In this episode, Anand Madhani, Business Development Manager at Parcel Hub, discusses logistics, shipping, and delivery for e-commerce brands. He shares his journey in the industry and highlights the changes he has witnessed over the years. The conversation covers fulfilment options, including fulfilment, outsourcing to third-party providers, and drop shipping. The role of Amazon in logistics is also discussed, with a focus on the options of Fulfilled by Amazon (FBA) and merchant fulfilment. The importance of streamlining different marketplaces in delivery systems and the preference for next-day delivery are explored. The conversation covers various topics related to logistics and fulfillments in e-commerce. Some of the key themes include the importance of emphasising logistics on e-commerce websites, the challenges and considerations of international expansion, the impact of subscriptions on fulfilment, the role of AI in logistics, and the significance of quality delivery experiences for customer loyalty.
Key Takeaways
- Fulfillment options for e-commerce brands include self-fulfillment, outsourcing to third-party providers, and drop shipping. The choice depends on factors such as the scale of the business, the type of product, and the desired level of control.
- Amazon offers two main fulfillment options: Fulfilled by Amazon (FBA) and merchant fulfillment. FBA provides convenience and fast delivery, while merchant fulfillment allows for more control over the fulfillment process.
- Streamlining different marketplaces in delivery systems can be achieved through software solutions that integrate multiple revenue streams and generate labels for various carriers.
- Next-day delivery is highly valued by consumers, with many willing to pay extra for this service. However, the importance of delivery speed may vary depending on the product and the consumer's specific needs.
- Convenience and timely delivery are key factors in consumer purchasing decisions, especially during peak periods like Christmas. Brands should consider pricing strategies and take advantage of the urgency created by time constraints. Emphasizing logistics, such as next-day delivery, on e-commerce websites is crucial for attracting customers, especially during peak seasons.
- When expanding into new markets, it's important to consider factors like demand, website localization, de minimis values, and return processes.
- Returns are a significant challenge for fashion brands, and implementing strategies like charging for returns or offering store credits can help manage the costs.
- Subscriptions can provide predictability in fulfillment, but it's essential to have effective forecasting, pre-packing options, and coordination between departments.
- AI is being used in logistics for route planning, data analysis, and improving delivery experiences, but its implementation is still in early stages.
- Quality delivery experiences and building customer trust are crucial for e-commerce success, and options like drop-off points and proactive tracking can enhance the experience.
- Shopify's recent appointment of a CTO with expertise in AI and advertising suggests potential developments in their product roadmap.
Gain access to exclusive reports at www.optimizon.co.uk
Find more information about the podcast and eCom Insights event at www.ecominsights.co.uk
Matt Anderson LinkedIn: https://www.linkedin.com/in/mattandersonoptimized/
Rael Cline LinkedIn: https://www.linkedin.com/in/raelcline/
Gain access to exclusive reports at www.optimizon.co.uk
Find more information about the podcast and eCom Insights event at www.ecominsights.co.uk
Matt Anderson LinkedIn: https://www.linkedin.com/in/mattandersonoptimized/
Rael Cline LinkedIn: https://www.linkedin.com/in/raelcline/
[00:00:00] Hello and welcome to E-Com Insights, the podcast where we give you data-led tips to optimize your profits online.
[00:00:11] Hello and welcome back to E-Com Insights with me, Rayl.
[00:00:14] I'm me, Matt.
[00:00:15] On today's episode, we're joined by Anand Madani, Business Development Manager at ParcelHub. How's it going, Anand?
[00:00:22] Very well, thanks guys. How are you guys doing?
[00:00:24] Good, thanks. Nice to come on.
[00:00:26] Cool. So yeah, today we're talking about all things logistics, shipping, delivery for brands on e-commerce marketplaces,
[00:00:33] best practices, cross-border, new innovations, what's keeping people awake at night, all these sorts of things.
[00:00:41] But first off, we really need to get to know you, Anand. So you've been at ParcelHub for four years,
[00:00:48] something like 15 years as part of the Whistle Group. So yeah, take us through your journey.
[00:00:53] Well, you know, I didn't expect to really be here as a young graduate from Queen Mary's University
[00:01:05] where did my career really get to this stage? And I think if I take it back to when I finished university,
[00:01:12] a lot of friends went and worked in the city, were finance companies and didn't really know where I wanted to go.
[00:01:19] Worked with my father in his family business for a bit. And where the connection, I suppose, came into kind of the e-commerce and into logistics is,
[00:01:29] I've got a little part-time job as a counter-operative at the post office.
[00:01:34] And then, you know, it links back to that because, you know, you're serving pensioners, getting their little gyro for the week.
[00:01:45] You're getting, you know, the fish license and the gaming license. But then there's a man that comes along with a couple of sacks of parcels.
[00:01:55] And the thing was, you know, you get to know this person and he ended up being my first employer because he sold pre-loved games, DVDs,
[00:02:08] and all two things to do with kind of gaming. So essentially, he would get those items, list them on eBay.
[00:02:16] And from there, that's what he would do. I managed to blag a couple of hours with him and increase that number to which, you know, being a young person,
[00:02:30] itching for more and more opportunities come up with companies.
[00:02:34] And I've worked at the Whistle Group now for well over 10 years and started off entry-level customer service,
[00:02:44] worked within that element of dealing with complaints and public sector to where I grew again and became a contract manager for the company,
[00:02:58] essentially working under an account director.
[00:03:00] So I've been working with rather sizable companies to which are household brands today.
[00:03:09] And again, you know, where else can I progress to where I am now, you know, building new business for Parcel Hub?
[00:03:19] It's great. I think, I mean, a little disclaimer about three or five years ago, I was working for P&O Trans-European Logistics.
[00:03:28] So I have some knowledge of where it's from, but there was a long, long time ago.
[00:03:33] And boy, the technology's changed over those years, hasn't it?
[00:03:37] So I mean, like over that 25, 15 years, we're now just logistics.
[00:03:42] People go, oh, that's moving stuff to A to B, but it's so much more than that, isn't it?
[00:03:46] Oh, absolutely.
[00:03:46] Things have changed massively within logistics, whether it's for a letter, whether it's for a parcel, whether it's for freight.
[00:04:01] I suppose we, as consumers, we're a bit more demanding because we want our parcel yesterday or our letter yesterday.
[00:04:13] But also, you've also got to look at it from a perspective of there's add-ons there, you know?
[00:04:20] There's extra features there.
[00:04:21] And I think that's really quite an exciting thing more and more.
[00:04:26] We're seeing 10 years plus on that whistle group.
[00:04:30] Yeah.
[00:04:31] But I said, and the data, this needed to, let alone next day delivery, I mean, Amazon Prime Now's in the London area is the same working days.
[00:04:41] And it's, I mean, that which, when that first happened, it sort of blew my mind thinking, my God, that is such a hard thing to do.
[00:04:49] So, yeah, I mean, that'd be really useful to sort of go through that more and more, really.
[00:04:53] Yeah, absolutely.
[00:04:55] I think from my perspective, when we talk about what has changed, you know, I'm making myself sound really old now.
[00:05:04] I'm only 39.
[00:05:05] But, you know, what has changed in my time at Whistle is, you know, things, I think one of the first things I encountered was things like 2D barcodes from Royal Mail.
[00:05:16] Royal Mail advising their customers, you know, you can get a confirmation of a delivery.
[00:05:25] You know, if you've ever sent anything down the post office of importance and you didn't want to send it a special delivery, they gave you that little white slip, right?
[00:05:32] They said, we'll stamp it and they'll give you it.
[00:05:35] Well, that changed with a 2D barcode.
[00:05:37] And that came into play and customers, you know, had that element of, oh, I've had it delivered.
[00:05:47] You know, recently there's talks of drones, you know, how a drone is going to be delivering your parcel.
[00:05:56] Milton Keynes has got co-op using these little robots delivering your groceries.
[00:06:04] I almost ran over one of those.
[00:06:08] Be careful.
[00:06:08] That's an expensive bit of kit.
[00:06:10] But, you know, even within parcels, if you think not as kind of transforming, but things like locker boxes, how amazing is that?
[00:06:20] You know, the fact that you can drop your item to a locker box or have it delivered to a locker box because it's convenient to you.
[00:06:28] Especially, like you mentioned, if you live in London or a busy, busy urban area, you know, block of flats, for example, it can sometimes be problematic to have a parcel delivered.
[00:06:41] So having those different elements there and that tech piece there, I think that's really, really important.
[00:06:47] I think more and more I'm seeing kind of eco and CO2 elements being brought into logistics as well.
[00:06:57] You know, people want to see how much CO2 emissions a parcel has potentially used.
[00:07:03] So I think that's come into it.
[00:07:05] And, you know, I'm a big advocate of it.
[00:07:08] You know, things like what three words?
[00:07:09] Massive, you know, in terms of exact location.
[00:07:13] And I suppose, again, a big thing which is really coming through is now paperless returns.
[00:07:19] You know, forget having to turn your HP printer on.
[00:07:25] You know, paperless return.
[00:07:27] It's on your phone.
[00:07:28] Scan a QR code.
[00:07:29] Yes.
[00:07:30] There you go.
[00:07:31] That's fantastic for me.
[00:07:32] I mean, we've gone way out into the ether of like there's a load of technology out there.
[00:07:39] But I feel like we should breathe back into the conversation ready to make sure we're all on the same page.
[00:07:44] Can you give the listeners a quick overview of the different fulfillment options e-commerce brand could have?
[00:07:51] Sure.
[00:07:51] So in terms of kind of fulfillment options, there's a number of different options out there.
[00:07:57] And I suppose it's very personal to you as a company and what your kind of business, you know, plan is.
[00:08:09] But in terms of you can fulfill the products yourself.
[00:08:12] So that is you having the bricks and mortar, having the staff in place to fill those products.
[00:08:20] So it would be you having the products brought in.
[00:08:25] So that element of logistics there.
[00:08:27] You then unpacking those pallets, putting them into a location, and then having the staff essentially,
[00:08:37] when the order comes in, off they go and pack them.
[00:08:43] Finally, having the logistics contracts in place for someone to collect those products up.
[00:08:49] So in a nutshell.
[00:08:50] Sorry to interrupt.
[00:08:51] I mean, this sounds like you need to be of sufficient scale to make that work, right?
[00:08:54] I mean, this is something.
[00:08:55] I don't know if you have like a number in mind or sort of GMV or something like that in mind.
[00:09:02] But it sounds like you need to be sizable for that to make sense.
[00:09:04] Yeah.
[00:09:05] Yes and no, really.
[00:09:06] I mean, I come across customers that, you know, are doing fulfillment of their own products
[00:09:14] from their own garage to sizable shit.
[00:09:20] Yeah.
[00:09:20] But I think, you know, if you're selling garden furniture and you've created that, it's not
[00:09:27] going to work out of your garage, right?
[00:09:29] But for a clothing brand or sticker company, you know, stickers don't take up mass amounts
[00:09:39] of space.
[00:09:40] So I think you've got to have that in the back of your mind when you're building that business
[00:09:45] plan to say, okay, we may start off here, but where are we going?
[00:09:50] And that's where the other options kind of potentially could come in place.
[00:09:55] So, you know, you may want to outsource it to a third party.
[00:09:59] And when you're outsourcing it to a third party, you've got to look at the factors of where
[00:10:04] are they based?
[00:10:05] How many staff have they potentially got?
[00:10:08] Do they understand your products?
[00:10:10] Do they have the space for your product?
[00:10:15] What is potentially their way of, you know, getting those products out to customers?
[00:10:23] Do they have a number of contracts in place?
[00:10:25] Are they compliant for their products as well for alcohol or MHRA?
[00:10:30] Absolutely.
[00:10:31] It's massive.
[00:10:32] You know, if you think if you're a perfume brand, does a fulfillment have the relevant
[00:10:39] DG qualifications?
[00:10:41] You know, there's so many different factors that come into place.
[00:10:44] And I think they're the things that you need to consider.
[00:10:47] Likewise, location of the location of the fulfillment site.
[00:10:53] Do you know, do you want to be a little bit hands on and kind of have meetings with the
[00:10:57] management team every month?
[00:10:58] Or do you want it, you know, cheapest possible fulfillment option because they're based in
[00:11:06] the Highlands?
[00:11:07] Because they're offering you a fraction of cost of a fulfillment site in London.
[00:11:12] So, you know, you've got to consider all these different elements there.
[00:11:16] I think the third option, which is really worth looking at, and I suppose it's more towards
[00:11:22] kind of low value goods that I've seen across the customers is dropshipping.
[00:11:26] So, you're not even having a control.
[00:11:30] So, it could be the manufacturer.
[00:11:31] So, you've purchased from the manufacturer a white label product.
[00:11:36] They're able to brand it as yourself.
[00:11:38] And they go, well, I'll tell you what, we'll do the shipping for you.
[00:11:42] All you're essentially doing is marketing the product and getting the product out there.
[00:11:47] But they have that control of, you know, fulfilling the order, the pick, pack, and that process there.
[00:11:56] Is there a right answer for any of those?
[00:11:59] I think it really does depend on your brand, your product, where you really want to scale
[00:12:06] up with things.
[00:12:08] Yeah.
[00:12:08] And you mentioned that the cost element, which is, I would say to listeners, before you,
[00:12:13] you know, before you buy, really consider at least two or three logistics providers and
[00:12:18] go over all those elements we've just discussed really, because there's one thing that's bitten
[00:12:24] me consistently on the backside is in the past seeing customers that have gone for the
[00:12:30] cheapest option for logistics.
[00:12:31] And it all fall.
[00:12:33] Things go missing, returns go up, breakages, and it's so many headaches, it can store up
[00:12:39] as well.
[00:12:39] So, you know, any advice about getting the best value probably for your logistics?
[00:12:44] Yeah, absolutely.
[00:12:46] Well, you've said that.
[00:12:48] I think you've got a question.
[00:12:50] Why is it the cheapest option?
[00:12:52] So if you're sending a high value item that is, you know, £1,000 plus, why would you go
[00:13:00] with the cheapest logistical option?
[00:13:04] You've got to ask yourself that.
[00:13:08] From my perspective, you've got to look at the elements of, A, from picking and packing
[00:13:16] to the box.
[00:13:18] A, you know, where is that being packed?
[00:13:21] How is it being packed?
[00:13:22] What level of detail is that going into?
[00:13:24] Then in terms of number of hands touching the product, how do they pack the pallet?
[00:13:30] How is that transported to the main hub?
[00:13:32] You know, what does that main hub do in terms of, you know, communing that product around their
[00:13:40] network?
[00:13:40] These are a lot of things involved.
[00:13:43] If you've got a high value product there, you know, how does that end delivery happen?
[00:13:49] We had a conversation with DPD recently and they talked about high value products and
[00:13:55] having pin cones now.
[00:13:56] Well, that's fantastic.
[00:13:58] That's really great, you know.
[00:13:59] So, and it came into play when I ordered a laptop.
[00:14:03] The laptop came and the driver said to me, can you tell me your pin code?
[00:14:07] And I was like, well, this is fantastic.
[00:14:09] They've not just asked for a signature.
[00:14:11] They've not left it there because it's been marked as a high value item.
[00:14:17] But then they've asked me for the pin and I think that's really important there.
[00:14:21] Going on to that is the customer service element.
[00:14:25] For me, that's a really important factor in that.
[00:14:28] How easy is it to communicate a problem?
[00:14:30] How easy is it to identify a problem on the portal that you're working for?
[00:14:36] In terms of how easy is it to get hold of an escalation point?
[00:14:40] How quickly can they resolve these things?
[00:14:42] So, there's a lot of factors and I think in my time, you know, working within sales,
[00:14:49] I think I come across customers.
[00:14:50] They will always come say to me, I want the cheapest option.
[00:14:55] Then I go, okay, I presented you with option A, B and C.
[00:15:00] I'm giving you a consultative approach.
[00:15:02] This is the cheapest option.
[00:15:03] This is an option to support you for all of your goods.
[00:15:07] But because we're a multi-carrier provider, maybe you can use a bit of this and a bit of that.
[00:15:13] And that gives you that flexibility there.
[00:15:15] I think as well, it's worth maybe just going over what you mean by fulfillment.
[00:15:20] Meaning what are the different steps involved?
[00:15:22] Because you used a bunch of terms there on picking and packing and sorting and all these sort of things.
[00:15:26] So, maybe just go through what a typical process looks like, if you don't mind.
[00:15:29] Sure.
[00:15:30] So, in terms of what fulfillment is, essentially, you are fulfilling an order.
[00:15:38] So, you are working towards picking a product off a shelf that has been placed on order through a marketplace,
[00:15:51] through your own website.
[00:15:52] It could be a sample.
[00:15:54] For example, you have a member of staff or outsourced in a fulfillment center to put those products within the packaging
[00:16:06] to then place them on your pallet to your logistics provider.
[00:16:15] And that, they manage that process if it's outsourced.
[00:16:19] If it's self-fulfilled, it's something that's managed by yourselves and your team.
[00:16:27] And you're managing the factors from, like we said, the bricks and mortar, the cost of the building,
[00:16:34] the wages of the staff, you know, the shift patterns,
[00:16:40] how many potentially items you could potentially pack per hour.
[00:16:46] And then you're looking after that contract there as well with the logistics provider.
[00:16:52] And that's something in terms of fulfillment.
[00:16:54] So, there's a number of different ways that I've mentioned.
[00:16:58] It's just got to be right for you and your business plan.
[00:17:03] Time for a short break.
[00:17:06] If you want to dive deeper into the conversation,
[00:17:09] visit www.ecominsights.co.uk to download exclusive content.
[00:17:14] Today's report is brought to you by Optimizon and Limworks,
[00:17:18] streamlining multi-channel selling.
[00:17:20] If you're looking to take your e-commerce game to the next level,
[00:17:23] this guide is packed with strategies to help you expand across multiple marketplaces.
[00:17:26] Go to www.ecominsights.co.uk to download your free copy today.
[00:17:33] Now on with the show.
[00:17:39] We've not mentioned one of the elephants in the room in the world of logistics,
[00:17:44] which is Amazon, which is arguably one of the world's largest logistics companies.
[00:17:48] I mean, do you want to just talk through the different options there
[00:17:55] from Amazon's point of view?
[00:17:57] Bear in mind there are other providers out there for all of their...
[00:18:00] Yeah, sure.
[00:18:01] But how, you know, you could look to dovetail because there's different fulfillment options as well.
[00:18:07] Absolutely.
[00:18:07] And I think there's no set right or wrong in terms of, you know,
[00:18:16] do we have an item fulfilled by Amazon?
[00:18:18] So that term FBA, you know, if you're thinking of launching an e-commerce business,
[00:18:25] the word FBA or FBM, I'm sure there's other variations of it,
[00:18:32] but FBA fulfilled by Amazon.
[00:18:34] So essentially you have a product and Amazon get that product in one of their locations scattered around the UK
[00:18:45] or across the world.
[00:18:47] And they do the picking, they do the packing,
[00:18:51] and they fulfill the product.
[00:18:53] What that gives them is the element of selling on their website to the end consumer.
[00:19:02] They've got that control.
[00:19:05] They have that control over you in terms of how quickly they fulfill that product
[00:19:11] or how quickly they pick and pack it.
[00:19:12] You know, and if you've ever seen an Amazon warehouse,
[00:19:16] I'm sure there's robots and loads of conveyor belts going all over the place
[00:19:20] and they do it pretty quick.
[00:19:22] So they hold that control there and they'll get that out to you.
[00:19:28] As we all know, you know, most of us, I suppose, in terms of that FBA approach,
[00:19:35] you get it the next day or the same day in some cases,
[00:19:39] most cases if you're in an urban area.
[00:19:42] So they hold that element, but you don't have a say in terms of a variation of couriers.
[00:19:49] It goes via Amazon Shipping or one of their partner couriers that they're using.
[00:19:55] The other alternative, I suppose, is merchant fulfilled options.
[00:20:03] And what we mean by this is you are a seller on Amazon.
[00:20:08] You're getting the orders through and you are picking, packing,
[00:20:13] dispatching those products yourself.
[00:20:16] Now, linking back to what we said earlier,
[00:20:18] that could be within your own warehouse,
[00:20:20] that could be within a third-party warehouse,
[00:20:23] or that could be in a dropshipper.
[00:20:26] It could be within one of those elements there.
[00:20:29] But essentially, you are taking control.
[00:20:32] And what that gives you potentially is control over the couriers,
[00:20:39] control over your staff,
[00:20:41] control over the costings.
[00:20:43] I don't know what the costings are with Amazon in terms of to fulfill a product,
[00:20:47] but certainly when I speak to prospects,
[00:20:52] they use a variation of the two.
[00:20:57] Because depending on the margin that's in that product,
[00:21:00] they've got,
[00:21:01] this is actually better placed with Amazon
[00:21:03] because it's a fast-moving product
[00:21:05] and we want to get this out as quick as possible.
[00:21:07] And people just tend to want it the next day.
[00:21:11] Whereas these products are a little bit slower
[00:21:13] and potentially we can have a bit more control of it.
[00:21:18] But more importantly...
[00:21:19] That's true.
[00:21:19] Yeah.
[00:21:21] You've got to bear in mind,
[00:21:22] because that obviously sounds like a perfect solution for a busy business.
[00:21:26] But, but, but, but, but, you know,
[00:21:28] you've got to think,
[00:21:28] is this...
[00:21:30] FBA costs have been going up consistently most recently.
[00:21:34] One.
[00:21:35] Two, if the product's really heavy,
[00:21:37] like a 20kg bag of dry dog food or whatever,
[00:21:41] and there's a big old thing,
[00:21:42] there's going to be cost prohibitive.
[00:21:44] You'll need two people to lift that into a fan.
[00:21:47] Amazon is like,
[00:21:48] don't want anything to do with that.
[00:21:51] Or, you know,
[00:21:52] you've got a really particular unboxing experience.
[00:21:54] My brand head on is like,
[00:21:57] certain brands,
[00:21:58] certain quality brands,
[00:21:59] really want to arrive the package,
[00:22:03] what it's meant to arrive in one piece,
[00:22:07] not being slung over the golden wall.
[00:22:09] And it opens up and it's beautiful and all that sort of thing.
[00:22:12] So if you want to control all that experience,
[00:22:14] we have a product that's hazardous or something.
[00:22:17] It's quite fragile.
[00:22:19] And you look at,
[00:22:19] I just want to trust my guys and girls to deliver it or back it.
[00:22:24] And if you fall into that category,
[00:22:26] then, you know,
[00:22:27] they have to be fulfilled by merchants,
[00:22:29] probably the way to go, isn't it?
[00:22:32] Yeah, 100%.
[00:22:32] I think it does give you a lot more control
[00:22:36] in terms of quality
[00:22:41] and the other factors that we mentioned.
[00:22:44] But that's not to say,
[00:22:45] you know,
[00:22:46] you've got to also counteract that
[00:22:48] with the issues that do come with it.
[00:22:51] So if you're having to manage people,
[00:22:56] wages are going up.
[00:22:57] And if you're in an area
[00:22:59] where there is potentially
[00:23:02] a number of industrial kind of businesses there,
[00:23:07] you know,
[00:23:08] staff could potentially leave for an extra 50 pence.
[00:23:11] Location,
[00:23:12] you know,
[00:23:13] if you're,
[00:23:14] if you're based in
[00:23:16] the Highlands
[00:23:19] against,
[00:23:20] you know,
[00:23:21] a,
[00:23:22] a location that's based in London,
[00:23:24] got to be realistic here
[00:23:25] in terms of
[00:23:26] your overall costs
[00:23:28] are going to be a hell of a lot higher.
[00:23:30] So this is what we mean by
[00:23:32] got to work that out.
[00:23:33] But then you're right,
[00:23:35] Matt,
[00:23:35] in terms of
[00:23:36] that quality,
[00:23:37] if you're sending out a,
[00:23:39] a bracelet
[00:23:40] that is,
[00:23:41] you know,
[00:23:43] thousands of pounds
[00:23:44] and they get it in
[00:23:45] in really nice paper,
[00:23:47] it's packed nicely,
[00:23:48] you know,
[00:23:49] they,
[00:23:49] they price spray some perfume in there.
[00:23:52] So you open it up.
[00:23:53] Are you going to get that
[00:23:54] with an Amazon
[00:23:55] fulfilled by Amazon approach?
[00:23:57] I don't think you will.
[00:23:59] Whereas
[00:23:59] if you deal with that in-house,
[00:24:01] you have that ability
[00:24:02] of putting those quality checks
[00:24:04] in place.
[00:24:05] So I know,
[00:24:06] I know last year,
[00:24:06] Amazon was running
[00:24:07] at least a trial
[00:24:08] or trials around
[00:24:09] actually offering
[00:24:10] custom packaging.
[00:24:12] I don't know the outcome of them.
[00:24:13] I don't really know
[00:24:14] of a customer using them,
[00:24:16] but perhaps,
[00:24:16] you know,
[00:24:17] listeners can get in touch
[00:24:18] with any of those results there,
[00:24:19] Matt.
[00:24:19] I don't know if,
[00:24:20] if you know of anything on that.
[00:24:22] No,
[00:24:22] no,
[00:24:22] to be fair,
[00:24:25] I always,
[00:24:26] always ask the question
[00:24:27] to,
[00:24:28] to,
[00:24:28] to prospects
[00:24:29] and to customers,
[00:24:31] where does your traffic sit?
[00:24:33] Where does it,
[00:24:34] where does it kind of go?
[00:24:35] Does it go,
[00:24:36] does it go down the all Amazon route
[00:24:39] and we only get a small element of it
[00:24:41] or do you place it 50-50?
[00:24:44] And it's continuously changing
[00:24:45] in terms of your buying costs.
[00:24:48] You know,
[00:24:49] recently,
[00:24:50] the FBA costs have gone up
[00:24:52] as mentioned.
[00:24:53] So,
[00:24:53] some of my customers
[00:24:54] have pulled back
[00:24:55] and they've gone,
[00:24:56] right,
[00:24:56] and potentially,
[00:24:57] if we gave you some more volume,
[00:24:59] do you reckon you could,
[00:25:00] you could have a discussion
[00:25:02] about pricing?
[00:25:03] And we're like,
[00:25:03] well,
[00:25:04] you know,
[00:25:04] absolutely,
[00:25:05] we can have a conversation
[00:25:06] about,
[00:25:07] if you're going to increase
[00:25:08] your spend with us,
[00:25:09] then there's a,
[00:25:11] there's a discussion
[00:25:11] to be had there.
[00:25:12] But I think having
[00:25:14] that control in-house
[00:25:15] also allows you
[00:25:17] to,
[00:25:17] to factor in
[00:25:18] other,
[00:25:19] other areas of revenue.
[00:25:22] So,
[00:25:22] your own site,
[00:25:24] your TikToks,
[00:25:25] your Wayfares,
[00:25:26] your,
[00:25:26] you know,
[00:25:27] B&Qs,
[00:25:28] your Tesco marketplaces,
[00:25:30] they're all new things.
[00:25:31] And once you've established
[00:25:33] your,
[00:25:34] yourselves on an Amazon
[00:25:35] and so forth,
[00:25:36] you might be looking at those
[00:25:37] and it might be easier
[00:25:38] to actually fulfill that
[00:25:40] yourselves.
[00:25:41] And,
[00:25:42] um,
[00:25:42] one you did mention
[00:25:43] on the list,
[00:25:43] of course,
[00:25:44] is a TikTok shop.
[00:25:45] That's one of the new
[00:25:46] kids on the block.
[00:25:47] It is.
[00:25:48] Yeah,
[00:25:48] yeah.
[00:25:48] You should buy a TikTok app,
[00:25:50] should buy a seller as well.
[00:25:52] Um,
[00:25:53] how can brands
[00:25:54] streamline,
[00:25:55] um,
[00:25:56] different marketplaces
[00:25:57] and their delivery systems?
[00:25:58] And,
[00:25:58] you know,
[00:25:59] for TikTok
[00:26:00] and sort of,
[00:26:01] immediate,
[00:26:01] that stay delivery
[00:26:02] is really important,
[00:26:03] isn't it?
[00:26:04] Yeah.
[00:26:04] So TikTok's the new,
[00:26:05] the new kid on the block
[00:26:07] and I think,
[00:26:07] um,
[00:26:09] the prospects
[00:26:09] that I'm speaking to,
[00:26:13] some of them are
[00:26:14] very much,
[00:26:15] we said on TikTok shop,
[00:26:16] that's all we do.
[00:26:18] Um,
[00:26:18] and I'm like,
[00:26:19] great,
[00:26:19] what do you sell?
[00:26:20] And the sort of stuff
[00:26:21] that they are selling
[00:26:22] is clothing,
[00:26:25] Korean noodles,
[00:26:27] just random things
[00:26:29] where I go,
[00:26:30] you're,
[00:26:30] you're,
[00:26:31] you're doing a lot of this
[00:26:31] and it's almost
[00:26:32] a discovery platform there.
[00:26:34] And then the next day element
[00:26:35] is,
[00:26:36] is,
[00:26:36] is really important
[00:26:37] to that,
[00:26:38] to that piece.
[00:26:39] But then I'm asking,
[00:26:41] asking those questions.
[00:26:42] Okay,
[00:26:42] great.
[00:26:43] You're selling on TikTok,
[00:26:44] but where else are you selling?
[00:26:45] Where else are you selling?
[00:26:47] And,
[00:26:48] um,
[00:26:48] recently we're working
[00:26:50] with a company,
[00:26:51] um,
[00:26:51] two,
[00:26:52] two girls that
[00:26:53] have started up
[00:26:53] a clothing brand
[00:26:55] and they said,
[00:26:56] we're selling
[00:26:57] hundreds of items
[00:26:58] a day on TikTok
[00:26:58] and I'm like,
[00:26:59] I'm loving this.
[00:27:00] You know,
[00:27:01] you're,
[00:27:01] you're 18,
[00:27:02] 19.
[00:27:03] I was like,
[00:27:03] are you selling anywhere else?
[00:27:05] No,
[00:27:05] we're just selling on TikTok.
[00:27:07] We're doing TikTok live.
[00:27:08] We're doing it from our garage.
[00:27:09] Uh,
[00:27:10] can you help us out?
[00:27:10] Because we're launching on our,
[00:27:12] we're launching our Shopify site,
[00:27:14] but we also want to deal
[00:27:15] with international
[00:27:16] and other bits.
[00:27:17] And I'm like,
[00:27:18] love that.
[00:27:19] So they reached out
[00:27:20] to,
[00:27:21] to,
[00:27:22] to,
[00:27:23] uh,
[00:27:23] a partner that we're working
[00:27:25] with,
[00:27:25] uh,
[00:27:25] called Ship Theory,
[00:27:26] uh,
[00:27:27] which is a software brand.
[00:27:28] Other brands,
[00:27:29] you know,
[00:27:30] other softwares out there,
[00:27:31] you know,
[00:27:32] Limworks,
[00:27:32] Dispatch Cloud,
[00:27:34] Pickpack Direct.
[00:27:35] This,
[00:27:35] there's a number of them out there,
[00:27:36] but they reached out
[00:27:38] to,
[00:27:38] to Ship Theory
[00:27:39] and they said,
[00:27:40] look,
[00:27:40] we need an ability
[00:27:42] to,
[00:27:43] to bring in everything
[00:27:45] to one place,
[00:27:46] different streams
[00:27:47] into one place.
[00:27:48] It was like,
[00:27:48] okay,
[00:27:49] we can help you.
[00:27:50] We can help you with that
[00:27:52] because the software allows you
[00:27:53] to,
[00:27:54] to plug in all your different
[00:27:56] revenue streams.
[00:27:57] So your,
[00:27:58] your,
[00:27:58] your potential Amazons,
[00:27:59] your,
[00:28:00] your Ebays,
[00:28:01] your,
[00:28:01] your TikToks,
[00:28:02] your Shopify's,
[00:28:03] and then filter that through
[00:28:05] to,
[00:28:05] to Parcel Hub
[00:28:06] where it generates
[00:28:08] the labels for them.
[00:28:10] And that's not necessarily
[00:28:11] with one carrier,
[00:28:12] but it's with a,
[00:28:13] a variety of different carriers
[00:28:15] supporting them
[00:28:16] on what they need.
[00:28:17] So I think,
[00:28:18] for me,
[00:28:20] having the tech piece
[00:28:23] involved in that,
[00:28:24] that's massive.
[00:28:25] That's really important.
[00:28:27] And it,
[00:28:27] it's not expensive.
[00:28:29] You know,
[00:28:30] it's really not expensive.
[00:28:31] It's,
[00:28:32] I would put that
[00:28:33] in the same category
[00:28:34] as you selling,
[00:28:37] you know,
[00:28:37] you purchasing your,
[00:28:39] your packaging.
[00:28:40] Cause if you've got
[00:28:42] a good product
[00:28:43] that needs
[00:28:45] to be fulfilled,
[00:28:47] that's,
[00:28:48] that's part of that process.
[00:28:49] So we're talking here
[00:28:50] something like a
[00:28:52] live inventory
[00:28:53] system,
[00:28:54] ultimately.
[00:28:55] That's,
[00:28:55] that's multi-channel,
[00:28:56] right?
[00:28:56] Absolutely.
[00:28:57] Absolutely.
[00:28:58] So it gives you
[00:28:59] that ability of
[00:29:01] all the different streams
[00:29:02] coming together
[00:29:03] up one funnel.
[00:29:04] So when you open up
[00:29:06] your laptop
[00:29:06] or your,
[00:29:07] you know,
[00:29:08] your desktop,
[00:29:09] you just see the orders
[00:29:10] and that's what you see.
[00:29:12] The,
[00:29:14] the consignment numbers
[00:29:15] will then
[00:29:17] be generated
[00:29:18] and they would feed
[00:29:20] back within
[00:29:20] the inventory system
[00:29:22] back to the relevant
[00:29:24] trading platforms.
[00:29:26] Just,
[00:29:26] all right,
[00:29:27] we talked about
[00:29:27] convenience with delivery
[00:29:29] and what I'd be
[00:29:31] really interested in,
[00:29:32] I guess from a conversion
[00:29:33] the data point of view
[00:29:34] is next day
[00:29:36] or free,
[00:29:36] or free delivery,
[00:29:38] which one would you
[00:29:38] choose really?
[00:29:41] Yeah.
[00:29:42] Um,
[00:29:43] so I,
[00:29:45] my kettle broke
[00:29:46] last week
[00:29:47] and,
[00:29:48] uh,
[00:29:48] jumped onto Amazon.
[00:29:50] Lo and behold,
[00:29:51] I ordered it at 8.30
[00:29:53] in the morning.
[00:29:53] It was there the same day.
[00:29:54] So next day
[00:29:56] I was like,
[00:29:57] wow,
[00:29:58] this has come the same day,
[00:29:59] but next day,
[00:30:01] you know,
[00:30:02] I think is a,
[00:30:03] is a very important
[00:30:04] factor to that.
[00:30:05] And,
[00:30:06] um,
[00:30:07] and we did some research
[00:30:08] with,
[00:30:08] with Consumer X,
[00:30:10] uh,
[00:30:10] the whistle group
[00:30:11] where,
[00:30:11] nearly 60%
[00:30:14] have paid extra
[00:30:15] for next day delivery.
[00:30:17] So,
[00:30:19] that is,
[00:30:20] that's a,
[00:30:21] that's really important.
[00:30:22] Now,
[00:30:22] you've got to ask yourself,
[00:30:24] why have you done that?
[00:30:25] There could be a threshold
[00:30:26] to,
[00:30:26] you know,
[00:30:28] to qualify
[00:30:29] for next day.
[00:30:30] So,
[00:30:31] purchase 100 pounds
[00:30:33] worth of goods
[00:30:33] and get free delivery,
[00:30:35] next day delivery.
[00:30:36] Or,
[00:30:38] you want that product
[00:30:39] yesterday,
[00:30:41] you know,
[00:30:41] because you're buying it
[00:30:42] for a birthday,
[00:30:43] it's a gift or whatever.
[00:30:44] But,
[00:30:44] I think,
[00:30:45] in terms of that,
[00:30:46] I think consumers
[00:30:47] really do want things
[00:30:50] next day.
[00:30:51] And I think we,
[00:30:52] we definitely saw that
[00:30:54] over COVID,
[00:30:55] uh,
[00:30:56] where there was a demand
[00:30:57] for it
[00:30:58] and,
[00:30:58] and brands just really
[00:31:00] couldn't keep up with that.
[00:31:02] And,
[00:31:02] and that is continued,
[00:31:04] continued to go forward on there.
[00:31:05] There is one,
[00:31:06] I guess,
[00:31:07] counter example
[00:31:08] or trend possibly
[00:31:09] around like Timu
[00:31:10] and things like that,
[00:31:10] right?
[00:31:10] Where people actually are
[00:31:12] prepared to wait,
[00:31:13] I don't know,
[00:31:14] 10,
[00:31:14] 14 days,
[00:31:15] uh,
[00:31:15] because it's a good deal.
[00:31:16] It's a good price.
[00:31:17] And so,
[00:31:18] I suspect it's probably
[00:31:19] pretty category specific
[00:31:21] around,
[00:31:21] I don't know,
[00:31:22] obviously sort of
[00:31:23] consumables
[00:31:23] or emergency type things.
[00:31:25] Then clearly that's,
[00:31:26] time is the most
[00:31:26] important variable there.
[00:31:27] But,
[00:31:27] things like clothing
[00:31:28] or,
[00:31:29] I don't know,
[00:31:29] gadgets and stuff.
[00:31:30] Um,
[00:31:31] even though people,
[00:31:31] um,
[00:31:32] have been conditioned
[00:31:34] by Amazon Prime
[00:31:35] for,
[00:31:36] I don't know,
[00:31:36] 10,
[00:31:37] 15 years or something.
[00:31:38] Um,
[00:31:39] I just wonder whether
[00:31:39] there's a bit of a shift
[00:31:40] in certain categories now
[00:31:41] where actually it's not
[00:31:42] the most important variable.
[00:31:43] Yeah,
[00:31:44] that's a really good question.
[00:31:45] I think
[00:31:46] it depends on,
[00:31:47] on the consumer
[00:31:48] and what they need
[00:31:50] and,
[00:31:51] and,
[00:31:52] again,
[00:31:52] the products,
[00:31:53] you know,
[00:31:53] I,
[00:31:53] yeah,
[00:31:54] you're right.
[00:31:55] You're buying something
[00:31:56] off a Timu
[00:31:57] that I think the expectation
[00:31:58] is you got to wait
[00:31:59] two weeks.
[00:32:00] You know,
[00:32:01] and,
[00:32:01] and as much as the,
[00:32:03] the sellers on there
[00:32:04] are saying fast delivery,
[00:32:05] you know,
[00:32:06] next day dispatch
[00:32:07] and so on.
[00:32:08] The expectation is,
[00:32:09] you know,
[00:32:10] it's going to be a long cycle,
[00:32:11] but when you are
[00:32:13] purchasing a product
[00:32:15] and you've taken the time
[00:32:16] to,
[00:32:17] to,
[00:32:18] to research into that
[00:32:20] or it's holds
[00:32:21] an emotional value
[00:32:23] in there,
[00:32:23] I think the expectation
[00:32:24] is I need to get it,
[00:32:27] you know,
[00:32:27] pretty sharpish.
[00:32:29] The kettle
[00:32:30] wasn't an emotional buy.
[00:32:31] It was a,
[00:32:32] it was a necessary buy
[00:32:34] and,
[00:32:34] and,
[00:32:35] and,
[00:32:37] and Mrs. Madani
[00:32:39] was really happy
[00:32:40] that it turned up
[00:32:41] by 10,
[00:32:42] 10 o'clock that night.
[00:32:43] So,
[00:32:43] yeah,
[00:32:44] it's,
[00:32:44] it just depends on that.
[00:32:45] It's so funny.
[00:32:46] If I look at my own behaviors,
[00:32:47] I would never like,
[00:32:48] if I needed something like
[00:32:49] as an emergency like that,
[00:32:50] I,
[00:32:51] I wouldn't go to Amazon
[00:32:52] and I'm,
[00:32:53] it seems like I'm wrong
[00:32:54] on that,
[00:32:55] but,
[00:32:55] um,
[00:32:55] that's not the first
[00:32:56] or second place
[00:32:57] I'd look.
[00:32:57] It's so many factors
[00:32:58] though.
[00:32:59] Like,
[00:33:00] I,
[00:33:01] I mean,
[00:33:02] I,
[00:33:02] the kettle broke.
[00:33:03] I was like,
[00:33:04] I don't have time.
[00:33:05] I've got meetings
[00:33:06] going on that day.
[00:33:07] My wife's working
[00:33:09] at home as well.
[00:33:10] We need to get,
[00:33:11] when am I going
[00:33:12] to be able to go
[00:33:12] to a,
[00:33:13] to a Tesco's
[00:33:14] or John Lewis
[00:33:14] or wherever
[00:33:15] it's going to be
[00:33:16] the weekend.
[00:33:16] Do you know what?
[00:33:17] quick search.
[00:33:18] Price looks good.
[00:33:20] No,
[00:33:21] cheese.
[00:33:21] Done.
[00:33:22] The thing is,
[00:33:23] it's like,
[00:33:24] um,
[00:33:24] with that,
[00:33:24] that delivery,
[00:33:25] no state delivery point
[00:33:26] and convenience
[00:33:27] is such an important
[00:33:28] factor for consumers
[00:33:29] to say definitely
[00:33:30] when you're looking
[00:33:31] at stuff like gifting
[00:33:33] coming up to Christmas
[00:33:34] and I always use
[00:33:34] the analogy of like,
[00:33:36] as guys,
[00:33:37] we,
[00:33:37] we,
[00:33:37] we love to leave
[00:33:39] it last minute.
[00:33:39] Don't we?
[00:33:40] Let us fix it.
[00:33:42] a couple of days
[00:33:43] before Valentine's Day,
[00:33:45] you know,
[00:33:45] you don't really care
[00:33:46] about the price.
[00:33:47] He's just got to be there
[00:33:49] on your doorstep
[00:33:49] the next day.
[00:33:50] Um,
[00:33:51] so,
[00:33:51] uh,
[00:33:52] with brands joking aside,
[00:33:53] it's like in the
[00:33:53] month of Christmas,
[00:33:54] I had brands go,
[00:33:56] oh,
[00:33:56] we need to keep the price
[00:33:57] low because we need
[00:33:58] to keep on driving
[00:33:58] the volume.
[00:33:59] I'm like,
[00:33:59] no,
[00:33:59] no,
[00:34:00] now's the time to,
[00:34:01] A,
[00:34:02] you're running out of
[00:34:02] stock.
[00:34:02] So,
[00:34:03] yeah,
[00:34:04] you need to make
[00:34:05] some of that profit
[00:34:05] back because you've
[00:34:06] discounted the hell
[00:34:07] out of this over
[00:34:08] Black Friday,
[00:34:09] you know.
[00:34:09] Um,
[00:34:10] and so,
[00:34:11] um,
[00:34:11] yeah,
[00:34:12] I've,
[00:34:12] I've increased prices
[00:34:13] as much as up to
[00:34:14] 15% the week,
[00:34:15] the week before
[00:34:16] Christmas and people
[00:34:18] still buying the,
[00:34:19] buying the same or if
[00:34:21] not higher volumes
[00:34:22] because,
[00:34:22] you know,
[00:34:22] time's running out.
[00:34:23] So you need to take
[00:34:24] the facts into account.
[00:34:25] It's a really,
[00:34:26] it's a really interesting
[00:34:28] factor and I think as,
[00:34:29] as a,
[00:34:30] if you are an e-commerce
[00:34:31] brand and you,
[00:34:32] and you're looking at
[00:34:33] example of coming up
[00:34:34] to Christmas,
[00:34:35] you've got to emphasize
[00:34:36] logistics as a main,
[00:34:38] main point of,
[00:34:39] main point on your,
[00:34:41] on your website.
[00:34:42] So,
[00:34:43] you know,
[00:34:43] those banners
[00:34:44] that you can see on
[00:34:46] there offering next day
[00:34:47] delivery up to two o'clock.
[00:34:49] So we're always,
[00:34:51] you know,
[00:34:52] as a,
[00:34:52] as a logistics company,
[00:34:53] we're always being pushed
[00:34:54] by our,
[00:34:55] by our customers as well
[00:34:57] to say,
[00:34:58] can you potentially
[00:34:59] collect a little bit
[00:35:00] later?
[00:35:01] What,
[00:35:01] what time,
[00:35:02] what's the latest
[00:35:03] you can collect to?
[00:35:04] Because at the end of the
[00:35:05] day,
[00:35:05] you want to fulfill
[00:35:06] as many orders as
[00:35:07] possible that same day
[00:35:09] to get out the next day
[00:35:11] for a next day delivery.
[00:35:12] And,
[00:35:12] and that,
[00:35:13] communicating to that
[00:35:14] to your consumer
[00:35:15] is just as important
[00:35:18] as the,
[00:35:19] the,
[00:35:19] the,
[00:35:19] the next day delivery,
[00:35:20] I think.
[00:35:21] Yeah,
[00:35:21] but again,
[00:35:21] going back to the,
[00:35:23] you know,
[00:35:24] I've been to Amazon
[00:35:25] and sell a fulfilled prime.
[00:35:26] So if you,
[00:35:27] if you want to hit that
[00:35:28] as a fulfilled by merchant
[00:35:29] by yourself,
[00:35:30] you'll have to make sure
[00:35:32] you've got some guys
[00:35:33] and girls in their warehouse
[00:35:34] on a Saturday
[00:35:35] because you've got to
[00:35:36] the next day
[00:35:37] and get it,
[00:35:37] get it in.
[00:35:38] So,
[00:35:39] yeah,
[00:35:39] it's,
[00:35:40] it's,
[00:35:41] it is,
[00:35:42] there's a lot
[00:35:42] to think about.
[00:35:43] And I mean,
[00:35:44] and then if that isn't
[00:35:45] hard enough,
[00:35:45] what about instant delivery,
[00:35:48] which is becoming
[00:35:48] more and more,
[00:35:49] we mentioned
[00:35:50] output in China.
[00:35:51] Hopefully,
[00:35:52] but it's metan free delivery
[00:35:54] and Chinese version
[00:35:55] of TikTok,
[00:35:55] Rofi delivery within 15,
[00:35:58] that's one,
[00:35:58] five minutes,
[00:36:01] which is nuts.
[00:36:03] But yeah,
[00:36:04] lots more companies
[00:36:05] with,
[00:36:05] you know,
[00:36:06] like the delivery
[00:36:07] type companies
[00:36:08] of this world
[00:36:08] are trialing with it.
[00:36:10] I think I believe
[00:36:10] we saw something
[00:36:10] with Cardo
[00:36:12] doing a version
[00:36:13] of it as well.
[00:36:15] I mean,
[00:36:16] unpack how the,
[00:36:17] how does that work?
[00:36:18] Have you had most demand?
[00:36:21] It's,
[00:36:21] it's really interesting.
[00:36:22] So I think
[00:36:23] you've got the,
[00:36:25] the same day elements
[00:36:26] that,
[00:36:27] that hit,
[00:36:28] hit the industry
[00:36:30] years ago
[00:36:31] and now it's yet.
[00:36:33] how can we get it quicker?
[00:36:35] How can we get it quicker?
[00:36:36] And,
[00:36:36] and,
[00:36:37] and this summer
[00:36:38] I went on holiday
[00:36:39] and it was my first experience
[00:36:40] of Kareem
[00:36:41] and
[00:36:43] I went on to Kareem
[00:36:44] in,
[00:36:45] in Dubai
[00:36:45] and
[00:36:46] there was not just
[00:36:47] your groceries
[00:36:48] and,
[00:36:49] and,
[00:36:49] and your food services
[00:36:51] but there was electronics
[00:36:52] on there.
[00:36:53] And
[00:36:54] because I got the
[00:36:55] seven day free trial
[00:36:57] it said
[00:36:57] if the driver's not here
[00:36:59] within 15 minutes
[00:37:00] we'll give you
[00:37:01] your money back.
[00:37:02] And I was like
[00:37:03] hey,
[00:37:03] fantastic.
[00:37:04] But,
[00:37:04] there was electronics
[00:37:05] on there,
[00:37:06] there was clothing
[00:37:07] on there
[00:37:08] so,
[00:37:09] I think
[00:37:10] there is a demand
[00:37:11] for it.
[00:37:12] The expectation is
[00:37:13] people will need
[00:37:15] to pay
[00:37:15] higher fees
[00:37:16] on,
[00:37:17] you know,
[00:37:18] a subscription
[00:37:19] or on,
[00:37:20] on the product.
[00:37:22] But,
[00:37:23] but,
[00:37:24] I forgot my phone charger.
[00:37:26] I needed a phone charger.
[00:37:28] I was like
[00:37:28] where else,
[00:37:29] you know,
[00:37:30] I don't know where else
[00:37:31] to kind of get one.
[00:37:32] This seems the easiest
[00:37:33] possible way.
[00:37:34] There we go.
[00:37:35] Purchase it.
[00:37:36] Lo and behold
[00:37:37] within 20 minutes
[00:37:38] the driver's there
[00:37:39] and I'm like
[00:37:40] this is so easy.
[00:37:41] Yeah.
[00:37:42] I,
[00:37:43] I guess I'm a little bit
[00:37:44] skeptical in the unit
[00:37:44] economics of all of that.
[00:37:46] I think it's
[00:37:46] a great experiment
[00:37:47] but I'm kind of
[00:37:49] skeptical in the medium
[00:37:49] to long term
[00:37:51] whether that lands
[00:37:52] up being profitable,
[00:37:53] right?
[00:37:53] On the unit economics
[00:37:54] point of view.
[00:37:55] I just think like
[00:37:55] it's probably limited
[00:37:56] to very,
[00:37:58] very specific
[00:37:59] types of products
[00:38:00] and specific
[00:38:01] use cases
[00:38:03] but,
[00:38:04] you know,
[00:38:05] love to be proved
[00:38:06] wrong on that.
[00:38:07] You just think
[00:38:07] you've got to get
[00:38:08] anywhere in the world
[00:38:09] in 15 minutes
[00:38:10] like we actually need
[00:38:10] also
[00:38:12] within 15 minutes
[00:38:13] of everybody.
[00:38:13] Yeah.
[00:38:14] And Chinese cities
[00:38:14] have got the density
[00:38:15] I guess as well,
[00:38:16] right?
[00:38:16] Like I just,
[00:38:17] there are very,
[00:38:17] very few cities
[00:38:18] where I think
[00:38:18] there's just like
[00:38:18] got that density
[00:38:20] to make the unit
[00:38:21] economics and the
[00:38:21] volume work.
[00:38:22] But yeah,
[00:38:22] good experiment
[00:38:23] to run.
[00:38:24] I'm happy to sit
[00:38:25] down and see
[00:38:25] what happens.
[00:38:26] Let's be honest
[00:38:26] guys,
[00:38:27] you know,
[00:38:27] if you wanted
[00:38:28] the products
[00:38:29] within 15 minutes
[00:38:30] and you live
[00:38:31] in the middle
[00:38:31] of Wales
[00:38:32] or down in
[00:38:33] Devon,
[00:38:34] you're either
[00:38:35] walking to the
[00:38:36] shops or you're
[00:38:37] driving there.
[00:38:38] You're not
[00:38:38] going on to
[00:38:39] Amazon
[00:38:40] or on to
[00:38:41] deliver all
[00:38:42] any of these
[00:38:42] things and
[00:38:43] purchasing that
[00:38:44] product.
[00:38:44] And I'm
[00:38:45] trying to
[00:38:46] think what
[00:38:46] kind of
[00:38:47] products,
[00:38:48] trying to
[00:38:49] keep this
[00:38:50] relatively light,
[00:38:52] is what
[00:38:53] kind of
[00:38:53] products you'd
[00:38:53] need within
[00:38:54] 15 minutes
[00:38:54] as well,
[00:38:55] apart from a
[00:38:55] fire extinguisher.
[00:38:59] Yeah,
[00:39:00] it's a valid
[00:39:01] point.
[00:39:01] It is a valid
[00:39:02] point.
[00:39:02] I think for
[00:39:03] me when I
[00:39:04] used Kareem,
[00:39:05] it was,
[00:39:06] okay,
[00:39:06] I'm here for
[00:39:07] a week,
[00:39:08] I haven't
[00:39:09] got a phone
[00:39:09] charger,
[00:39:10] don't really
[00:39:11] want to go
[00:39:11] and drive
[00:39:12] to a
[00:39:14] shopping mall.
[00:39:15] I'm just
[00:39:16] going to do
[00:39:16] this.
[00:39:17] I know it's
[00:39:17] going to be
[00:39:18] more expensive,
[00:39:19] but I
[00:39:19] understand the
[00:39:20] factors that
[00:39:21] are involved
[00:39:21] in it.
[00:39:23] Consumers,
[00:39:24] they need
[00:39:25] something there
[00:39:26] and then and
[00:39:26] now in a
[00:39:29] populated
[00:39:30] dense area,
[00:39:31] you know,
[00:39:31] your major
[00:39:31] cities,
[00:39:32] it makes
[00:39:32] sense.
[00:39:33] And I
[00:39:34] think there's
[00:39:34] always going
[00:39:35] to be a
[00:39:35] demand for
[00:39:37] it,
[00:39:37] but expect
[00:39:38] to pay
[00:39:38] over the
[00:39:39] odds.
[00:39:41] From the
[00:39:42] provider of
[00:39:43] the tech,
[00:39:44] but also
[00:39:45] from the
[00:39:46] consumer
[00:39:47] purchasing
[00:39:47] the
[00:39:47] product.
[00:39:48] Yeah,
[00:39:48] and like
[00:39:49] our friends
[00:39:49] at Tesco
[00:39:50] doing the
[00:39:51] Bush trial
[00:39:52] as well,
[00:39:52] aren't they?
[00:39:52] They're saying
[00:39:53] 20 minutes.
[00:39:54] We're always
[00:39:54] behind the
[00:39:55] curve,
[00:39:55] aren't we?
[00:39:57] Must try
[00:39:58] harder,
[00:39:59] Tesco.
[00:40:01] But yeah,
[00:40:02] I think
[00:40:04] one with
[00:40:05] Real,
[00:40:05] I think it's
[00:40:05] popular,
[00:40:06] the unit
[00:40:06] economics
[00:40:07] of these
[00:40:07] things.
[00:40:08] It's a bit
[00:40:08] like the
[00:40:08] Amazon Fresh
[00:40:09] stores as
[00:40:09] well for
[00:40:10] Amazon.
[00:40:12] It's great
[00:40:13] for pushing
[00:40:14] the technology
[00:40:14] as far as
[00:40:15] you can
[00:40:15] take it,
[00:40:16] but how
[00:40:18] many consumers
[00:40:19] need X
[00:40:20] within 20
[00:40:21] minutes apart
[00:40:21] from food
[00:40:22] if you're
[00:40:22] cooking a
[00:40:22] meal?
[00:40:23] I can't
[00:40:23] really think
[00:40:24] of anything
[00:40:24] else.
[00:40:25] So I think
[00:40:25] it's probably
[00:40:26] not going
[00:40:26] to be a
[00:40:27] long-lived
[00:40:28] fad,
[00:40:28] I would
[00:40:28] have
[00:40:28] thought.
[00:40:29] No,
[00:40:29] no,
[00:40:30] definitely
[00:40:30] not.
[00:40:31] Switching
[00:40:32] gears a little
[00:40:32] bit here,
[00:40:33] this is more
[00:40:34] to do with
[00:40:34] international
[00:40:40] challenges
[00:40:45] they're
[00:40:46] facing and
[00:40:46] how would
[00:40:47] you approach
[00:40:47] advising a
[00:40:48] customer on
[00:40:48] that?
[00:40:49] International
[00:40:51] before Brexit,
[00:40:52] the B word.
[00:40:53] Sorry,
[00:40:54] just as an
[00:40:54] aside,
[00:40:55] so many of
[00:40:55] our
[00:40:55] conversations.
[00:40:56] We need
[00:40:57] a buzzer.
[00:40:58] I know,
[00:40:58] I know,
[00:40:59] a drinking
[00:40:59] game rather.
[00:41:02] Brexit
[00:41:02] part,
[00:41:03] like that.
[00:41:03] No matter
[00:41:03] what the
[00:41:04] topic is
[00:41:04] on the
[00:41:05] podcast,
[00:41:05] there's
[00:41:05] always a
[00:41:06] pre and
[00:41:06] post
[00:41:06] Brexit
[00:41:06] segment,
[00:41:08] but yes.
[00:41:09] Yeah,
[00:41:09] it was
[00:41:12] people,
[00:41:13] many moons
[00:41:13] ago,
[00:41:14] it seemed
[00:41:14] so simple,
[00:41:15] right?
[00:41:16] It seemed
[00:41:17] so simple.
[00:41:18] I think
[00:41:18] things are
[00:41:19] becoming
[00:41:23] there's
[00:41:24] more
[00:41:24] information
[00:41:25] coming out
[00:41:25] and
[00:41:26] there's
[00:41:27] more
[00:41:27] knowledge
[00:41:28] to make
[00:41:29] it easier
[00:41:30] to set
[00:41:31] abroad.
[00:41:31] So
[00:41:33] if you
[00:41:33] decide
[00:41:34] to go
[00:41:34] down the
[00:41:35] fulfillment
[00:41:35] route
[00:41:36] and
[00:41:36] look
[00:41:37] at
[00:41:37] companies
[00:41:38] within
[00:41:39] that
[00:41:39] specific
[00:41:40] country,
[00:41:40] I suppose
[00:41:41] you've
[00:41:41] got to
[00:41:41] ask
[00:41:41] yourself,
[00:41:43] where do
[00:41:44] you
[00:41:44] fulfill
[00:41:44] that
[00:41:44] product
[00:41:45] from?
[00:41:45] But
[00:41:46] taking it
[00:41:46] one step
[00:41:47] back,
[00:41:47] as an
[00:41:48] e-commerce
[00:41:48] brand,
[00:41:49] if I was
[00:41:49] looking to
[00:41:50] expand
[00:41:52] worldwide,
[00:41:53] I'd be
[00:41:54] looking at
[00:41:54] certain factors
[00:41:55] like,
[00:41:56] where are
[00:41:57] your hits
[00:41:57] coming from
[00:41:57] your website?
[00:41:58] you're
[00:41:59] going to
[00:41:59] seeing
[00:41:59] that
[00:42:00] from
[00:42:00] your
[00:42:03] provider
[00:42:03] there.
[00:42:04] Look at
[00:42:05] some of
[00:42:05] your
[00:42:05] competitors,
[00:42:07] there's
[00:42:08] bits of
[00:42:09] information
[00:42:10] out there
[00:42:10] where you
[00:42:11] can see
[00:42:11] where their
[00:42:12] hits are
[00:42:12] coming from
[00:42:13] to understand
[00:42:14] where there
[00:42:15] is a
[00:42:15] potential
[00:42:16] demand.
[00:42:17] Where are
[00:42:18] you getting
[00:42:18] inquiries from
[00:42:19] as well?
[00:42:20] Going back
[00:42:21] to the
[00:42:23] company I
[00:42:23] spoke about
[00:42:24] earlier,
[00:42:25] the TikTok
[00:42:26] brand,
[00:42:27] they said
[00:42:27] we want to
[00:42:28] expand
[00:42:28] internationally.
[00:42:29] I was
[00:42:29] like,
[00:42:29] okay,
[00:42:30] you want
[00:42:30] to expand
[00:42:31] internationally
[00:42:31] but where
[00:42:32] do you
[00:42:32] want to
[00:42:32] go first?
[00:42:33] We're
[00:42:33] getting loads
[00:42:34] of inquiries
[00:42:34] from Australia,
[00:42:35] we're getting
[00:42:36] loads of
[00:42:36] inquiries
[00:42:36] from the
[00:42:37] USA.
[00:42:37] Okay,
[00:42:37] great,
[00:42:38] that's
[00:42:39] really
[00:42:39] important
[00:42:39] there.
[00:42:40] So,
[00:42:41] is your
[00:42:42] website
[00:42:44] geared up
[00:42:45] for
[00:42:46] different
[00:42:47] languages?
[00:42:49] I would
[00:42:50] certainly
[00:42:50] hit the
[00:42:51] English
[00:42:51] speaking
[00:42:52] ones
[00:42:52] first if
[00:42:53] you're a
[00:42:53] UK
[00:42:54] brand,
[00:42:54] 100%,
[00:42:55] easier to
[00:42:56] go across.
[00:42:57] Are you
[00:42:58] aware of
[00:42:59] the
[00:43:00] de minimis
[00:43:01] values
[00:43:01] within
[00:43:01] that
[00:43:02] country?
[00:43:02] If you
[00:43:03] are shipping
[00:43:04] within
[00:43:05] the UK
[00:43:07] to those
[00:43:08] countries,
[00:43:09] I think
[00:43:09] that's
[00:43:10] really
[00:43:10] important
[00:43:10] there.
[00:43:11] And
[00:43:12] how is
[00:43:13] that
[00:43:13] journey
[00:43:13] going to
[00:43:14] happen?
[00:43:15] Is it
[00:43:16] going to
[00:43:17] go on
[00:43:17] a track
[00:43:19] service,
[00:43:20] an
[00:43:20] untracked
[00:43:20] service?
[00:43:21] Is it
[00:43:21] going to
[00:43:22] go on
[00:43:22] an express
[00:43:23] service?
[00:43:25] I suppose
[00:43:26] it depends
[00:43:26] on your
[00:43:27] basket value
[00:43:28] and what
[00:43:29] the customer
[00:43:30] is purchasing.
[00:43:31] If a
[00:43:32] customer is
[00:43:33] purchasing
[00:43:33] an iPhone
[00:43:36] charger
[00:43:37] from the
[00:43:37] UK and
[00:43:38] you're sending
[00:43:38] it to the
[00:43:39] US,
[00:43:39] does it
[00:43:40] really need
[00:43:40] to go
[00:43:41] via an
[00:43:41] express
[00:43:42] carrier?
[00:43:43] Not
[00:43:44] really,
[00:43:45] because they're
[00:43:45] most likely
[00:43:46] going to
[00:43:46] have one
[00:43:47] that is
[00:43:48] within that
[00:43:49] country.
[00:43:49] But if
[00:43:50] your
[00:43:51] iPhone
[00:43:51] charger
[00:43:52] is
[00:43:52] gold
[00:43:53] crusted
[00:43:54] and it's
[00:43:54] unique to
[00:43:55] you as a
[00:43:56] company,
[00:43:57] you may
[00:43:58] want to
[00:43:58] look at
[00:43:59] a variety
[00:44:00] of different
[00:44:00] options.
[00:44:01] So I
[00:44:01] think
[00:44:01] there's a
[00:44:02] number of
[00:44:02] things to
[00:44:03] look at
[00:44:04] there.
[00:44:04] The
[00:44:05] fulfillment
[00:44:05] piece is
[00:44:05] really
[00:44:06] important.
[00:44:06] Do they
[00:44:07] replicate
[00:44:07] your values
[00:44:09] and what
[00:44:09] you do
[00:44:10] within the
[00:44:11] UK?
[00:44:12] And can
[00:44:13] that be
[00:44:13] done
[00:44:13] within
[00:44:13] that
[00:44:14] country?
[00:44:15] And
[00:44:16] understandably,
[00:44:18] most importantly,
[00:44:19] I think,
[00:44:19] if there is
[00:44:20] a problem,
[00:44:21] how are
[00:44:21] they returning
[00:44:22] it back
[00:44:22] to you?
[00:44:23] And I
[00:44:24] think that's
[00:44:25] something to
[00:44:26] consider there
[00:44:26] as well.
[00:44:27] And you
[00:44:28] mentioned
[00:44:29] returns there,
[00:44:30] which is
[00:44:30] one of the
[00:44:31] points I
[00:44:32] wanted to
[00:44:32] pick up
[00:44:33] really.
[00:44:33] You saw
[00:44:34] that Zara,
[00:44:35] H&M,
[00:44:37] Voohoo,
[00:44:37] et cetera,
[00:44:38] all started
[00:44:39] charging for
[00:44:40] their returns
[00:44:42] because I
[00:44:42] guess there's
[00:44:43] a problem
[00:44:43] with fashion
[00:44:44] brands,
[00:44:45] people buying
[00:44:46] multiple
[00:44:46] products.
[00:44:47] And as
[00:44:49] one analogy,
[00:44:50] you go into
[00:44:51] places like
[00:44:51] Dubai,
[00:44:52] people buy
[00:44:53] multiple
[00:44:53] products and
[00:44:54] they just
[00:44:54] keep the
[00:44:55] rest and
[00:44:56] just put
[00:44:57] them on
[00:44:57] that fit.
[00:44:58] But most
[00:44:58] countries,
[00:44:59] they just send
[00:44:59] them back,
[00:45:00] don't they?
[00:45:01] Which causes
[00:45:01] a logistics
[00:45:02] nightmare.
[00:45:03] So how
[00:45:04] are brands
[00:45:04] managing this?
[00:45:05] Because it
[00:45:06] seems to be
[00:45:07] very much
[00:45:07] in the way
[00:45:08] that they
[00:45:09] shop online
[00:45:10] now as
[00:45:10] well.
[00:45:12] Returns,
[00:45:12] I don't
[00:45:12] think is
[00:45:13] going to
[00:45:14] go away.
[00:45:15] Fast fashion,
[00:45:16] I think,
[00:45:17] are very
[00:45:17] much aware
[00:45:19] that people
[00:45:21] purchase multiple
[00:45:23] sizes,
[00:45:24] multiple products
[00:45:25] for them to
[00:45:26] keep one or
[00:45:27] two items and
[00:45:28] return the
[00:45:30] rest.
[00:45:30] Which is why
[00:45:31] I understand
[00:45:32] the likes of
[00:45:33] Zara are
[00:45:35] charging for
[00:45:36] those returns.
[00:45:37] But if you
[00:45:38] go into their
[00:45:39] store,
[00:45:40] they're not
[00:45:40] charging you
[00:45:41] for the
[00:45:41] return.
[00:45:41] So they're
[00:45:41] making it
[00:45:42] a little
[00:45:42] bit more
[00:45:42] complicated
[00:45:43] for the
[00:45:45] consumer,
[00:45:46] but they're
[00:45:47] taking into
[00:45:47] consideration
[00:45:48] it's a cost
[00:45:49] that is not
[00:45:49] going to go
[00:45:50] away.
[00:45:52] Returns last
[00:45:53] year,
[00:45:54] in terms of
[00:45:55] those kind
[00:45:56] of returns
[00:45:58] costings,
[00:45:59] again,
[00:46:00] we did some
[00:46:00] research last
[00:46:01] year,
[00:46:01] it was
[00:46:02] £4.2
[00:46:03] billion,
[00:46:04] which is
[00:46:05] incredible,
[00:46:07] which is
[00:46:07] absolutely
[00:46:08] incredible.
[00:46:11] For me,
[00:46:12] I think you've
[00:46:13] got to capture
[00:46:14] the data,
[00:46:14] why is a
[00:46:15] customer
[00:46:15] returning a
[00:46:17] product?
[00:46:18] Yes,
[00:46:19] you've got,
[00:46:20] it's too
[00:46:21] big,
[00:46:21] too small.
[00:46:22] Okay,
[00:46:23] well,
[00:46:24] what are you
[00:46:24] doing with
[00:46:25] that data?
[00:46:26] Then I'm
[00:46:27] returning it
[00:46:28] because it's
[00:46:28] damaged.
[00:46:29] Okay,
[00:46:29] well,
[00:46:30] if you've
[00:46:31] outsourced
[00:46:31] it to a
[00:46:32] fulfillment
[00:46:33] house,
[00:46:33] that gives
[00:46:34] you data
[00:46:34] to understand
[00:46:35] what is
[00:46:36] the operators
[00:46:37] doing within
[00:46:39] that site
[00:46:41] for it to
[00:46:42] be damaged.
[00:46:43] You know,
[00:46:44] it could be
[00:46:44] that the
[00:46:45] original packaging
[00:46:46] from the
[00:46:47] drop shipment
[00:46:48] site is not
[00:46:49] sufficient enough.
[00:46:50] So having
[00:46:51] that is really
[00:46:52] important to
[00:46:54] allow you to
[00:46:55] build on
[00:46:55] what you
[00:46:56] do with it.
[00:46:57] I think
[00:46:58] one of the
[00:46:59] things that
[00:47:00] we're working
[00:47:01] on with
[00:47:02] our
[00:47:02] returns is
[00:47:03] giving
[00:47:04] options to
[00:47:05] the customer
[00:47:05] for
[00:47:06] paperless
[00:47:07] returns.
[00:47:08] You've got
[00:47:08] the option
[00:47:09] for home
[00:47:10] collections,
[00:47:11] drop a
[00:47:11] shop,
[00:47:12] but having
[00:47:13] a variety
[00:47:13] of different
[00:47:14] options.
[00:47:15] I think
[00:47:16] in this
[00:47:17] day and
[00:47:17] age,
[00:47:18] I'd like
[00:47:18] to think
[00:47:18] you're
[00:47:19] probably
[00:47:19] one or
[00:47:19] two miles
[00:47:20] away from
[00:47:21] a return
[00:47:22] stop,
[00:47:23] whether that's
[00:47:24] a locker,
[00:47:25] whether that's
[00:47:25] a parcel
[00:47:26] shop,
[00:47:27] whether that's
[00:47:28] a post
[00:47:28] office,
[00:47:28] you've got
[00:47:29] those options
[00:47:30] that are
[00:47:30] available to you.
[00:47:31] But how
[00:47:32] do you
[00:47:33] as an
[00:47:34] e-commerce
[00:47:35] brand
[00:47:35] then encourage
[00:47:37] that person
[00:47:37] to come
[00:47:38] back even
[00:47:38] when they
[00:47:40] have returned
[00:47:41] the item?
[00:47:42] And one
[00:47:42] of the
[00:47:42] things where
[00:47:43] we're working
[00:47:44] with our
[00:47:45] partners in
[00:47:46] returns is
[00:47:48] rather than
[00:47:49] them giving
[00:47:50] a physical
[00:47:50] refund
[00:47:52] of
[00:47:53] monetary,
[00:47:54] you give
[00:47:55] them store
[00:47:55] credits.
[00:47:56] And I think
[00:47:57] that's a really
[00:47:57] positive thing.
[00:47:58] So if you
[00:47:59] think about
[00:48:00] it,
[00:48:00] if you
[00:48:00] purchase
[00:48:00] something
[00:48:01] for
[00:48:01] £10
[00:48:02] and
[00:48:03] don't like
[00:48:04] it,
[00:48:04] I'm going
[00:48:04] to return
[00:48:05] it.
[00:48:06] Potentially,
[00:48:07] you're going
[00:48:08] to have to
[00:48:08] pay a
[00:48:09] returns fee
[00:48:09] on that.
[00:48:10] Okay,
[00:48:10] fine.
[00:48:11] But then
[00:48:12] if I was
[00:48:12] to say
[00:48:12] to you,
[00:48:13] rather than
[00:48:14] giving you
[00:48:14] £10 back,
[00:48:16] I'm giving
[00:48:17] you £12.50
[00:48:19] to spend
[00:48:20] in store
[00:48:21] again,
[00:48:21] I think
[00:48:22] you'd
[00:48:23] really
[00:48:23] encourage
[00:48:24] doing that
[00:48:25] because if
[00:48:25] you like
[00:48:27] that brand
[00:48:27] but it
[00:48:29] just wasn't
[00:48:29] the right
[00:48:30] size or
[00:48:30] just wasn't
[00:48:31] the right
[00:48:31] colour or
[00:48:32] whatever it
[00:48:32] may be in
[00:48:33] terms of
[00:48:34] that purchase,
[00:48:35] having that
[00:48:37] there to
[00:48:38] make a
[00:48:38] purchase
[00:48:38] instantly again
[00:48:39] would be a
[00:48:40] massive factor
[00:48:41] to that.
[00:48:41] So for
[00:48:42] me,
[00:48:43] I think
[00:48:43] returns is
[00:48:44] going to be
[00:48:44] a really
[00:48:44] important
[00:48:46] factor
[00:48:48] still to
[00:48:49] play.
[00:48:50] I love
[00:48:51] that idea
[00:48:51] by the
[00:48:52] way.
[00:48:52] I'm all
[00:48:53] for surprising
[00:48:53] and delighting
[00:48:54] customers
[00:48:55] really.
[00:48:56] You've had a
[00:48:57] great experience
[00:48:58] so a little
[00:48:58] bonus as
[00:48:59] well.
[00:49:00] It's great,
[00:49:01] it builds
[00:49:01] loyalty doesn't
[00:49:02] it and
[00:49:03] insights
[00:49:04] subscriptions
[00:49:04] which is
[00:49:05] another area
[00:49:06] that I'd
[00:49:06] like to
[00:49:06] cover.
[00:49:07] How has
[00:49:08] that changed
[00:49:08] the game
[00:49:08] fulfilment?
[00:49:09] Because
[00:49:09] obviously
[00:49:10] Amazon
[00:49:11] has got
[00:49:12] the prime
[00:49:13] element
[00:49:13] and others.
[00:49:15] How has
[00:49:16] that helped
[00:49:17] with predicting
[00:49:18] volumes?
[00:49:19] Subscriptions
[00:49:20] I think
[00:49:20] for me
[00:49:22] is a
[00:49:24] really
[00:49:25] interesting
[00:49:26] area
[00:49:26] because
[00:49:27] whether
[00:49:28] if we
[00:49:30] fulfil the
[00:49:30] product
[00:49:31] at the
[00:49:32] Whistle
[00:49:32] Group
[00:49:32] or
[00:49:34] we're
[00:49:35] speaking
[00:49:35] to a
[00:49:37] prospect
[00:49:37] that deals
[00:49:38] with
[00:49:39] subscriptions
[00:49:41] they've
[00:49:42] got a
[00:49:42] forecast
[00:49:42] potentially.
[00:49:43] If it's
[00:49:44] a brand
[00:49:45] that has
[00:49:45] been running
[00:49:46] for a
[00:49:48] number of
[00:49:48] years they
[00:49:48] are able
[00:49:49] to say
[00:49:49] to me
[00:49:50] okay
[00:49:51] generally
[00:49:51] speaking
[00:49:52] this is
[00:49:53] what we're
[00:49:53] shipping
[00:49:54] day to
[00:49:55] day,
[00:49:55] month to
[00:49:56] month,
[00:49:56] this is
[00:49:56] what it
[00:49:57] looks like
[00:49:57] unless
[00:49:58] they decide
[00:49:59] to have
[00:49:59] a Black
[00:50:00] Friday
[00:50:00] sale
[00:50:01] and
[00:50:01] suddenly
[00:50:01] it goes
[00:50:02] crazy
[00:50:02] or
[00:50:03] they've
[00:50:04] decided
[00:50:05] that they're
[00:50:06] going to
[00:50:06] really push
[00:50:07] out on the
[00:50:07] marketing
[00:50:08] spend
[00:50:08] leading up
[00:50:09] to Christmas
[00:50:09] because
[00:50:09] that's
[00:50:10] what we
[00:50:11] do.
[00:50:11] So
[00:50:11] forecasting
[00:50:12] is really
[00:50:13] important when
[00:50:14] it comes
[00:50:14] to subscription.
[00:50:16] Having the
[00:50:17] ability of
[00:50:18] having that
[00:50:19] labour in
[00:50:19] place and
[00:50:20] pre-planning,
[00:50:21] I think
[00:50:21] that's
[00:50:22] really
[00:50:22] important.
[00:50:23] Don't
[00:50:23] overcomplicate
[00:50:24] your
[00:50:24] subscription.
[00:50:25] Components
[00:50:26] that are
[00:50:26] involved
[00:50:27] within that
[00:50:27] subscription
[00:50:28] to see if
[00:50:30] you can
[00:50:30] pre-pack
[00:50:31] those products,
[00:50:32] I think
[00:50:32] that's a
[00:50:33] really nice
[00:50:33] way of
[00:50:35] saving
[00:50:36] you time
[00:50:37] because if
[00:50:38] you have
[00:50:40] a buffer
[00:50:41] of stock
[00:50:42] then
[00:50:43] you're
[00:50:44] able to
[00:50:44] when that
[00:50:45] order does
[00:50:45] come through
[00:50:46] you're able
[00:50:47] to just
[00:50:47] get that
[00:50:48] label on
[00:50:49] out the
[00:50:50] door it
[00:50:50] goes and
[00:50:51] that time
[00:50:52] it takes
[00:50:53] in place
[00:50:54] really works.
[00:50:55] I think
[00:50:57] the really
[00:50:58] important thing
[00:50:58] though is
[00:50:59] that departments
[00:51:00] speak to each
[00:51:01] other when it
[00:51:02] comes to
[00:51:02] subscription
[00:51:03] because let's
[00:51:03] be honest
[00:51:05] if you've
[00:51:06] got a
[00:51:06] massive
[00:51:06] promotion
[00:51:07] going on
[00:51:07] or you've
[00:51:09] got a
[00:51:09] one day
[00:51:09] sale
[00:51:10] has the
[00:51:11] marketing
[00:51:11] team told
[00:51:12] the warehouse
[00:51:12] have they
[00:51:13] told the
[00:51:15] fulfillment
[00:51:16] side because
[00:51:17] you've
[00:51:17] outsourced it
[00:51:18] to them
[00:51:18] are these
[00:51:19] people talking
[00:51:20] to each
[00:51:20] other because
[00:51:21] that's a
[00:51:21] really important
[00:51:22] element of
[00:51:23] it because
[00:51:24] you don't
[00:51:24] want to let
[00:51:24] the customer
[00:51:25] down so
[00:51:25] from my
[00:51:26] perspective
[00:51:26] that's
[00:51:27] really
[00:51:28] important
[00:51:29] packaging
[00:51:30] having the
[00:51:31] products next
[00:51:32] to each
[00:51:32] other
[00:51:33] within
[00:51:34] that
[00:51:35] actual
[00:51:36] fulfillment
[00:51:37] site
[00:51:37] is really
[00:51:39] important
[00:51:39] as well
[00:51:39] you don't
[00:51:40] want to be
[00:51:41] walking
[00:51:41] if you're
[00:51:42] not able
[00:51:43] to pre
[00:51:43] box a
[00:51:44] product
[00:51:44] don't have
[00:51:46] your operative
[00:51:47] walking from
[00:51:48] one end
[00:51:48] to the
[00:51:49] other
[00:51:49] they should
[00:51:50] be close
[00:51:51] to each
[00:51:51] other
[00:51:51] and that's
[00:51:53] really
[00:51:53] interesting
[00:51:54] it's
[00:51:55] funny
[00:51:55] because
[00:51:56] I used
[00:51:57] to
[00:51:58] manage
[00:51:59] a company
[00:52:00] that used
[00:52:01] to sell
[00:52:02] subscription
[00:52:02] snacks
[00:52:03] and they
[00:52:04] would run
[00:52:04] KPIs
[00:52:05] on how
[00:52:06] their
[00:52:07] operatives
[00:52:07] would run
[00:52:08] I think
[00:52:10] it was
[00:52:10] like
[00:52:10] they had
[00:52:11] to pack
[00:52:12] something
[00:52:12] like 300
[00:52:13] snack boxes
[00:52:15] within an
[00:52:15] hour
[00:52:16] but that
[00:52:17] was really
[00:52:17] important
[00:52:18] of having
[00:52:18] the snacks
[00:52:19] there
[00:52:19] all the
[00:52:20] different
[00:52:20] snacks
[00:52:20] picking
[00:52:21] off it
[00:52:22] goes
[00:52:22] scan
[00:52:23] out it
[00:52:24] goes
[00:52:24] so
[00:52:25] yeah
[00:52:25] that for
[00:52:26] me
[00:52:26] there's
[00:52:27] a number
[00:52:27] of facts
[00:52:27] there
[00:52:28] that's
[00:52:28] worth
[00:52:28] looking
[00:52:28] into
[00:52:29] yeah
[00:52:29] this
[00:52:29] subscription
[00:52:30] thing
[00:52:30] is
[00:52:30] an
[00:52:30] interesting
[00:52:35] meaning
[00:52:37] how much
[00:52:37] it actually
[00:52:37] helps up
[00:52:38] with the
[00:52:38] forecasting
[00:52:38] and the
[00:52:39] inventory
[00:52:40] and the
[00:52:40] supply
[00:52:40] chain
[00:52:41] ultimately
[00:52:42] you know
[00:52:43] in our
[00:52:43] experience
[00:52:45] it's probably
[00:52:45] lends itself
[00:52:46] more to
[00:52:47] two to
[00:52:47] three
[00:52:47] categories
[00:52:48] right
[00:52:48] so you're
[00:52:48] talking
[00:52:50] pet food
[00:52:51] supplements
[00:52:51] you know
[00:52:52] kind of
[00:52:52] maybe like
[00:52:53] I don't know
[00:52:54] toothpaste
[00:52:54] and things
[00:52:54] like that
[00:52:55] to a lesser
[00:52:55] degree
[00:52:55] a little
[00:52:56] bit of
[00:52:56] health
[00:52:56] and beauty
[00:52:56] but for
[00:52:57] those
[00:52:57] categories
[00:52:58] you know
[00:52:59] we've been
[00:52:59] working on
[00:53:00] on
[00:53:01] forecasting
[00:53:01] cohort based
[00:53:02] forecasting
[00:53:03] and it's
[00:53:03] proved
[00:53:03] really
[00:53:05] useful
[00:53:06] pretty
[00:53:07] accurate
[00:53:07] both in
[00:53:08] terms of
[00:53:08] the inventory
[00:53:09] side
[00:53:09] and projecting
[00:53:10] out let's
[00:53:10] say
[00:53:10] I don't know
[00:53:11] sales numbers
[00:53:12] and things
[00:53:12] like that
[00:53:14] but I also
[00:53:14] know
[00:53:15] and this is
[00:53:16] all via
[00:53:16] Amazon
[00:53:16] right
[00:53:17] so this is
[00:53:17] a subscribe
[00:53:17] and save
[00:53:18] program on
[00:53:18] Amazon
[00:53:19] but I also
[00:53:20] know
[00:53:20] perhaps
[00:53:21] a decade
[00:53:22] ago
[00:53:22] 10
[00:53:22] 15
[00:53:23] years ago
[00:53:24] DTC
[00:53:24] subscriptions
[00:53:25] were a big
[00:53:26] thing as
[00:53:26] well
[00:53:26] and trying
[00:53:27] it out
[00:53:27] for
[00:53:27] clothing
[00:53:28] right
[00:53:28] apparel
[00:53:29] and clothing
[00:53:29] was a big
[00:53:30] one
[00:53:30] where they
[00:53:30] would
[00:53:31] you know
[00:53:31] you subscribe
[00:53:32] they send
[00:53:33] you I guess
[00:53:33] a bundle
[00:53:34] of things
[00:53:34] you choose
[00:53:35] things to
[00:53:35] keep
[00:53:36] try them
[00:53:36] on
[00:53:37] send the
[00:53:37] others
[00:53:37] back
[00:53:37] and those
[00:53:38] have definitely
[00:53:39] fallen out of
[00:53:39] favor
[00:53:39] right
[00:53:40] and so
[00:53:40] I think
[00:53:41] it's just
[00:53:41] interesting
[00:53:42] around like
[00:53:42] the core
[00:53:43] categories
[00:53:43] where I
[00:53:44] have
[00:53:44] direct
[00:53:45] experience
[00:53:45] I know
[00:53:46] it works
[00:53:46] very well
[00:53:46] and people
[00:53:47] have built
[00:53:47] 50-60%
[00:53:48] of all the
[00:53:49] revenue
[00:53:49] is actually
[00:53:50] subscription
[00:53:50] revenue
[00:53:50] so these
[00:53:51] are more
[00:53:51] akin to
[00:53:52] actual
[00:53:52] subscription
[00:53:53] businesses
[00:53:53] than
[00:54:02] just
[00:54:03] massive
[00:54:03] absolutely
[00:54:04] and I
[00:54:05] think
[00:54:05] if you
[00:54:06] look at
[00:54:08] certain
[00:54:08] categories
[00:54:09] will
[00:54:10] trend
[00:54:10] in terms
[00:54:11] of
[00:54:11] subscriptions
[00:54:12] and some
[00:54:13] will die
[00:54:15] out
[00:54:15] I think
[00:54:15] I'm seeing
[00:54:19] beauty products
[00:54:20] subscription
[00:54:20] products
[00:54:21] if they
[00:54:21] built a
[00:54:22] solid
[00:54:22] branding
[00:54:24] they're
[00:54:24] working
[00:54:25] they seem
[00:54:26] to be
[00:54:26] consistently
[00:54:27] there
[00:54:28] but
[00:54:28] then
[00:54:29] let's
[00:54:29] think
[00:54:30] about
[00:54:30] something
[00:54:30] which
[00:54:31] is not
[00:54:31] maybe
[00:54:32] a high
[00:54:33] turnover
[00:54:34] but quite
[00:54:34] a quirky
[00:54:35] idea
[00:54:35] is things
[00:54:35] like
[00:54:36] toys
[00:54:36] toy
[00:54:37] returns
[00:54:37] you know
[00:54:38] I've
[00:54:38] got
[00:54:38] a two
[00:54:39] year old
[00:54:39] boy
[00:54:40] and
[00:54:41] my wife
[00:54:42] was looking
[00:54:43] into
[00:54:43] returns
[00:54:44] and how
[00:54:45] they
[00:54:46] a
[00:54:47] subscription
[00:54:48] model
[00:54:48] where
[00:54:48] he gets
[00:54:49] new toys
[00:54:49] every month
[00:54:50] so
[00:54:51] it's
[00:54:51] continuous
[00:54:52] there
[00:54:52] but
[00:54:53] when I
[00:54:54] go back
[00:54:54] to
[00:54:54] factors
[00:54:55] involved
[00:54:56] logistics
[00:54:57] element
[00:54:57] whether
[00:54:58] it's
[00:54:58] going
[00:54:58] out
[00:54:58] or
[00:54:59] it's
[00:54:59] being
[00:54:59] returned
[00:55:00] these
[00:55:00] are
[00:55:00] two
[00:55:00] factors
[00:55:01] that
[00:55:01] play
[00:55:01] a
[00:55:01] massive
[00:55:02] part
[00:55:02] in
[00:55:03] your
[00:55:03] product
[00:55:04] I have
[00:55:05] to ask
[00:55:05] the
[00:55:06] obligatory
[00:55:06] AI
[00:55:06] question
[00:55:07] as well
[00:55:12] it's
[00:55:13] easy
[00:55:13] to talk
[00:55:14] a little
[00:55:14] bit
[00:55:15] maybe
[00:55:15] superficially
[00:55:15] how it's
[00:55:16] changing
[00:55:27] I think
[00:55:28] I think
[00:55:28] it's
[00:55:28] a difficult
[00:55:28] one
[00:55:29] within
[00:55:29] the
[00:55:29] logistics
[00:55:30] space
[00:55:30] because
[00:55:33] it's
[00:55:34] got to
[00:55:34] be
[00:55:34] tried
[00:55:34] tested
[00:55:35] tried
[00:55:36] again
[00:55:36] the one
[00:55:38] that really
[00:55:38] kind of
[00:55:39] comes out
[00:55:39] is
[00:55:40] I think
[00:55:41] AI is
[00:55:41] most likely
[00:55:42] going to
[00:55:42] be
[00:55:43] at the
[00:55:44] forefront
[00:55:44] in
[00:55:44] kind of
[00:55:44] route
[00:55:45] planning
[00:55:46] for
[00:55:47] deliveries
[00:55:48] giving
[00:55:51] feedback
[00:55:57] continuously
[00:55:58] so then
[00:55:59] that
[00:56:01] a
[00:56:01] different
[00:56:02] route
[00:56:02] potentially
[00:56:03] can come
[00:56:03] into
[00:56:03] play
[00:56:04] so I
[00:56:05] think
[00:56:05] that's
[00:56:06] really
[00:56:06] important
[00:56:07] there
[00:56:09] and
[00:56:10] no doubt
[00:56:10] it's already
[00:56:11] in play
[00:56:11] with the
[00:56:12] likes of
[00:56:14] Amazon
[00:56:14] and others
[00:56:15] using that
[00:56:17] but
[00:56:18] in other
[00:56:19] elements
[00:56:19] of it
[00:56:20] AI
[00:56:20] I think
[00:56:21] it's really
[00:56:21] difficult
[00:56:22] to
[00:56:22] implement
[00:56:24] in
[00:56:25] parcel
[00:56:26] parcel
[00:56:26] movement
[00:56:27] I know
[00:56:30] in
[00:56:30] deliveries
[00:56:31] it
[00:56:32] will
[00:56:33] happen
[00:56:35] where
[00:56:38] you'll
[00:56:38] see
[00:56:39] an item
[00:56:40] being
[00:56:41] delivered
[00:56:41] by a
[00:56:42] drone
[00:56:42] and
[00:56:42] that's
[00:56:43] based
[00:56:43] on
[00:56:43] the
[00:56:45] AI
[00:56:46] technology
[00:56:47] in place
[00:56:47] to say
[00:56:48] actually
[00:56:48] it's
[00:56:48] better
[00:56:49] to send
[00:56:50] this
[00:56:50] via a
[00:56:50] drone
[00:56:51] rather
[00:56:52] than
[00:56:52] sending
[00:56:52] this
[00:56:53] with
[00:56:53] a
[00:56:53] van
[00:56:53] or
[00:56:53] based
[00:56:54] on
[00:56:55] this
[00:56:55] buyer's
[00:56:56] consumption
[00:56:58] they
[00:56:58] prefer
[00:56:59] it
[00:56:59] to be
[00:57:00] delivered
[00:57:00] off
[00:57:00] a
[00:57:01] parcel
[00:57:02] shop
[00:57:02] so
[00:57:02] I
[00:57:03] think
[00:57:03] there's
[00:57:03] still
[00:57:04] early
[00:57:04] days
[00:57:05] involved
[00:57:05] in
[00:57:05] AI
[00:57:07] at
[00:57:08] parcel
[00:57:08] hub
[00:57:09] it's
[00:57:10] very
[00:57:10] difficult
[00:57:11] to say
[00:57:11] we've
[00:57:11] used
[00:57:12] AI
[00:57:12] for
[00:57:13] that
[00:57:14] technology
[00:57:14] piece
[00:57:15] yet
[00:57:15] no doubt
[00:57:16] it's
[00:57:16] in
[00:57:16] the
[00:57:17] thoughts
[00:57:18] there
[00:57:19] yeah
[00:57:19] I
[00:57:20] think
[00:57:20] it's
[00:57:20] very
[00:57:20] much
[00:57:20] like
[00:57:21] a
[00:57:21] background
[00:57:21] thing
[00:57:21] at
[00:57:21] the
[00:57:21] moment
[00:57:22] right
[00:57:22] to
[00:57:22] your
[00:57:22] point
[00:57:22] like
[00:57:23] the
[00:57:23] inventory
[00:57:24] management
[00:57:24] systems
[00:57:24] and
[00:57:25] sort of
[00:57:25] the
[00:57:25] routing
[00:57:25] planning
[00:57:26] stuff
[00:57:26] I mean
[00:57:26] and
[00:57:27] honestly
[00:57:27] that
[00:57:27] stuff's
[00:57:28] actually
[00:57:28] been
[00:57:28] going
[00:57:28] on
[00:57:28] for
[00:57:28] a
[00:57:48] I
[00:57:49] had
[00:57:49] an
[00:57:50] analogy
[00:57:50] from
[00:57:51] their
[00:57:52] FBA
[00:57:53] system
[00:57:53] in
[00:57:53] the
[00:57:54] States
[00:57:54] and
[00:57:54] the
[00:57:56] system
[00:57:57] had
[00:57:57] worked
[00:57:57] out
[00:57:58] that
[00:57:58] because
[00:57:59] there's
[00:57:59] a
[00:57:59] high
[00:58:00] proportion
[00:58:00] of
[00:58:00] Hispanic
[00:58:01] population
[00:58:02] in
[00:58:02] places
[00:58:02] like
[00:58:02] Florida
[00:58:03] the
[00:58:04] system
[00:58:04] had
[00:58:04] already
[00:58:04] worked
[00:58:05] out
[00:58:05] that
[00:58:05] you
[00:58:06] need
[00:58:06] to
[00:58:06] have
[00:58:06] lower
[00:58:07] UV
[00:58:09] protection
[00:58:10] in
[00:58:18] the
[00:58:20] various
[00:58:20] components
[00:58:21] of
[00:58:21] the
[00:58:22] sunscreen
[00:58:22] around
[00:58:22] the
[00:58:22] States
[00:58:23] I
[00:58:23] think
[00:58:23] analyzing
[00:58:25] the
[00:58:25] data
[00:58:26] is
[00:58:26] probably
[00:58:26] the
[00:58:27] best
[00:58:27] way
[00:58:27] I
[00:58:27] think
[00:58:28] just
[00:58:29] to
[00:58:29] finalize
[00:58:30] on
[00:58:30] that
[00:58:30] point
[00:58:31] for
[00:58:31] me
[00:58:31] the
[00:58:32] key
[00:58:32] component
[00:58:33] in
[00:58:33] that
[00:58:48] in
[00:58:48] a
[00:58:48] massive
[00:58:48] way
[00:58:49] but
[00:58:49] who's
[00:58:50] going
[00:58:50] to
[00:58:50] shout
[00:58:51] about
[00:58:51] it
[00:58:51] the
[00:58:51] most
[00:58:52] you
[00:58:52] know
[00:58:54] so
[00:58:54] yeah
[00:58:55] the
[00:58:55] end
[00:58:55] goal
[00:58:56] is
[00:58:56] cost
[00:58:56] effective
[00:58:57] operations
[00:58:58] but
[00:58:58] maybe
[00:58:59] people
[00:58:59] don't
[00:59:00] really
[00:59:00] want
[00:59:00] to
[00:59:00] tell
[00:59:01] all
[00:59:01] their
[00:59:01] secrets
[00:59:02] just
[00:59:02] yet
[00:59:02] to
[00:59:03] that
[00:59:04] point
[00:59:04] you
[00:59:05] know
[00:59:05] data
[00:59:05] is
[00:59:05] so
[00:59:06] important
[00:59:06] logistics
[00:59:06] making
[00:59:07] sure
[00:59:07] stuff
[00:59:07] is
[00:59:08] in
[00:59:08] the
[00:59:08] right
[00:59:08] place
[00:59:08] when
[00:59:09] you
[00:59:09] need
[00:59:09] it
[00:59:09] at
[00:59:09] the
[00:59:09] right
[00:59:09] time
[00:59:11] and
[00:59:11] it
[00:59:11] can
[00:59:11] be
[00:59:11] picked
[00:59:12] and
[00:59:12] it's
[00:59:12] come
[00:59:12] time
[00:59:13] and
[00:59:13] it
[00:59:13] goes
[00:59:13] out
[00:59:13] and
[00:59:14] it
[00:59:36] so
[00:59:37] you
[00:59:37] want
[00:59:38] to
[00:59:38] be
[00:59:38] able
[00:59:39] to
[00:59:39] check
[00:59:39] the
[00:59:39] output
[00:59:39] before
[00:59:40] it's
[00:59:40] actually
[00:59:40] delivered
[00:59:41] to
[00:59:41] the
[00:59:41] customers
[00:59:41] my
[00:59:42] point
[00:59:42] I
[00:59:42] guess
[00:59:44] definitely
[00:59:44] yeah
[00:59:46] well
[00:59:47] that's
[00:59:47] great
[00:59:47] well
[00:59:48] I
[00:59:48] think
[00:59:49] we're
[00:59:49] just
[00:59:49] coming
[00:59:49] up
[00:59:49] to
[00:59:49] start
[00:59:50] to
[00:59:50] wrap
[00:59:51] up
[00:59:51] at
[00:59:51] the
[00:59:51] moment
[00:59:51] but
[00:59:52] I
[00:59:52] think
[00:59:52] it
[00:59:52] would
[00:59:52] be
[00:59:53] useful
[00:59:53] to
[00:59:53] give
[00:59:54] us
[00:59:54] a
[00:59:54] little
[00:59:54] bit
[00:59:54] more
[00:59:55] background
[00:59:55] about
[00:59:56] Parcel
[00:59:56] Hub
[00:59:57] and
[00:59:57] what
[00:59:57] you
[00:59:57] guys
[00:59:57] are
[00:59:57] about
[00:59:58] thanks
[00:59:59] for
[00:59:59] having
[01:00:00] you
[01:00:00] on
[01:00:01] really
[01:00:01] no
[01:00:01] problem
[01:00:02] sure
[01:00:02] so
[01:00:02] Parcel
[01:00:03] Hub
[01:00:03] is a
[01:00:04] multi-carrier
[01:00:05] solutions
[01:00:06] provider
[01:00:06] we're
[01:00:07] part
[01:00:07] of
[01:00:07] a
[01:00:08] larger
[01:00:08] company
[01:00:08] called
[01:00:09] the
[01:00:09] Whistle
[01:00:09] Group
[01:00:10] per
[01:00:11] year
[01:00:12] we
[01:00:13] support
[01:00:14] customers
[01:00:15] in
[01:00:16] movement
[01:00:17] of
[01:00:17] large
[01:00:18] letters
[01:00:18] letters
[01:00:19] parcels
[01:00:20] up to
[01:00:21] 30
[01:00:21] kilos
[01:00:22] whether
[01:00:23] it's
[01:00:23] domestic
[01:00:23] or
[01:00:24] international
[01:00:25] from
[01:00:26] our
[01:00:26] perspective
[01:00:27] we
[01:00:27] are
[01:00:28] able
[01:00:28] to
[01:00:29] offer
[01:00:29] customers
[01:00:30] a
[01:00:30] multi-carrier
[01:00:31] solution
[01:00:32] giving
[01:00:34] you
[01:00:34] the
[01:00:34] options
[01:00:35] to
[01:00:36] move
[01:00:36] your
[01:00:38] products
[01:00:38] not
[01:00:38] just
[01:00:38] a
[01:00:39] singular
[01:00:39] solution
[01:00:40] through
[01:00:41] one
[01:00:41] funnel
[01:00:42] and
[01:00:43] for
[01:00:43] us
[01:00:43] that's
[01:00:43] really
[01:00:44] important
[01:00:44] because
[01:00:45] it
[01:00:45] gives
[01:00:45] you
[01:00:45] options
[01:00:46] it
[01:00:47] gives
[01:00:47] you
[01:00:47] the
[01:00:47] flexibility
[01:00:48] peak
[01:00:49] resilience
[01:00:50] is
[01:00:50] something
[01:00:50] that
[01:00:50] we
[01:00:52] go on
[01:00:53] about
[01:00:53] a lot
[01:00:53] because
[01:00:54] if
[01:00:55] you
[01:00:55] have
[01:00:55] the
[01:00:55] ability
[01:00:56] of
[01:00:57] moving
[01:00:58] certain
[01:00:58] elements
[01:00:59] to
[01:00:59] different
[01:01:00] carriers
[01:01:00] that's
[01:01:01] a
[01:01:02] massive
[01:01:02] opportunity
[01:01:03] to
[01:01:04] keep
[01:01:04] your
[01:01:04] business
[01:01:05] moving
[01:01:05] but
[01:01:06] Parcel
[01:01:07] Hub
[01:01:07] also
[01:01:08] provides
[01:01:09] you
[01:01:09] with
[01:01:09] proactive
[01:01:10] tracking
[01:01:10] support
[01:01:11] all of
[01:01:12] these
[01:01:13] things
[01:01:13] are
[01:01:13] combined
[01:01:14] into
[01:01:14] one
[01:01:14] collection
[01:01:17] one
[01:01:18] account
[01:01:18] manager
[01:01:18] and
[01:01:19] one
[01:01:19] portal
[01:01:20] so
[01:01:20] you
[01:01:21] may
[01:02:34] get
[01:02:35] and
[01:02:36] drop
[01:02:36] them
[01:02:36] off
[01:02:36] at
[01:02:36] a
[01:02:36] local
[01:02:37] shop
[01:02:37] and
[01:02:44] you
[01:02:46] met
[01:02:47] well
[01:02:48] yeah
[01:02:49] I mean
[01:02:49] according to
[01:02:49] Cuban
[01:02:50] leading
[01:02:50] provider
[01:02:51] With e-fulfillments in France, 96% of customers consider the quality
[01:02:58] and the delivery of their experience a crucial factor in their decisions.
[01:03:02] And in a 2020 study by McKinsey, shoppers enrolled in three launching programs
[01:03:08] with 30% more than non-members.
[01:03:11] So this figure increased 60% of those who have paid membership.
[01:03:14] So very much about quality of delivery experience.
[01:03:20] Can I trust you as a brand?
[01:03:22] Building loyalty, really, I think is something that is not just moving stuff day to day.
[01:03:27] It's your customer's experience, really.
[01:03:30] So important.
[01:03:31] I think that's my main insight.
[01:03:34] So as ever, I've got something a little bit different, which is, I think it was last week,
[01:03:39] Shopify actually appointed a CTO, which they've been looking for since about,
[01:03:44] I believe, January last year, where the previous CTO left.
[01:03:49] And this is really interesting because Mikhail Parikin, he started off at Yandex, right?
[01:03:56] So like, simplistically, it's kind of Russia's Google equivalent,
[01:04:00] but then has been spent a lot of time at Microsoft on the advertising side of things.
[01:04:05] And so it's kind of, you know, I guess the two sort of main skill sets there would be
[01:04:09] on the machine learning and AI side, plus the advertising infrastructure.
[01:04:13] So it's just kind of thinking what Shopify is going to do on the product roadmap
[01:04:18] for the next few years there, right?
[01:04:20] Like the shop app hasn't really done anything.
[01:04:23] I'd never log into it, even though, I don't know, I can't even remember.
[01:04:26] It's on the fourth or fifth sort of page on my phone or something like that.
[01:04:29] Is that going to happen on the advertising network side of things?
[01:04:32] Is that going to happen?
[01:04:34] How deeply are Shopify, you know, thinking about sort of the AI machine learning side
[01:04:40] of things versus the app ecosystem to pick up the slack?
[01:04:43] So I just think it's a really interesting appointment.
[01:04:44] It's not immediately obvious what sort of the roadmap would be,
[01:04:47] but I think it's a really, really good hire.
[01:04:48] And yeah, I think pretty bullish on the Shopify side of things based on that.
[01:04:53] Yeah, definitely a company to watch.
[01:04:57] And great, great insights there, guys.
[01:05:00] So yeah, we're coming to the end of another podcast.
[01:05:02] So just a quick reminder to go to ecominsights.co.uk.
[01:05:07] You can download an infographic that explains all the different
[01:05:10] performance methods we've gone through.
[01:05:12] So don't worry if you didn't have a chance to make notes.
[01:05:15] And yeah, do share your thoughts on social media.
[01:05:19] Find us out on LinkedIn, guys, and do give us any feedback
[01:05:22] or if there's any questions you have about the podcast.
[01:05:25] Fire them on over on email, ecom.insights at optimizon.co.uk.
[01:05:31] And yeah, just remember to leave a rating with you wherever you are.
[01:05:35] Click that bell, remake that bell and remember to subscribe.
[01:05:39] And yeah, keep being curious and keep thriving in the world of e-commerce.
[01:05:43] Thank you for listening to ecominsights, e-commerce and marketplace trends
[01:05:53] with hosts Matt Anderson and Raelle Klein.
[01:05:56] Visit www.ecominsights.co.uk to gain access to exclusive in-depth reports.
[01:06:03] Today's report is brought to you by Optimizon and Limworks,
[01:06:06] streamlining multi-channel selling.
[01:06:08] If you're looking to take your e-commerce game to the next level,
[01:06:12] this guide is packed with insights and strategies
[01:06:14] to help you efficiently manage and grow your sales across multiple platforms.
[01:06:18] The best part?
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