Delivery and profitability. The impossible equation?

In June 2019, the Deliver conference in Lisbon gathered an array of specialists concerned with e-commerce deliveries. Faced with customers demanding speed with low prices, how much longer can retailers pay for delivery? Are there any winning models?

Through . Published on 16 July 2019 à 10h27 - Update on 16 September 2019 à 15h40

E-commerce delivery is the biggest challenge for retailers, both in terms of operational excellence and profitability. If many of the retailers we met at Deliver are involved in massive subsidies for delivery, all are actively looking for a value-creating exit. They all face customers with two main requirements. Speed is the first one. According to Andre Pharand, Managing Director Post & Parcel at Accenture, “The e-commerce delivery market is evolving as a whole towards same-day or next day delivery”. As Jeff Bezos ironically said recently, “It is impossible to imagine a future where, in 10 years, a customer will say: I would like you to deliver a little slower. It’s impossible”. All companies try to constantly reduce their delivery times. According to Kenneth Cassar, former Vice President Strategy at Rakuten Intelligence,…