Dive Brief:
- XPO Logistics saw a 24% spike in e-fulfillment volume at its U.S. contract logistics facilities between Black Friday and Cyber Monday, according to a press release.
- E-commerce is fueling growth as consumers continue to expand interest in online shopping and for mobile flexibility and fast delivery. Six thousand seasonal workers, a 20% increase from 2016, were hired to help during peak season.
- Additionally, 2017 saw the launch of XPOs end-to-end service supporting e-commerce companies and omnichannel retailers move goods through the supply chain with the support of XPO's last mile, less-than-truckload and logistics network.
Dive Insight:
High pre-holiday demand is typically endured by logistics companies with last mile capabilities, but 2017 has been hit harder than expected, with rampant delays and fear of surge pricing.
2017 is the biggest year for online orders, and XPO's numbers show that, which illustrates the popularity and success of e-commerce and overwhelming 3PLs.
Even with precisely calculated surcharges meant to restrain unmanageable volumes, UPS was overwhelmed by this year's demand, causing uncharacteristic delivery delays.
Further, while e-commerce is likely done in terms of pre-holiday shopping, brick-and-mortar stores have yet to see their busiest days, thanks to December 23 and 24 falling on a weekend.
Given this scenario, brick-and-mortar has an excellent opportunity for customer service distinction. Shops offering a personal touch, such as gift bonuses while waiting in line, or even better, incentives to return, could turn the tide on the universal appeal of online shopping, especially if word of mouth by satisfied shoppers plays a role.
