We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » E-commerce 20 years on
Forward Thinking

E-commerce 20 years on

August 26, 2014
Supply Chain Quarterly Staff
No Comments

On August 11, 1994, a U.S. consumer made what is believed to have been the world's first online purchase: A compact disc recording by the British rock musician Sting. Like it or not, that simple transaction transformed commerce forever.

Now online orders are so commonplace that for some age demographics (think younger than you) the idea of buying a product in a store is a foreign concept. Yet the online uptake is a recent phenomenon: For example, the typical U.K. consumer first ordered online in 2005, according to a survey by British retailer Shop Direct that was referenced by the consulting firm Transport Intelligence (Ti) in its recent report, "The online shopping revolution—20 years of logistics innovation." Books were the most popular commodity bought online at the time, according to the report.

Today, the U.K. has the highest per-capita online spend of any country—more than £91 billion in 2013, according to the report. That translates into about US $151 billion.

It may be hard to believe given e-commerce's present-day ubiquity, but consumers were initially cool to its adoption, said Stephen Olugbode, a senior analyst at Ti. Delivery problems, security issues with the use of credit cards, poor stock availability, and cultural inertia kept many consumers away, he said.

The growth of Internet shopping has been driven in part by logistics and express companies' ability to adapt their networks to the new form of commerce. As customers' expectations continue to grow, so has the sophistication of these logistical support systems. Information technology has become the key differentiator. Today, customers can choose specific one-hour windows for their deliveries and can receive continuous text messages updating them on the precise location of their purchases.

IT systems are also a fundamental part of the multichannel mix, with retailers requiring total transparency over stock levels and location. Online fulfillment is more complex than so-called store-based logistics, with goods being picked in a different way and often from different locations.

As a result, many companies are beginning to question whether today's online fulfillment models are viable over the long term, according to Olugbode. The added complexities of the process, combined with the increased labor expense associated with picking and packing, means logistics costs for online fulfillment are much higher than for brick-and-mortar retailing, he said.

The upshot of all this? An opportunity for traditional logistics providers to develop attractive outsourcing solutions to serve online merchants, Olugbode said.

  • Related Articles

    Companies stalled on the road to full e-commerce implementation

    Kuehne+Nagel brings on private equity partner to help Apex unit ride e-commerce boom

    Investors back fulfillment startups as pandemic e-commerce boom rolls on

Recent Articles by Supply Chain Quarterly Staff

Survey: parcel delivery drivers are frustrated by using their own smartphones for work

GXO extends shared warehousing model to U.K.

U.S. parcel volume dipped 2% in 2022 after a 6% rise in 2021

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Survey: most Americans unaware that truckers face shortage of parking spaces

  • Best practices in logistics sustainability

  • Supply chain executives not yet seeing expected results from technology investments

  • Postal Service plans to seize items mailed with fake stamps

  • Inflation drops again as interest rate hikes hit home, NRF says

Featured Video

20221107korber large vs

Enhancing Customer Experience with Your Supply Chain Strategy

Viewer Contributed
With the rise of e-commerce, many businesses have had to transform their warehouses to handle online orders in addition to regularly scheduled inventory shipments. This means warehouses need more information than ever before to ensure they can meet customers' needs. As a result, companies need to select warehouse...

FEATURED WHITE PAPERS

  • Five tips for parcel success in 2023

  • Guide to Pallet Rack Safety

  • 3PLs: Complete Orders Faster with Flexible Automation

  • A shipper's guide to navigating post-pandemic holiday freight

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing