Feeds

Online sales hit logistical brick wall

Delivery is the key to success in ecommerce, research claims

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

As e-commerce takes off, online retailers are being hit by the logistical nightmare of delivering the goods to their customers. A report from Forrester Research suggests that as the number of e-sales passes the two billion per year mark, companies will have to rethink their distribution strategies. The research company says that delivery of goods has not been a major concern, since online sellers have limited the number of products available. Three factors will put pressure on the electronic retailer: expanded product lines, the need to move large volumes of small parcels, and rising consumer expectations. "No one is prepared for the exponential growth in parcel deliveries that online sales will generate," said Stacie McCullough, an analyst at Forrester. "Firms that fail to attack order fulfilment with the same vigour as online selling will experience customer defection, funding attrition, and distribution nightmares." So what is the solution, according to Forrester? Companies must develop distribution systems that follow the package on its journey from the Web site, to the customer's front door. Customers also need to be kept informed of the progress of their order. Less than half of the companies selling online that were interviewed for the research made a profit on packages they shipped, and a staggering 85 per cent can't handle international orders (Global village? What global village?) because of the complex customs laws involved. ® Daily Net finance news from The Register

New hybrid storage solutions

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Apple Pay is a tidy payday for Apple with 0.15% cut, sources say
Cupertino slurps 15 cents from every $100 purchase
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Forget silly privacy worries - help biometrics firms make MILLIONS
Beancounter reckons dabs-scanning tech is the next big moneypit
Microsoft's Office Delve wants work to be more like being on Facebook
Office Graph, social features for Office 365 going public
Alibaba swings a large one with STONKING IPO legal bills
Chinese e-commerce beast searches for $21bn from investors
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.