Since Amazon launched its now popular Amazon Prime service with disruptive same-day deliveries, the pressure on last-mile delivery execution increases with each passing day. The increasing number of same-day and next-day deliveries makes order fulfillment costly, and it forms 53% of the total costs incurred. This is quite a big challenge for the ecommerce giant. Still, it is nothing less than a nightmare for new online sellers as rising to the customer expectations is financially impossible for them. Even Amazon needs to double the subscription charges of its Amazon Prime service but isn’t doing so, and smaller brands may find the situation appalling.
But with every crisis comes a disruptive solution. The answer to the problems encountered in executing a large number of doorstep deliveries in densely populated areas lies there itself: partnering with the crowd! Crowd shipping is, in simple words, tying up with the locals to deliver the products on your behalf while they commute through the city.
It will require businesses to rethink their entire approach to shipping, inventory management, warehousing, and operations at large. Have a look at the below infographic to see how crowd shipping will emerge as a boon for small businesses and reduce the pressure on the last-mile fulfillment process: