LogiNext enables discounts on delivery fee to enable efficient shipments this holiday season

LogiNext is helping retailers offer discounts on delivery times to their customers to aggregate orders to be delivered to one location. This will enable delivery agents to fulfill all orders in one location by making a lesser number of trips per week. Currently, retailers are able to offer neck to neck discounts which are not enough for luring more shoppers on their website. They are now focussing on shorter delivery times and customer convenience. Shoppers in 2019 are willing to pay a delivery fee to expedite their orders and are automatically tempted to choose a date with the least delivery fee. Capitalizing on this tendency, LogiNext is helping retailers reduce miles per week to fulfill the avalanche of orders in the peak season.

LogiNext, the world’s only transportation automation platform is enabling parcel companies to offer discounts on delivery dates and times to enable optimum parcel delivery mechanism during the swamped holiday season. It has been predicted that an unprecedented 1 Billion parcels will be shipped in the next few weeks starting from 11.11 sales going up to boxing day.

Retailers are now only able to manage nip and tuck discounts which are not sufficient to lure more shoppers on their website, hence they have now diverted their focus on shorter delivery times and increased customer convenience as their USP to maximize revenue in this season.

website wordpress webhosting best company service free transfer files migration

In a survey conducted in 2016:

  • 90% of the shoppers expected free delivery and they said that free delivery was the #1 reason for them to shop online more often. In addition to free shipping
  • 69% of the shoppers also said that one-day shipping would make them shop online more often. This metric has jumped from 9% in 2015.

Over three years, the shopping patterns have been overhauled and now shoppers are willing to pay to get their deliveries faster.

In 2019, a survey conducted by KPMG stated that:

  • 43% of the customers are ready to foot delivery fees up to $10 to get their order in less than 3 days.
  • 49% of the shoppers also confirmed that delivery time was one of the most important factors in making a buying decision.
  • 54% of the shoppers also looked at easy and free returns to be a parameter before locking down the purchase.

The biggest delivery company in the country, using LogiNext’s Machine Learning based technology, has tied up with its retailers to launch dynamic delivery pricing to balance the sudden avalanche of orders that they would see in the forthcoming weeks.

As explained by LogiNext CTO, Manisha Raisinghani,"Typically, each order has a fixed delivery charge and delivery date but this method of dynamic delivery pricing will incentivize shoppers to pick the delivery dates and times which already have more orders for that location. Which means that the delivery agents can reduce the number of trips per week to that location to fulfill orders in that area." This will play on a shopper’s tendency to pick the date with the lowest delivery price which will coincide with other orders in the same geofence.

This functionality is available exclusively with LogiNext Solutions, headquartered in Fremont, California. LogiNext CEO, Dhruvil Sanghvi said, "While aggregation is impacting the profitability of every industry, this parcel aggregation move in the logistics business will stand popular in this ‘I-want-it-now’ economy and our customers are bound to benefit from the first-mover advantage. Providing dynamic delivery pricing is not just a business focussed feature but also another step that LogiNext has taken in the direction of providing green logistics".

This has the potential to reduce delivery charges for customer customers by 22% and shipper by 18%. Typically, a delivery agent travels 210 miles per week but using dynamic delivery pricing, the agent will be able to deliver the same number of parcels by traveling just 180 miles per week. This year Santa’s helpers will have to travel a lesser number of miles to spread a billion parcels joy in the country.

About LogiNext

LogiNext is the world’s #1 transportation automation platform with more than 50 Fortune 500 customers and operations in over 88 countries. The Alibaba backed SaaS provider helps Courier Express Parcel, Retail, 3rd Party Logistics and QSRs to digitize their logistics for exceptional customer experience and delivery excellence.

Leave a Reply