Wayfair has come a long way from its modest origins in a college dorm room. Today, the company sells $ 8.6 billion worth of furniture and household goods to 19 million active customers in Europe and North America.
But what will the parcel delivery landscape look like in 2030?
In many areas, including domestic items, e-commerce has recently experienced double-digit growth. As new generations begin to purchase different types of products because of mobile and the internet, the market is expected to triple by 2030.
For e-commerce, speed is a good accelerator. It won't just be about speed; customer service demands will rise as well. Home furniture, for example, is more prone to damage due to its size. It is not the same as sending and using their personal space.
As a result, 90% of mattresses, closets, and other larger pieces of furniture are delivered via the Wayfair transport control network, while 70% are delivered via automobiles. People prefer to have enormous stuff in their rooms, and some furniture must fit perfectly.
Part of the delivered articles, little and large plots, will rise skyrocket as e-commerce grows. It will be much more beneficial in the future. It is a weak team for the firm to manage. Customer expectations for a better choice of products supplied faster and in a way that makes them happy will be tough to achieve.
The primary goal is to improve the client experience and boost flexibility. Intelligent management, which is a type of software, will become increasingly significant. E-commerce allows for returns by email. With new technology, it will be possible to produce a receipt after a long period of time, which will be more convenient for a secure distribution company like Wayfair.
There are currently a few players who effectively control the market. There is a chance to improve customer service as a company grows in size and scale. The service provider will be responsible for several clients. It's all about developing a standardized, cost-effective product that can cater to the majority of clients. The objective of service must be determined before it can be created.
Currently, there is a rural/urban division into delivery services. Cities have access to more products for delivery in the same day or two, rural customers are ordering more packages. From a logistical point of view, the increasing density of rural areas makes it much cheaper to offer.
So, in comparison to cities, coverage and distribution speed in rural areas will grow — probably not the same day, but the next day. The sector of household items is both exciting and demanding for e-commerce. They are relatively undeveloped ecosystems compared to traditional e-commerce sectors like books and clothes.
Partnerships are essential, and Wayfair has been doing this since its inception. Wayfair has a partnership of 11,000 companies in all countries. And the company also has strong relationships with transportation partners.
In terms of taxes and fees, the answer will come mainly from city feeds to reduce congestion as much as possible. And that turns into things like intelligent travel software, being a lot more accurate in planning with clients to know when they will be home, in order to go there only once.