Transportation Policy for Online Shopping - Research Paper Example

ONLINE SHOPPING ONLINE SHOPPING 0 Introduction The popularity of online shopping continues to grow dayby day and this continues to affect traditional business. There has been increasing changes in the manner businesses are planning and organizing the transportation of freight, which may include restructuring of stowage logistics, delocalization or even organization. However, this trend is never new since the mail order shopping has existed for many years only that the online shopping system has widened up the market and enhanced the accessibility. With the delivery of goods and services to the customer premise, a major characteristic of online shopping provides a possibility of the transfer of customers shopping travels to a more effective products transportation that at the end has the possibility of producing constructive results on sustainability, use of land as well as mode of travel choices. The fact that online shopping is more popular in big towns and cities means that it will thus act as an incentive for the required changes in these cities that face the most obstacles for logistics (Cairns, 2005). There is a lot of controversy regarding the effects of online shopping on road use and the overall changes in consumers travel habits and the impacts of the changes. Some studies indicate good or desirable effects on road use while others indicate negative results with a final group indicating net neutral results. However, a good number of this research indicate that with the increasing popularity and expansion of online shopping, coupled with the adoption of the necessary changes required then online shopping is going to be the solution for most of the transport challenges we experience in our towns and cities (Cairns, 2005). In spite of transportation policy and regulations, online shopping continues to expand as more and more people accepts the system. Despite the fact that, business to business section dominates online shopping in terms of money value of all the completed transactions, the business to consumer section remains very vital for the possible effects on travel habits, patterns of land use, logistics in cities as well as the effects on sustainability. The highest level of efficiency in the use of roads and other transportation facilities is achievable through restructuring and reorganizing the transportation activities linked to business transactions (Hu and Saleh, 2005). There is the need to find out how the changes in the manner of conducting online shopping will influence the efficiency and the overall contribution towards a more sustainable transportation sector. For example, these changes in the mode of operation may have positive effects on technology, enhancing acceptance of products by consumers, changes in the use of car as well as changes in the locations of trade. In addition, with the help of large scale online shopping, it is possible to localize the entertainment industry to make it less reliant on car and hence adding up positively to the efficiency in use of our roads. However, this is more achievable with the growth and expansion of online shopping as a mode of business transaction. On the other hand, policy adjustments are more important in order to make the system more and more attractive to consumers. The overall impacts will depend on the manner online shopping is going to relate to the ordinary way of shopping, the means of delivery of goods and services to consumers, the possibility and ease with which consumers can return unsuitable products to the seller as well as the manner of altering the consumer’s travel habits. If the changes in travel habits are in favor of sustainability, for example the elimination of the necessity for a car to transport goods then there will be positive results on the efficiency and use of our roads and may find solution to the logistical problems most common in our cities (Hu and Saleh, 2005). 1.2.0 Transportation policy for online shopping The transportation policy should be comprehensive putting into consideration all the important factors. To make online shopping more attractive to consumers, the policy should protect consumers from inferior and substandard products, be cost effective and place strict rules in the transportation of hazardous products such as aerosol sprays. The transportation policy should therefore include a good return policy to prevent online retailers from dominating the process, which obviously will lead to exploitation of consumers (Entis, 2014). 1.2.1 Clarity A good transportation policy must facilitate the return of defective or unsuitable products to the retailer. On the other hand, a good return experience starts with clarity or effective communication. Government rules must compel online retailers to make simple return policies that consumers will understand. Shoppers should know what they could return, provide a full refund to customers, the length of time they will take to make the return and whether the return shipping is free or not. Consideration of all these factors will help build trust in customers and impact positively on the growth of online shopping (Entis, 2014). 1.2.2 Convenience  Convenience is one of the major reasons that have contributed to the popularity of online shopping and therefore the same factor should reflect to the transportation policy. The retailer has to include a return label on the transaction and provide contacts for customer to communicate with the retailer for a return of purchases. For example, the Federal Express and the United States Postal Service all provide return services. The mode of payment for the cost of printing the return labels with the postal service has to be simple and convenient for all the retailers (Entis, 2014). 1.2.3 Affordability To keep the online shopping system more interesting to shoppers, then the return shipping should not add costs to consumers. The rate of payment for the return shipping should be as low as possible. For example, the United States postal service has been providing the lowest rates for low weight packages whereas FedEx provide lower rates for heavy items (Entis, 2014). 1.2.4 Flexibility The return deadline should not be too tight to impose high pressure on consumers. Online retailers should value their customers by providing a flexible return plan. The standard time highly desirable for many consumers is thirty days but sixty days is more generous. Each retailer must be responsible and disclose the true status of the product to the consumer (Entis, 2014). 1.2.5 Hazardous products A very important factor that the transportation policy must consider is the transportation of hazardous products. This affects both the safety of the environment and the society. Hazardous products include aerosol sprays, cosmetics, flammable fluids, smoke detectors, fireworks, goods with internal combustion engines, among others that pose numerous risks during transportation. Although there are already existing rules governing the transportation of these goods, revision of these provisions is important to adequately, address all safety matters. The subsequent revision is also important due to the constant changes in technology that changes the characteristics of these products. For example, the regulations governing air shipment must be more severe due to the numerous risks involved. International shipments must obey the standards set by the International Civil Aviation Organization among other organizations. The issuance of licenses for the sale and transportation of hazardous goods should be to only reputable suppliers who prove that they are conversant with all the rules and regulations. With the appropriate policies in place, online shopping is a convenient, safe and suitable means of purchasing and receiving goods (Barbara, 2011). 1.3.0 Best transport strategies The ever-increasing popularity and recognition of online shopping, together with increasing adoption of small amounts of inventory management among shippers nationally, has produced many changes on the manner freight moves. Online shopping compels the carrier to deliver the product to the final consumer rather than using intermediaries. This has resulted to an increasing number of straight shipments to consumers. These trends, have thus led to a continuous increase in the number of small shipments that carriers have to handle and thus carriers have the burden of increasing the links in the chain of supply of freight in order to meet the demand (Cairns, 2005). Online shopping enhances the opportunities for doorstep delivery of products, which decrease the necessity of driving your own personal car for transporting products from the store to home. If the reduction of the needs for driving cars to acquire goods from stores receives appreciation from consumers, then this is going to shape the destination choices as well as the transportation strategy that has to be in place. To ensure fare play and discipline in online shopping then the transportation policy has to adjust to deal with all the problems associated in the dealing right from the placement of the order until final delivery of the product (Torlini, 2010). There are many avenues for the retailers and consumers to add to the sustainability prospective shown by online shopping. Different actions as well as measures can find their way both through the entire area in the responsibility of the society as well as through extra specific attention to the facilities trading. These measures may include new delivery, picking and packaging system, changes in the location of facilities for trading which include the stores and the delivery spots for the future together with active strategies that aim at achieving best transports and mobility of the management (Daunfeldt, Rudholm and Rämme, 2009). 1.3.1 Support development of new delivery systems Online shopping will become more attractive to consumers with the development of new delivery systems that are going to ease the delivery of goods to consumers. For example, in the development of online markets such as the grocery market, there are many good ideas as well as innovations for the achievement of this objective. There are many grocers in the United States that use reception boxes for reducing the cost of delivery of goods to their clients. Locked refrigerated boxes found in the customers’ home receive the groceries. The use of reception boxes will enable customers to be independent of delivery timetables and hence they will not have to be at home to receive their goods. In addition, the use of reception boxes will also minimize the delivery costs for the online grocer. This also means that the online grocer has the freedom of making the delivery of goods at his own convenient time and thus avoiding the rush hours that normally see congestion in the roads. This means that, the wide delivery window will reduce the act of visiting different geographical areas as well as leveling out delivery load during daytime. This again, means that the delivery of the orders will be within a shorter distance in comparison with an attended reception. Using secure and unattended reception or drop boxes at the customers’ home will result in the elimination of all cases of failed deliveries and by large extent, it will also reduce the carbon hoof marks deliveries since parcel carriers can save both fuel and time through effective deliveries. Therefore, the adoption of reception boxes by online marketers will significantly make online shopping more attractive to consumers (Schmöcker et. al., 2006). 1.3.2 Development of new picking and packaging systems The development of an automatic picking and packaging systems in online shopping will help enhance cost efficiency as well as competitiveness in business transactions. The online marketing system in New York has to some extent, achieved this through the establishment of standard food basket that is profitable because they have a standard content as well as enabling the provision of online shopping plans. In order to make improvement of this strategy, there is need for the government to support the establishment of new improved systems right from the design of products towards picking as well as packaging systems within essential warehouses (Daunfeldt, Rudholm and Rämme, 2009). 1.3.3 Land use and location of stores Increase in online shopping has opened up in support of both local and nearby shopping amenities, which have been waning continuously over the years. Consequently, this will improve accessibility to the disadvantaged groups in the society. For example, huge shopping malls will lose significance due to the presence of nearby shopping centers while some other places such as the ones for leisure actions will acquire more significance. The growth and expansion of online shopping will provide potentials for new orientation for both the retail and the entertainment markets in favor for an additional sustainable localization, which will mean locations having competitive ease of access for public transport, cyclists and walking when compared to a car (Wahle et. al. 2001). Though it is impossible to be sure about how it will be, the growth of online shopping will result to a relocation of trading centers. Online shopping may result to renaissance of the city centers because the system will eliminate the necessity of keeping goods in stores. This in turn means that the local stores will have the opportunity of improving themselves in comparison to the past years when they experienced a reduction in competitiveness to center malls. In the very near future, online shopping will influence great changes in the propensity for ownership of car. The overall outcome about the travel habits because of the increasing popularity of online shopping, dynamic planning can dictate the advancement towards a better location in the future for both shopping and other related activities (Daunfeldt, Rudholm and Rämme, 2009). 1.3.4 Active planning for future service facilities Channeling online shopping as an important alternative for the high-density neighborhood is a desirable step. Residential areas, which most obvious have stores as well as supermarkets, can provide good sites for both groceries and small purchases. The establishment of localized hub can enhance the opportunities towards a sustainable system of transportation. The elimination of the necessity for making various stops after work with the aim of carrying goods home will make commuters not to be over dependent on private cars. They may also discover that they are capable of using public transport more conveniently. This also means that many neighboring stores will have an opportunity to provide a wide range of products for consumers without the necessity of keeping special assortment of products in stock. This in turn will enhance the attractiveness of local stores to customers and hence further growth and expansion of online shopping. Local stores will thus develop into a mixture of both shops and delivery hubs. However, good planning is necessary for the achievement of complete sustainability (Li and Gery, 2000). 1.3.5 Individual trip length and mode According to research, with small amounts of goods ordered more frequently by consumers, they cover no significant difference between the trip lengths by both regular online shoppers and the other shoppers who mostly prefer the other ordinary mode of shopping. However, with large amounts of goods purchased online, the individual is more likely going to reduce the lengths of travel made by the supplier to deliver the goods. This means that congestion will reduce with increase in the volume of products purchased through the internet. The government should therefore place a minimum amount of goods that one can order as well as the number of deliveries to one particular consumer in order to reduce the frequency of trucks passing through the road delivering goods to consumers. In addition, regular online shoppers mostly travel less by car and more through public transport. This therefore means encouraging more people to embrace the system will reduce the number of cars on the roads and hence will help ease congestion and efficiency in the road usage (Hu and Saleh, 2005). 1.3.6 Making green transports more competitive Mobility management measures and information on public transport as well as walking and biking through mobility management can help to change travel behavior of consumers. Other measures that the government can put to change the travel habits is through putting restrictions to parking areas and economic instruments such as congestion and parking charges. The major question is not the achievement of sustainability concerning trips to shops but the transportation policies most suitable. This in turn must reflect to the future targets most desirable in the transportation sector. Online shopping opens up all the potentials for a long-term sustainable development of the transport sector (Daunfeldt, Rudholm and Rämme, 2009). 1.4 Conclusion Changes will provide opportunities for decreasing the sustainability constraints, which come because of transportation without restriction in the accessibility. The industry and the society have many measures that they can use in promoting and enhancing support conditions for improving sustainability in transport through online shopping. The transport sustainability enhancement we saw its realization through policy rather than through a collection of consumer preferences. For today, there are both encouraging and discouraging results concerning the sustainability of this shopping system. At the same time, we need to know more about consumer preferences and especially the environmental effect of various logistic solutions in order to have the full picture. References Barbara, F. (2011). Shopping online – A growing issue in dangerous goods transportation. Retrieved from http://www.thecompliancecenter.com/blog/2011/10/05/shopping-online- a-growing-issue-in-dangerous-goods-transportation-2/ Cairns, S. (2005). Delivering supermarket shopping: more or less traffic?. Transport Reviews, 25(1), 51-84. Daunfeldt, S. O., Rudholm, N., & Rämme, U. (2009). Congestion charges and retail revenues: Results from the Stockholm road pricing trial. Transportation Research Part A: Policy and Practice, 43(3), 306-309. Entis, L. (2014). 4 Things shoppers want in an online retailer’s return policy. Retrieved from http://www.entrepreneur.com/article/234921 Hu, S., & Saleh, W. (2005). Impacts of congestion charging on shopping trips in Edinburgh. Transport Policy, 12(5), 443-450. Li, Z. G., & Gery, N. (2000). E-tailing—For all products?. Business Horizons, 43(6), 49-54. Schmöcker, J. D., Fonzone, A., Quddus, M., & Bell, M. G. (2006). Changes in the frequency of shopping trips in response to a congestion charge. Transport Policy, 13(3), 217-228. Torlini, F. (2010). The mobile effect -The impact of smartphones & tablets on impulse buying. Retrieved from http://www.rackspace.co.uk/sites/default/files/whitepapers/Rackspace_UK_Whitepaper_ _The_Mobile_Effect.pdf Wahle, J., Neubert, L., Esser, J., & Schreckenberg, M. (2001). A cellular automaton traffic flow model for online simulation of traffic. Parallel Computing, 27(5), 719-735. Read More