Consumers everywhere have flocked to e-commerce during the COVID-19 pandemic, and Latin America is no exception. Online sales jumped nearly 20% in 2020 to more than $86 billion — and they’re projected to surpass $116 billion by 2023. In Brazil alone, e-commerce grew 57% in the first five months of 2020.

A growing middle class that’s increasingly digitally connected suggests no slowing of this shift. The market offers great potential for international retailers, but comes with a complex, cross-border learning curve. Wide-ranging regulations, import taxes and infrastructure challenges have the potential to incur massive cross-border shipping costs, or see deliveries delayed or even lost. To spare themselves any exorbitant fees, most shippers rely on a full-service logistics provider. Here are four things they should look for. 

Does the logistics provider offer detailed tracking and metrics?

For domestic delivery, customers expect parcel deliveries to come with benefits such as real-time tracking, label creation, and full visibility regarding their parcels’ movements. They should expect the same for their Latin American business. Of course, any retailer’s top priorities are to ensure customers that their goods will ship on time, are accurate, and will reliably arrive on time and undamaged at their final destination. By providing this information, a business can measure real-world results against prearranged goals to accurately and continuously gauge the provider’s performance.

Are they able to scale? 

Handling retail products requires a seamless blend of digital and physical services. Companies must utilize their numerous supply chains and find that optimum choice determines the most efficient way to handle products. A well-functioning system will also be scalable during crises such as major weather events or local issues and be flexible with costs should they occur.

What are the security measures in place?

Unfortunately, the ongoing pandemic has exacerbated the realities of preexisting issues in Latin America. The volume of parcel deliveries since its onset has increased dramatically, and they still face logistical issues such as undeveloped infrastructure, local political instabilities, and more developed urban areas, traffic and theft issues. To help ensure successful delivery and therefore customer satisfaction, businesses need to know that the security protocols are transparent to them including the tracking methods, the technology being utilized, and the cost and choices for shipping insurance.

What about reverse logistics services?

Often overlooked, but no less important than forward logistics services are the reverse, or returns, logistics. These services entail the same level of efficiency and flexibility, which again calls for physical and technological solutions (i.e., strong infrastructure). Customers should have the option of drop-off facilities that can process returns as near to them as possible minimizing the resource costs for them.

Reliable shipping and logistics providers should have all these areas covered and be able to readily provide detailed answers so retailers can easily match a company to their needs and budget, building a successful business relationship that is beneficial to both parties.

A.J. Hernandez is president and CEO at SkyPostal.

Consumers everywhere have flocked to e-commerce during the COVID-19 pandemic, and Latin America is no exception. Online sales jumped nearly 20% in 2020 to more than $86 billion — and they’re projected to surpass $116 billion by 2023. In Brazil alone, e-commerce grew 57% in the first five months of 2020.

A growing middle class that’s increasingly digitally connected suggests no slowing of this shift. The market offers great potential for international retailers, but comes with a complex, cross-border learning curve. Wide-ranging regulations, import taxes and infrastructure challenges have the potential to incur massive cross-border shipping costs, or see deliveries delayed or even lost. To spare themselves any exorbitant fees, most shippers rely on a full-service logistics provider. Here are four things they should look for. 

Does the logistics provider offer detailed tracking and metrics?

For domestic delivery, customers expect parcel deliveries to come with benefits such as real-time tracking, label creation, and full visibility regarding their parcels’ movements. They should expect the same for their Latin American business. Of course, any retailer’s top priorities are to ensure customers that their goods will ship on time, are accurate, and will reliably arrive on time and undamaged at their final destination. By providing this information, a business can measure real-world results against prearranged goals to accurately and continuously gauge the provider’s performance.

Are they able to scale? 

Handling retail products requires a seamless blend of digital and physical services. Companies must utilize their numerous supply chains and find that optimum choice determines the most efficient way to handle products. A well-functioning system will also be scalable during crises such as major weather events or local issues and be flexible with costs should they occur.

What are the security measures in place?

Unfortunately, the ongoing pandemic has exacerbated the realities of preexisting issues in Latin America. The volume of parcel deliveries since its onset has increased dramatically, and they still face logistical issues such as undeveloped infrastructure, local political instabilities, and more developed urban areas, traffic and theft issues. To help ensure successful delivery and therefore customer satisfaction, businesses need to know that the security protocols are transparent to them including the tracking methods, the technology being utilized, and the cost and choices for shipping insurance.

What about reverse logistics services?

Often overlooked, but no less important than forward logistics services are the reverse, or returns, logistics. These services entail the same level of efficiency and flexibility, which again calls for physical and technological solutions (i.e., strong infrastructure). Customers should have the option of drop-off facilities that can process returns as near to them as possible minimizing the resource costs for them.

Reliable shipping and logistics providers should have all these areas covered and be able to readily provide detailed answers so retailers can easily match a company to their needs and budget, building a successful business relationship that is beneficial to both parties.

A.J. Hernandez is president and CEO at SkyPostal.