CCJ

October 2014

Fleet Management News & Business Info | Commercial Carrier Journal

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64 COMMERCIAL CARRIER JOURNAL | OCTOBER 2014 E -commerce is booming. This year, online sales will represent eight percent of total retail sales in the United States and are predicted to continue to grow at more than 10 percent a year, reaching $370 billion in 2017. Forrester Research attributes this growth to widespread use of smart- phones and tablets. People are spending more time online researching and buy- ing products, especially for larger items such as furniture, appliances and cars. To compete with the success of on- line-only retailers such as Amazon and eBay, many retailers are using "omni-channel" strategies that give buyers the freedom to decide when and where to purchase goods, whether in the store or online, and where to receive delivery. Wal-Mart, the world's largest retailer, began opening new Wal-Mart Express and Neighborhood Market stores. A fraction the size of its superstores, these new locations will double as pickup stations for shoppers to collect televi- sions, bicycles, groceries and other items purchased online. Supercenters will become the distri- bution points for these smaller conve- nience and neighborhood stores. With this strategy, Wal-Mart likely will be using new technology to use the limited dock space at its supercenters to manage the fl ow of inbound and outbound ship- ments and improve visibility of arrival times for inbound freight. Another change might be a new Wal-Mart fl eet of light-duty vehicles to deliver goods from supercenters to smaller stores or directly to consumers at home. For the transportation industry, the biggest benefactors of e-commerce are the parcel carriers. While less-than- truckload and truckload carriers tradi- tionally have steered clear of "fi nal-mile" deliveries to residential areas, that model is changing as e-commerce now is more than just parcels and packages. Carriers and shippers are fi nding more opportunities to add new ser- vices, expand into niche markets and create more value for their customers CARRIERS, SUPPLY CHAINS FINDING MORE ONLINE OPPORTUNITIES BY AARON HUFF RIDING THE WA VE OF E-COMMERCE RIDING THE WA VE OF E-COMMERCE

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