Expert Panel:  "In the long run, international retailers have to be able to deliver within at least 24 hours in order to be competitive in their target markets."

June 8, 2017 by
Janine Nothlichs

This panel previously appeared in Cross-Border Magazine Nr.2, December 2016
"In the long run, international retailers have to be able to deliver within at least 24 hours in order to be competitive in their target markets."


-Foto_David_SchroederNO
David Schröder, SVP Operations at Zalando.
Logistics services are on the top of our customers’ minds when choosing an e-commerce destination and fast delivery is among one of the most important features they will look into. One year ago we started testing SDD in selected cities to find out what customers really want and how the processes and services should be deployed in order to deliver an actual added value. Our finding is that fast delivery is a requirement, but even more is the opportunity of choosing preferred timeslots that would fit the customer’s individual schedule. For this reason we believe it’s essential to constantly improve the logistics processes, and to partner with the best local providers.


Joeri Groenewoud1NO
Joeri Groenewoud, VP Business Development - EMEA eShopWorld
Why do shoppers currently accept longer shipping times? Typically, they can’t source the product locally, don’t want to use a substitute, or they want to experience the brand directly. As long as shoppers attribute value to brands, they will be willing to compromise in order to have that relationship. This means that brand development and marketing is the key driver, in terms of creating and sustaining demand. Notwithstanding that, every effort must be made to increase delivery efficiency to create a better experience. Already we see some global brands developing regional or in-country infrastructure to improve the cross-border shopping journey.

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James Boden,  Director, Retail and Brand Solutions, Retailmenot Inc.
To spend securely, modern online shoppers demand great service, speedy delivery and easy returns. In the past couple of years, efforts have been made to optimise the delivery process and services such as Amazon Prime Now have played to the ‘I want it now’ culture and set the bar high for competitors in the space. E-commerce provides retailers with a relatively simple way to enter new markets without the heavy investments of opening physical stores. Fulfilment should be a key consideration for retailers wanting to operate in this space. UK shoppers seem less inclined to shop abroad than those in continental Europe. Last Christmas, UK shoppers made just 3% of purchases abroad, the lowest share in Europe. The popularity of voucher codes that offer free delivery tell us that speedy, low cost delivery is certainly a priority for our members and it’s certainly feasible that a 24 hour turnaround will eventually become the expected norm. That said, many elements determine whether internationalisation will be a success. It’s a value exchange; savvy shoppers will be happy to wait another day or two for unique offers or competitive pricing.  

 

Steven_pasfotoYES
Steven Rymenans, COO & Owner of Bleckmann Group
As international retailers are under pressure to increase their service and speed to market, they are looking for faster processing in the warehouse and faster delivery to the end consumer. Bleckmann can help in both fields. Our warehousing processes are monitored closely, shortening cut off times and shipping out in higher frequency. Also in shipping, we have developed a local hero principle that gives our customers a one stop shop opportunity to reach a maximum of different carriers. In selecting the faster carriers, the total delivery time to market can be shortened.

 

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