We live in a digital age where transformation is one of the most crucial aspects of growth and progression. With this, adds on the term “convenience”. As the internet has leapt in the last 10 years, online shopping has become a favourite for people of all ages.
Just take your phone out, google your favourite product, compare the same products on different websites and voila! You buy that product in the comfort of your home.
One thing that we must remember is that time, transition and transformation within the E-commerce industry, have also put a considerable amount of pressure on the logistics sector.
According to Insight Ace Analytic Cloud Research, the e-commerce logistics market was valued at 341.02 Billion in 2022 and is expected to reach 2518.28 Billion by the end of 2031 at 25.09% CAGR.
Via this blog, we will delve deeper into the topic and figure out how e-commerce impacts cold chain logistics.
5 Ways E-commerce Impacts the Cold Chain & Logistics Sectors are as Follows
Consumers' Never-ending Expectations - There are 1.2 Billion youths from aged 15 to 24 who are impulsive, experimentative and order frequently. They see a certain trend and want to fit in that. With this being said, they even order and cancel the product according to their moods, usage and needs then.
For big companies, this is not a big issue but for smaller businesses that have just begun, this is really very pressurising.
Their expectations are dependent upon certain factors;
1) Time - Consumers want to save time that would just be doubled if they bought the same product from a physical store.
1) Time - Consumers want to save time that would just be doubled if they bought the same product from a physical store.
2) Costing - Often online products are priced lower to gauge audiences’ attention.
3) Variation - Consumers' preferences change with seasons. Online stores not only give them variety under the same segment but also expose them to different brands selling the same product under different budgets.
Rise in Quick Commerce - Nowads, same-day delivery or same-day slot deliveries are gaining momentum. Amazon Fresh, Swiggy Instamart, Zepto, and Blinkit are known prominent players in this segment. This has considerably put pressure yet paved a good opportunity in the cold chain and logistics sector.
Some of the challenges faced here are;
1) Proper Inventory Management - Quick commerce mainly deals with quicker deliveries or same-day deliveries so it is important to keep a close eye on the products available in sufficient quantities to fulfil orders.
2) Differentiating Factor - Today, with the rise of E-commerce, several delivery partners have also skyrocketed. A cold chain and logistics partner needs to give something exclusive to their customers only then big brands like Amazon, eBay, and Alibaba will work with them.
The Last Mile Challenge - Now, just the way e-commerce has tripped in size, the concept of having bigger inventory with larger product storage is declining and on the contrary, with the increase in quick commerce, smaller but more inventory is opening up which are located near to the end consumer. Now the cold chain and supply chain industry have transformed putting considerably less pressure on the last-mile delivery sector.
We have a detailed blog on how is last mile is a crucial part of the cold chain and logistics industry.
Manpower Transportation - E-commerce is entirely digital. Hence, the supply chain industry must be equipped with smart individuals who are well-versed with technology, data analytics, and digital marketing knowledge to make software that further handles the inflow of large orders.
Sustainability - Nowadays, e-commerce has made certain bold ambitions towards keeping high their sustainability agendas, which again puts pressure on the cold chain and logistics sector to embrace sustainability in their recyclable green packaging, customized containers, taking the shortest possible routes, carbon offsetting, switching to electric vehicles and many other modes that aligns with the e-commerce brand goal for indirect marketing.
So, we see that in today’s era, logistics and supply chains cannot work independently from e-commerce. If there are any changes in the latter, the former has to revise its set of plans, policies and actions.
If you too have any products or solutions within the cold chain and logistics sector and want to take your business to the Middle East, register and book your Prime Location Booths at the World ColdChain Expo 2025 Dubai.
