E-commerce challenges and their solutions
The explosive growth in e-commerce, with thanks somewhat to the pandemic, has rewritten the rules of logistics forever. What once was a service for bulk shipping and B2B transactions has become a fast-paced, relentless, and customer-obsessed world.
According to Statista, the United Kingdom now boasts the most developed e-commerce market in Europe, with the e-commerce penetration rate nearing 85% in 2025. The European average is just under 50%, meaning that while less than half of all Europeans shop online, nearly all UK consumers do.
Logistics companies, of course, had to reinvent themselves to meet these new demands, and they had to do it fast. COVID-19 brought about a lot of innovation and diverse strategies for those small businesses that were previously limited to in-store purchases. They took the necessary plunge to evolve their in-person custom online, reaching their customers with local door drops as well as capitalising on digital marketing for those further afield.
The rise in necessity for delivery options meant that logistics companies led the charge in solving e-commerce’s toughest problems: demand, speed and logistics.
Here are just some of the challenges in e-commerce and how they’re being handled by third-party logistics providers.
Challenge 1: Handling High-Order Volumes at Scale
The E-commerce Frustration:
Seasonal ebbs and flows, new product launches and sudden spikes in sales put enormous pressure on in-house fulfilment operations. Manual processes become strained, and service standards can slip under the pressure.
The Logistics Solution:
Embracing warehouse automation and AI-driven forecasting software to adapt in real-time, incorporating the client’s inventory trackers and delivery plans to update their own systems.
- Third-party logistics providers allow brands to tap into their networks, expanding their reach regionally and/or nationally without having to invest in their own infrastructure.
- AI software, such as the one we use, Mintsoft, forecasts demand, staffing, and inventory allocation more accurately.
The Outcome:
Black Friday sales are no longer terrifying! Businesses can scale their operations every day at the touch of a button.
Challenge 2: The Need for Speed
The E-commerce Frustration:
Next-day delivery became the standard, thanks to Amazon and Prime Delivery, so small businesses had to really fight to keep up.
The Logistics Solution:
To meet the expectation of instant gratification, logistics companies:
- Focused on efficiency for their last-mile delivery routes using route optimisation software.
- Invested heavily in more logistics infrastructure, such as vehicles and staff, to keep up
The Outcome:
Faster shipping is more accessible to e-commerce brands.
Challenge 3: Managing Returns Efficiently
The E-commerce Frustration:
Returns can eat into profit margins, disrupt operations, and aggravate customers if not handled well.
The Logistics Solution:
Reverse logistics: tailoring systems to support the e-commerce returns market efficiently:
- Automated returns processes: route optimisation software that factors in current routes and space within vehicles to facilitate efficient journeys and reverse logistics.
- Storage solutions: Offering warehousing options to enable smart rerouting, managing returned goods from the depot without having to return all the way back to the client, just to go back out on the road again
The Outcome:
Faster refunds and happier customers, and speedier recovery and reselling of returned inventory for the client.
Challenge 4: Lack of Visibility Across the Supply Chain
The E-commerce Frustration:
Brands experienced delays in shipments, lost packages, and a lack of transparency for product location.
The Logistics Solution:
Third-party logistics providers work seamlessly with real-time tracking dashboards:
- Small businesses can now tap into their logistics partners’ software to track all of their ongoing deliveries.
- AI tools are used to predict delivery timelines and proactively resolve delays in real-time.
- Customer notifications can be integrated with live ETA updates and information send directly to them.
The Outcome:
A more transparent service, with customers no longer having to commit to being at home between 9am and 5pm to receive a bin!
Challenge 5: Sustainability & Environmental Impact
The E-commerce Frustration:
With more vehicles on the roads making deliveries, eco-conscious consumers demanded greener operations.
The Logistics Solution:
Sustainability became a strategic focus:
- EV fleets and low-emission last-mile vehicles reduced carbon footprints, as well as route optimisation for more efficient journeys.
- Carbon tracking tools, such as planA, enabled brands to measure, understand and offset emissions in various areas of the business.
- Eco-friendly packaging and green warehousing became new selling points, including utilising renewable energy sources, employing energy-efficient technologies, optimising packaging and transportation, and implementing robust waste management and recycling programs.
The Outcome:
Logistics companies now assist e-commerce brands in meeting their ESG (Environmental, Social and Governance) goals.
Final Thoughts
E-commerce and logistics companies saved the day for many during the pandemic, and the industry’s never been the same since.
From lightning-fast fulfilment to seamless returns, 3PLs (third-party logistics providers) have become the backbone of e-commerce. They’ve made deliveries not only possible, but innovative and progressive as we look toward 2026.
Want to stay ahead with all things logistics?
Let us know if we can help you with your own e-commerce logistics. We’re on hand to help with deliveries, fulfilment, storage, warehousing and returns.
Call us on: 01603 408143
Email us at: info@concordetransport.co.uk
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