Zalando knows “where it’s at” – and where it needs to be
One of the areas shaking up ecommerce at the moment is logistics. Companies like Amazon and FedEx have set enormous precedents when it comes to the speed and professionalism of the packaging and delivery side of ecommerce. Taking payments with a click is only half the battle: getting a wider variety of products into consumers’ hands at a faster pace is the other half. One of the companies currently standing out in this regard? Online fashion platform Zalando.
See Zalando’s logistics set-up in operation
Zalando knows that today’s consumer has certain expectations when it comes to receiving the goods they order online. Indeed, it is only a matter of time before same-day-delivery is the standard in Europe. Zalando, of course, got there first: and there’s little doubt that the company will, eventually, expand its same day delivery service beyond its currently modest confines.
Speed is not the only element that customers care about when it comes to deliveries, though. Ecommerce platforms are under increasing pressure to offer free delivery services and generous return options.
The logic behind a good delivery service is pretty simple: more flexibility over how and when you can return items, less postage and packaging cost to the customer, and quicker delivery times. Taken together, these considerations become an almost irresistible package for consumers.
Zalando’s business model dictates that it master the logistics of the delivery service. But now, it’s become so adept at getting things where and when they should be that its offering logistics to other brands via its fulfillment by Zalando service.
This service demonstrates just how streamlined and efficient Zalando have become at the ‘other half’ of ecommerce. What’s its focus looking forward? The “last mile” of the delivery journey.
Senior vice president of operations at Zalando, David Schröder, says:
“We need strong partners to enable this fast delivery. We need flexibility from our last-mile partners. We see a need to flexibly adapt those routings while the driver is on their tour. Otherwise the costs really explode.”
There’s little doubt that Zalando will conquer this last piece of the delivery puzzle. And when it does, its enviable service will become even better.
Dominion holds Zalando in its Global Trends Ecommerce Fund.
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