Business to Business E-Commerce Logistics: 8 Statistics to Think About
Scott Hothem • February 26, 2015
The barrage of home runs that were hit during the late 90’s was a result of batters having extra power. The era of PEDs changed the way fans think about baseball and changed the way the game is played. In the NFL, new rules to increase safety for players have also changed the way this sport is played. With more protective rules for quarterbacks, scores have risen and defenses have been forced to adapt in order to avoid penalties. These are two examples where shifts in control and power have altered the state of competition. The same is very true in the world of business-to-business e-commerce. Consumers have never had more power than they do right now, and there are no signs of that slowing down. These 8 facts support the changing landscape of e-commerce retail and how you can play by these new rules.
- “Free Shipping” will invoke 93% of buyers to take action on a product. (UPS Pulse of the Online Shopper, Slide 6)
- 33% of e-commerce sales come from mobile devices. This is a 23% increase from the year before. In the past 2 years, mobile sales have grown 175%. (Shopify)
- Within the next 3 years 48% of B2B customers will place 50% or more of their orders online. (Internet Retailer)
- 48% of companies that haven’t adapted to e-commerce cite a lack of resources as the top reason why. (DigitalRiver)
- 38% of shoppers say they will not return to a retailer’s site if it is not optimized for mobile. (UPS Pulse of the Online Shopper, Slide 14)
- The average conversion rate for e-commerce websites is 7.3% vs. only a 3% conversion rate in retail stores. (Internet Retailer)
- Delivery speed is considered the 4th most important factor. 83% of shoppers will wait 2 or more days for free shipping. (UPS Pulse of the Online Shopper, Slide 6)
- Product discovery via social media and ad targeting has increased 202%. (Shopify)
These statistics all have one overarching theme, technology. Leveraging technology to provide the information that the market demands and having the logistical resources to meet its expectations is crucial. With a focus on technology and a customized supply chain solution, Barrett Distribution Centers has the expertise and experience to answer the e-commerce challenge.
Recent Blog Posts
Shipping costs continue to be one of the biggest expenses for manufacturers, retailers, and ecommerce businesses. While carrier rates often receive the most attention, the location of your warehouse and the way your fulfillment operation is managed can have an even greater impact on your overall transportation spend. By optimizing where inventory is stored and how orders are fulfilled, businesses can reduce shipping costs without sacrificing service levels. Store Inventory Closer to Your Customers One of the most effective ways to lower shipping costs is to reduce the distance packages travel. When inventory is positioned closer to customers, shipments can often be delivered faster while reducing transportation expenses. Many growing businesses choose to distribute inventory across multiple warehouse locations rather than relying on a single distribution center. This strategy helps shorten transit times, improve delivery performance, and reduce the need for expensive expedited shipping. Optimize Inventory Placement Not every product needs to be stocked in every warehouse. Analyzing customer demand by region allows businesses to place inventory where it is needed most, reducing unnecessary transportation and improving order efficiency. A strategic inventory placement plan can also help balance stock levels across facilities, minimizing costly transfers and improving product availability. Improve Order Fulfillment Efficiency An efficient warehouse operation can also contribute to lower shipping costs. Accurate inventory management, streamlined picking processes, and organized workflows help orders move through the warehouse quickly and correctly. Reducing fulfillment errors minimizes reshipments, returns, and additional transportation costs while improving the customer experience. Leverage Multiple Carrier Options Every shipment is different. The ability to compare carriers, service levels, and shipping methods allows businesses to select the most cost-effective option for each order. Working with a third-party logistics provider that utilizes transportation management technology can help identify opportunities to optimize parcel and freight shipments while maintaining reliable delivery performance. Use Data to Make Smarter Shipping Decisions Modern warehouse technology provides valuable insights into shipping performance, inventory trends, and transportation costs. By monitoring key performance indicators such as shipping expenses, order volume, transit times, and inventory levels, businesses can identify opportunities to improve efficiency and reduce costs over time. Access to real-time reporting also enables faster decision-making and supports continuous supply chain improvement. Partner with the Right 3PL Reducing shipping costs is about more than negotiating carrier rates. It requires the right combination of warehouse locations, operational expertise, technology, and transportation strategy. Barrett Distribution helps businesses optimize their distribution networks through a nationwide footprint of strategically located fulfillment centers, advanced warehouse and transportation management systems, and decades of logistics experience. By designing customized fulfillment solutions based on each customer's unique requirements, Barrett helps companies improve delivery performance, increase inventory visibility, and lower total supply chain costs. As shipping costs continue to rise, taking a strategic approach to warehousing and fulfillment can make a measurable difference. The right warehouse partner doesn't just move products—it helps create a more efficient, cost-effective supply chain that supports long-term growth.
A Great Partnership Starts with a Great Launch Day
A Gateway to the West Coast Southern California is home to the Ports of Los Angeles and Long Beach, the busiest container port complex in North America. This makes the region an ideal location for companies importing products and distributing them throughout the United States. Beyond its port access, Southern California offers an extensive transportation network that includes major interstate highways, rail connections, regional airports, and national parcel carriers. This infrastructure helps businesses move inventory efficiently while improving speed to market across the western United States. Faster Access to Customers Warehouse location plays a significant role in shipping performance. By positioning inventory in Southern California, businesses can reach customers throughout California and neighboring western states more quickly and efficiently. Shorter shipping distances often translate into lower transportation costs, improved transit times, and a better customer experience. As consumer expectations continue to rise, having inventory strategically located near key markets can provide a meaningful competitive advantage. Built for Omnichannel Distribution Today's supply chains are more complex than ever. Many businesses need to support ecommerce orders, retail replenishment, wholesale distribution, and marketplace fulfillment simultaneously. Southern California's transportation infrastructure and proximity to major retailers make it an ideal location for omnichannel distribution. A well-positioned warehouse allows businesses to maintain inventory visibility, respond to changing demand, and deliver products efficiently across multiple sales channels. Why Partner with Barrett in Southern California? Choosing the right warehouse partner is just as important as choosing the right location. Barrett Distribution's Montebello, California warehouse provides businesses with a strategic presence in one of the country's most important logistics markets while connecting them to Barrett's nationwide network of fulfillment centers. Supported by advanced warehouse management technology, transportation management solutions, and experienced operations teams, Barrett helps companies streamline inventory management and support both business-to-business and direct-to-consumer fulfillment. For more than 80 years, Barrett has partnered with growing brands to build flexible, scalable supply chain solutions tailored to their unique operational needs. Whether you're expanding your West Coast distribution strategy or looking for a trusted third-party logistics provider, Barrett combines strategic warehouse locations with proven operational expertise to help your business deliver with confidence.
