Technology has always played a crucial role in commerce. Hundreds of years ago, technological progress in sailing kicked off the early stages of globalization as traders started shipping goods around the world. More recently, the invention of the Internet and the establishment of the World Wide Web has led to an e-commerce boom that allows folks to shop from the comfort of home.
According to Asendia, retail e-commerce sales are projected to reach about $7.4 trillion by 2025, thus expanding over 50 percent through the coming years. When people think of the Internet and its impact on shopping, the focus is often on end consumers and how businesses can connect with them. However, the Internet and various other technologies have also greatly reshaped business-to-business transactions and relationships.
Intense competition has resulted in downward pressure on prices. Those companies that can deliver goods and services at the lowest cost often enjoy the most success. If a competitor is able to sell goods at a lower price than your company, there is a serious risk that you could lose market share, and in the long run, the viability of your business may come into question.
Improvements in shipping and fulfillment have driven cost savings in recent years. Both Amazon and Walmart, the two largest retailers in the United States, have secured serious competitive advantages by building extensive logistics and warehousing networks. These advantages are a big part of why Amazon and Walmart are so successful.
If you can save money delivering your products, you may be able to build a more competitive and profitable business. Technology now plays a crucial role in shipping, warehousing, order processing, fulfillment, and more. It's now possible to track the movement of goods and keep a close eye on inventory levels, for example. If the inventory is running out, the right technological tools and software platforms can alert decision-makers, who can then make data-informed adjustments.
Unfortunately, those retailers that don't embrace technology will be at increased risk of failure. While delivering your products can be a competitive advantage with the right approach, the wrong approach could lead to higher costs, which could erode your market position. Ultimately, tomorrow's most successful companies will be those companies that embrace technology and progress today.
As technology continues to evolve, it will undoubtedly bring new opportunities and challenges to the world of commerce. From the rise of immersive technologies like virtual reality and augmented reality to the potential of blockchain for secure and transparent transactions, businesses must stay abreast of technological advancements to remain competitive. Embracing innovation, adopting new technologies, and continuously evolving strategies will be crucial for businesses to thrive in an ever-changing digital landscape.
If you'd like to learn how you can turn delivering your products and logistics into a competitive advantage, get in touch with us right away.