29 Jan

Transportation Disruptions in 2019

By Jim Cahill In Transportation /   No Comments

Courtesy Pixaby | geralt

If you were to ask eCommerce business executives what they consider to be potential disruptions for their business in 2019, what do you think they’d say?

You might guess the two most popular answers would be:

  • Sales Tax Nexus
    and
  • Amazon

And you’d be correct.

    > But what if those answers were not the only looming disruptions 2019 may offer?

    > And what if Amazon could provide disruption in a way you aren’t expecting?

Enter Amazon Air and the truck driver shortage.

Amazon expands its transportation capacity:
A few weeks ago Amazon announced they leased ten more cargo planes and that their fleet, formerly called Prime Air, will soon include fifty aircraft. That news sparked immediate reaction from the stock market, with a not-unexpected dive in the share price of transportation stalwarts FedEx, UPS and others.

Amazon supplies a healthy volume of shipments for large carriers, and any switch to increased reliance on their own air service could potentially save Amazon money while hurting major shipping companies. The full effect of Amazon’s increased carriage capacity on eTailers remains to be seen, but it’s something that bears watching over the course of 2019.

The shortage of truck drivers:
While the shortage of truck drivers is well known, what we’ve found is less obvious to most eTailers, is just how this shortage might affect them. The industry has traditionally focused on customer-facing issues for transit time and rates. Somewhat neglected is the issue of availability of drivers (or lack thereof) for transport from port of entry or plant to distribution centers.

The fact is, our driver pool is aging, and that fact, coupled with the challenges of driving long haul routes (have you ever tasted truck stop coffee?), means younger drivers are simply not stepping forward to fill the gap.

You can read a pretty interesting analysis of how the shortage has affected the food industry here – even if you’re not in the food industry, the cascading effect of the declining driver pool is sure to have an impact on your food budget and your business this year.

Every eTailer should pay close attention to transportation costs on their purchase orders, or they could be in for a nasty surprise as the year progresses.

For more information on how our customers are tackling these disruptions by controlling transportation costs and more, contact us at: marketing@freestylesolutions.com

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18 Dec

Sales Tax Regulations Are Changing Again – How Can You Prepare?

By Jim Cahill In Uncategorized /   No Comments
ladies hand typing on calculator

Courtesy Pixabay | jarmoluk

If you think you’re up-to-date with all the changes for state-level tax nexus regulations, sorry to say, you’re mistaken. eCommerce sales tax is a complex topic, but we’re here to help you.

We’ve seen a flurry of states adding or adjusting requirements, and we expect even more in 2019. For a comprehensive view of the status of each state as of November 26th, please visit Sales Tax Support.

With a total of 33 states having already enacted a nexus, and more to come, how can eTailers prepare their business to manage all of the new requirements?  

Some thoughts:

  • Review your sales by state – You should have access to automatic reports that monitor your progress toward reaching both the sales and transaction threshold which trigger a tax nexus in each state.
  • Obtain current Tax Tables by state – Once you reach a threshold, you should be prepared to calculate and collect the proper taxes for each state where you have a tax nexus. You will also need to register with the appropriate agency in those states to receive permission to collect taxes.
  • Finalize your reporting and remittance strategy – Can you manage the manual reporting and remittance of taxes on a timely basis? Or will you need to engage the services of a third party to help? The answer to this question will tell you whether sales tax collection will become a manageable process or a nuisance for your business.

Freestyle is prepared to help our customers with reporting options within M.O.M. and optional third-party integrations for those who need assistance. Don’t let this become a burden for your business. Reach out to us at: marketing@freestyelsolutions.com

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20 Feb

How eTailers can Compete with Amazon: Insights from Shippo

By Jim Cahill In Uncategorized /   No Comments

Every eTailer has asked themselves this question, “How can I compete against Amazon?”

In a recent article published on Digital Commerce 360, Laura Behrens Wu, the CEO of Freestyle partner Shippo, speaks directly to the issue and offers practical advice for eTailers.

Laura touches on the explosion of new eCommerce businesses, the effort each needs to establish their brand, how Amazon continues to act as an agent of change and the way that individual brands have succeeded by establishing an emotional connection with their customers. This is an interesting read and helps to highlight how the partnership between Freestyle and Shippo adds value to our customers.

To read the article in full please visit this link.

For information on how a comprehensive solution for order, inventory, fulfillment and shipping management can help your business compete with Amazon please contact us at: marketing@freestylesolutions.com

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23 Jan

Thoughts on Selling to Generation Z

By Jim Cahill In Uncategorized /   No Comments

Let’s get this out of the way, Generation Z (Gen Z’s) are nothing like those old timers, Millennials, but why do they matter to eTailers?  Because they have different buying preferences and their burgeoning purchasing power will over time change the dynamics of how eTailers sell their products.

Crazy as it may sound to some, consumers born after 1996 do not share the same buying habits as those in the much discussed and maligned generation ahead of them.  And while we are not suggesting you stress about purchases made by toddlers (give it a few years!) you really need to be aware of the characteristics of consumers in Generation Z who have reached the age where they make purchases and in many cases, may already be working for you.

So, a few thoughts on Generation Z and what they might mean to your business:

  • They Value a different shopping experience than Millennials
  • Gen Z’s are frugal beyond the price, they look at not just the item price but also the component costs such as shipping
  • Gen Z’s affected less by bargains, although price is important
  • Comfortable with shopping online but given that many do not yet have credit cards they will shop in store
  • Shop in store to solve problems or uncertainty and due to lack of credit card
  • Value efficiency for their online shopping experience and ease of access
  • They care more about the “Experience”, fast casual dining is better at delivering what Gen Z’s want than are retailers
  • Unlike Millennials they have no experience or fond memories of dial up Internet or “old” online retail, they have not adapted to technology, it is completely native to them and informs their buying habits
  • They have high expectations and if say a package does not arrive on time, for any reason, they are likely to turn to a different vendor in the future
  • Gen Z does not have much brand loyalty, no second chances are given
  • Teens are Retail’s barometer and in many ways a laboratory to test new trends
  • Gen Z’s are quickly falling out of love with Facebook and have increasingly turned to Instagram and Snapchat as their social media platforms of choice

With a market that is still literally growing up there are at present more trends than rules but it is safe to say that Generation Z will become an increasing part of your customer base, especially as they come of age and become more independent of their parents in their buying habits.

If you have questions about getting your business ready for selling to Generation Z or any eCommerce trend please contact our experts at: marketing@freestylesolutions.com.

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