Like those in other industries, e-tailers in the consumer electronics market must deliver parcels safely, on time and according to the regulations applicable in the individual order. However, quite unlike many other industries, electronics has undergone and will continue to undergo massive hikes in demand. Smarter, stronger delivery solutions have the power to meet these increases full force and solidify brands as the best in the business from online check-out to last-mile logistics.
As we look forward, what challenges may stand in the way of successful electronics parcel delivery?
- Increase value proposition through delivery spending decline
According to the Consumer Technology Association, worldwide electronics spending will decline 2 percent in 2017. CTA cites a number of contributing factors: retail price drops, a strong U.S. dollar and low to no volume growth.
Compared to year-over-year figures from 2015, the electronics industry is still moving in a positive direction. However, this dip in consumer spending may afford e-tailers the opportunity to devise new methods for enhancing product value in the eyes of the consumer through better e-commerce offerings.
To do so, electronics producers must use every tool in their toolkits to assure customer satisfaction for the people who do buy. Moreover, these businesses ought to read the room, so to speak, and understand what dissatisfaction means in the current economic climate. Spending austerity signals a need to present consumers with a product both valuable and affordable. In e-commerce, that includes cost transparency in shipping supported by pricing in a currency buyers recognize and the inclusion of cross-border fees. When consumers know with confidence they are spending according to budget, they feel empowered to purchase.
- Target changes from dangerous goods regulations
In the last few years, North America and Europe have cracked down on lithium-ion batteries in electronic devices. Although lithium-powered devices with legitimate hardware are almost always safe to the consumer, these battery cells have been known to react unpredictably during high-altitude transport. As such, regulators around the world are calling on manufacturers to ship products with lithium-ion batteries as dangerous goods, requirements that usually come with extra packaging steps, paperwork and additional costs.
This is just one example of how seemingly small regulatory alterations can have sweeping impacts on an entire industry. But a trade services partner with eyes on global legislative changes can help consumer electronics delivery continue uninterrupted. Businesses can instead focus on adjusting their current logistics needs and saving money under a new regulatory regime while leaving the rest to the professionals.
- Watch out for biggest players shifting demand, fulfillment expectations
Conventional thought dictates that a rise in e-commerce would predicate the fall of brick and mortar. Turns out, this couldn’t be further from the truth, which means trouble for small businesses in the electronics industry.
Instead, businesses with permanent real estate have invested in transforming retail and warehouse locations into hybrid fulfillment centers to accelerate delivery even during the present e-commerce boom. In fact, Logistics Management believes this turning point in e-commerce is part of the reason why the e-logistics industry will grow 9.7 percent between 2016 and 2020.
An inventory management partner such as Landmark Global can help established retailers coordinate their physical and virtual expansions to capitalize on new online sales potential. Small businesses can benefit, too, by adopting powerful e-commerce solutions that allow them to compete against formidable rivals by delivering excellent customer service.