GUEST COMMENT ecomm and logistics: how retailers can better leverage carrier expertise to drive value 

As consumer preference continues to drive ecommerce growth, carriers have a vital role to play in supporting retailers’ revenue growth and, crucially, delivering on customer satisfaction, writes Stuart Hill, CEO, DHL ecommerce UK.

Coming from a retail background, I believe there’s an opportunity to move away from the transactional, cost-driven nature of a typical carrier-retailer relationship and instead move towards a partnership model that meets our shared objectives; consistently meeting consumer needs while generating value for everyone involved.

The value of data
We live in a time when almost all services are compared to hyper-customer-centric disruptor businesses like Deliveroo and Uber, where technology is the primary enabler of customer service. Ecommerce is no exception. That’s why we need to focus on continuous innovation and using data to its full potential.

Our investment in digitalisation means we’ve built up a picture of what today’s consumers want and expect from their delivery experience. Use of our consumer app continues to grow as recipients choose to take control of where, when and how they receive these deliveries. By harnessing this data, such as the fact that 10% of all deliveries are redirected on the day, we can continue to develop options to offer greater convenience, flexibility, and network efficiencies. 

While cost continues to be a delicate balance for ecommerce brands, particularly in a time of high price sensitivity, by offering choice and, importantly, control, we can increase the value of the delivery experience.

Bottom line benefits
As cross-border trade continues to grow, with social platforms making it even easier for retailers to reach global audiences, there’s a big opportunity open to ecommerce companies, but one of the most challenging aspects of cross-border trade is returns.

A clear returns policy is a must for consumers across the world, but retailers need to ensure they’re able to fulfil their promises without making a loss on import duty. For a lot of ecommerce companies, particularly those who don’t have the resources to manage the duty drawback process, international returns are a drain on revenue. This is an area where carriers can deliver instant value, using our expertise to manage complex duty drawback, adding revenue straight back onto our customers’ bottom line.

Don’t choose between cost and sustainability
As retailers and ecommerce businesses continue to look for ways to improve their environmental performance, carriers play a vital role and, again, we come back to the data particularly when it comes to making good environmental decisions that don’t require heavy investment. Using insights on drop density we can collaborate to identify ways to encourage or incentivise consumers to make more environmental choices such as delivery to collection points to reduce road miles.

There’s nothing more wasteful than transporting fresh air – both environmentally and financially. Packaging is low-hanging fruit for cost saving and reducing transport-related emissions, but many businesses aren’t aware of the opportunity for change. By working in partnership, we can guide customers towards smarter packaging solutions.

As the demand for ecommerce continues to rise, delivery will become an even more important aspect of the end-to-end brand experience. Instead of focusing on cost, retailers should look to their carriers to deliver consumer value as well as revenue growth opportunities.

Stuart Hill, CEO, DHL ecommerce UK

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