Dive Brief:
- E-commerce is providing a more sought-after way for rural residents to buy goods. The Wall Street Journal, citing Kantar Retail says 73% of rural consumers buy online.
- For shippers, though, delivery to hard to reach and remote areas can cost more and reduce profits.
- UPS and FedEx charge an extra $4 for certain residential drops, but that means retailers bear the cost to offer price deals and free shipping to stay competitive.
Dive Insight:
We are seeing an increase in distribution centers nationwide, including in smaller cities. This is because e-commerce has forced expectations to shorten delivery time.
The answer may be the opportunity for a third-party supply chain. With home crafters and mom-and-pop stores opening e-commerce sites relatively easily, new opportunities are arising for companies to fill their supply chain needs. Some 3PL firms already are providing first-class service to smaller players, David Egan told Supply Chain Dive.
Short haul delivery services are creating a new e-commerce industry as the demand for remote industrial parks that offer a logistical well placed warehouses that would feed an area of 150 mile radius.
