The “Amazon Effect” Is Changing How Transport and Retail Industries Do Business

The “Amazon Effect” is not just an Amazon phenomenon. Thanks to Millennials, online retailers are shipping unpredictable sets of items, and the transport industry is trying to adapt to different size packages and a lot of different destinations. For example, consumers who buy from Amazon or from online retailers in the United Kingdom and other countries, buy an enormous number of different items, and a lot of those items are small items that qualify the consumer for free shipping or other benefits. Shipping companies must adjust their business model in order to meet the demand of high-volume online retailers. There are some good examples of shippers who have made shipping from the U.K. simple.

The whole unpredictable set of items thing is not a Baby Boomer creation. Many Baby Boomers still like to shop at brick and mortar stores, but those consumers are on the back side of the retail industry. Generation Y, better known as the Millennial generation, is the engine on this new wave of shipping perks, according to the American Trucking Association. The trucking industry will enjoy a 66 percent increase in revenue and a 44 percent increase in tonnage by 2023 thanks to online purchases.

Millennials are not traditional retail consumers. They want to interact with brands using digital formats, and they want to interact with shipping companies once their merchandise leaves a warehouse. Millennial shoppers are forcing online retailers to pay attention to how they ship merchandise and when they ship it. The old ten days to two weeks shipping story doesn’t fly in the Millennial market.

Millennials love loyalty and reward programs. Seventy-seven percent of Millennial shoppers belong to one or more of the loyalty programs that online retailers always offer. Millennials are word-of-mouth shoppers, and if their items don’t arrive when expected, or the quality of the items is less than expected, social media sends a verbal dagger through the internet, and it has an effect on business. Some companies know they are responsible for spreading positive news, and the only way to do that is to offer multiple shipping options that include tracking services.

So, there is a new approach to selling, thanks to the online retailers who know how to keep the Millennial market happy. Retailers must make the people born between 1980 and 2000 feel trendy and fashionable. These consumers want to know what their friends are buying, and how fast they get what they order. Some online retailers call this bro-buying code a social buying and shipping experience. And it is special when this social buying experience is compared to a brick and mortar experience.

Online retailers and the shipping companies that adapt to this untraditional and smart way to shop are the pioneers in the race to get everything a person needs to their front door in record-breaking time. Shipping companies play a major role in the symbiotic relationship with online retailers. The bottom-line benefits for both companies are hard to ignore.