Where is the Delivery Industry Heading?

by | Mar 11, 2019

It’s not hard to see that our world, including delivery, is changing at breakneck speed. Everything from communication to food tastes to education looks very different than it did even just twenty years ago. These changes have been largely driven by technology and the instant interconnectedness of the internet.

The world of shopping, shipping, and delivery has not been left untouched. Some of the biggest changes can been seen in consumer mindset about convenience and process times. What does this mean for shipping and delivery companies like Zipp Express? With the pace of such change, it can be hard to say. But a focus on customer need will help our company navigate it all.

Consumer Demand

As online shopping continues to gain popularity over the retail experience, the parcel delivery business has been experiencing rapid growth. Purchasing power has shifted significantly into the hands of consumers. Those consumers can now find items online from a variety of sellers with many different delivery options, reviews and ratings.

Companies now must find ways to provide better service experiences and offer less expensive options. This places pressure on their shipping and delivery partners.

This has created issues for courier, express and parcel companies who have had to rethink strategies around efficiencies, because their costs have risen faster than revenues. These strategies include scaling up to meet projected future consumer demand (which is expected to continue rising), expand capacity, and modernize their networks to build in efficiencies.

Another large are of change has been mail delivery, which has largely been replaced by email and social media. Because of the instant connectivity of these options, postal companies have realized that mail delivery is no longer needed and should not be counted on as a large source of future revenue.

Postal companies have therefore shifted focus to parcel delivery, services, and supply chains to create better revenue streams, crowding the courier, express and parcel markets and increasing competition.

Partnerships

Strong partnerships between retailers and their courier, express and delivery company partners are a necessity in this environment. A retailer needs a delivery partner it can count on because future business depends on it.

If a customer finds an item online and loves it, but then has issues receiving the item after ordering it, the customer experience with the retailer is poor. The consumer transfers the delivery frustration to the retailer, who may never recapture that business prospect.

Courier, express and parcel companies must step up and provide first-class experiences for the retailer and in turn the retailer’s consumer to protect this business.

Innovation

Shipping and delivery companies have been innovating in a variety of ways to keep up with these changes. Some have diversified their portfolio by expanding their international footprint. Some have been investing in their infrastructure to create efficiencies. Some have been enhancing their offerings to include things like same-day delivery or free “redelivery” options in case a package does not make it to its destination.

Others, like Amazon, have been testing completely new options like drone deliveries. None of these come without large costs, and all shipping and delivery companies have found themselves adapting to keep up.

These changes benefit consumers in that competition drives companies to offer cheaper options, better service, and more transparency.

Zipp Express’s Place

Zipp Express has been operating in the St. Louis area for 30 years and has remained flexible, adapting to the many changes the shipping and delivery industry has seen recently. Listening to customer needs and solving customer issues remains our focus, and our team is dedicated to taking care of our clients!

No matter the changes in the shipping industry, you can count on Zipp Express to provide on time delivery every time.  Call us today for your shipping and delivery needs!

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