E-Commerce means %22logistics%22. Even if you undertake to offer the best product in the world to the customer at the most affordable price, if you cannot deliver the goods to your customers at the expected speed and with the expected quality, you will fail.
99% of e-commerce is logistics. If you cannot deliver the goods that meet the expectations of the customers, you have no chance of success if you cannot deliver the goods quickly enough to satisfy the customer. If you can’t manage the delivery operation effectively while supplying and distributing fast, if you can’t manage to collect the returns intelligently while distributing, the result will be disappointment. Especially in the clothing category, the return rates of the products purchased are almost 40%. There is no way you can solve this operation with conventional cargo systems. You have to use location-based smart systems supported by mobile applications.
Instead of trying to send products from a small number of warehouses to the whole country, next generation supply technologies developed with increased intelligence that can collect orders regionally where they come from, can focus on orders based on location, instantly see the stock status of approved product suppliers in that region or ask them live with a B2B App. need to think. Then, unnecessary inventory costs will be eliminated, and the swelling will disappear no matter how big the business volume grows.
TIRPORT Starts a New Era in E-Commerce Logistics with its RapidChain Technology
One of these technologies, which was originally called “Last Mile Delivery”, was developed by the Turkish startup TIRPORT, which is among the top 10 companies in the world in logistics technologies, and manages a huge logistics operation of nearly 3,000 trucks per day with a team of only 50 people. TIRPORT offers a revolutionary technology in distribution to retail groups with dealers/suppliers across Turkey with RapidChain ( www.rapidchains.com ) technology supported by artificial intelligence.
Whether it is a GSM operator, a bookstore, a white goods manufacturer or a clothing store chain, it integrates RapidChain into their existing e-commerce structures, bringing its suppliers/dealers together with customers in a smart way, even if they do not have a special technology of their own. Thus, a mobile phone purchased from the website of a major GSM operator can be delivered to the customer within a day from the nearest authorized dealer to the place of purchase. A customer ordered a dress, 2 km away from him. You can go to the store in the distance and receive it immediately. Maybe from a store he didn’t even know existed until then.
The Chinese want to be able to receive the products they buy in the morning on the same day.
In China, which has the highest e-commerce rate in the world, new generation Z and Y generation customers now want to receive the product they ordered online in the morning before the end of the day. Not only at home or at work, but also in the most suitable place for his/her daily schedule. It makes him happy to receive delivery at the mall he goes to or at Starbucks where he chats with his friend. Or even the feeling of being able to pick it up while passing by makes him feel comfortable.
Digitalization is rapidly transforming our daily life, the way we do business, our business and government. The Pandemic process, which has taken over the whole world since December 2019, has triggered the spread and acceleration of digitalization. Digitization rates in education, trade and business management have grown exponentially.
E-commerce volume grew by 70% in the world with the pandemic
In 2019, the rate of e-commerce in total retail sales in the world was around 10%. About $4 trillion was spent on e-commerce. Before the pandemic, this rate; It was 20% in China, 14% in the USA, 12% in Europe on average, and around 6% in Turkey.
By the end of 2020, the world e-commerce volume is running to 7 trillion dollars. There is literally an e-commerce revolution in China, the ratio of e-commerce in total trade has approached 40%. In Turkey, it has reached 14%.
36.5% of Internet Users in Turkey Use E-commerce. E-commerce Volume is running to 200 Billion TL at the end of 2020
While 20 percent of the population was shopping online before the Pandemic in Turkey, this rate increased to 50% by the end of 2020. In this period, when working from home is concentrated and education is completely remote mode, the prevalence of the Internet has increased much more. Internet access rate from homes in Turkey increased to 90.4%. 79% of our population now has internet access. On the other hand, 36.5% of those who access the Internet shop online with various frequencies. 51,731,134 people in Turkey have e-government access. 700 institutions provide 5,334 services over e-government. 62.2% of the population in Turkey has started to benefit from e-government services.
With the impact of Covid-19, the effective use of e-commerce in domestic and foreign trade has gained importance. E-commerce volume, which was 55.9 billion TL in the first six months of 2019, increased by 64% to 91.7 billion TL in the first six months of 2020. The amount of e-commerce, which was 136 billion TL in 2019, is expected to exceed 200 billion TL by the end of this year.
78% of online shoppers are under the age of 45
According to the data of the Ministry of Commerce; In e-commerce, 37.5% of users are between the ages of 25-34, 22.5% are between the ages of 35-44, and 18% are between the ages of 18-24. So 78% of e-commerce users are under the age of 45.
60% of the total e-commerce in Turkey is gathered in 3 provinces: The three big cities, which have 31.3% of Turkey’s total population, receive twice the share of e-commerce. Istanbul has 47%, Ankara 8%, İzmir 5%.
Customers Expect Service Far Beyond Classic Cargo Systems
E-commerce will grow by over 70% in Turkey to close 2020. As the volume grew exponentially, customer dissatisfaction also increased significantly. Applications to consumer arbitration committees exploded, and returns began to force firms. The biggest source of complaints is late deliveries and problems in return processes. In particular, the messages of cargo companies that %22we stopped by your home/work place, but you weren’t there%22 annoy customers. These notes, which are written without actually visiting the home/workplace, and never going due to the intensity, damage the reputation of the cargo companies.
TIRPORT’s RapidChain technology also eliminates these problems. Even if the cargo officer asks for such a note without going to the place where he will deliver the product as a GPS location, without informing the customer that he has arrived at his home/workplace with an online report, and without getting a digital confirmation from him, he cannot.
RapidChain can also optimize return processes. A courier arriving at a building can see the returns on the first floor from the front and organize while delivering to the third floor, and collect the products on the way back.
The internet has become the most selling store of many classic chains that once did not give sufficient importance to the e-shop. There are chains in Turkey that have increased their e-commerce volume by over 400% in 2020. Even conventional grocery chains have started to establish delivery networks that will deliver intraday delivery. Cargo companies insist on working with classical agency systems, whereas they cannot respond to the evolving demands of their customers with their classical organizational structure. Many large manufacturers cannot deliver at least 40% of the products they need to ship during the day. Because shipping companies can’t take delivery. Some big e-commerce sites have started to establish their own distribution-collection organizations in big cities where e-commerce is intense. Those who continue to distribute through classical methods will not be able to remain as players in the sector in the near future. Customizable cargo solutions supported by increased intelligence and location-based technologies are candidates to change the industry players.
Where is my cargo?!
Customers are now asking e-commerce companies, %22Where is my cargo?%22 they do not want to see the cargo location with their animations, listen to the standard process explanations such as “your cargo has been delivered to the delivery vehicle”. To monitor where the cargo worker is, with a live SSL link, where he can be in 1 hour, 10 minutes to home/workplace. They want to see that you can stop by in the city, make an appointment with him digitally, and be able to direct the product delivery location from where they are. Are they asking too much, NO. It is possible to do this with today’s technologies.
The DNA of E-Commerce is changing, and the biggest change will be in supply and distribution technologies. How ready are you? What are you doing to be ready?