The Delivery Service Industry In 2021

Reaching customers has never been easier than it has been in the last couple of years. In 2020, the Canadian courier and delivery industry were estimated at 11.62 billion dollars.

This has been supported by e-commerce, business competitiveness, and the increased need for businesses to increase customer experiences and convenience.

While the industry has experienced many changes over the years, some aspects are expected to remain the same.

What should you expect in the delivery service industry in 2021? Here are some trends that are unlikely to go away.

Focus on Packaging

Aside from distribution networks, companies have to keep safety in mind.

Ultimately, goods have to get to buyers in the same condition they left the warehouse in. This makes product packaging a critical aspect of the entire delivery process.

This includes everything from the primary packaging to the protective packaging that ensures products can withstand delivery.

Increased Convenience

Players in this industry have come to expect cut-throat competition. Every new entrant in the market is packaging itself much better and trying to outdo those already in the business.

One of the main themes in 2021 will be differentiation. With other logistics-related functions being standardized, the best differentiator will be in customer experiences.

Customers can expect more convenience going forward.

Think varied choices, for example. Customers are looking to have one delivery company that can handle different orders of choice. Be it food, clothes, wine, flowers and so on.

Speed and personalized services are another.

With the pandemic still with us, a no-contact delivery company with online payments will also stand a shoulder above the rest.

Expect to see companies jostling to find newer and better ways to serve their clients.

Q-Commerce

The next generation of commerce will be centered on speed hence q-commerce for 'quick commerce.'

Traditional e-commerce brought a lot of novelty with online ordering. Still, the delivery timelines have remained mainly 2 to 5 days. With this model, larger orders are also encouraged through incentives such as free delivery pegged on specific dollar amounts.

Q-commerce seeks to change all this.

Aside from shortening the existing delivery timelines to hours or minutes, no order will be deemed too small.

Q-commerce also takes into consideration urbanization and smaller family units. While larger families would naturally shop in bulk, smaller units and single households require fewer items. And not just that, but the growing culture of convenience means more and more people want to stay put and have whatever they need to be brought to them.

In essence, q-commerce is a trend about to be explored fully, with faster service, any size of orders, and delivery times averaging 30 minutes.

Sustainability

Making more trips with possibly lesser deliveries is less sustainable, more so to the environment.

The main concern as we advance is how to practise q-commerce, appease clients but still be sustainable.

Indeed, customers today are more discerning and are increasingly judging businesses based on more than just what their core business is. One area that has been front and center and will remain so is sustainability and the organization's environmental impact.

The delivery industry will not be left behind as it needs to remain competitive while being sustainable.

CSR is a huge consideration as well. Forward-thinking delivery companies are rethinking their CSR strategies. From encouraging better packing from the point of sale to delivering free food from restaurants to communities in need of it.

In Summary

Some of the changes experienced in 2020 will significantly impact the delivery industry this year. Aside from that, the industry will be looking to catch up with peers on sustainability and CSR.