In a standard Ecommerce P&L, logistics stands as one of, if not the highest, cost line per order (5%-10% of AOV). It is one of the lines that is constantly optimized, whether to reduce it or to get more value for the dollar spent.                              

In the current market, E-commerce can only thrive if third-party logistics and shipping providers evolve alongside it - enhanced customer satisfaction in e-commerce hinges on them continuously improving their services.    

Despite their efforts, it can be argued that those actors are currently lagging behind e-commerce players in terms of tech velocity. In some cases, they even pose a significant challenge. If this weren't the case globally, wouldn't giants like Amazon, Alibaba, and Vinted continue to rely on them instead of developing their fleets?    

By internalizing their fleets, these companies have transformed a bottleneck into a competitive advantage. They reduce costs and channel every dollar spent on transport into their own valuation rather than into the pockets of shipping providers.    

However, internalizing a fleet isn't feasible for every e-commerce player—it's actually impossible for 99.99% of them. So, what has changed for this majority in recent years?    

In Europe, home delivery has increasingly shifted to shop and locker delivery, with each shipping provider expanding its coverage. While speed and convenience improvements have been minimal, carbon emissions have significantly decreased due to the rise of smaller and electric vehicles.    

Yet, the most noticeable gap between tech companies and logistics ones lies in digital and technological advancements visible to the customer. There have been no significant technological breakthroughs or features to enhance visibility, traceability, and convenience for end customers or sellers.    

A few examples to highlight the discrepancies:    

As a customer:    

• You get real-time tracking for your nuggets delivery but not for a new €1000 phone.
• You take a picture of your €300 rent bike when you drop it off but only provide a signature (which disappeared from almost any other world applications) upon receiving a new smartwatch.

As a seller:

• You get real-time tracking of your website conversion, but lack a comprehensive overview of your shipments.
• You receive 24/7 support on most SaaS tool,s but must wait a week for the resolution of a package incident investigation.

‍Chaynon supports Ecommerce players through their fast growth!    

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