HomePublicationsInsightsLogistic innovations as an e-commerce strategy to boost sales in high seasonal demand

Logistic innovations as an e-commerce strategy to boost sales in high seasonal demand


The end of the year is traditionally characterized by increased consumer demand, driven by two main events: Black Friday and Christmas. In 2022, exceptionally, commerce will experience a third stimulant for its consumers at the same time, the World Cup event, which typically also causes a peak in the growth of sales of products and services.

According to a study carried out by the Associação Brasileira do Varejo (ABV), the set of these seasonal campaigns should lead to a 12% increase in sales compared to the first half of this year, translating into an injection of more than R$20 billion in the Brazilian economy . In parallel with this meeting of commemorative dates, the timid drop in the unemployment rate and inflation linked to the reduction in fuel prices in recent months are additional factors that corroborate the market's positive expectations about commerce.

Based on this scenario, it is essential that e-commerce companies have the capacity to operate their activities with the greatest possible logistical efficiency, in order to make the best use of this unique opportunity to leverage earnings after two years facing the consequences of the pandemic. . According to a survey released at the end of August this year by HostGator, sales through digital channels should increase by 21% in the second half of 2022, motivating the acceleration of technology acquisitions and the implementation of new methods in the logistics of companies with the aim of to achieve the service levels committed to its customers.

Among these investments we can highlight three innovations that have been gaining relevant space in the Brazilian market, focused on: solving problems, expanding efficiency and reducing costs faced by these companies with online sales, especially during demand peaks, such as:

  • Software with artificial intelligence (AI) capable of correlating internal and external data, thus promoting exponentially more assertive decision-making and thus reducing expenses due to the lack of precision in different operations. In transport, for example, this resource is capable of interconnecting vehicular telemetry with online traffic applications and thus making changes in the routing of deliveries simultaneously with the events, seeking the greatest possible optimization of mileage/fuel and speed. In the same way, AI is also able to achieve optimal optimization of stocks and ensure product availability at the time of orders based on intelligent algorithms that automatically size and process product replenishment, avoiding sales losses due to lack of items in stock. stock. Finally, another of the many applications of AI tools in this area is the ability to go beyond statistical analysis to make sales forecasts, considering multiple external variables, such as: economic factors or market trends that may affect the purchase decision. of the target audience, reducing costs with excess storage.
  • Dark Store, or mini CDs, is the model of strategically positioning physical points in urban centers to store mainly high-turnover products in order to reduce the route and, consequently, transport costs, in addition to providing a much more agile delivery (designed especially to fulfill orders in a matter of hours) in the last mile. According to a study published by SEBRAE in April 2022, the cost of shipping and long delivery times are two of the six reasons listed that most cause withdrawal when making a purchase. Therefore, this model, which is highly used in the United States, has become very important for e-commerce in Brazil, in order to avoid this consumer behavior. It is important to highlight that the focus of Dark Stores is not to be a store open to end customers, therefore, their expenses with structure and rent are the minimum possible.
  • Dropshipping is a logistics methodology in which the e-commerce company becomes a link between the supplier and the final customer, thus transferring to the supplier all responsibilities linked to the execution of the operations of that order, in addition to all the costs and risks inherent in the products stock. Therefore, choosing a supplier that delivers the contracted quality level in the manufacture of products and operations is essential for the existence of this model. Given these characteristics, this practice does not demand large initial contributions to support and develop an entire operation like traditional models, since its core is to fully catalyze efforts to increase sales and thus scale your business even more.

Faced with this series of advantages linked to these logistical innovations, it is possible to understand the reasons why e-commerce has been implementing these measures in its operations. However, it is vital for the financial health of organizations that considerations such as: payback and simulation between the KPIs gain difference (eg productivity, OTIF, storage costs, etc.) before and after its application are analyzed according to your scenario specific, before any contribution in order to avoid an inadequate trade-off, that is, an increase in costs without the return of value within the expected time – financial and/or in efficiency.

 

References:

– CNN Brasil (19/07/2022): World Cup should boost e-commerce in the second half says association

– DSers (19/11/2021): How to Dropship in Brazil 2022: 5 Crucial Tips You Wouldn't Miss

– E-commerce (13/09/2022): Cup, Black Friday and elections: how will they move e-commerce?

– E-commerce (01/09/2022): According to HostGator, online businesses are expected to grow 24% by the end of the year

– IBGE: Historical series – Unemployment rate, Jan.-Feb.-Mar. 2012 – Jun.- Jul.- Aug. 2022

– Invozone: Applications of Artificial Intelligence in Ecommerce

– R7 (13/09/2022): Cup, Black Friday and Christmas should inject more than R$ 20 billion into the economy

– SEBRAE (29/07/2022): 6 reasons why consumers give up when completing the purchase

– UNINTER (19/09/2022): Dark Stores: a trend in e-commerce

– Retail Showcase (12/07/2022): Seasonal campaigns should boost retail in the 2nd half

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