Reference no: EM132970210

CASE STUDY Ecommerce Continues Move Toward Heavier Freight Purchases

With the spread of COVID-19, expect a rise in e-commerce orders - the industry is used to small package deliveries, but shippers of heavier freight will also need to master online-enabled processes and transactions as their orders rise in 2020. Is This the Year Heavier Freight in Ecommerce Proliferates? The state of e-commerce continues to move more toward heavier, non-traditional online purchases. The trend has been evident in recent years, but heavier freight remained on the fringe of e-commerce shipping. However, the state of the industry is changing in the wake of the coronavirus, or COVID-19, and shippers need to understand why and what it means for heavier freight shipping and how to navigate heavier freight to stay successful in e-commerce freight shipping in 2020. What's Happening With Ecommerce Freight Shipping in 2020 The U.S. is in panic, and customers are demanding much more of shippers than ever before. The need to stock up is paramount, and shippers are struggling to keep up with demand. As more people look to avoid public places, the need for e-commerce freight shipping in 2020 will only grow, and with the uncertainty surrounding coronavirus, heavier freight will need to become more synonymous with e-commerce capabilities too. Moreover, today's consumers want the same delivery standards, fast and free, for heavier e-commerce freight, and consumers are actively avoiding certain retailers that cannot meet such standards. According to Freight Waves: "Of 330 consumers surveyed who bought an oversized piece of furniture last year, 56 percent said they would avoid a boutique retailer if the shipping costs were too high, while 36 percent said they wouldn't use such a retailer if the delivery windows were too long, according to a survey released August 29 by logistics technology company uShip and research firm YouGov. About 27 percent abandoned a boutique retailer's cart because they were turned off by the delivery expense, and 26 percent said replacing their current furniture was either too difficult or costly, the survey found." The Benefits of Heavier Freight in-Commerce Heavier freight in e-commerce offers several benefits to shippers and carriers alike. Carriers can charge more for heavier freight with lower volumes. Shippers can move more freight and effectively increase profitability. At the same time, heavier e-commerce freight shipping in 2020 will help keep the economy moving as coronavirus pulls the nation and world into an economic slump. With social distancing the new norm, everything is coming together to finally transform heavier freight into a core component of the global e-commerce shopping and shipping experience. For carriers struggling to keep up with capacity, heavier freight shipping can also fulfill more trucks, avoiding deadhead and unnecessary losses. Heavier freight will also become a standard part of shipping in the fight against coronavirus. Ventilators and heavy equipment will help to proliferate heavier shipping going forward, and the trucking industry is already working to help combat the spread of the virus through driver information, preparedness, and route optimization. Yes, route optimization returns to the conversation as companies look to minimize interaction in coronavirus hot spots, reports Jack Roberts of Trucking Info. https://www.supplychain247.com/article/ecommerce_continues_move_toward_heavier_freight_purchases/Cerasis

Question 1

1.1 With reference to relevant theory and the information in the above article, analyse the major benefits of E-Commerce to Consumers in freight shipping.

1.2 Examine the Benefits of E-Commerce to Society with reference to freight shipping.