This holiday season, rather than competing on delivery speed, retailers are concentrating on getting items to customers on certain dates
The change signals a slowdown in the current competition for e-commerce delivery speed, which has pushed goods to consumers’ homes at an ever-faster rate while reducing retailers’ profit margins on purchases. Since consumers are now limiting their online purchases due to concerns about inflation, many merchants are concentrating on reducing the high costs of fulfillment and last-mile delivery. With its investments in same-day and next-day delivery, Amazon.com Inc. set the standard for the speed of competition. The e-commerce behemoth also offered its Prime members the chance to choose a specific delivery date in 2019. Now, other merchants and logistical providers are doing the same.
The e-commerce behemoth also offered its Prime members the chance to choose a specific delivery date in 2019.
Shein, a popular Chinese online clothes shop known for its affordable, stylish clothing and accessories, contends that even in the world of fast fashion, quick sales growth and lightning-speed delivery are not necessary. Only ten years after its founding, the business plans to hit $24 billion in sales this year by concentrating on the front end of its supply chain, which includes manufacturing and shipping out of Guangzhou, China. This will put it in reach of the industry’s largest rivals. Despite claiming on its website that orders for American consumers take 10 to 15 days to arrive, Shein does a sizable amount of business in the country. According to the business, ordinary shipping to customers in the United States takes seven to eight days on average. Even though Shein wants to construct three distribution centers in the United States to grow its company in North America, delivery times will still only be shortened by three to four days. Online buyers are now more ready to wait for specific supplies because they became accustomed to supply-chain interruptions during the Covid-19 outbreak, according to Terry Esper, associate professor of logistics at the Fisher College of Business at Ohio State University.