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THE FUTURE OF GOODS DELIVERY AFTER RECOVERY FROM THE PANDEMIC
Will the e-commerce boom continue, and how will it affect the use of commercial vehicles?
The pandemic is affecting all aspects of daily life worldwide and generating a number of side effects. One of these is what we might call the e-commerce boom. There are several reasons for this, and among the most significant are restrictions on free movement, business closures, and consumers’ fear of contracting the coronavirus. As a result, online shopping has become the only alternative for most retail customers.
Many companies that had long resisted this trend were forced to set up online stores. In order to remain competitive in the market, the only option was to offer customers the ability to shop online. This had a significant impact on the demand for courier services and, to a large extent, influenced the use of commercial vehicles.
DEMAND FOR COMMERCIAL VEHICLES AND THEIR RENTAL GREW IN 2020
During the COVID-19 pandemic, consumer shopping habits changed significantly, and a significant portion of purchases shifted to the online environment. As a result, Slovak e-shops recorded significant changes in consumer behavior in 2020. In cases where e-store sales increased, the growth was most often in the range of 16–30%. Conversely, when sales declined, retailers reported losses of more than 30%. During the pandemic, e-shop representatives most frequently struggled with longer delivery times for goods or services and supplier shortages. Six out of ten Slovak e-shops were affected by delays in package delivery. Nearly 80% of them reported that packages sent to customers were delayed by an average of 1–6 days. The need to secure a strong and reliable partner for freight transport and to provide commercial vehicles has therefore proven to be crucial for the operation of e-shops and online commerce in general. AVIS holds the strongest position in the van rental market with its Van Rental commercial vehicle division. AVIS responded to the increased demand by introducing new medium-term rental products to its AVIS MaxiRent offering with contract terms of 3 and 6 months, and by adding new vehicle categories to its already extensive lineup, thereby adapting as closely as possible to customer needs. These were also the reasons why many e-commerce operators and companies offering their services online chose to rent vans from AVIS. You can read about other benefits in Article 4at REASONS TO RENT A CAR INSTEAD OF BUYING ONE!
THE NEED FOR SPECIFIC TYPES OF DELIVERIES IS GREATER THAN EVER
Fear of health risks is everywhere, and even a basic need like grocery shopping carries the risk of infection. The demand for grocery delivery services directly to homes is growing, resulting in increased demand for specific types of commercial vehicles adapted for such transport. The situation in 2020 showed us that there are not enough such vehicles on the market, and due to economic constraints, it is not even possible to supply the necessary commercial vehicle specifications to the market in a timely manner. Once again, the strength of the AVIS brand was demonstrated, as we were able to rapidly increase the number of such vehicles through our AVIS , Van Rental, and AVIS Maxi Rent services, thereby meeting the needs of our clients and, ultimately, consumers themselves with an immediate response.
HOW WE WILL USE COMMERCIAL VEHICLES AFTER RECOVERY FROM THE PANDEMIC
One of the leading officials at the World Health Organization (WHO), Michael Ryan, announced on March 1, 2021, that ending the pandemic in 2021 is unrealistic and that we can therefore expect established trends in consumer behavior to intensify. However, any easing of restrictions—even partial—results in an immediate response in the form of increased freight transport activity by commercial vehicles. This applies to both the B2B and B2C segments.
For more information on why it’s advantageous to use AVIS services during the pandemic, see the article “IN UNCERTAIN TIMES, BET ON CERTAINTY.”
Whether individual companies transport goods to their customers on their own or use a courier service to do so, the trend is clear: the use of commercial vehicles has been gradually increasing since the start of the pandemic, even during periods of restrictions.
It’s safe to assume that current consumer shopping habits will continue to grow even after the pandemic situation subsides. More and more customers will prefer the benefits of online shopping and home delivery over shopping at brick-and-mortar stores, and the e-commerce boom will continue.
As the economy gradually reopens, demand for commercial vehicle transportation will also rise in the B2B segment. Therefore, it is already clear today that the trend toward using N1-category commercial vehicles will continue to rise, and demand will increase for both standard and specialized categories of these vehicles.
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