5 Advantages of the Logistics Business

 

• 1.E-Commerce: An Opportunity for the Logistics Business

 

The growth of e-commerce today has resulted in an increase in online shopping behavior, with many new small entrepreneurs emerging. The number of items transported exceeds 1 million pieces per day.

 

It can be said that the growth of e-commerce significantly contributes to the success of the logistics business. In the future, the growth rate of e-commerce is expected to rise even further, while the number of logistics providers is becoming insufficient. This presents a profit-making opportunity in the booming online business environment.

 

• 2.Expanding Beyond Parcel Delivery

 

Looking back at the logistics business in the past, it might have been viewed as a service limited to parcels or non-perishable goods.

 

Today, logistics has expanded significantly, with almost no limitations on what can be delivered. Well-known examples include food delivery via messengers, refrigerated transport for perishable goods, and the delivery of plants requiring special care.

 

As customer demands become more diverse, transport services that can target specific user groups are sure to capture market share effectively.

 

• 3.On-Demand Delivery: The New Consumer Demand

 

Today’s business competition involves more than just product efficiency. One of the new consumer demands is fast delivery, leading to the emergence of on-demand logistics.

 

Typically, ordering products online requires a 1-2 day wait. Some entrepreneurs see the opportunity to reach more customers by offering immediate delivery, known as On-Demand Delivery.

 

However, on-demand delivery incurs significantly higher costs than regular delivery due to the limited volume per trip and the lack of full investment in this area. With this new consumer demand, it could be an opportunity to start fresh in this business, setting a new standard for daily delivery to generate profits.

 

• 4.Increasing Market Value Each Year

 

From 2017 to 2019, the logistics business in Thailand grew by over 40%, corresponding with the 18% annual growth of domestic e-commerce.

 

This is a positive sign indicating future growth in the logistics business. Additionally, the COVID-19 pandemic in 2020 further accelerated global e-commerce growth. It is predicted that parcel deliveries in 2020 will average 4 million pieces per day.

 

• 5.Still a Foundation for Business Growth

 

Logistics remains a foundation for the growth of many businesses. Building one’s own transport system is costly, necessitating reliance on logistics for parcel delivery. This is a mutually beneficial business for both parties. Furthermore, e-commerce continues to trend upward, making parcel delivery a fundamental aspect of future sales. Although future disruptions may come from machinery or delivery drones, logistics personnel remain in high demand.

 

Logistics is a business that offers numerous opportunities. You might consider venturing directly into this field or incorporating logistics into another product business to add value. As we transition into the e-commerce era, where customers shift to online shopping, logistics becomes increasingly essential.