More than 20 million people made online purchases in Argentina in 2021
In addition to the exponential growth of e-commerce, there is a logistics challenge and many problems remain to be solved.
The growth of e-commerce has meant that more than 20 million people used this commercial channel last year, and even though they were more than 2020, the upward trend brought about by this method of procurement has slowed down. The main problem of all companies, despite their peculiarities, was the logistical functioningThat is, the way in which they managed to enter, store, prepare, and send orders, and so on. Delivery to the last pipe or buyer.
In this regard, Exologistica’s e-Commerce Manager, Nicholas McLaughlin, Admitted that “most of the problems come from this side. But logistics companies can provide a solution because they are one hundred percent committed to it, they know the processes, the infrastructure, the technology related to storage and distribution, and that is what brands need when developing a channel.
McLaughlin believes that “the shopping experience has a digital component, which is the user interaction with the platform when making quick and transparent purchases. But after clicking, the order needs to be received, prepared and distributed. Right there Logistics are essentialHe added: “The fact that there is ignorance in some brands that have a common denominator is that they decide as best they can, often misrepresenting their goals.”
Several companies believe that by 2025 e-commerce should be 30% of their total business.
In this regard, he explained: “Several companies believe that e-commerce should account for 30% of their total business by 2025, but for this to happen, operation is needed that is strong enough to develop the level of service. The market demanded it. “
Consequently, the process starts before the customer completes the purchase, after that A poor record in inventory will result in companies lacking, changing or losing products. “This is where logistics operations, especially the aggressive goals that firms have for this channel, play a fundamental role,” he said.
The manager added that “for some time there will be no competition for prices, because many products will become commodities that can be purchased from this or that company. You will compete for experience And it’s a good experience to get the product in the fastest time and that there is no ordering, skipping, measurement or color error. “
For McLaughlin, logistics operations in e-commerce begin with warehousing, ordering, storage, preparation and shipping, and in the last mile, “with the pandemic growth and the emergence of new players, there are many solutions that can speed up the procurement process,” he said.
Digital wallets are starting to be used and more and more e-commerce is developing
However, he warned that in logistics “the same thing does not happen because There are fewer specialized distribution centers. In general, they have business models between companies (B2B) and when they are going to operate with the end user (B2C), they do not have a separate service, but it complements each other. E-commerce is a channel that is quite green in Argentina, apart from its growth“, Mourning.
He added: “There are brands that have not yet developed their platform, but the products are sold through wholesale customers, others have started to do so because of the pandemic, and their channel has a very small volume of less than five. Or ten percent of their business, and if they aim to reach 25 or 30 percent in 2025, they will have to work hard, ”he said.
These shortcomings will be what will lead to the “strengthening of the call center to review customer complaints and grievances over the previous shortcoming. While it is necessary to answer this question, it is more necessary to see why mistakes are made and to correct them. However There is no zero error in e-commerce“There are a lot of things related to the operation, such as delays, mixed orders, size errors, which need to be addressed from the base,” he said.
For his part, he reported: “E-commerce was growing at a double-digit rate before the pandemic, due to a paradigm shift. Earlier, the company decided where to sell its product. Today whoever chooses where and how to buy, is End users who do not want to travel and visit ten stores to find a product“.
On the other hand, he acknowledged:Due to the pandemic, many users who did not trust this channel before had a good experience And make them more comfortable. “Even those who will decide on the next purchase will be born with a smartphone or tablet in their hands.”
This correlated with the companies side, as many of them lost wholesale customers during the pandemic and “they stopped buying from them, which is why the global trend was to develop a B2C channel that reduces the number of intermediaries and directly. Is attending the channel, “he said. In this way, the director says, brands “have direct control over the end user; The risks are reduced in the face of a recurrence of pandemic-like events in the future. “Well managed, it’s more profitable because the margin is higher and the end user has detailed knowledge.”
In addition to the temporary fluctuations, he said, “E-commerce will continue to grow because it is comfortable to buy like that. “Even though there are a lot of people in the country who are not bankers, the use of digital wallets is starting and e-commerce is developing more and more every day.” “There are also many products that have not reached the interior due to distribution restrictions and are doing so today through this medium, which has a great future. At the same time, an e-commerce strategy is being developed on a wholesale channel that can eventually replace resellers, ”McLaughlin concluded.
Source: La Nacion
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