The COVID-19 crisis changed consumer behavior almost overnight, leading to a surge in e-commerce and Direct-to-Consumer (DTC) sales. While this trend was not new, the pandemic brought about an unexpected surge, with DTC sales in the United States increasing a staggering 45.5% in 2020.
Now, even as COVID-19 restrictions are being lifted around the country, consumers are continuing to show a preference for e-commerce.
How Businesses are Responding to this Change
Many brands and businesses are working hard to meet this new demand for DTC services. As last year’s data has clearly indicated, companies with e-commerce options have experienced more growth than those that rely on brick-and-mortar stores.
In an effort to offer more e-commerce options, businesses have been creating and improving systems for online sales, inventory allocation and forecasting, fulfilment capabilities, warehousing, and shipping.
Given the challenge and logistical complexities that come with DTC sales, many companies are turning to third-party logistics experts to help keep up with sales while staying competitive in an ever changing market place.
What it Means for Logistics
Paving the way for new and innovative logistics solutions, this new normal has led to increased demand for companies that are able to offer same-day, next-day, and two-day delivery solutions for businesses.
Additionally, there’s been a rise in logistics technology startups that help businesses of all sizes manage everything from inventory management to incoming orders and shipment.
Finally, as businesses need more warehousing space, on-demand warehousing solutions have also been on the rise to meet seasonal and ever-changing warehousing needs.
While the COVID-19 crisis brought this change to the retail industry, it’s a shift that appears to be here for the long-term. According to eMarketer, US DTC sales were $111.54 billion in 2020, and are expected to rise to $174.98 billion by 2023.
Businesses, retailers, and logistics companies are all working hard to respond to and meet the new demands of the retail industry. We as a third-party logistics company, have the infrastructure and technology in place to help your business meet the needs of your valuable customers. For more information on how we can help strengthen your supply chain, contact ClearFreight’s team of global logistics experts today.