Why Logistics Data Matters in Retail

The dynamic realm of e-commerce retail is marked by continuous advancements and enhancements. As consumer expectations evolve rapidly, it is imperative for e-commerce retail businesses to stay up to date with these changes in order to remain relevant.

In the increasingly competitive e-commerce industry, logistics data analytics has emerged as a key strategy for businesses to gain a competitive edge over their rivals. By leveraging machine learning and other contemporary technologies, businesses can identify and analyze patterns in consumer behavior and other pertinent business aspects. In this article, we delve into the reasons why numerous e-commerce retailers are embracing data analytics as a valuable tool to meet various objectives.

What Is Logistics Data?

Many companies today rely on logistics data as a source for information. This enables them to measure how well they have achieved their set goals. With the information gleaned from logistics data, companies can understand the latest trends in their corporate niche and tailor their products and service offerings accordingly. Reliable and well-organized logistics data helps companies make the right decisions. The use of faulty data, on the other hand, can have negative impacts on a company’s planning.

Benefits of Logistics Data Analytics in E-Commerce

The advantages of utilizing logistics data analytics in e-commerce are manifold, empowering businesses with valuable insights and optimization opportunities. Today, numerous e-commerce stores worldwide are leveraging innovative technologies like Big Data to track and predict customer preferences and purchasing patterns, enabling them to optimize their operational strategies.

(Image Source: Lukas/ Pexels)

For instance, industry leader Amazon has successfully generated a significant portion of its revenue through personalized ad campaigns that target specific customers. These campaigns are developed using information derived from sophisticated data collection techniques. On the other hand, retail giant Walmart is in the process of building an enormous data repository to store comprehensive information about its product stock, buyer behavior, and competitor activities. The goal is to leverage this data to swiftly respond to market trends and enhance decision-making capabilities.

By harnessing the power of logistics data, business owners can unlock a realm of endless possibilities. Here are some of the notable benefits associated with effective logistics data analytics in the e-commerce domain:

Trend Monitoring and Prediction to Boost Business Competitiveness

Logistics data provides businesses with valuable insights into their product performance, allowing them to identify best-selling items as well as products experiencing a decline in popularity. Armed with this information, businesses can proactively predict and adapt to changes in market trends, gaining a competitive edge. Additionally, they can strategically design omnichannel marketing campaigns to maximize sales of their high-demand products.

By leveraging historical business data, e-commerce businesses can efficiently plan their operations and make informed decisions regarding product inventories. Accurate demand predictions enable them to optimize stock levels and effectively manage their supply chains. For instance, during peak shopping seasons, businesses can leverage social media marketing to announce discounts on surplus products, aligning their marketing efforts with customer demand.

Furthermore, businesses can optimize their operations by reducing or discontinuing the purchase of products with minimal sales. This not only saves the business from managing excess inventory but also optimizes storage space, allowing more room for better-selling goods. These measures streamline operations, reduce costs, and improve overall efficiency.

Improving Sales through Personalized Customer Experiences

To drive successful marketing campaigns and ensure customer satisfaction, businesses need to understand individual tastes and preferences. Analyzing customer data is a crucial step in obtaining this vital information.

(Image Source: Andrea Piacquadio/ Pexels)

Customer data is collected from various sources, including email interactions, Google searches, social media activities, and more. By reviewing and analyzing this data, businesses gain insights into customer behavior and can predict their future inclinations.

Through customer data analytics, businesses utilize information such as preferred brands, product preferences, shopping trends, and popular search terms to build comprehensive customer profiles. This enables them to tailor their service offerings to align with customer preferences. By effectively collecting and utilizing data, businesses can find answers to important questions, such as:

  • How can in-store customer engagement be improved?
  • Which products do customers prefer?
  • Are there any similar items in high demand that can be cross-sold?
  • How seamless are customers’ payment experiences?
  • How effective is the post-sales customer care? Are there significant cases of product rejections or returns?

Enhancing Customer Loyalty With Logistics Data

Customers are the lifeblood of any business, and their satisfaction plays a crucial role in the success of logistics companies. The most successful businesses are those that not only meet but exceed customer expectations by providing superior services and products.

(Image Source: Liza Summer/ Pexels)

These businesses often enjoy high levels of customer retention as buyers prefer to engage with established and reliable brands. A robust customer base translates to improved business profitability. Logistics data plays a vital role in understanding and fulfilling customer expectations.

For example, retail business owners can leverage logistics data to determine the most effective communication channels to reach out to their clients and predict peak shopping seasons. Furthermore, by effectively analyzing this data, businesses can gather valuable customer feedback and insights, leading to service improvements and increased operational efficiency. 

Using Logistics Data to Improve the Delivery Experience for Consumers

Carriers are Responsible for Majority of Delivery Problems in the US; Europe Witnesses the Opposite Trend

(Image Source: Efrem Efre/ Pexels)

Delivery problems can arise due to various factors that vary from country to country. Based on Parcel Monitor’s data, we have observed distinct patterns in the root causes of delivery issues between Europe and the United States. In Europe, a majority of delivery issues stem from the recipients’ end, whereas in the US, these issues primarily occur at the carriers’ end.

Specifically, during Q1 2022, only 1.18% of delivery issues in the US were attributed to recipients, possibly due to the common practice of leaving packages in mailboxes or at doorsteps across the country. In contrast, in Europe, 4.32% of delivery issues were attributed to recipients, with the most frequently cited reason being recipients not being available at home. This can be attributed to the default requirement of signatures upon delivery by prominent EU parcel providers such as FedEx, DHL, and Royal Mail, ensuring the safe receipt of items.

Same-Day Weekend Deliveries are Popular in Europe, Unlike the US

(Image Source: Ketut Subiyanto/ Pexels)

Today, customers’ expectations regarding delivery times are growing increasingly shorter with some buyers expecting to take delivery of their parcels within a few hours. Many logistics companies now deliver goods on the same day they were ordered or on the following day. 

Same-day deliveries accounted for nearly 10% of parcels delivered every week in Europe in 2022. This trend occurred most frequently during weekends and especially on Saturdays. This is because customers are able to receive parcels themselves on weekends since they stay at home. 

In the US however, the majority of customers choose mailbox deliveries so they do not have to worry about being physically present to take delivery of their orders. As a result of this, the European trend of making large numbers of weekend same-day delivery orders was not observed in the US. However, most American same-day delivery orders were made on Fridays. 

Friday and Saturday See Longest Lag times in the US and Europe Respectively 

The time lag between the order checkout process and parcel pick-up exhibited distinct patterns in Europe and the United States. Parcel Monitor’s research findings reveal that both regions experienced a gradual increase in lag time from Monday to Saturday, followed by a decrease on Sunday. Notably, Europe recorded the highest lag time of 2.63 days on Saturday, while the United States observed the peak lag time of 2.65 days on Friday. These trends align with the surge in same-day delivery requests mentioned in the preceding section, providing a logical explanation for the observed figures in each region.

Read the full article here to find out more!

About Parcel Monitor

Parcel Monitor is a community initiated by e-commerce logistics enthusiasts at Parcel Perform. We aim to inspire the e-commerce logistics ecosystem to create a better delivery experience for everyone.
Parcel Monitor offers free parcel tracking across 950+ carriers globally on a single platform. Leveraging on our data and technology, we capture consumer trends, provide market visibility and derive industry insights while fostering collaboration across the entire e-commerce industry.


Stay in the loop with our latest updates and exclusive deals – sign up now for the ultimate experience!