April 1, 2020
eCommerce Logistics for Freight Forwarders – Part 1 – The eCommerce Landscape

eCommerce Logistics for Freight Forwarders – Part 1 – The eCommerce Landscape

The ecommerce is the biggest thing that has
happened in logistics in the last 50 years and it is going to shape logistics. In a very fast way you guys know that behind
a logistic transaction there is a commercial transaction ecommerce is the leading space
in the general commerce little by little and chunk by chunk we see that in the future if
you are not handling ecommerce you will not be able to be successful. And that is what we are going to talk about
today we are going to talk about that opportunity and my goal today is that when you leave this
room you realize that serving that ecommerce industry is not that different or difficult
because technology has come a long way what we have available today is something we can
use to serve them. Okay so I am going to give an overview of
the ecommerce industry in general because there are a few concepts there that when you
see the whole picture you will understand it very well. We are going to talk about different frequent
processes how that works and we are going to talk about a few challenges that are more
mind blocking than anything else and we are going to talk about business opportunity that
we see there okay so let’s start with ecommerce. Let me define it now before we start. Ecommerce is when the consumer is buying something
online from a web browser using the connection. You guys have bought from amazon prime, Ebay,
and almost anything now you can find okay that started in 1995 and for that to happen
technology had to…. That 1994 the first graphic user interface
browser was launched by Netscape and then they also added the circuit security layer
which allows the transactions to be secured online and that was also the National Science
foundation of the US released the internet for commercial use after that is was used
for government purposes and that was like the … that was…. Starting amazon, eBay and many others to that
we call today market places and many other types started later. Market place is a place where any retailer
can go and sell their merchandise online and they don’t have to actually do any development
off technology themselves just place it there like amazon, like eBay and … those most
of these are American companies but they have they are all Canadian sellers who go there
so Canadian retailers can go and sell from amazon eBay and all those as long and they
promise to ship in the US. There’s also all the other players that
attend the Canadian market, while few of that industry and at the very beginning was the
option of these three things because in the 90s and 2000s everybody was wondering .. And
that fuel had more and more and more people buying online. There’s one thing that happened at the end
of 2004 which was the processing card industry which is the issue what call data security
standard which was a way to protect the consumer from identity theft and fraud and all that
and now make a big difference in the way e-commerce was … People were afraid of putting their
credit cards there, but after that time it was like a pickup of the speed of that, e-commerce. So that happened there in 2004 and it continued
fueling the industry. In the year 2000 something else happened in
the industry. We start seeing new technology that allows
any online any online retailer to build their shopping cart, their website themselves very….. Imagine what amazon and eBay had to do in
1995 to develop their online store and get that…. It took them millions and millions of dollars,
now it’s possible in just a couple of days with that technology. …. And by the way, this one here, which
is shopify is an… they have their headquarters here in Toronto. So this shopping car there have evolution,
Shopify magento, … big commerce, blue commerce, there are about 30 companies that provide
shopping cart. They allow their online retailers to actually
bill online store faster and we have more people now, more companies now trying to sell
online, ok? And then all these companies, all there shopping
carts they started providing, provide what we call, what is known in the software industry
as API Application Programming Interface and also the market places ask that in which from
another software you can connect to those systems and update the inventory and the Freight
Forwarding and that allows all the other systems may fulfill them. System of fulfillment centers to connect there
and make that link. So ecommerce can get going okay so after that
you know this 2007 the iPhone was released then android, then surface you don’t have
to wait until you get to buy from the P.C. you Can buy anytime from you mobile phone,
so that also continues to fuel the revolution of ecommerce then lately through a computer
trying to build their online stores to build it because you don’t even need the server
to be on the online store you can access it through the cloud. You can build it out there have it running
in just minutes. And that was possible do to the cloud computer
and without that in place the scenario today is that the consumer today has many many channels
to buy it online and then this comes multichannel and it is something very meaningful for the
commerce industry if you are born service and ….. You have to make sure that you can
handle many channels many different places where the consumer can buy also for the…
if they don’t sell in many different place they are out because you have to find as many
places as possible to sell so you can promote your business and together with that came
another concept that is … that pertains to bigger companies to the bigger retailers
as you have many channels to sell from you have the challenges of giving the consumer
the same feeling the same user experience from many of those channels so you have to
create what they call Omni channel to give them probably one fulfillment center to fulfill
everything to establish to very known procedures so whatever the user receive at the house
is the same it doesn’t matter where you purchased it from. That is what they call the Omni Channel and
that is very easy to get an online store and that is where we are today. If anyone wants to sell online they can just
get one in a few days. That’s where we are and the industry is
just booming. It’s growing and growing all the time. For the united states the ecommerce is so
important and since 1999 they started measuring that every quarter showing how the industry
is doing and it is going up about 15% every year and look at that and in five years will
double whatever happened before that is incredible and the penetration of the market is just
this that you see here is not even ten percent yet it is about 8 point something of the total
commerce that is a comparison between …. And total… okay for Canada the numbers are very
similar I took this one from emarketer that was released in December 2016 that is a projection
of how ecommerce is going to go for Canada ant it is going to grow every year the growth
rate is very similar to the United states for 2016 it was almost 15 % and is going to
keep growing for all these year and the penetration 6.5 percent is going to go up to ten percent
by 2020 that’ll what they are expecting and if you see at the bottom of the future
slides I have a few questions there which is what I want to answer for you, which is
yes the industry is growing very steadily, the industry is going very fast and as the
penetration is still so low there is a lot of the get in and start selling ecommerce.

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