The future of e-commerce – a perfect storm is brewing

𝗧𝗵𝗲 𝗨𝗸𝗿𝗮𝗶𝗻𝗲 𝗰𝗿𝗶𝘀𝗶𝘀 𝗵𝗮𝘀 𝗮𝗰𝗰𝗲𝗹𝗲𝗿𝗮𝘁𝗲𝗱 𝗖𝗢𝗩𝗜𝗗-𝟭𝟵-𝗿𝗲𝗹𝗮𝘁𝗲𝗱 𝗺𝗮𝗰𝗿𝗼𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰 𝗵𝘆𝗽𝗲𝗿 𝘁𝗿𝗲𝗻𝗱𝘀, 𝗯𝗿𝗲𝘄𝗶𝗻𝗴 𝗮𝗻 𝘂𝗽𝗰𝗼𝗺𝗶𝗻𝗴 𝘀𝘁𝗼𝗿𝗺 𝗼𝗳 𝗲𝗽𝗶𝗰 𝗱𝗶𝗺𝗲𝗻𝘀𝗶𝗼𝗻𝘀 𝗳𝗼𝗿 𝗲-𝗰𝗼𝗺𝗺𝗲𝗿𝗰𝗲, 𝘄𝗶𝘁𝗵 𝗱𝗶𝗴𝗶𝘁𝗮𝗹𝗶𝘇𝗮𝘁𝗶𝗼𝗻 𝗼𝗳 𝗿𝗲𝘁𝗮𝗶𝗹 𝗮𝘁 𝗶𝘁𝘀 𝗺𝗶𝗱𝘀𝘁

#Digitalretail relies on increasingly integrated and #interconnected supply and value chains. Over the last decade, we have seen how #trade drives #growth and #prosperity internationally, helping to develop societies, combat #poverty, create #employment and – more recently – to support post-pandemic #economicrecovery.

Yet at the same time, even before the unprovoked #invasion of #Ukraine, we were witnessing trade wars, growing #protectionism, supply chain #disruptions, and sudden #policy changes (e.g., #BREXIT). The #Ukrainecrisis, a “black swan incident”, adds a disaster of multiple dimensions:

– The #fuelcrisis further disrupts collection, #freight and #transport, and #delivery chains. This comes at a time when #parceldelivery is at the center of new data-driven #retail models. #Data on any parcel is available even before the #consignment is packed and handed over to the first #logistic operator.
– The food crisis spreads #famine, with its greatest impact being felt in countries already poor and dependent on food subsidies. The inclusion of less and least developed economies becomes a #challenge as their priority shifts to ensuring the #survival of their citizens.
– The #financialcrisis leads to high #inflation levels globally, threatening stakeholders who need to invest and evolve their #businessmodels by digitalizing, harmonizing, and increasing #efficiency, all required to thrive in #business.

Globalized trade has changed the nature of #B2C supplies and #consumer buying #habits, a process accelerated first by the #COVID crisis, and now the #invasion of Ukraine. As a result, #consumers have less disposable income. This places further #pressure on businesses to streamline operations and make efficiency savings. 

They can achieve this through greater #integration, interconnected retail (#ecommerce), and forward harmonization, all of which will accelerate the process of digitalization even beyond levels seen during the #pandemic. 

We are seeing:
– Data is more important than ever;
– Parcelization of trade, based on #B2B2C;
– Up to 75% of retail managed in globally interconnected #warehouses / fulfilment centres
– First mile (Point of Sale) & freight/transport & #lastmiledelivery will be highly interconnected and harmonized
– #Digitalization will raise efficiency & better connect consumers directly to supply

Only businesses that recognize and leverage these changes will flourish in this new e-commerce era.

(To be continued)