Chapters

Summary

Linda was working at KeepSpace as an Operations Manager during this time. Simon asked Linda about what KeepSpace does as a business. She explained that it is a 3PL, standing for third party logistics. As a 3PL, KeepSpace helps ecommerce businesses to fulfil their daily audits. Its services include storing the goods, preparing for shipment and shipping them out to customers in the most cost and time-efficient method.

The next question from Simon was about how 3PLs can solve challenges for ecommerce businesses. Linda answered that 3PLs can help online stores bring back their focus on their growth. When an ecommerce business starts small, everything is usually in-house. However, there is a limit to space and time when their order volume starts to grow. The owners will be tired of fulfilling their orders. They will lose time to do the core tasks of building a business. That is when a 3PL can help and take off a load of operations.

Simon asked Linda what makes KeepSpace unique. Linda answered that the minimum amount of monthly orders is what differentiates KeepSpace. She said other 3PLs set a minimum of around 200 orders per month. However, KeepSpace’s minimum was only 10 orders per month. Its stance was to grow together with the small ecommerce startups.

The next topic was ecommerce trends. Simon asked Linda if there were any trends she recognised. Linda said she saw a trend to purchase products from mobile phones. It seemed as if people were getting used to this new method of shopping. Linda commented that this was an ongoing trend in Europe and America. She speculated that Australia will catch up and that mobile ecommerce will grow. Simon and Linda also briefly talked about pop-up stores being a trend.

Another trend that Linda raised was Afterpay. It was a big trend in Australia. Afterpay is a payment system that allows you to split the costs over a period. You can choose weekly payments or monthly payments.

The last trend that Linda mentioned was augmented reality (AR). She said that AR could personalise and enhance the online shopping experience for the customer. It allows customers to experience the product before making the purchase. AR is also entertaining to interact with. If you can use that to your advantage, people may like your brand for that.

Next, Simon asked Linda about the differences between Australia and Germany in retail and ecommerce. Linda first answered that Germany is a bit further ahead because it is in a logistic-friendly area in Europe. However, she also mentioned that Australia has growing potential. Plus, it is an advantage to be relatively close to and belong to the same timezone as China. It is easier to get your products and send your products.

The next topic was popular products. According to Linda, fashion, books and DVDs are players in the German marketplace. In Australia, auto parts and homeware are selling well.

Linda explained the reason behind fashion’s popularity in Germany. She said it is likely because they have faster shipping times in Europe and many stores offer free shipping. If the customer doesn’t like the clothing, they can easily send it back. Plus, they only have to pay for what they decide to keep. It shows how well their return policies are structured.

However, Linda mentioned the difficulties of ecommerce in Germany. She said that competition is high in Europe. Shipping times won’t differ from their surrounding countries.

Meanwhile, ecommerce in Australia is still growing. Therefore, early players will have more opportunities to grow their business.

This episode ended with Linda’s call to action. She said to put less of your time into fulfilment. Instead, start growing your ecommerce business and use a 3PL company to do the fulfilment on your behalf.