When we think of Globalization, the phrase global village comes to mind. Consumers from London can as easily purchase goods from Lyon as they can from a shop window in the streets of Camden. Geographic boundaries no longer inhibit a consumer from making a purchase decision. This change in the way that we purchase goods has greatly impacted the way we live our lives. Through what is most commonly referred to as online shopping, eCommerce has given us instant access to markets all over the world at our fingertips.
At DHL Express, we have had to adapt to these changing consumer demands. eCommerce has significantly transformed the parcel and express industry, shifting from a B2B-only effort to a B2C focus as well. With more and more consumers feeling confident about purchasing from online vendors in foreign countries, this puts increased pressure on last mile deliveries. It has also created unrivalled opportunities for businesses of all shapes and sizes to make their products available to consumers on a global level.
To give an insight into the scale of this global opportunity, it is estimated that there will be 1.6 billion shoppers online this year, and by 2019 global eCommerce sales is estimated to reach 3.4 trillion US$. This comes as no surprise as we become more accustomed to electronic devices and creating new ways to use them in our daily lives. Often we hear the turn of phrase that we have a technological device in our pockets more sophisticated than that used to send a man to the moon. We also have access to the global marketplace on the same device. Businesses need to leverage this opportunity or risk being left behind.
The rapid adoption of smartphones has not only accelerated growth in eCommerce, but it has significantly affected consumer behaviour. As modern human beings we demand quality, we demand immediacy and we simply settle for nothing less. These human demands translate as consumer expectations which ultimately affect the way we search for goods, the way we purchase goods and in turn inform the best ways to deliver goods. Consumers now expect speedy deliveries, they expect a quality reliable service and they will quickly abandon ship if they are not given an express delivery option. In fact 68% of Millennials will choose a provider based solely on their delivery options.
At DHL Express, we take the necessary steps to always stay ahead of the curve. Having the knowledge and the expertise is only part of the puzzle, being prepared to respond to change is crucial. A total of €25 billion was spent on Singles’ Day alone and cross border eCommerce is expected to make up 20% of all eCommerce in 2022. Because the demands of online sales are relentless, we now have a dedicated team of eCommerce advisors in place to accommodate the needs of our eCommerce customers. From the on-boarding process to convenient returns solutions, our customers’ concerns are taken care of so they can effectively capitalise on cross-border demand.
For consumers and vendors, buying and selling goods online is a simple one-click-go process, but we often forget about the complex logistics planning that goes on behind the scenes. As experts in global logistics, we take full responsibility of the shipment process from packaging to managing inventory, and finally delivering to the consumer’s front door. Of the €5bn that was spent by Irish consumers online last year, €3b went to foreign eTailers. Global consumer confidence in cross-border eCommerce is booming, and now is the time to seize the opportunity.
Over the coming months, we will share the stories of some of our eCommerce customers. These fantastic Irish companies are making their presence known on the global stage, and we are proud to help them on their journey. Ireland has exceptional products that should be made available to consumers all over the world, and we take pride in playing a part to allow this to happen.