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E-Commerce May Help Trucking Companies

E-Commerce May Help Trucking Companies

It’s no secret that more people than ever like to shop online. The convenience, quickness, and affordability of e-commerce has never been more apparent. Given that truckers deal largely with making sure that the products people purchase get to where they need to be, it’s understandable that many trucking companies have made a move to get more involved in the e-commerce side of things. According to many within the field, this is a wise move.

Convenant Transportation Group President David Parker said that trucking companies involved with e-commerce will likely see multiple years of considerable growth and expansion in the near future. The “Amazon effect” has led to a noticeable boom in e-commerce activity in recent years. The 15 percent increase dwarfs the 2 percent increase for traditional retailers. Capitalizing on this growing trend may help struggling carriers find their next big avenue for growth.

As of today, e-commerce sales account for 35 percent of CTG’s revenue. Thanks in large part to their large fleet time, the company has been able to capitalize on the demand for truckers to help transport online purchases to their destinations. Alain Bedard, Chairman and CEO of TransForce, also sees great potential in putting a greater focus on e-commerce.

He noted that his company went from having e-commerce function as a virtual non-factor to handling thousands of e-commerce deliveries per day. He mentioned that the organization’s purchase of Dynamex also helped with this change.

Technology has sometimes seemed like an enemy in certain industries, especially trucking. With ELDs becoming mandatory by the end of 2017 and talks of driverless trucks becoming more prominent soon, many are quick to shy away from the thought of focusing their efforts on e-commerce. But as brick-and-mortar establishments begin to falter in favor of quicker and more convenient digital transactions, trucking too will have to adapt in order to remain successful.

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