How is the Amazon effect affecting you?

September 12, 2017 Fleet Management Logistics

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There is lots of talk in the retail industry about “the Amazon effect.” The term refers to the ongoing evolution and disruption of the retail market, both online and in physical outlets, resulting from increased e-commerce. The name is an acknowledgement of Amazon’s early and continuing domination in online sales, which has driven much of the disruption.

The Amazon effect is not only affecting retailers; it is also changing the competitive landscape for shippers in all industries. Customers who buy on-line now have expectations that all shipping should either be “free”, or at the very least, a small percentage of the value of the goods shipped. According to one analysis, Amazon lost $7.2 billion on shipping costs last year!

This sounds great for customers who are looking to save money, but what does this mean for businesses that now have to decide whether to give up market share to Amazon or lower their shipping costs to untenable levels?

This new reality means that businesses need to develop a logistics strategy to provide their customers with affordable shipping, convenient solutions, and a personalized experience to help compete with current market disruption.

It’s not all doom and gloom. There are solutions that exist to help companies cope with increased competition in the marketplace. Canada Cartage’s Ship+ is one of them.

Ship+ is a transportation program that offers enhanced buying power with major carriers through an internet-based technology platform, providing you with the following benefits:

– Cost savings through freight and small package rate shopping with multiple carriers, increased buying power, and the ability to choose the most cost-effective carrier based on mode and point of origin and destination. Benefit from integrated partnerships with multiple small package and LTL carriers so you can remain competitive and provide your customers with better shipping options and pricing.

– Full shipment visibility in real-time to manage your business more efficiently with a single point of contact for all your transportation needs, including routing and zone skipping.

– Simplified, consolidated, and pre-audited invoices reducing your administration time by up to 90% through a fully pre-audited and consolidated freight invoice program that displays all freight charges from small package, LTL, TL, and rail carriers.

– Maintain control of the most suitable services and cost combinations for your business. With a single log-in, you can process carrier-compliant labels and receive customized reporting.

Undoubtedly, the Amazon effect will continue to cause market disruption in the future but it doesn’t have to hurt your business in the process. We can help you develop a transportation strategy that will save you money and help you remain competitive. Contact us at info@canadacartage.com for more information.

 

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