How eCommerce is Changing Freight Forwarding

Shopping, selling, and buying online have become a necessity. Although life has mostly resumed from the pandemic, eCommerce continues to be a valuable resource. Because of eCommerce, you can order your groceries, fast food, clothes, books, and so much more! Freight forwarding is a widely used method to internationally transport goods for both business and […]

By Katie Myers Updated January 16, 2024 Published November 9, 2022
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Shopping, selling, and buying online have become a necessity. Although life has mostly resumed from the pandemic, eCommerce continues to be a valuable resource. Because of eCommerce, you can order your groceries, fast food, clothes, books, and so much more! Freight forwarding is a widely used method to internationally transport goods for both business and personal use. In this article, we will explore how eCommerce has changed freight forwarding.

What is Freight Forwarding?

A freight forwarding company coordinates the shipment of goods from a shipper to an end user. They use a variety of carriers, such as air freight, ocean freight, road freight, and sometimes rail freight. They are the intermediary between the exporter and the transportation services.

Freight Forwarding Services

Freight forwarding services are an essential part of the shipping industry. Freight forwarding companies should map out the best route for shipping goods. They must provide proper documentation. Freight forwarding services will provide you with documents such as commercial invoices, bill of lading contracts, certificate of origin statements, export licenses, export packing lists, and a shipper’s declaration document. Freight forwarders must adhere to regulations to not carry certain products. These products include flammable and toxic items, drugs, alcohol, batteries, perishable items, and sharp objects.

Benefits of Freight Forwarding

Freight forwarding has many benefits. Freight forwarders can provide value to importing and exporting goods. They have become central in international trade operations.

Import and export goods hassle-free

Freight forwarders will make the shipping process go smoothly and be less stressful. Freight forwarders can assist you with multiple things, from packing and warehouse stages to customs procedures. As the exporter, this will take much of the pressure off of you.

Business advantages

Freight forwarders are knowledgeable and can use their expertise to help your business. They will ensure that your goods will make it to the correct destination and on time. You don’t have to do this alone. Getting help from a freight forwarder will save you time and money.

Not responsible for shipping delays

Freight forwarders are not responsible for delays. Shipping delays can happen for many reasons. These include bad weather, breakdown, port delays, or unforeseen route changes. These are all out of the hands of your freight forwarder, but they will do their best to resolve the delays as soon as possible.

Maintain a good relationship with your freight forwarder

First impressions and good relationships are key. This includes the relationship you have with your freight forwarder. You should always choose a reliable company and someone you can trust. Your freight forwarder should be someone with great customer service who ensures that your goods arrive safely and on time.

Benefits of eCommerce

The world of shopping is forever changed by eCommerce. Maybe you’re considering starting an online store, or you already have one. Knowing some of the benefits of eCommerce will help you improve your store or decide whether or not to start one.

Low financial cost

Starting an online store has lower startup costs. Unlike physical stores, you do not have to rent a building space. Physical stores have upfront costs like store signs, sales equipment, and more. They also have to hire employees and staff to run the store.

24/7 income

Ecommerce provides income 24/7. When you’re selling products online you are always open for business. You can use social media and other digital marketing tactics to attract customers who would normally pick up a product in the store. People can make purchases at any time of the day.

Sell internationally

Ecommerce makes selling products internationally a breeze. Selling worldwide can help grow your business faster. It will also greatly broaden your audience and marketplace. There are several shipping options you can choose to price and ship your products competitively to a worldwide audience.

Impact of eCommerce on Freight Forwarding

Because eCommerce has become widely popular during the pandemic, it has changed freight forwarding in many ways. Amazon, Walmart, Costco, and many other large companies have made it possible for customers to get almost any product with a touch on their phone.

Changes customer expectations

Freight companies have had to adjust how they operate due to customer expectations. Customers now expect a one to two-day or even same-day delivery option. This has increased single warehouse locations rather than multiple warehouses. Freight forwarders are investing in smaller trucks to better suit shorter distances and more frequent last-minute deliveries.

Focus on last-mile delivery

Last-mile delivery refers to the last step in the delivery process when a package is transferred from a transportation hub to its final destination. This is usually to a retail store or a personal residence. Independent freight forwarders have had to increase their focus on last-mile delivery to keep up with large companies such as Amazon.

Increased air freight

Air cargo is the most reliable transport method. You can send cargo anywhere in the world via air freight. Using air freight is the best way to deliver packages faster and more efficiently to their destination. The rise in eCommerce has made it imperative that there be quicker deliveries. This implies there is a greater need for air freight.

Focus on visibility

Most eCommerce retailers update their customers about where their package is in the transport and delivery process. Because of this, freight companies have had to invest in data-sharing systems, fleet management, and route optimization technologies to keep up. They’ve had to alter their traditional strategies to better serve eCommerce retailers.

Enhanced reverse logistics

Reverse logistics is all post-sales activities that are done to optimize market activity. People have many reasons to return or replace a product. It is up to the logistics company to come up with a cost-effective return policy so that customers do not have to pay for their returns.

Adoption of digitization

Because online ordering is so popular, the freight industry has had to take advantage of using new technologies in this post-pandemic world. Big Data allows freight forwarders to collect the required data and analyze it in real-time to provide better customer service. Independent freight forwarders are using many digital platforms for analysis and market forecasts. This will give them a better understanding of customer expectations.

Finally, eCommerce has forever changed logistics and freight forwarding. Ecommerce retailers are generally cheaper than the cost at retail outlets. It has become mainstream for people to get their groceries and other products via delivery. Ecommerce will only continue to grow.

Katie Meyers is an SEO Specialist at SEO Design Chicago. Before joining the SEO Design Chicago team, she interned for them, as well as interned as a Content Writer at HZD Creates. Katie is from Washington State and has an AA and a Social Media Marketing Certificate.

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