Skip to content
Search AI Powered

Latest Stories

E-commerce giants leave room for smaller brands offering personalized, eco-friendly experiences

Amazon and big box retailers are taking the lion’s share of e-commerce business, but are creating consumer guilt along the way, survey shows.

ecommerce-3563183_640.jpg

Consumers want the speed and convenience of online shopping with the leading e-commerce companies, but feel guilty taking business away from smaller companies that offer local, more personalized service, according to a survey from third-party logistics services provider (3PL) Kenco Logistics, released this week.

The company’s 2021 E-Commerce Consumer Survey identifies trends and preferences in e-commerce shopping habits, sustainability, delivery, and more. Kenco polled 1,300 consumers this spring and found that most value convenience and sustainability and will reward brands that can deliver a mix of both. The personalization of shopping with smaller businesses also ranked high. Combined, these factors are creating room at the table for smaller companies, they said.


“While 81% of consumers still shop online most frequently with Amazon and big box retailers for their low prices and convenience, today’s e-commerce consumers are conflicted in aligning their principles with their purchases, creating new market opportunities,” the survey authors said.

Among the survey’s findings, online shopping trends that were accelerated by the pandemic are here to stay. More than 40% of consumers said they make online purchases once a week; nearly 20% said they make online purchases multiple times per week; and 84% said they expect their online purchases to increase or remain the same post-pandemic.

The survey also found that the e-commerce giants will continue to get the majority of consumers’ online purchasing spend: 81% of consumers said they choose to shop online with the larger players, citing price, user-friendly experiences, and product availability as top reasons. But that convenience comes with a price: 36% of consumers said they associate shopping online at Amazon or big box retailers with feelings of guilt. Of those, nearly three-quarters said they feel like they are taking away from small businesses when purchasing from larger e-commerce companies; 68% said they think they are contributing to unsustainable practices involved with packaging, manufacturing, and labor by doing so; and half say they feel guilty that they are not supporting more socially responsible companies—particularly ethical, minority-owned, and environmentally conscious firms.

“The data [reveal] that these feelings of guilt associated with making Amazon or big box purchases increase as consumer age decreases, showing trends toward environmentally and/or socially conscious shopping will only continue to gain momentum,” according to the survey.

Sustainability practices also ranked high with consumers surveyed, many of whom said they will wait longer for personalized, eco-friendly buying experiences. Although nearly half (49%) of consumers said they prefer two-day delivery, most said they are willing to wait longer for deliveries of more personalized and sustainable products and experiences: 74% said they are either highly likely or likely to wait longer for such deliveries from smaller, more unique brands, and 69% said they are either highly likely or likely to forgo faster delivery options for more sustainable options, such as delaying deliveries by grouping orders or combining orders with others on the same route.

“The expectations levied toward Amazon and big box retailers are being eased for smaller, unique, and sustainable brands that more closely align with consumer values,” David Hauptman, chief commercial officer at Kenco, said in a statement. “While consumers demand low prices and fast delivery times from national and global chains, they’re more forgiving when they know their dollars are contributing to sustainable or socially conscious practices. Small-business owners can worry less about providing instant gratification if they’re offering quality, unique, and sustainable products.”


The Latest

More Stories

team collaborating on data with laptops

Gartner: data governance strategy is key to making AI pay off

Supply chain planning (SCP) leaders working on transformation efforts are focused on two major high-impact technology trends, including composite AI and supply chain data governance, according to a study from Gartner, Inc.

"SCP leaders are in the process of developing transformation roadmaps that will prioritize delivering on advanced decision intelligence and automated decision making," Eva Dawkins, Director Analyst in Gartner’s Supply Chain practice, said in a release. "Composite AI, which is the combined application of different AI techniques to improve learning efficiency, will drive the optimization and automation of many planning activities at scale, while supply chain data governance is the foundational key for digital transformation.”

Keep ReadingShow less

Featured

dexory robot counting warehouse inventory

Dexory raises $80 million for inventory-counting robots

The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.

A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.

Keep ReadingShow less
container cranes and trucks at DB Schenker yard

Deutsche Bahn says sale of DB Schenker will cut debt, improve rail

German rail giant Deutsche Bahn AG yesterday said it will cut its debt and boost its focus on improving rail infrastructure thanks to its formal approval of the deal to sell its logistics subsidiary DB Schenker to the Danish transport and logistics group DSV for a total price of $16.3 billion.

Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.

Keep ReadingShow less
containers stacked in a yard

Reinke moves from TIA to IANA in top office

Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.

Reinke will take her new job upon the retirement of Joni Casey at the end of the year. Casey had announced in July that she would step down after 27 years at the helm of IANA.

Keep ReadingShow less
NOAA weather map of hurricane helene

Florida braces for impact of Hurricane Helene

Serious inland flooding and widespread power outages are likely to sweep across Florida and other Southeast states in coming days with the arrival of Hurricane Helene, which is now predicted to make landfall Thursday evening along Florida’s northwest coast as a major hurricane, according to the National Oceanic and Atmospheric Administration (NOAA).

While the most catastrophic landfall impact is expected in the sparsely-population Big Bend area of Florida, it’s not only sea-front cities that are at risk. Since Helene is an “unusually large storm,” its flooding, rainfall, and high winds won’t be limited only to the Gulf Coast, but are expected to travel hundreds of miles inland, the weather service said. Heavy rainfall is expected to begin in the region even before the storm comes ashore, and the wet conditions will continue to move northward into the southern Appalachians region through Friday, dumping storm total rainfall amounts of up to 18 inches. Specifically, the major flood risk includes the urban areas around Tallahassee, metro Atlanta, and western North Carolina.

Keep ReadingShow less