If it seems there’s no end to consumer demands for faster, better shipping, that’s because, at the moment, there isn’t. The pandemic kicked ecommerce into high gear, and it remains in growth mode, albeit slower than five years ago.
In 2024, US ecommerce sales grew by 8.2 percent, and this year, it’s expected to leap another 8.9 percent. The ways to sell online have expanded and contributed to that growth, and brands now navigate several channels, including DTC, social platforms, and online marketplaces. Hand in hand with online sales growth is customer expectation growth.
Today’s consumers place more loyalty on reliability, pricing, and flexibility than ever before. Speed remains important, too, but consumers are now demonstrating a willingness to wait a couple of days for their packages, provided it saves them money on shipping costs and arrives in the condition they expect.
Consider online marketplaces and Amazon’s policy of free, no-rush shipping. If you’re willing to wait an extra day or two for delivery, Amazon will waive shipping fees. Walmart, likewise, includes free delivery if you forgo its more expensive “fast” or “express” deliveries, promised in just a couple of hours.
The Amazon Effect is real, and as Gen Z ages into adulthood with a projected $12 trillion to spend by 2030, the stakes are high. Online marketplaces are changing order fulfillment expectations, and to succeed, you must meet them.
That’s no easy task; it requires the right software, automation, multi-node inventory, and distribution network. While this can feel pressure-filled, it’s also an opportunity to capture new customers and keep existing ones. The right third-party logistics partner can help.
Shifting expectations create added pressure
Customer expectations for their online marketplace experience are high and have shaped the entire ecommerce industry. While there’s something of a shift in how quickly consumers want their deliveries, expectations for parcel deliveries remain high. In the first quarter of 2020, the average delivery cycle was 6.6 days, but by the second quarter of 2023, that window shrank to 4.2 days.
Speed matters most to consumers when ordering household consumables versus fashion. But by and large, when you can offer your customers free shipping, even if it’s slower, they will choose the cheaper option.
Consumer demands are now placing more emphasis on costs, reliability, and flexibility. So, while they may compromise on same- or next-day delivery, they do expect their packages to arrive on time. They also want flexibility, both in choosing their delivery window and in where they’d like their packages delivered, be it home, a workplace, or a brick-and-mortar store.
Sustainability matters to today’s consumers
Another growing expectation, especially when it comes to younger consumers, is sustainability. In fact, they’ve demonstrated a willingness to pay extra for eco-friendly packaging.
Consumers don’t want to receive a box that’s 25 percent product and 75 percent air. Even worse, they don’t want to open a box full of unsustainable void fill, like bubble wrap or plastic pillows.
What do consumers want for sustainable shipping? Their fragile products to be protected with sustainable fill or right-sized packaging that requires little to no fill. The good news? A right-sized and sustainable packaging approach is also one that saves on your bottom line.
Online marketplace Amazon has helped redefine sustainability in fulfillment by offering options. Not only have they optimized packaging, but they also use lightweight materials and will even ship products in original boxes, also known as Ships in Product Packaging (SIPP).
Consumers expect customized picking, packing, and shipping
Today’s customers also want the “wow” factor when they unbox. They expect products to arrive in pristine shape, in whatever combination they ordered, and sometimes including extras like gift wrapping or personalization. This all starts at the distribution center with the right packaging equipment and processes.
Amazon helped reshape packaging expectations by encouraging reduced waste and offering programs that let brands ship in their own packaging. This shift allows sellers to deliver a more branded, customized unboxing experience while still meeting Amazon’s efficiency standards. To compete, retailers must implement standards that meet these expectations into their own operations.
How to keep up with online marketplace influence
All those demands that online marketplaces have evolved add up, and it’s easy to feel overwhelmed when it comes to meeting them. But with the right strategy, partners, and tools in place, you can meet and even exceed customer demands. The result is satisfied customers and repeat business.
You need the right software tools
One thing is certain: without the most sophisticated software tools, you can’t meet consumer expectations today. DTC brands need ecommerce fulfillment technology that is built to scale as they grow and expand. A comprehensive order fulfillment software suite is essential for managing a fast, flexible, and automated fulfillment process. The right solution integrates seamlessly with ERP or OMS platforms to ensure smooth data exchange and real-time visibility.
Modern fulfillment software also connects with popular ecommerce tools like Shopify, WooCommerce, and leading online marketplaces such as Amazon, Walmart, and eBay. It should support real-time tracking, returns management, and dynamic reporting to keep operations running efficiently.
As your business scales, fulfillment technology must adapt to do things such as optimize shipping rates, support multi-node inventory strategies, and meet customers’ evolving delivery preferences.
Warehouse and distribution automation
When meeting today’s consumer demands, warehouses depend not just on the right software tools but the right automation, too. Modern distribution centers move products in and out at a rapid pace, depending on tools like high-speed conveyors and sortation systems, handheld devices like mobile barcode scanners, automated storage and retrieval systems, and yes, even mobile robotics.
Increasingly, efficient warehouses use robots to move goods to person, minimizing the need for employees to move about the facility. These “co-bots” are more efficient, can work around the clock, and reduce overall operational costs.
In the final 100 feet of the warehouse, automated packaging equipment completes the movement of products. This automation provides right-sized packaging, labeling, manifesting, and then sends the boxes out the door to the right truck, significantly reducing shipping errors and costs. The result is satisfied customers.
Multi-node inventory keeps products close to customers
One of the key strategies for ensuring packages reach customers as quickly as possible is the concept of multi-node fulfillment. Rather than operating from one central distribution center, it can be helpful to have access to multiple ecommerce fulfillment centers scattered across the country. With this strategy, it’s easier to deliver to the nation’s households in just two days. The key is finding optimal locations to get your products where they need to go, quickly, efficiently, and cost-effectively.
Meet customized package demands
If you’re looking for a leg up on the competition, offer customers a branded or personalized experience when they unbox. Use a partner with the tools and technology to ensure your customers’ packages arrive with special touches like gift wrapping, personalization, inserts, or special branding. Customers will love opening their packages and remember your brand the next time they venture online for a shopping experience.
Why it pays to tap into an experienced 3PL
Meeting and exceeding customer ecommerce expectations is challenging today. You’ve got to be fast, affordable, on time, flexible, and most importantly, deliver the right product in pristine condition. And that’s the bare minimum to gaining and keeping happy customers. The goal is to create cohesive experiences, and even if fulfilling through online marketplaces, it’s essential to meet those customer desires across channels. An experienced, dedicated omnichannel 3PL provider like Kase is the way to accomplish all that, and then some.
Good 3PLs have the most up-to-date software and automation, and an expert team to back it all up. Kase helps strategize our customers’ approach to ecommerce, working alongside them as they scale up. Rather than struggle to meet modern customer expectations, you can hand off the tasks required to get there, freeing you up to focus on your core business operations. Your Kase partnership offers a cost-effective, value-added experience that makes your job easier, allowing your brand to shine.
Just ask beauty brand Kate McLeod. Despite switching to a new 3PL partner to be closer to their operation, Kate McLeod quickly returned to Kase within six months, realizing the new provider couldn’t match Kase’s human‑centered service and scalable fulfillment.
Ready to compete with online marketplace expectations? Reach out to a Kase fulfillment specialist today to see how we can shape your fulfillment strategy for today’s fast-paced environment.
