Scream If You Want to Go Faster: The Real Cost of Shipping

Although a majority of consumers claim that cost is more important than convenience, online retailers are making increasing efforts into offering ‘ultra’-speed shipping options at premium rates. It is a self-fulfilling prophecy, where the more high-speed options are offered, the faster consumers expect to receive goods. Malory Davies writes for Supply Chain Standard about the challenges of meeting record levels of demand.

Warp Speed Cost Increase

How fast is ultra-speed? Nobody knows, and that is adding to the problem. Guaranteed next-day delivery is not as fast as it used to be, and ultra-speed would likely involve someone ordering in the morning and receiving in the afternoon. In effect, these would be emergency purchases, which likely would come with emergency-scale shipping prices. Convincing customers that shipping should not be free all the time is another hurdle to overcome. But ultra-speed shipping would offer a guarantee of arrival in a specific timeframe that is generally lacking today.

It is however important to note that speed is not the only factor for shipping growth:

Roger Sumner Rivers argues that ultra- convenient will be a bigger growth market than ultra-fast. “Solutions such as drop boxes at places convenient for customers including underground stations and other major thoroughfares, and drop-off and collection points including retailers with early morning and late night opening hours will deliver the biggest growth over the next few years, and be the biggest competitor to ultra-fast.”

For more, you can read the full article here: http://www.supplychainstandard.com/2014/09/scream-if-you-want-to-go-faster/

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