It has been a great, yet challenging, year for online shopping
As of the writing of this article, it has been over six months since the world went on lockdown due to the COVID-19 pandemic. Social distancing meant we had to stay at home, giving a new challenge for the manufacturing industry to overcome. Nevertheless, with everybody secluded, e-commerce got supercharged by all the online shopping being done, which became a challenge for logistics all around the world.
The “new normality” changed buying habits. While in Q4 2019 online sales in the USA were around 11.4% of the total retail, e-commerce giants, such as Amazon, Apple, and Target, saw sales increase of 31% up to 275% since April 2020. This will be a lasting change, meaning that the companies need to adjust their logistics accordingly to keep up with demand.
On the consumer side, as more restrictions start to lift in different states across the USA, there has been a significant rise in the number of online purchases that have been made. According to the consultant company Kantar, 40% of all consumers in the States reported to increase their online shopping in the past few months.
Seeing that the buying habits that changed are hardly going to reverse when everything gets back to normal, e-commerce companies should up their logistics game to keep being relevant.
What steps can be taken to improve the logistics of your e-commerce business?
- Set your supply chain closer to you, yet in a country that has benefits such as: great FTAs, low-cost labor force, and ease of entering, like Mexico. Mexico is a strategic country to make commerce with North America, as it benefits from the USMCA and other 13 FTAs. This will make it easier for your logistics department, as being closer to your market will allow your company to be more in touch with what is being demanded the most, which is helpful for storage management.
- Look for an industrial park developer that can suit all your needs. If your e-commerce business requires a specialized storage building, a BTS solution, or is working with a broker in order to enter a new country, this developer needs to have the technical knowledge and be broker friendly in order to assist you better.Logistics can be heavily dependent on your working space, so this advice is one of the most important.
- Prepare for a digital-first future. While physical retail won’t disappear anytime soon, the world is clearly going for an electronic transition. As MarketWatch reports, Facebook messaging increased up to 50% in countries experiencing severe issues. Investing in better e-commerce tools and infrastructure would help future-proof your business.
Having a strong marketing on digital platforms and the logistics challenges well accounted for will allow e-commerce companies to expand and prosper. And bringing your company closer to its market with the help of a trusted developer will give it an edge over your competition. Thus, here at VYNMSA we would like to assist you in settling in Mexico.
With over 30 years of experience, we are one of the leading industrial real estate developers in Mexico and have delivered over 500 projects to fully satisfied customers. We are fully equipped to assist you in developing your BTS projects, with lease and sale solutions that always have a win-win approach. We also have around 20 inventory buildings ready for immediate occupancy, which is a total space of 2 million SqFt across Northeast and Central Mexico.
Contact us and bring your e-commerce business to Mexico with VYNMSA.