How to Handle the Increase in E-commerce and Extra Inventory
The growing popularity of e-commerce and inventory surplus affects every industry, including retail, communications, transportation, and more. Even as inflation takes a toll on holiday shopping, this year’s Black Friday record of more than $9.12 billion spent in online shopping demonstrates there’s demand for products and services.
Online shopping is fueled with innovation, but how can businesses adapt to keep up with supply chain issues, lack of warehouse storage space, and the availability of commercial vehicles? The influx of merchandise means we’re more likely to see companies find new ways to move or store inventory. And as our Q4 Commercial Vehicle Rental Market Guide mentioned, we expect that trailers and final-mile vehicles will see a lot of action and demand this season.
It’s a busy and fast-paced world, and online shopping has convenience at its core. With forecasts for moving inventory expected to increase over the coming weeks, how can your business adapt? Let’s look at how to navigate some challenges businesses face.
Why Is There So Much Inventory?
Some of the biggest retailers are trying to sell massive amounts of extra merchandise piling up in store back rooms and warehouses.
Over the past six months, there’s been a shift. Merchandise that flew off shelves during the days of quarantine, like loungewear and coffee makers, are now ending up on the clearance rack. Items that were delayed because of the pandemic are more readily available.
While many businesses are trying to predict how consumers will spend, another concern is finding space to store products that are still coming in.
Adapting to Overcome Challenges
As mentioned earlier regarding new records in e-commerce consumer spending, shoppers are biting on bargains. Online merchants and businesses who know where to look, how to target demographic desires, and how to evolve quickly are successfully navigating what feels like extraordinary and uncertain times this holiday shopping season.
Warehouse on Wheels
Trailers have become a cost-effective and beneficial option for storing goods when businesses have insufficient warehouse space. And once the goods need to be delivered after the busy Black Friday & Cyber Monday shopping days, trailers will need to be rented to transport these items across the country. Plus, depending on your needs, various types of trailers can be used to protect merchandise for the short term or long term.
Here are a few advantages of having a trailer become your warehouse on wheels:
- Can be used as effective storage options when you run out of space to store inventory.
- Can protect stored items from damage caused by weather conditions, vandalism, or theft.
- From refrigerated to dry trailers, you can find more specialized specifications to store a wide variety of goods.
- Once you need to move inventory, it’s already set to be transported to another location.
Trailers are one of the most rented pieces of equipment on COOP because of their versatility. Owners who list their idle trailers see an average of 62 rental days during the holiday season and typically generate a sizable amount of revenue. On the flip side, Renters can search for and secure trailers with unique features that fit their business needs in Q4.
The Growing Need for Final Mile Vehicles
Every part of the delivery process is essential, but optimizing the final step of delivery is more important than ever. Most consumers expect two-day, one-day, and even same-day shipping to get their purchases to their destination.
Because of the popularity of e-commerce, box trucks and sprinter vans accounted for 23% of vehicle rental days in Q4 2021.
Final mile vehicles are an essential part of the consumer journey. To meet modern customer demands, including same-day delivery and real-time visibility, companies are turning to COOP in December to reserve these vehicles or list them to rent out to trusted businesses on the platform. On average, these vehicles are rented out for more than 20 days to make timely deliveries in the final month of the year.
Innovation Provides Valuable Benefits
With COOP, businesses are sharing commercial vehicles all from our convenient and user-friendly platform.
Whether you want to create a new revenue stream by renting out your vehicles or need extra capacity for your business before the year ends, we’re connecting thousands of trusted companies across the nation to drive your business forward.
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