Online platforms are gaining more and more ground. Also, in the field of logistics. It is expected that growth will not stop there. But why are online platforms doing so well?
Online platforms are growing so fast that they will soon represent half of all logistics traffic. Frank Appel, CEO of DHL made this prediction at the beginning of October during a meeting in which the company shared its vision for the future with investors.
A large part of that trade is cross-border. Cross border is therefore growing twice as fast as domestic e-commerce trade. If you look at the figures from the recent past, you must conclude that that vision is not so bad. Online platforms have grown at a dazzling speed in recent years.
Positive. Yes, because the trade also increases the number of packages to be processed. But the advancing platforms also have a downside, which wants to become the Spotify of fashion, Amazon, VidaXL and bol.com, which must be turned into a platform in 2021, not only gain ground, are also expanding their services with logistical activities. The difference between e-commerce and e-fulfillment is becoming increasingly diffuse because of this blurring trend. The platforms are getting more power and hunger is still far from being satisfied.
Data the success behind online platforms
But why are platforms that succeed so well? because they work 'well' data-driven. Alibaba, which is building a large DC, knows exactly what the customer wants based on data; now that is mainly through online search behavior and advertisements. Artificial intelligence is the 'next big thing' that makes it possible to better predict customer demand. This paves the way for the autonomous supply chain phenomenon.
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External data
Data is the key to this phenomenon. Not only sales data and product information are important, but also external data. Important parameters are: vacations, events, weather and social media. By having all this data talk to each other in a smart way, it is possible to predict the demand well and therefore better coordinate the logistics accordingly.
In the short term it means that you can coordinate your inventory better so that you have to sell less no. “In the long term, you as a retailer would be better able to respond to your wishes when it comes to designing and coloring articles when designing new products. Which in turn can lead to more sales. "
Platforms main trend
Platforms are the most important trend that fashion retailers have to deal with, according to the fashion experts present. From a poll among the fashion retailers (including Nike, Urban Outfitters and Puma, which is building a new omnichannel dc for Europe), more than half indicate platforms as the most important trend. It is not unjustified from the figures that Holger Schmidt, professor at the University of Darmstadt, presented to those present. Platforms have a value of 7.3 trillion dollars worldwide.
Successful platform is rewarding but difficult
It is therefore not surprising that amazon is increasingly transforming themselves into brand platforms. That does not mean that every retailer must do this. Yes, you can earn a lot of money, but the road to it is difficult: “The first three years, platforms don't make a profit, not even the successful ones. The professor's analysis shows that only five to ten percent of the companies that make an attempt succeed.
The professor's analysis shows that only five to ten per cent of the companies that make an attempt to succeed.