eCommerce has become an essential element in the everyday lives for many. More than ever, consumers and retailers are increasingly selling and purchasing products virtually, over the internet. In the essence, eCommerce is favoured because of its convenience, cost-effectiveness and time-saving approach to purchasing goods. For this reason, Australia’s eCommerce industry has grown exponentially in recent years, and is expected to continue growing at an accelerated rate. From July 2020 to July 2021, Australia’s online shopping grew almost 32%. The Covid-19 pandemic, which began in December 2019, has had a significant impact on this boost in eCommerce sales, as Australians embraced social distancing and opted for online shopping. However, with this growth in online sales comes a number of new challenges for retailers – one of which is how to fulfil orders in an efficient manner.
So the question is, how best can you manage your supply chain whilst simultaneously keeping up with ecommerce expansion? In the following paragraphs, we will explore the role of urban micro-fulfilment centres and explain how they a highly valuable solution to logistics fulfilment.
Sydney eCommerce businesses are on the rise
As a growing eCommerce business, offering your customers quick and efficient shipping is more important than ever. With the surge in demand for same-day delivery across Australia, companies are searching for a solution that is reliable and worthwhile. This is evident as according to a PWC consumer survey, up to 88% of consumers are willing to pay for same day or fast delivery… That’s where urban micro-fulfilment centres come in.
Urban fulfilment centres are becoming an increasingly popular option for retailers, as they are designed to be closer to the end customer and provide dependable service. They are essentially miniature versions of large regional fulfilment centres, but are located in urban areas to enable faster shipping times for local businesses and cost-effective last mile delivery. Utilising AI powered robotics for picking, packaging and labelling, urban fulfilment centres are automated to improve productivity and speed up the fulfilment process entirely. AI Powered robotics also minimise the need for manual labour, meaning the tasks that would traditionally be carried out by human employees are now completed with the assistance of robotics. This allows businesses to keep up with customer demand for express delivery and improve their overall productivity while simultaneously reducing staffing costs.
Why You Should Utilise Urban Micro Fulfilment Centres to Fulfil Orders?
Here are four reasons why, as an growing eCommerce business, you should utilise an urban micro-fulfilment centre to ship your products:
- Practicality: Micro urban fulfilment centres are located in densely populated areas, which means that they are advantageous for eCommerce businesses who want to offer same-day shipping and keep up with customer demand. They’re also close to the end customer, which translates to faster delivery and greater client satisfaction. On top of this, AI robotics have allowed fulfilment processes to be sped up drastically. Automated machines pack and label orders faster than human employees, which minimises the need for manual labour. The robotics assist with picking items from a grid system, packaging orders with your unique brand designs and logo, and labelling online orders. This makes the urban micro-fulfilment centre not only an efficient option for fulfilment, but an option that prioritises brand integrity. Alongside these benefits, urban centres are much quieter than traditional warehouses, which is beneficial for businesses located in urban areas.
- Same Day Delivery: When you process orders at an urban fulfilment centre, you have the option to offer same day shipping, as well as click-and-collect. Urban Micro-Fulfilment centres process orders at a higher rate that manual fulfilment, so for customers located in metro suburbs, they may order by 11am and receive their parcel by 6pm that same day… Speedy!
- Sustainability: Urban micro-fulfilment centres are designed to be environmentally sustainable. They use less energy and produce fewer emissions than traditional large fulfilment centres, which makes them a more eco-friendly option than traditional fulfilment. Urban centres also minimise the amount of traffic on the roads and reduce your company’s carbon footprint. By being located closer to the customer, they reduce the number of trucks on the road and ultimately help to lower emissions. Additionally, many urban centres, including SKUTOPIA, located in the heart of Alexandria, make use of sustainable solar energy generated by installing solar panels warehouse roofs.
- Cost Effective: Urban centres are perfect for Sydney businesses who want to offer quick and efficient shipping without breaking the bank. They are a more cost-effective option than traditional large fulfilment centres, as they require less staff and use less energy. Additionally, many urban centres offer competitive pricing for storage and shipping, which makes them an attractive option for businesses of all sizes.The future of eCommerce fulfilmentIn a nutshell, Micro-fulfilment centres are changing the eCommerce landscape by providing a more efficient and sustainable way to ship orders. They are the future of eCommerce fulfilment, and provide a number of advantages for businesses and customers alike, including faster processing times, improved productivity and reduced environmental impact. That’s why more and more retailers are turning to urban fulfilment centres to handle their product shipping needs.
As urbanisation continues, it is likely that we will see an increase in the number of micro-fulfilment centres popping up in cities around the world. If you’re looking for a fast, efficient and environmentally friendly shipping solution, urban centres are the way to go.
SKUTOPIA
Sydney eCommerce businesses who are looking for a cost effective and practical way to offer same day shipping and logistics management should consider utilising SKUTOPIA 4PL solution. SKUTOPIA allows you to scale between 100-10,000 orders daily, and meet or improve your sustainability targets with cut-to-fit packaging that reduces 40% of packaging waste per order.
SKUTOPIA additionally provides a range of services including storage, sales integration software, same day shipping and logistics fulfilment for businesses of all sizes. Contact us today to find out more about how we can help you take your business to the next level.