process and customer experience.

Customs Duties & Tariffs – some countries impose high import duties, making certain markets less profitable. Retailers must consider whether they or the customer will cover the costs.
Restricted Items & Compliance – some products, like electronics, cosmetics, or food, may be subject to strict regulations or prohibitions in certain regions.
Documentation Requirements – ensuring all shipping documents, invoices, and declarations are correctly completed is crucial to avoid delays at customs checkpoints.

Example: The EU’s Import One Stop Shop (IOSS) system simplifies VAT collection for non-EU sellers shipping to Europe, allowing for faster and more efficient cross-border deliveries.

Reducing shipping costs in cross-border e-commerce

Keeping shipping costs under control is crucial for maintaining competitive pricing and increasing sell-through rates.

Key strategies for lowering shipping costs:

Using regional fulfillment centers – Storing inventory in a fulfillment center closer to customers reduces international shipping tariffs and speeds up transit times.
Choosing the right carrier – Not all shipping companies offer the same rates or delivery times. AI-powered logistics tools can select the most cost-effective shipping option per order.
Bulk shipping discounts – Some third-party fulfillment providers offer discounted rates when businesses ship large volumes.
Optimizing packaging – Reducing package dimensions and weight can help lower shipping fees and make order fulfillment more efficient.

Example: Amazon’s Multi-Channel Fulfillment (MCF) service allows businesses to store products in Amazon warehouses while fulfilling orders across various marketplaces.

The role of returns management in cross-border e-commerce

A well-structured returns policy is critical for customer satisfaction and brand reputation. Studies show that 92% of online shoppers are more likely to buy from a retailer with a hassle-free return policy.

Challenges of international returns:

High return shipping costs – Sending products back across different countries can be expensive.
Customs complications – Some countries charge import duties on returned items.
Unsold inventory issues – Returned products that cannot be resold immediately create storage fees and inventory waste.

Solutions for an efficient returns process:

Partnering with local fulfillment centers to handle returns more efficiently.
Offering in-country drop-off points for faster processing.
Providing clear return guidelines on address requirements, packaging, and time limits.

Example: Zalando offers free returns in multiple European countries, helping improve customer confidence and repeat purchase rates.

How Alsendo supports cross-border e-commerce

Expanding into cross-border e-commerce requires strategic planning to ensure a smooth fulfillment process and cost-effective shipping.

How Alsendo helps businesses scale internationally?

Global shipping network – enabling retailers to fulfill customer orders efficiently in over 150 countries.
Flexible delivery options – ensuring fast and affordable fulfillment while optimizing shipping costs.
Seamless return management – improving customer satisfaction with simplified returns solutions.
Advanced automation tools – enhancing order tracking, route optimization, and logistics efficiency.

As a technology platform for managing shipments and deliveries, Alsendo providing e-commerce businesses with advanced tools to optimize logistics, streamline shipping operations, and enhance the customer experience.

With Alsendo’s businesses can seamlessly compare shipping options, reduce transit times, and lower delivery costs, all while maintaining full control over their logistics processes. Whether expanding into new markets, optimizing order fulfillment workflows, or managing international returns, Alsendo’s technology-driven solutions enable retailers to automate key shipping tasks, improve last-mile delivery performance, and ensure a smooth fulfillment process across multiple regions.

By leveraging Alsendo’s integrations with leading carriers, e-commerce platforms, and fulfillment networks, businesses can simplify international logistics, provide a world-class fulfillment experience, and scale their operations with confidence—without the complexities of managing shipping logistics manually.

Key challenges in entering foreign markets – what to pay attention to?

2023-10-15 przez iLabs - Kamil

1. Understanding local market dynamics

A critical aspect of cross-border expansion is understanding local consumer behavior, business regulations, and economic conditions. Even within the EU, differences in customer needs, spending habits, and cultural preferences influence market success. Failing to align with local expectations can lead to difficulties in brand positioning, marketing effectiveness, and sales performance.

For instance, while Poland and Slovakia share a similar economic environment, cross-border customers in these markets may have different delivery preferences, payment options, and brand expectations. Successfully entering a new market requires a deep focus on market research, customer opinions, and competitive positioning.

How to gain market insights?

Businesses can access valuable market knowledge through:
Local customer surveys – Gathering opinions to understand consumer expectations.
Industry reports & trade data – Researching trends from international suppliers and market analysts.
Competitor analysis – Studying how established cross-border businesses position themselves.
Government and trade organizations – Consulting sources like Trade.gov.pl to understand regulations and business security measures.

Example: companies expanding into Central Europe can rely on Alsendo’s technology solutions to ship smoothly, ensuring seamless cross-border fulfillment while keeping delivery operations secure and transparent.

2. Developing a market-specific strategy

A cross-border expansion strategy must be tailored to the specific country, considering local business culture, legal requirements, and consumer expectations. A strategy that works well in one market may be ineffective in another due to differences in competition, capital requirements, and customer behavior.

Key considerations when expanding abroad:

Market accessibility – how easy is it to enter the market and proceed with business registration?
Customer decision-making factors – what influences buyers in this region?
Marketing channels – what platforms are best for advertising and customer engagement?
Regulatory compliance – are there restricted product categories or legal barriers that may impact sales?

Example: businesses entering Germany may need to focus on sustainable practices, as cross-border customers in this market prioritize eco-friendly products and ethical sourcing. In contrast, markets like the Czech Republic are often price-sensitive, requiring a cost-effective pricing model to attract buyers.

3. Adapting the product offering to local demand

When expanding internationally, businesses must ensure their product or service aligns with local customer needs. Cross-border customers may have different expectations regarding pricing, quality, and product functionality.

How to adapt your offer for new markets?

Analyze local purchasing power – some countries hold premium products in high regard, while others prefer cost-effective alternatives.
Study competitor offerings – what are other businesses providing, and how can your company create a unique value proposition?
Assess market demand trends – ensure your products align with consumer expectations in that specific market.
Adjust branding and messaging – tailor marketing efforts based on cultural preferences and customer feedback.

Example: in high-income countries like Switzerland, businesses can invest in premium branding, while in price-sensitive regions, companies may need to offer discounts and cost-saving options to hold a competitive edge.

4. Building strong local partnerships

Expanding into new markets without trusted business connections can present logistical, regulatory, and operational challenges. International suppliers, distributors, and marketing agencies are crucial in helping companies proceed with expansion more efficiently.

Why Local Partnerships Matter:

Legal advisors – ensuring compliance with international business regulations.
Marketing agencies – adapting campaigns for local customer engagement.
Cross-border logistics partners – optimizing shipping, customs clearance, and delivery efficiency.

5. Optimizing cross-border logistics and delivery operations

One of the biggest challenges in international expansion is logistics management. Cross-border shipping costs, regulations, and operational security all affect a company’s ability to deliver products efficiently.

Key Considerations for International Logistics:

Shipping cost optimization – Working with trusted logistics providers to minimize cross-border shipping expenses.
Order tracking & customer transparency – Providing customers with real-time updates to improve satisfaction.
Delivery speed & reliability – Ensuring timely shipments to maintain customer trust.

Example: Alsendo’s Innoship software helps businesses automate shipping processes, reducing manual work while ensuring delivery efficiency across borders.

How to succeed in cross-border expansion?

Successfully expanding into international markets requires a combination of strategic planning, market intelligence, and strong logistics solutions. Companies that invest in research, establish business connections, and optimize cross-border operations can build a scalable model for sustainable growth.

By leveraging Alsendo’s platform, automated fulfillment solutions, and multi-carrier integrations, businesses can:

Reduce cross-border shipping costs and delivery times.
Ensure seamless logistics and transparent customer service.
Expand efficiently into multiple countries without operational bottlenecks.

With the right strategy, resources, and partners, businesses can successfully create a competitive presence in new markets while maximizing profitability and efficiency.

Crossing borders. What are the key differences in e-commerce regulations in Europe?

2023-10-10 przez iLabs - Kamil

Polish Online Retailers and EU Regulations

Polish online retailers looking to sell within the European Union benefit from simplified processes in some areas. E-commerce regulations are largely based on EU legislation, making them consistent and universally applicable across the EU.

Key European E-commerce Regulations

The following are some of the main rules governing the e-commerce market in the EU:

14-day complaint resolution – Online retailers in the EU are required to process complaints within 14 days.
Price disclosure – According to the Omnibus Directive, sellers must display the lowest price an item was offered at in the past 30 days.
Warranty – Buyers have up to two years to prove that a product does not conform to the contract.
Disclosure obligations – Sellers must inform customers if they are a business, if they use paid advertising, and provide their business address.
14-day withdrawal period – Customers have the right to withdraw from a purchase within 14 days, without needing to provide a reason.
Returns and complaints policies – Every online retailer must have clear terms for handling returns and complaints. To streamline these processes, Innoship offers an automated delivery and returns system that supports efficient management.
Personal data protection – GDPR regulations apply throughout the EU.

Selling Beyond the European Union

Retailers looking to expand outside the EU face more challenges. Local e-commerce regulations may vary significantly from EU laws, and shipments are often subject to VAT and customs duties, which are usually the buyer’s responsibility. For these reasons, it is generally advisable to focus cross-border e-commerce efforts within the EU first.

How to build lasting relationships in cross-border e-commerce? Acquiring and retaining customers in new markets

2023-10-04 przez iLabs - Kamil

Loyal customers buy up to 90% more often and spend 67% more. It is important to remember that without high levels of customer retention, it is difficult to be successful in cross-border e-commerce. How do you achieve this?

Customer acquisition in cross-border commerce

Acquiring customers abroad can sometimes be more difficult than in your home market due to differences in consumer habits and needs. Here are the key steps to attracting shoppers:

Analysis of the local market – The ideal solution is to conduct your own market research. If your budget does not allow for this, use existing sources such as reports on foreign markets published on www.trade.gov.pl. Research carried out by local institutions can also provide valuable information.
Optimisation of the shop’s website – In many markets, customers are much more likely to trust websites that have a local domain name. Other ‘must haves’ include content in the local language, as well as local currency and payment methods.
SEO – It is virtually impossible to promote a shop in a given market without SEO activity. Alternative solutions could include working with influencers, using recommendations or affiliate marketing strategies.
Competitive advantage – Cross-border e-commerce is almost only viable if the shop stands out from its competitors, either in terms of affordability or the superiority of certain products over local goods. This makes consumers more willing to accept inconveniences, such as longer delivery times.

Retaining customers in a new market

Another challenge for the retailer is to retain the customers that have already been acquired – they are the group that guarantees a steady profit. Retention rate is the difference between the number of customers at the end of a given period and the number of customers acquired, divided by the number of customers at the beginning of the period, for example a year. It is expressed as a percentage and the average retention rate in retail is 63%. What you can do to improve your retention rate:

Customer service in the local language – this enhances the experience and also improves customer loyalty.
Loyalty programmes and promotions – these are universal mechanisms that can be used effectively in any market.
Gathering and using customer feedback – this helps to build a positive experience and can be useful in marketing and sales strategies.
Efficient logistics – long delivery times can deter customers from making repeat purchases. Therefore, it makes sense to ensure safe and timely delivery with the services offered by the Apaczka platform – an experienced partner in shipping processes.
Ongoing communication with customers – through all possible channels, using personalised offers but also content marketing.

Cross-border commerce is a great solution for retailers looking to expand into new markets, but it can only be successful if the retailer invests in attracting consumers and building loyalty.

Value of the global e-commerce logistics services market 2022-2027

2023-09-01 przez iLabs - Kamil

According to Statista.com, the value of the global e-commerce market reached USD 5.7 trillion in 2022[1]! And experts are forecasting its growth in the years to come. It is no secret that online sales have been driving the CEP industry for a long time now. The value of the global e-commerce logistics market is also set to grow significantly over the next five years.

Close to EUR 700 billion in 2027

According to estimates by the research agency Transport Intelligence, the global market was worth more than EUR 418 billion in 2022, while the current year should close with a figure of over EUR 451 billion.

The projected growth in the sector’s value up to 2027 is impressive. Worldwide customers are then expected to pay more than EUR 683 billion for e-commerce logistics services. This means that the market would have grown by as much as 63%[2].

Significant share of cross-border commerce logistics

Retailers from different countries are looking for new markets abroad. Many online trading giants are now operating globally. In 2022, cross-border logistics services for the e-commerce industry totalled more than EUR 66 billion, which represented a share of almost 16%. In 2027, the figures are expected to look similar. The value of cross-border logistics services in this sector is to exceed EUR 114 billion, with a share of almost 17%.

Logistics for e-commerce in Europe

E-commerce is also the driving force of the European CEP sector. In 2022, the value of e-commerce logistics services in Europe reached EUR 81.638 billion. Interestingly, the share of cross-border operations in the region was lower than the global average, at just over 14%.

The markets with the highest value are the UK (EUR 23.9 billion), Germany (EUR 16.49 billion) and France (EUR 12.14 billion), followed by Spain, Italy, the Netherlands, Switzerland, Poland, Sweden and Turkey.

Signs are that the booming e-commerce market will favour the logistics industry in the coming years.

Sources:

[1] https://www.statista.com/topics/871/online-shopping/#topicOverview

[2] https://i.gremicdn.pl/image/free/5415d1479c2ba975ae2b79d259026680/krzysztof-oflakowski?t=crop:1714:1063:nowe:88:0,resize:fit:1920:1189

Green Last Mile – what is it and how does it affect T&L?

2023-08-04 przez iLabs - Kamil

Green Last Mile – what is it and how does it affect T&L?

There is no doubt that transportation has a negative impact on the environment. However, with the right changes to the logistics chain, its impact can be significantly reduced. Here we discuss one of the latest trends, namely the Green Last Mile, and how it affects the T&L industry.

What is the Green Last Mile?

The Green Last Mile is a reference to the Last Mile Delivery, i.e. the final leg of delivery. It is extremely important, as it has the greatest impact on delivery time and the recipient satisfaction. Estimates show that it accounts for approximately 40–45% of operational costs.

With the growing awareness of the need to take care of the natural environment and the resulting changes to laws and standards, the T&L industry is striving to be more eco-friendly. This is because deliveries, both on a global and local scale, generate immense CO2 emissions. The Green Last Mile is an initiative to reduce the impact of deliveries to final recipients.

Sustainable supply chains include better route planning, reducing empty runs, and reducing the use of paper and plastic (e.g. packaging, waybills, documents). However, if logistics is to be more eco-friendly, changes are necessary at the last mile.

The Green Last Mile and eco-logistics – what are the new trends in T&L?

Last year’s Report by Last Mile Experts showed that solving the last mile emissions problem is difficult. The growing popularity of electric vehicles in cities is set to become the dominant trend now. However, fleets will only be replaced gradually due to the high costs involved and the insufficiently robust infrastructure, most importantly the small number of charging stations.

One of the most important issues is optimising deliveries in the B2C channel. The most efficient solution, which is also well-received by customers, is the option to pick up deliveries out of home, i.e. at parcel pickup machines and PUDO (Pick Up Drop Off) points. In addition, carriers are highly likely to warm up to the idea of introducing cargo bikes and micro-hubs, which is already happening in Austria.

Logistics is getting closer to going paperless

2023-03-30 przez iLabs - Kamil

Logistics is getting closer to going paperless

Using conventional documents is not only time-consuming and inconvenient – it is also unsafe and unsustainable. More and more sectors are trying to implement the paperless policy. We will discuss the situation in the logistics sector!

Why should logistics go paperless?

Time is critical in logistics – all parties want the goods to be delivered as soon as possible. Each successive link in the supply chain involves many formalities. It takes a long time to complete them all using conventional methods, which is why many different solutions have been created to digitise and automate the preparation and exchange of documents. Unfortunately, many documents are still used in paper form, e.g., consignment notes, external issue documents or pallet receipts.

Surveys conducted by GS1 Poland[1] showed that out of almost 30 thousand participants (manufacturers, logistics service providers, chain stores, etc.), 70% want to take part in the Paperless Project. So far, this has not translated into any actual actions.

The Paperless Project – how is paper use reduced in logistics?

The Paperless Project initiated in the middle of 2021 is based on standardised digital documents – the DESADV system, which includes many different electronic EDI messages. This can eliminate paper documentation, automating and streamlining the flow of goods and documents.

Thanks to the Paperless Project:

the accounting and payment process is quicker and shorter,
the delivery process is initiated faster,
manufacturers and suppliers can sooner notify the customers of any difficulties and take adequate action,
manufacturers and suppliers can better predict their orders and adapt the availability of products in a flexible manner,
delivery queues are shortened, enabling more effective planning of unloading operations,
costs of document printing are eliminated,
the amount of waste and negative environmental impact are reduced.

Activities in the logistics industry aimed at switching to the paperless model to streamline costs and processes are not only cost-efficient and convenient – they have become a necessity today.

[1] Source: https://logistyka.rp.pl/produkty-i-uslugi/art19138821-dostawy-bez-papierowych-dokumentow.

How cloud technology supports logistics operations?

2023-03-24 przez iLabs - Kamil

How cloud technology supports logistics operations?

Cloud solutions are convenient, cost-efficient and secure. They can be used to ensure the continuous operation of the supply chain and significantly streamline many different processes. We will explain how cloud technology can support logistics operations!

How is cloud technology used in logistics?

Logistics requires stable, resilient technological solutions for ongoing monitoring of the goods at every stage of delivery. However, creating and maintaining own IT resources is expensive and time-consuming. That is why the representatives of this sector follow the general trend and switch to cloud technology. This technology enables:

the quick implementation of the required applications and systems, e.g., ERP, DMS or CRM, enabling the continuous monitoring of all business operations,
using advanced software to manage supply chains,
an efficient, available and secure data exchange inside and outside the company,
the automation of formalities (e.g., creating and submitting documents),
advanced analytics, enabling the monitoring of the situation at the company and more informed business decisions.

The cloud for logistics – what are the benefits?

The cloud is an environment that makes it easier to take on the challenges faced by the logistics industry. After implementing this technology, the company can expect many different benefits, the most important of which include the following:

simplified management – better planning and fulfilment of designated tasks in real time;
scalability and flexibility – the infrastructure adapts to changing demand and unforeseen circumstances,
lower costs – investing in new solutions provides tangible profits in the long run and helps to reduce expenses;
lower risk of errors and faster response to disruptions – access to advanced analyses and continuous monitoring to help predict risks and solve problems;
security – data kept in the cloud are protected against unauthorised modification, loss, leaks or theft.

Thanks to cloud technology, the logistics sector can grow dynamically to make deliveries even faster, safer and more profitable.