E-commerce Opinion South Africa

Evolution of delivery systems to accommodate e-tail growth

With online buying growing exponentially, e-tailers are now on top of accessibility and security but the big challenge is distribution, which includes cost versus speed to provide same-day delivery, the need for a national footprint and the safety and physical address issues involved in servicing informal areas.
Evolution of delivery systems to accommodate e-tail growth

While many online buyers are currently having their orders delivered to their place of business, employers will soon be fed up with the constant flow of deliveries, as online shopping becomes a normal, everyday way of life.

Therefore, given the expected exponential growth in online buying, a futuristic view incorporates changes to physical appearance of residential homes or the 'new big letterbox'.

In the mid to late 19th century, the British government actively encouraged home dwellers to install letterboxes to improve the mailing system. Whether it was a slot in the wall, a box attached to a house or a box at the end of the street, an efficient method of distribution evolved.

The same could happen with residential properties, with some kind of structure affixed to the home, with enabling technology providing remote and limited access for a drop off or delivery to consumers.

Another challenge facing distributors of e-tail deliveries is the issue of returns. It is slightly higher in South Africa, but the worldwide trend for returns internationally is 30%. Again, with the right enabling technology, the courier company could get limited, monitored and controlled access to a facility and collect the return.

One would also expect to see the increase of existing national outlets diversifying by offering collection points (Mr Price and Exclusive Books are good examples of this), an increase in specialised distribution points, possibly even drive-throughs.

About Leoni Volschenk

Leoni Volschenk is the head of KNUP Logistics and Distribution.
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