The Benefits of Shipping System Integration in E-commerce

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E-commerce in Canada is growing. In fact, according to primary research from Canada Post that was completed and published in October of 2012, 79% of Canadians have purchased online and 64% of those had purchased within the last 3 months. I wonder by how much that number has increased again in 2013.

Canada Post isn’t the only business looking at E-commerce trends. In 2012, comScore created the Online Shopping Customer Experience Study, commissioned by UPS. comScore found that approximately 75 million people or one-third of the internet population buy goods online to be shipped to them over the course of a quarter. comScore found that these 75 million people are making more and more purchases.

  • 1/3  make 1 transaction
  • 1/2  make 1-2 transactions
  • 1/4  make 3-5 transactions
  • 1/4 make 6 transactions or MORE.

The large growth in online purchases like this means that there is also are a lot of products being shipped to Canadians across the country in both large cities and hard to reach smaller remote areas. In fact in 2012 Canada Post delivered 9.8 billion packages, letters and messages across Canada. When asked, those surveyed in a second Canada Post study, in August of 2013, stated three major needs when considering a shipping provider.

1)      Lowest shipping cost (82%)

2)      Package tracking capabilities (51%)

3)      Ease of receiving/retrieving the package if no one is home when delivery is attempted. (37%)

Addressing these customer concerns as well as the increasing number of packages being shipped on an annual basis Canada Post needed to create a fully functional end to end solution that allowed for parcels and mail to be delivered efficiently as well as customer needs to be met, meaning keeping shipping costs low, tracking packages and ease of receiving packages. Moving packages is facilitated by good data movement. Canada Post developed an API to allow solution providers to connect seamlessly to their platforms to transmit and exchange data. This is where Virtual Logistics and their integration to Canada Post API creates an end to end solution for e-commerce businesses and customers.

Simply put, by using Virtual Logistics Canada Post Integration solution which can be on premise using ECS and Delta or hosted on our cloud platform, customers and e-commerce businesses can track packages, and print labels for both contract and non-contract shipping while taking advantage of the following benefits.

Businesses

  1. Increased Savings- decreased costs including labor costs and increased accuracy.
  2. Fewer Errors- fewer errors due to manual data entry of orders.
  3. Improved Customer Service- better customer relationship management due to increased ability to communicate with customers regarding the status of their package(s)
  4. A complete end to end solution that provides a structure for your shipping and fulfillment all with the convenience of one provider.

Customers

  1. Customer packages arrive on time and to the correct location on the first try
  2. Customers are able to track their packages as soon as they are shipped.
  3. Fulfillment and integration expertise from providers that customers can trust.
  4. An end to end solution that works for both B2C and B2B customers.

These benefits to customers and e-commerce businesses work to create an integrated and intelligent supply chain where information flows efficiently with clearly measurable steps along the way. These measurable steps and free information flow help create a proper audit trail that can be looked at if and when problems arise. Secondly, by working with trusted providers, there is trusted governance as well as accountability that both businesses and customers can rely on.  That trusted relationship is a win all around.

Curious to find out more about Shipping System Integration? Click on the button below to find out how Integration with Canada Post works.

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