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Customer expectations and buying behaviours are always evolving, with more sales channels available, shorter delivery timeframes expected and new technologies, eCommerce never stands still. This has only been accelerated by the Coronavirus pandemic, with more people buying more online than ever. This is a good thing as it means never-ending opportunities for your business to grow. However, this also brings fierce competition and operational pressures and challenges. How are customers currently rating your delivery and returns capabilities? How can you de-risk and protect delivery? Are you using multiple carriers? The likelihood is that you are, which is great! But this usually also means multiple printers, numerous label formats and countless hours of administration. And that’s not all. There are also various technology integrations to manage, which often results in a disjointed and fragmented view of your overall operation. There is an easier way – it’s time to see delivery differently.
Growing your business financially and geographically is no easy feat. First you need to meet and exceed the expectations of your customers domestically, then you have to identify and fulfil the requirements of customers abroad too. The businesses that will see significant growth and success, will be those that truly understand what their customers want, and have the operational flexibility and agility to scale and adapt along the way.
When it comes to delivery, giving customers what they want really comes down to choice. It’s almost impossible to satisfy the needs of every single customer, and what one person might expect from delivery will be different to another. With the right multi-carrier approach, you can offer the breadth and range of delivery options needed to give customers the power to choose for themselves. This is what will help you meet and exceed customer expectations, no matter what they may be, to make you the first-choice retailer every time.
eCommerce businesses are under increasing pressure to make online shopping, and delivery, as easy and convenient as possible, almost to the point where it’s not possible at all. This, along with the hike in demand, only adds to the strain on operational staff and the ‘do-ers’ within the business to maintain service levels. But, there is a way to work smarter and more efficiently.
By unifying multiple carriers into a single multi-carrier platform and automating previously manual tasks, your warehouse staff can immediately free-up time and maximise their capabilities – enabling them to consistently protect service levels. What was once a frightfully complex process is now a simple and effective procedure – enabling the scalability to grow in line with your business’ and customers’ requirements. By combining the best in services, technology, and industry expertise, you can maximise your staff and operations to handle any growth or peak period.
At GFS, we combine our expertise and services with innovative technology to help you turn your multi-carrier processes into your competitive advantage. Our innovative solutions enable you to provide customers with delivery and returns options that make their buying decisions easier and more frequent, and we help streamline and simplify your delivery operations across the globe.
So, if you want to see delivery differently and thrive in this ever-changing world, pick one of the topics below to find out more…
Did you know that according to IMRG, lack of choice of delivery is the 2nd highest reason for cart abandonment, after cost of purchase?
This just shows how many sales are lost because of delivery – but it’s an easy thing to put right!
There’s a common misconception in online retail that consumers want delivery that’s fast or free.
But in our experience, retailers that offer a wide choice of delivery see around 16% more basket conversions! It all comes down to convenience…
How can your delivery help your customers buy more easily and more frequently?
It’s simple, give your customers the power to choose!
Remember one size doesn’t fit all, some customers like to choose a specific day, or a time, or Click & Collect, and customer preferences can change order to order.
The trick is to make sure that delivery doesn’t cause customers to think twice, and to remove any reasons why a customer might abandon their cart. Offering a range of delivery options means the customer can personally select the one that’s most convenient for them, so they can buy confidently, easily and more frequently.
There is plenty of opportunity for global growth, but one thing is for sure, shipping cross-border isn’t straightforward, especially now that we’ve left the EU. Complex customs processes, high shipping costs and lack of local knowledge can all put businesses off from actively targeting to customers overseas. If this is you, there is an easier way.
Using one multi-carrier delivery provider puts you in the unique position of having access to knowledge and expertise of the entire carrier market worldwide, so they can recommend the best carrier services for you and support you in understanding cross-border regulations. This will take the hard work out of cross-border delivery, helping you to ship to new countries easily and cost-effectively.
Equally, many consumers hesitate to buy from sellers abroad due to concerns around shipping times, costs and customs charges. You might want to consider a DDP (Deliver Duty Paid) option or a Duties & Taxes calculator to show customers the full cost of any additional customs charges. This will give customers peace of mind from the outset so they have confidence to buy, no matter where they are in the world.
78% of consumers look at the returns policy when choosing where to shop, so it’s clear that returns can have as much of an impact on sales as delivery. If consumers are unsure about a returns policy they’re unlikely to take a risk and will shop elsewhere.
Paperless returns are quickly becoming the industry standard and it’s easy to see why. It’s the easiest way to offer customers a wider range of returns services, including exchange options, to for greater flexibility and convenience. It also allows for faster refunds, because you can see what items are being returned and why, before they arrive back at goods in. All of this creates a smooth and seamless customer experience that keeps customers coming back for more.
At GFS, we combine our expertise and services with innovative technology to help you turn your multi-carrier approach into your competitive advantage. We can help you streamline and simplify your delivery operations to meet the needs of customers across the globe – and empower you to sell more.
To test your current readiness and capabilities, take one of our quizzes now…
We all want to work for a successful, growing business. But with growth comes pressure to fulfil demand, with ever-changing customer expectations, sales channels and international regulations, which only adds to operational complexity. There’s also the added challenge of ensuring you have effective contingency plans to deal with peak periods or times of unexpected change. Efficiency is critical to ensure you can scale to sustain this growth long-term. But how can you keep delivery simple, when it only seems to be getting more complicated?
To get the range of delivery options you need to meet the needs of your customers, you’ve likely opted to use multiple carriers for shipping. But this means you may be dealing with multiple printers, labels and processes. You might also have various technology integrations to deal with, which crucially results in a disjointed and fragmented view of your overall operation.
So, what’s the best plan? The answer is simple – embrace multi-carrier technology. By consolidating all your carriers into a single multi-carrier platform, you still get all the advantages of multi-carrier shipping, but you can despatch all your parcels through one system. This offers one centralised system which will streamline your processes so you can do things faster, increase the productivity of your warehouse staff and free up precious man-hours to focus on more business-critical tasks.
Shipping internationally presents many operational challenges – what are the best carriers and most cost-effective services for each market? What customs duties need to be paid? Are there specific trade regulations to consider? It’s fair to say cross-border delivery isn’t easy!
Especially now that we’ve left the EU, eCommerce businesses should be prepared for continued disruption and changes to cross-border trade. Carriers have reported delays at the borders and have been known to switch services on/off at the drop of a hat. A global multi-carrier delivery partner can help you stay abreast of regulatory developments as they happen, and offer industry insight, breadth of service and technology automation to take the hard work out of cross-border delivery.
Peak is the busiest, and most lucrative, event in the eCommerce calendar. But it takes a lot of work behind the scenes to make it happen. Lots of customers depend on you, and your carriers, to get their orders to them on time.
While you can do everything possible to plan and prepare, if we’ve learnt anything in recent times, it’s that we never know what’s round the corner. What’s your plan when things go wrong? Can you switch carriers quickly and easily? Can you get extra vehicle capacity if orders overtake your forecasts? Do you know what other options are available to you?
At GFS, we combine our expertise with innovative technology to help you streamline your multi-carrier approach, maximise your resources and give you contingency, both at peak times and throughout the rest of the year. From the latest tech to global capabilities, we’ve got your back.
To test your current readiness and capabilities, take one of our quizzes now…
Covid, Brexit, Peak – it’s fair to say 2020 was an eventful year with some big lessons learnt.
The first being that you never know what’s around the corner, and as we continue to live with Covid and get to grips with life after Brexit, we’re starting off 2021 looking ahead to a future that’s as unpredictable as ever.
2020 was massive for eCommerce. As consumers were forced to step away from the high street for the first time, eCommerce reigned supreme with consumers shopping online more than ever before.
In fact, in the UK 30% of all retail sales were online, compared to 20% in 2019. So it’s clear that Covid has accelerated eCommerce growth faster than anyone was prepared for. This really tested the resilience of retailer supply chains. Retailers and carriers were left with a bottleneck of delays, struggling to deliver orders to customers and fulfil demand.
And now we’ve entered Lockdown 3.0, and we’ve finally left the EU too, who knows what this year will bring.
The retailers that will not just survive, but really thrive this year, will be those that have taken heed of what they’ve learnt from 2020 and built the necessary contingency and agility into their delivery operation to adapt to ongoing change.
So, what can we learn from 2020 and how can you continue to deliver a consistent customer delivery experience no matter what?
At the beginning of lockdown, carriers were overwhelmed, running over-capacity most days, and if this happens, it means they can stop collections and refuse parcels. At Christmas, carriers were operating at 90%+ capacity on most days, even 100% at times. This is not uncommon, and we see this often during peak sales periods. On the other hand, we’ve even seen major carriers go into administration at crucial times of the year.
If your carriers come up against any problems, your parcels can’t go anywhere, which just creates a traffic jam of customer orders and a cycle of delays. A single multi-carrier partner can help you easily switch carrier services if you need to, without any new contracts or integration work, so you know you always have a plan B.
It’s also the easiest way to give customers the choice and convenience they seek. 45% of customers will abandon their cart if there is a lack of delivery options. Using a multi-carrier partner gives you instant access to a wide range of options, such as same day, next day, nominated day or click and collect, all in one place so customers can choose convenience every time.
It’s important to protect your business from the inside out by streamlining internal systems and processes to maximise efficiencies and productivity. Just as you can consolidate your carrier services with a single multi-carrier partner, you can do the same with your despatch software.
Multi-carrier software gives you control and visibility of all parcels across all carriers to all destinations, so you can label, ship, track and trace orders all with a single integration and process.
Not only can give yourself in-the-moment flexibility and switch carrier services quickly and easily, but you can future-proof delivery and add new carrier services without any heavy integration work or additional costs. So, no matter what happens, you can adapt delivery at any time to meet the needs of your customers, operational capacity, delivery performance, budget – and avert a potential crisis too.
While the UK has now left the EU and the beginnings of a trade agreement have been announced, we still have a long way to go. eCommerce businesses have to be prepared for continued change and disruption to cross-border trade, and in particular, shipments to/from the EU.
We’ve seen this already this year, with some carriers temporarily suspending some services to the EU due to delays at our ports and borders.
If you have a large customer-base in the EU, or have plans to expand to Europe, check you have all the required information and documentation. Shipping to the EU now requires a Customs Declaration plus evidence of the country of origin, as well as an EORI number. You may also wish to open a Duty Deferment account so you parcels can pass through customs quickly and smoothly.
Additionally, moving part of your fulfilment operation to the EU could help you avoid the cost and complexity of border controls and customs documentation altogether. This means your suppliers can deliver to your EU warehouse or fulfilment centre, and you can deliver from this location directly to your EU customers for faster shipping and a more seamless delivery experience. This will reduce the risk of delays and costs, as well as provide a base to continue growing your business in EU countries.
An expert global delivery partner will keep you updated with Brexit developments as they happen and proactively support you in implementing process changes in advance, so you’re always prepared to continue servicing your EU customers with minimal disruption.
As lockdown boosted home delivery, this inevitably also led to an increase in returns.
But returns have a direct impact on the bottom line – in fact they cost UK retailers a whopping £60bn a year! (ZigZag, 2020)
With 89% of consumers checking the returns policy before making a purchase (UPS – “Pulse of the Online Shopper), retailers can’t afford to leave returns to chance. But retailers will need to manage the customer experience with operational cost – and this all comes down to efficiency.
A paperless returns portal (like GFS Global Returns Pro) can help you give customers the choice of returns options they’re looking for to clinch the sale. Electronic returns also offer better visibility of what’s being returned and why, so returns can be processed faster and goods can be returned to stock faster to help recover costs more quickly.
eCommerce is booming and as we enter another national lockdown, we’re expecting to see volumes soar again.
So while there’s plenty of demand, the challenge will be in ensuring your delivery operation is robust enough to fulfil this demand, from checkout to doorstep and back again, so you can secure every sale and give customers the confidence you’ll deliver every time they order again.
While customers were understanding of the longer transit times in lockdown 1.0, almost a year on consumer patience is wearing thin and the retailers that come out on top will be those that have taken the opportunity to build contingency into their supply chains.
GFS is here to offer you support and contingency whenever you need it. As one of the biggest buyers of carriage in the UK, we can offer instant access to 1000+ different global carrier services, plus our scale and influence means we find solutions fast. Whether this be escalating parcel exceptions, finding extra vehicle capacity or switching carrier services entirely – we can help you run business as usual, day after day, no matter what.
Click here to see how we could help you build your contingency plan in 2021.
We’re coming out of our bunkers to see how eCommerce delivery survived the tsunami of Peak, Brexit and COVID – and to ask ourselves, what on earth happened and, most importantly, how do you gear up your eCommerce delivery for success in 2021?
Find out by registering for our webinar at 11am on Wednesday 27th January 2021!
Make your shipping easy with multi-carrier technology
Thanks to customers’ continuous demand for choice and convenience (in both delivery and returns) you need to be operating at an optimum level. Add to this, the growing numbers of online marketplaces, omnichannel retail, and the need to provide in-flight delivery options, and it’s clear you need to be going above and beyond like never before. You’re no doubt already using multiple carriers to meet your customers’ needs, but this in itself presents challenges and complexity. Not even mentioning the technical integrations and multiple technologies, you’re probably finding that you have a disjointed and fragmented view of your operations. So, what is the solution? Well, given that a failure to provide customer satisfaction in today’s world can quickly result in bad reviews on sites like Trustpilot, you need to act fast.
With this in mind, what are the key pieces of technology you should look for to make multiple carrier and multi-channel shipping easy?
A complete solution
There is a variety of shipping and dispatch technologies that will ultimately meet most of your needs, but they lead to a disconnection in your process, and let’s be honest… headaches. So, what you need to do is choose a comprehensive solution that requires just one easy integration that can then be added to with simple bolt-ons. This approach allows you to ‘join the dots’ in your shipping and dispatch processes and make your entire operation faster and smarter. Look for a complete solution that provides the following capabilities…
1. Point of sale
Give your customers better delivery choice and reduce cart abandonment with a delivery options plugin. Using intelligent shipping rules, the tech presents personalised delivery options at the checkout – maximising the customer experience and winning you sales. An innovative Duties and Taxes calculator will also help you decide if you want to combine duties and taxes in the cost, or let the customer choose to pay now or on delivery.
2. Consolidate order data
Channel connector technology pulls orders from your various sales channels and extracts tracking data. You can then automatically return tracking information to your customers, no matter which sales channel they buy from. This untangles the complex flow of orders from multiple sales channels, connecting them together to unify the despatch and delivery experience.
3. Label Production
An agile despatch platform optimises and streamlines your despatch operation, offering carrier-compliant label printing at a rate of up to 50,000 labels an hour, with automated parcel routing. This helps you get your orders out the door fast with full traceability, and ensures you send every parcel with the most suitable and economical carrier service.
4. Track and trace
A multi-carrier tracking portal provides maximum transparency and control of your shipments. Track every parcel you send in one place and raise queries to action with a built-in actions manager feature.
5. Analytics
With your very own delivery dashboard, you can gain a holistic view of all your shipping data, including parcel volumes, distribution across carriers, geographical locations, carrier performance and queries resolved. This enables you to make better-informed and smarter decisions in future.
6. Customer service
Designed specifically for companies with customer service teams handling parcel issues, the latest technology empowers the team to proactively manage parcel exceptions quickly and effectively through direct contact with carriers and consignees, to reduce inbound customer queries and exceed consumer expectations.
7. Returns
Returns can be a horrendous drain on resource, which is why a self-serve customer portal is the next step in delivery automation. Customers can not only choose the returns service that’s most convenient, but it also takes away back-end processing that can be costly and cumbersome.
8. Invoice reconciliation
With the right plug-ins, you can receive automated invoice analysis that evaluates charges in comparison to expected costs. The software highlights any incorrect charges, anomalies and unexpected surcharges against your agreed tariffs to ensure you never spend more than you should.
We bet you never thought that this level of capability was possible in one solution – but it is. Now, think about how much easier and streamlined your operations would be if you could do all these things via one technology at your business.
Simplify your shipping with GFS
At GFS, we combine our expertise and vast range of services with the latest in innovative technology to provide you all the tools you need for a complete, enterprise-level multi-carrier approach. From checkout to labelling and from dispatch through to tracking and reporting, we deliver an ‘all in one’ delivery solution. The technology is easy to integrate, simplifies dispatch and boosts warehouse efficiency, making your job easier without the need for additional resource.
You can get all of this and more with GFS Enterprise Carrier Management technology.
From analytics to automation: what’s the outlook for delivery technology?
Technology moves so fast and much of it we now take for granted, for example mobile phones, Bluetooth earpieces and universal translators.
It might be some time before packages can be beamed straight into our homes by a transporter, but the way we ship and receive goods is going to be unrecognisable in a couple of years. And resistance is futile!
From drones leaving packages in customers’ gardens to autonomous vans making deliveries, technology is going to transform the despatch world. Although these ideas are still some way from becoming reality, other technologies are already having a big impact on how deliveries are logged, assigned, labelled and tracked. And it’s having an even bigger impact on the efficiency, accuracy and agility of shipping services.
Harnessing the power of automation and analytics
So what are the top trends and technologies that can make a difference to your business? First up, automation. A lot of despatch processes and workflows are already subject to a degree of automation. For example, Luxury Legs uses GFS Selector to automate the printing of parcel labels across all its sales channels and carriers. This has helped to cut despatch time by 50% and free up valuable resource.
But this is just the first chapter in the automation story – things are about to get even smarter. Worldwide spending on AI and process automation is expected to top $15.4 billion by 2021, with robots playing an increasingly important role in warehouse and logistics operations.
As more processes become automated, the easier it becomes to capture data at every stage of the customer experience. And that’s where the next trend comes in: analytics. Industry experts predict that worldwide revenue for big data and business analytics solutions will top $274.3 billion by 2022.
Analytics equal insights, and insights drive innovation and improvement, which will be increasingly important as merchants ship to more customers across more borders.
Mamas & Papas has already witnessed first-hand the power of analytics. By using GFS Reportor, it has been able to tap into key analytics, such as parcel volumes, geographical split and carrier performance, to help ensure performance levels are met. As a result, it’s seen a 10% increase in customer satisfaction and a 15% increase in the speed of despatch.
Giving delivery a personal touch
Richer analytics can not only help optimise internal processes but also personalise customer experiences. Consumers increasingly want to be treated as an individual at every stage of the buying cycle – and that includes delivery. More than 70% of customers expect you to understand their needs and expectations and more than 60% expect you to adapt based on their actions and behaviour.
Personalisation has already started to influence the shipping process. Let’s look at Mamas & Papas again: it uses GFS Checkout’s intelligent rules engine to personalise the delivery options presented to its customers based on the size of their order and their location.
For a retailer to remain competitive, this type of personalisation needs to be delivered at scale and at speed. Around 70% of customers use multiple channels to start and complete a single transaction. To ensure they receive a unified ecommerce experience, personalisation needs to be an omni-channel affair.
Maximum innovation for minimum investment
Delivery technologies and trends are evolving all the time, which means today’s brainchild could be tomorrow’s white elephant. As a result, developing and maintaining IT solutions and skills in-house can prove costly and risky.
By partnering with a specialist solutions provider, retailers can tap into the latest despatch innovations without having to make any capital investment.
Why not find out more about how GFS can help you leverage the latest delivery technologies?
Amazon has rung the bell! Peak has officially begun – But what does peak during a pandemic look like?
Amazon Prime Day has officially kicked off Peak 2020, but it’s safe to say that this year it will be unlike any other.
The Coronavirus pandemic has led to unprecedented eCommerce growth with consumers now buying more online than ever. This volume uplift looks set to continue, with UK online spending expected to reach £73.4bn by the end of 2020 (+18.1% post-Covid), and it’s estimated Black Friday will be 14% bigger than the last.
These are big figures, especially when retailers and carriers have been managing peak-level volumes throughout the year already. So, could we be seeing a “peak on top of peak”?
But while Covid has helped some businesses thrive, 2020 also saw some of our favourite retailers and brands sadly collapse into administration. It’s also thought that almost 3 million people will be unemployed by Christmas, so consumers may well be more reluctant to spend.
So, are retailers set for a bumper Q4 or will Covid steal Christmas?
We think so, yes. Although consumer confidence could be shaky, online will rule supreme as local lockdowns and social distancing continue to keep people away from the high street.
At GFS, our customers have consistently seen an increase of +50% in volume compared to the same period last year – and there appear to be no signs of this slowing down.
Each year peak sets new highs but it feels as though the peak will be turned all the way “up to 11” this year.
This may sound like a dream from a profit perspective, but it could quickly turn into a nightmare if retailers are operationally unprepared to fulfil these kinds of volumes, amid the unpredictability of peak and the uncertainty of a global pandemic.
The sudden impact of Covid exposed some major weaknesses in eCommerce business supply chains, and really highlighted the importance of having flexibility and contingency to adapt at short notice. Any retailers that haven’t taken heed will only continue to stumble through peak in crisis mode, leaving themselves vulnerable and exposed to risk.
So sales may not be a problem, but getting orders delivered to customers in the way and time they want will be more of a challenge.
It is worth noting that carriers have invested millions in expanding their networks this year, opening more depots, procuring more vehicles and hiring more staff to ensure they are match-fit and ready to support what looks set to be a particularly challenging peak.
But – and it’s a big but – carriers are reporting that their anticipated volume forecasts have been supercharged by 5 years, so this peak, carriers are going to be really strict in how they manage volumes through their network.
This means you should be prepared for:
It’s critical that your forecasts are as accurate as possible to lock in the right capacity with your carriers, BUT we also know that things don’t always go to plan. So, it’s also vitally important to have access to multiple carriers, to give yourself a ‘Plan B’ if things go wrong.
While consumers were reasonably understanding of the challenges that retailers faced throughout lockdown, 9 months later they’re not going to be so forgiving – especially as we head closer to Christmas when timing is everything.
Now consumers are expecting to be able to order and receive their delivery when they expect it – virtual queuing and 10-day lead times are just not going to cut it. After all, retailers have had all that time to prepare and fix any operational, technological and logistical issues that were highlighted by Covid – right?
Actually, in a recent study carried out by Brightpearl, 54% of retailers have not made any changes to their fulfilment model since the pandemic.
This Christmas, it won’t just be a battle for the best products or most attractive promotions, but the most reliable delivery. With the spotlight firmly on customer service, combined with the huge hike in parcel volumes, this will naturally result in more inbound customer service queries, which will need to be resolved quickly to minimise any impact on the customer experience and on CS team workloads.
Peak is a time when brand loyalty is really put to the test, and at a time when the patience of the general public is wearing thin. Delivering on your promises will be a key differentiator that will not only win new business but solidify repeat custom through peak and into the New Year.
2nd January is National Returns Day, the day that sees 72% more returns than on an average day in December.
Often businesses forget about returns because the focus is on peak. But with 78% of consumers looking at the returns process before choosing where to shop, they are hugely important. With more people buying online, we can expect to see more returns than ever come January 2021.
An online paperless returns portal is the best way to get visibility of all your inbound returns so they’re easier, faster and more cost-effective to process.
Peak is likely to throw up a lot of surprises, and at GFS we love surprises!
We’ve been protecting peak for retailers for the last 20 years, and we actually look forward to it every year because it’s when GFS really comes into its own and when customers are reminded of why they chose us.
“Our only regret after experiencing our first peak with GFS was that we had not done this 10-years earlier!” Hampers.com
This year, we’ve invested heavily in increasing our capacity and ramping up our operation. We’ve opened new depots, added new global suppliers and even expanded into Europe with GFS Europe, to give us more coverage than ever before.
If you need a delivery partner that’s got your back this peak, contact us now to talk about how we can support you – But you’ll need to act fast, the countdown to peak has already begun…
Online retailers face a tough market. Customer expectations and ambitions to grow into international markets mean that it’s impossible to provide customers with the delivery options they want across multiple countries, with just one carrier. This means that many eCommerce businesses have to work with multiple carriers to thrive.
Managing different carriers can be a real headache, which is where Multi-Carrier Management comes in. This enables companies to:
Manage carriers more easily
Switch between carriers to reduce costs
Offer a great customer experience with tracking and easy delivery
Reduce cart abandonment
Easily access new cross-border markets
Mitigate risk
Multi-Carrier Delivery Management helps businesses manage different carrier contracts, invoices, fuel surcharges, parcel tracking and reporting all through one single system. This not only simplifies order fulfilment operations and provides business contingency, but it’s also easier to offer customers more delivery options, and generally a better experience overall.
Retailers are also able to easily switch between carriers they want to use for certain deliveries. This not only ensures the best and most cost-effective service is used for each order, but also offers retailers with contingency so they always have a back-up plan, even if the unexpected happens.
Having the option of different carriers not only offers flexibility to businesses, but also gives customers more choice. Customers want delivery options, and have different needs whether it be based on level of convenience, speed or cost. Research consistently shows that customers are more like to buy from a website that offers options so it’s more important than ever to offer as much choice as possible to prevent customers from abandoning their carts at checkout.
Even with effective Carrier Management, working with multiple carriers can be time consuming and costly. With GFS, Multi-carrier Delivery Management is made simple. Through just one relationship, one contract, one technology system and one invoice, GFS can help manage delivery across all carriers, countries and channels, with value-added expertise and operational support. Solving delivery problems is what we do. Contact us today to get started.
Businesses have been bracing themselves for Brexit for 4 years but this year the countdown to Brexit became very real – and then of course 2020 threw us an even bigger curveball.
The Coronavirus pandemic has really tested the resilience of retailer supply chains, as a dramatic spike in orders followed a sharp decline in supply. In May, online sales hit a 10-year high and were up 24% on the same month in 2019 (IMRG Capgemini Retail Index 2020). Retailers were left with a bottleneck of delays as they struggled to fulfil demand and maintain stock levels. This exposed some key weaknesses in business supply chains, with the importance of contingency and agility shifting sharply into focus.
As the world gets to grips with the ‘new normal’, what can we learn from the impact of Covid19 and how can we apply these key learnings to supply chain strategies now as the Brexit transition period comes to a hard stop on 31st December 2020.
One of the biggest learnings we can take from the Covid situation this year, is to spread out potential risk as much as possible, and not to keep “all your eggs in one basket”, especially when it comes to suppliers.
Many retailers rely on “The Factory of the World” to source their products, but when the virus first appeared in China, the country swiftly closed its borders, leaving stock levels hanging in the balance for many retailers.
Do you have suppliers in the EU? We don’t know what will happen when border-free trade ends on 31st December. It’s unlikely there will be a complete halt on supply, but there will be some significant changes to customs and import/export duties, which could lead to longer transit times and potentially higher costs.
Diversifying your network of suppliers will help spread and reduce the risk, so that if you come up against any problems importing stock from Europe, you can quickly pivot and order stock from alternative UK-based or international suppliers.
Just as there may be delays and costs importing goods from the EU, the same will apply when shipping orders out to your EU customers.
If you have a large customer-base in the EU, or have plans to expand to Europe, shipping from the UK will incur more complex customs processes and duties, which could result in longer transit times, delays, or worse, return to sender.
Moving part of your fulfilment operation to the EU could help you avoid the cost and complexity of border controls, customs documentation and Duties altogether. This means your suppliers can deliver to your EU warehouse or fulfilment centre, and you can deliver from this location directly to your EU customers for faster shipping and a more seamless delivery experience. This will reduce the risk of delays and costs, as well as provide a base to continue growing your business in EU countries.
If this is not for you, there are a number of things you can do now to reduce the risk of border control issues from the UK, such as using Paperless Trade and getting a Duty Deferment account – check out our Brexit Checklist for a full list of everything you can do now to minimise disruption to delivery and returns from January 2021.
Contingency means giving yourself flexibility and agility to adapt to change.
At the beginning of lockdown, carriers were overwhelmed, running over-capacity most days, and if this happens, it means they can stop collections and refuse parcels. This is not uncommon, and we see this often during peak sales periods like Christmas. On the other hand, we’ve even seen major carriers go into administration at crucial times of the year.
If you rely on a single carrier, and this carrier comes up against any problems, your parcels can’t go anywhere, which just creates a traffic jam of customer orders that creates a cycle of delays. The trick is to have multiple carriers at your fingertips so you can easily switch if you need to. An added bonus of this is that you can use each carrier to your advantage and tailor delivery to each customer, product and destination to strike the right balance between service and cost-efficiency, which also gives the customer the best possible delivery experience and helps you manage costs.
As lockdown boosted home delivery, this has inevitably also led to an increase in returns.
But returns have a direct impact on the bottom line – in fact they cost UK retailers a whopping £60bn a year! (ZigZag, 2020)
Post-Brexit, EU returns could be subjected to additional customs and duties requirements, which would create even more complexity and cost for businesses.
With 89% of consumers checking the returns policy before making a purchase (UPS – “Pulse of the Online Shopper), retailers can’t afford to leave returns to chance. But retailers will need to manage the customer experience with operational cost – and this all comes down to efficiency.
A paperless returns portal (like GFS Global Returns Pro) can help you electronically generate the required customs declarations for duty relief on cross-border returns , to ensure cross-border returns are as swift and seamless as possible for customers, and that you don’t pay duties twice.
Alternatively, if you choose to relocate your fulfilment operation to Europe, you could avoid the dreaded red tape altogether.
eCommerce has boomed as social distancing moves consumers away from the high street, and soon we’ll be heading towards peak AND Brexit at the same time.
Both Peak and Brexit will throw up a lot of unknowns. We don’t know what social distancing measures will still be in place over Christmas, or how consumer confidence will be impacted.
Forecasting and planning can only take you so far, which is why it is vital to focus on mitigating potential risk and having contingency plans in place.
Now is a critical time to strike the right balance between protecting the bottom line and the customer experience.
Here at GFS, we have been prepping for Brexit for the last 4 years, working closely with our carriers and customers to understand how the industry is evolving to future-proof against Brexit and how we can help retailers.
That’s why we have set up GFS Europe, to help businesses move their operations into Europe easily as contingency in response to Brexit. As part of this new service, we are now offering warehousing and fulfilment services, as well as collections, deliveries and returns from/to anywhere in Europe.
Lockdown restrictions are slowly being lifted but carriers are still taking extra care to deliver as safely as possible.
You probably already know that contactless delivery has become the norm, so parcels no longer need to be signed for, and drivers and customers can keep their distance to reduce the spread of infection. But proof of delivery is still a must to protect the bottom line and the customer experience – lost parcels cost a lot of time and money and are immensely frustrating for consumers.
But different carriers are carrying out contactless deliveries in different ways, and it’s important to know what your customers can expect from their delivery, and what your POD should now look like.
Yes and no – there are nuances across all carriers. So we spoke to the UK’s top 3 biggest carriers to understand what ‘contactless delivery’ means to them so you have a full understanding of how parcels are actually being delivered in this way and, what the experience is for your customers.
DPD
“We won’t ask you to sign for your parcel, we’ll take a photo of it instead in your open doorway, as proof it has been delivered. If you’re self-isolating, leave a signed note telling us where to put your parcel.”
Hermes
Yodel
It is the responsibility of our trusted carriers to provide drivers with the equipment and processes to deliver correctly and safely, so it’s great that carriers have adapted to make sure they can still capture a POD without the need for a physical signature.
It wouldn’t be surprising if carriers choose to adopt some of these changes permanently. A photo offers better transparency and more accurate proof of delivery than a signature, which can be ambiguous and illegible. It can also help customers locate parcels left in a safe place more easily.
And at GFS, we are strong believers that visibility of delivery is the key to getting delivery right first time, every time.
That’s why we spend every day pro-actively tracking and monitoring parcels. Our Customer Care team actively look for delivery issues so they can solve them before they affect the customer, and our multi-carrier tracking portal GFS Seeker offers traceability of all parcels – even across 50+ carriers and 200+ countries.
Having accessibility and transparency of data really is what powers delivery accuracy and efficiency, no matter what happens.
Why not see how we ensure retailers have a delivery contingency plan – even during times of uncertainty and rapid change? Watch the video!
London, 17 August 2020: After reviewing the reverse logistics market, GFS has selected ZigZag’s cutting edge technology to launch their new returns solution, GFS Global Returns Pro. GFS powers delivery for fast-expanding B2B and B2C eCommerce retailers worldwide, providing multi-carrier services, technology and expertise to manage the entire logistical process from checkout to doorstep. GFS Global Returns Pro, specifically aimed at SMEs and larger online retailers, packages together the global technology platform with 200+ multi-carrier services, plus expertise from GFS, into a single solution. It gives customers a fast and easy way to request a return in less than a minute, and enables retailers to cut the cost of returns by up to 40%. The portal can also be deployed in just 1-2 days with a simple flat monthly fee.
Neil Cotty, CEO for GFS comments: “Until now, only the largest global retailers have had access to the tools and resources to master the returns challenge. GFS Global Returns Pro will level the playing field by offering small and larger retailers a fast and affordable solution to simplify returns and give customers a high-end returns experience without the high-end cost.”
GFS Global Returns Pro is launching at the perfect time. Online retailers continue to battle rising return rates of over 50% and cost the UK more than £60bn per year. Returns also cause a huge dent in the bottom line because stock becomes tied up and handling costs are high. Returns have also become a high priority for the consumer too. According to recent research by UPS, 79% of consumers check the returns policy before making a final purchase decision, leading to 1 in 2 purchases being abandoned at checkout because they did not like the retailer’s returns policy. In recent months, lockdown has caused a sharp shift from high street to online shopping as many are left with no option but to shop online – and as online spending grows, so does the problem of returns.
Neil Cotty, CEO for GFS continues: “This is a strategic development for us. The addition of Global Returns Pro to the GFS portfolio means that we can now offer an unrivalled global outbound and inbound solution that makes it both fast and simple for eCommerce businesses to expand internationally.”
Hundreds of online retailers rely on GFS to deliver over 30 million parcels every year and is the behind-the-scenes global delivery partner for a number of the world’s fastest-growing eCommerce brands.
Al Gerrie, Co-Founder and CEO, of ZigZag Global comments:
“GFS is a well-respected eCommerce provider for some of the most exciting retailers in the industry. ZigZag is delighted that GFS has decided to use our technology to power their new returns solution. Customers from a long list of promising retailers already using GFS for their outbound logistics, will now be able to take advantage of our hassle-free returns portal for faster refunds, creating satisfied and loyal customers.”
About ZigZag Global
ZigZag Global is a SaaS platform helping retailers to manage returns globally.
The ZigZag platform connects retailers to a global network of 220 warehouses and more than 200 carrier services in over 130 countries – all from a single integration. ZigZag uses predictive analytics to understand the most cost-effective and energy-efficient route to work out if a retailer should hold and resell returned products in local markets or bring them back via consolidation.
ZigZag’s mission is to deliver the best technology and service to transform the returns experience globally. Our mission is to reduce the cost, waste and friction associated with returns, boost customer loyalty and make retailers more profitable and sustainable.
Contact ZigZag: hello@zigzag.global – +44 203 286 8223
About GFS
As the pioneer of Enterprise Carrier Management (ECM), GFS has been behind the success of some of the fastest growing brands since 2001, providing unique and affordable shipping solutions that optimise delivery from checkout to doorstep. Managing over 30 million parcels a year, our history and presence makes us the trusted partner of hundreds of online retailers, and our continual innovation ensures we anticipate the needs of our customers and stay at the forefront of the industry.
Contact Bobbie Ttooulis: bobbie.ttooulis@gfsdeliver.com +44 (0)7342 885 886
It’s estimated that in 5-10 years, consumers will be shopping online more than they do in stores. This is probably not surprising, given that in 2019 the UK had more empty shops than ever before , while eCommerce continues to grow at around 20% each year – and this trend has only accelerated in recent months as lockdown left shoppers with no choice but to buy online.
But as eCommerce continues to flourish, so too does one of retail’s biggest bugbears – RETURNS.
There’s no getting around it, returns are massively important to consumers. In fact, 78% of all consumers look at the returns policy before making a purchase and 42% of shoppers have returned something in the last 6 months . And this makes sense, a good returns service gives customers the confidence to buy a product they haven’t physically seen, touched or tried on, and if consumers are unsure about a returns policy they’re unlikely to take a risk and will shop elsewhere.
But returns can have a huge impact on the bottom line, which is why it’s critical to balance the customer experience, with the cost and operational impact.
Returns cost UK retailers a whopping £60bn a year, and when 35% of shoppers deliberately over-order, returns can seriously affect the bottom line .
The problem is that typically retailers have little visibility or control around what’s being returned, why, and when. Consumers can send back a return, and retailers don’t know what products will be returned, the condition they’ll be or the cost of delivery – until the return has already happened.
This makes it difficult to plan and manage the reverse supply chain, and retailers often end up playing ‘catch up’ with their returns. This means it can take time to get resaleable goods back in stock for other customers to buy, so retailers miss out on future sales.
These challenges around returns are amplified when it comes to international returns. Customs documentation, Duties & Taxes, as well as differences in local customer expectations and preferences, can make returns a very complex and expensive endeavour.
Returns can have a direct impact on conversion rates and repeat purchases, especially as consumers now expect the same convenience with returns as they do with delivery, with next day and even same day delivery continuing to grow in popularity.
Whether it’s the returns policy on the website, or a previous returns experience, returns are a key deciding factor when a consumer is choosing where to shop.
What’s important to consumers when it comes to returns?
Above all, returns need to be easy, convenient – and fast. Customers need peace of mind that they can easily return goods and get their money back quickly.
This is what will give them the confidence to buy, even if they’re not sure about a product, and this trust can convert a first-time customer into a loyal customer.
Returns are even more critical to your international customers – especially when buying online from overseas already feels like a bit of a risk. But the challenges around returns are magnified when it comes to cross-border logistics.
Every country has its own preferences and expectations when it comes to shopping online, delivery and returns – so it’s important to tailor your returns to each local market.
For example:
With cross-border returns, also comes the added challenge of Duties and Taxes. 68% of all consumers worldwide check to see if there will be any additional taxes to be paid . Using a DDP (Duty Paid) option is a way to remove this sales barrier, but this can be more time-consuming and costly for retailers – with many choosing to leave it up to the consumer to resolve themselves, which doesn’t make for a positive shopping experience.
Choice, flexibility, convenience, speed, visibility – this is what shoppers expect from a returns service, and this is mostly because this is what they get when shopping with a Tier 1 retailer. But businesses like these have huge budgets, sophisticated technology, robust infrastructures and access to an endless number of services – something that is out of reach for many growing businesses. It’s vital, therefore, that businesses find affordable solutions to deliver a returns solution that can compete and provide a flexible and seamless full-loop outbound and inbound shopping experience.
That’s why GFS is launching Global Returns Pro, the first choice for expanding eCommerce businesses wanting a fast and affordable solution to simplify global returns and give customers a high-end experience, without the high-end cost.
Click here to find out more and take advantage of our early-bird launch offer!
i – https://www.bbc.co.uk/news/business-49349703
ii – https://www.statista.com/statistics/288487/forecast-of-global-b2c-e-commerce-growth/
iii – GFS/IMRG Consumer Home Delivery Report 2019/20
iv – ZigZag 2020
v – ZigZag 2020
vi – GFS/IMRG Consumer Home Delivery Report 2019/20
vii – IMRG Returns Review 2020
