In this episode, Anand Madhani, Business Development Manager at Parcel Hub, discusses logistics, shipping, and delivery for e-commerce brands. He shares his journey in the industry and highlights the changes he has witnessed over the years. The conversation covers fulfilment options, including fulfilment, outsourcing to third-party providers, and drop shipping. The role of Amazon in logistics is also discussed, with a focus on the options of Fulfilled by Amazon (FBA) and merchant fulfilment. The importance of streamlining different marketplaces in delivery systems and the preference for next-day delivery are explored. The conversation covers various topics related to logistics and fulfillments in e-commerce. Some of the key themes include the importance of emphasising logistics on e-commerce websites, the challenges and considerations of international expansion, the impact of subscriptions on fulfilment, the role of AI in logistics, and the significance of quality delivery experiences for customer loyalty.

Key Takeaways

• Fulfillment options for e-commerce brands include self-fulfillment, outsourcing to third-party providers, and drop shipping. The choice depends on factors such as the scale of the business, the type of product, and the desired level of control.
• Amazon offers two main fulfillment options: Fulfilled by Amazon (FBA) and merchant fulfillment. FBA provides convenience and fast delivery, while merchant fulfillment allows for more control over the fulfillment process.
• Streamlining different marketplaces in delivery systems can be achieved through software solutions that integrate multiple revenue streams and generate labels for various carriers.
• Next-day delivery is highly valued by consumers, with many willing to pay extra for this service. However, the importance of delivery speed may vary depending on the product and the consumer's specific needs.
• Convenience and timely delivery are key factors in consumer purchasing decisions, especially during peak periods like Christmas. Brands should consider pricing strategies and take advantage of the urgency created by time constraints. Emphasizing logistics, such as next-day delivery, on e-commerce websites is crucial for attracting customers, especially during peak seasons.
• When expanding into new markets, it's important to consider factors like demand, website localization, de minimis values, and return processes.
• Returns are a significant challenge for fashion brands, and implementing strategies like charging for returns or offering store credits can help manage the costs.
• Subscriptions can provide predictability in fulfillment, but it's essential to have effective forecasting, pre-packing options, and coordination between departments.
• AI is being used in logistics for route planning, data analysis, and improving delivery experiences, but its implementation is still in early stages.
• Quality delivery experiences and building customer trust are crucial for e-commerce success, and options like drop-off points and proactive tracking can enhance the experience.
• Shopify's recent appointment of a CTO with expertise in AI and advertising suggests potential developments in their product roadmap.

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Matt Anderson LinkedIn: https://www.linkedin.com/in/mattandersonoptimized/
Rael Cline LinkedIn: https://www.linkedin.com/in/raelcline/