Sellers, get it now! DHL proposes four e-commerce supply chain trends for 2021

DHL, a subsidiary of global logistics company Deutsche Post DHL Group, has identified four overarching trends impacting the U.S. e-commerce sector based on DHL’s U.S. customer feedback and the development of the lightweight parcel industry after the pandemic .

Four market trends identified include: the need for multiple carriers, capacity constraints, cybersecurity and data privacy issues, and the resurgence of brick-and-mortar stores.

The need for multiple carriers

DHL has found that the multi-carrier approach is becoming more and more popular, especially after the epidemic . In 2020, some online merchants found themselves without logistics partners. Due to the capacity constraints of the logistics network , some logistics operators could not bear too much cargo, so many logistics companies restricted the cargo volume and added surcharges , and many online merchants had to face the resulting logistics problems.

DHL expects that the volume caps and surcharges for logistics operators will remain unchanged throughout the year. DHL said that by taking a multi-carrier approach and developing shipping strategies ahead of the second half of the year, online retailers can better mitigate unexpected disruptions and changes in market conditions .

Capacity constraints remain

Capacity was a topic of concern for logistics operators in 2020, and DHL suggests it should also be a topic of concern for e-tailers in 2021. As consumer online spending growth continues, the capacity crunch in 2020 is expected to continue into 2021, and logistics operators are unlikely to gain additional safety margins in the fourth quarter of this year. DHL predicts that online sellers may take a different approach in the coming year, namely by paying a certain premium to ensure capacity during the holiday peak.

Cybersecurity and data privacy concerns are growing

The pandemic has exposed the supply chain vulnerabilities and online security shortcomings of many online merchants. For physical stores with online businesses, accelerating their digital transformation means that many stores must invest in real-time cyber threat intelligence and conduct centralized monitoring and risk analysis.

According to DHL, the most agile and resilient sellers are also adopting unconventional strategies to identify vulnerabilities in their companies through bounty programs, which invite white hat hackers and security researchers to test the security of their systems. In light of the increasing number of data breaches and security threats, DHL said retailers must implement stricter security measures and controls to ensure the best secure online shopping experience.

Reinvention of the physical store

Those physical stores that had to close due to the epidemic have changed their marketing models. In addition to permanent closures, some have switched to online sales and offline delivery . Under this model, traditional retail stores are transformed into local logistics centers.

According to DHL, these stores offer customers the option of curbside pickup or delivery while reducing pressure on retailers’ primary logistics centers. With the advent of buy online and pick up in-store ( BOPIS), the footprint and technology of parcel lockers are growing globally. For online retailers, parcel lockers are gaining traction with reduced costs , convenience and the ability to safely get products into the hands of consumers .

Lee Spratt, CEO of DHL eCommerce, said: “Throughout 2020, we have successfully navigated the pandemic by working closely with our customers and scaling our forecasting processes to help them better plan and overcome future obstacles. ”

Seller

DHL

E-commerce

logistics