Skip to content
Search AI Powered

Latest Stories

E-commerce giants leave room for smaller brands offering personalized, eco-friendly experiences

Amazon and big box retailers are taking the lion’s share of e-commerce business, but are creating consumer guilt along the way, survey shows.

ecommerce-3563183_640.jpg

Consumers want the speed and convenience of online shopping with the leading e-commerce companies, but feel guilty taking business away from smaller companies that offer local, more personalized service, according to a survey from third-party logistics services provider (3PL) Kenco Logistics, released this week.

The company’s 2021 E-Commerce Consumer Survey identifies trends and preferences in e-commerce shopping habits, sustainability, delivery, and more. Kenco polled 1,300 consumers this spring and found that most value convenience and sustainability and will reward brands that can deliver a mix of both. The personalization of shopping with smaller businesses also ranked high. Combined, these factors are creating room at the table for smaller companies, they said.


“While 81% of consumers still shop online most frequently with Amazon and big box retailers for their low prices and convenience, today’s e-commerce consumers are conflicted in aligning their principles with their purchases, creating new market opportunities,” the survey authors said.

Among the survey’s findings, online shopping trends that were accelerated by the pandemic are here to stay. More than 40% of consumers said they make online purchases once a week; nearly 20% said they make online purchases multiple times per week; and 84% said they expect their online purchases to increase or remain the same post-pandemic.

The survey also found that the e-commerce giants will continue to get the majority of consumers’ online purchasing spend: 81% of consumers said they choose to shop online with the larger players, citing price, user-friendly experiences, and product availability as top reasons. But that convenience comes with a price: 36% of consumers said they associate shopping online at Amazon or big box retailers with feelings of guilt. Of those, nearly three-quarters said they feel like they are taking away from small businesses when purchasing from larger e-commerce companies; 68% said they think they are contributing to unsustainable practices involved with packaging, manufacturing, and labor by doing so; and half say they feel guilty that they are not supporting more socially responsible companies—particularly ethical, minority-owned, and environmentally conscious firms.

“The data [reveal] that these feelings of guilt associated with making Amazon or big box purchases increase as consumer age decreases, showing trends toward environmentally and/or socially conscious shopping will only continue to gain momentum,” according to the survey.

Sustainability practices also ranked high with consumers surveyed, many of whom said they will wait longer for personalized, eco-friendly buying experiences. Although nearly half (49%) of consumers said they prefer two-day delivery, most said they are willing to wait longer for deliveries of more personalized and sustainable products and experiences: 74% said they are either highly likely or likely to wait longer for such deliveries from smaller, more unique brands, and 69% said they are either highly likely or likely to forgo faster delivery options for more sustainable options, such as delaying deliveries by grouping orders or combining orders with others on the same route.

“The expectations levied toward Amazon and big box retailers are being eased for smaller, unique, and sustainable brands that more closely align with consumer values,” David Hauptman, chief commercial officer at Kenco, said in a statement. “While consumers demand low prices and fast delivery times from national and global chains, they’re more forgiving when they know their dollars are contributing to sustainable or socially conscious practices. Small-business owners can worry less about providing instant gratification if they’re offering quality, unique, and sustainable products.”


Recent

More Stories

AI image of a dinosaur in teacup

Amazon to release new generation of AI models in 2025

Logistics and e-commerce giant Amazon says it will release a new collection of AI tools in 2025 that could “simplify the lives of shoppers, sellers, advertisers, enterprises, and everyone in between.”

The launch is based on “Amazon Nova,” the company’s new generation of foundation models, the company said in a blog post. Data scientists use foundation models (FMs) to develop machine learning (ML) platforms more quickly than starting from scratch, allowing them to create artificial intelligence applications capable of performing a wide variety of general tasks, since they were trained on a broad spectrum of generalized data, Amazon says.

Keep ReadingShow less

Featured

Logistics economy continues on solid footing
Logistics Managers' Index

Logistics economy continues on solid footing

Economic activity in the logistics industry expanded in November, continuing a steady growth pattern that began earlier this year and signaling a return to seasonality after several years of fluctuating conditions, according to the latest Logistics Managers’ Index report (LMI), released today.

The November LMI registered 58.4, down slightly from October’s reading of 58.9, which was the highest level in two years. The LMI is a monthly gauge of business conditions across warehousing and logistics markets; a reading above 50 indicates growth and a reading below 50 indicates contraction.

Keep ReadingShow less
chart of top business concerns from descartes

Descartes: businesses say top concern is tariff hikes

Business leaders at companies of every size say that rising tariffs and trade barriers are the most significant global trade challenge facing logistics and supply chain leaders today, according to a survey from supply chain software provider Descartes.

Specifically, 48% of respondents identified rising tariffs and trade barriers as their top concern, followed by supply chain disruptions at 45% and geopolitical instability at 41%. Moreover, tariffs and trade barriers ranked as the priority issue regardless of company size, as respondents at companies with less than 250 employees, 251-500, 501-1,000, 1,001-50,000 and 50,000+ employees all cited it as the most significant issue they are currently facing.

Keep ReadingShow less
diagram of blue yonder software platforms

Blue Yonder users see supply chains rocked by hack

Grocers and retailers are struggling to get their systems back online just before the winter holiday peak, following a software hack that hit the supply chain software provider Blue Yonder this week.

The ransomware attack is snarling inventory distribution patterns because of its impact on systems such as the employee scheduling system for coffee stalwart Starbucks, according to a published report. Scottsdale, Arizona-based Blue Yonder provides a wide range of supply chain software, including warehouse management system (WMS), transportation management system (TMS), order management and commerce, network and control tower, returns management, and others.

Keep ReadingShow less
drawing of person using AI

Amazon invests another $4 billion in AI-maker Anthropic

Amazon has deepened its collaboration with the artificial intelligence (AI) developer Anthropic, investing another $4 billion in the San Francisco-based firm and agreeing to establish Amazon Web Services (AWS) as its primary training partner and to collaborate on developing its specialized machine learning (ML) chip called AWS Trainium.

The new funding brings Amazon's total investment in Anthropic to $8 billion, while maintaining the e-commerce giant’s position as a minority investor, according to Anthropic. The partnership was launched in 2023, when Amazon invested its first $4 billion round in the firm.

Keep ReadingShow less