8 Advantages & Disadvantages of Drone Delivery in Ecommerce

2022-10-03T17:29:53+02:00

As Ecommerce increases, the need for innovative solutions to meet the increasing demand becomes more and more urgent. The global Ecommerce industry is estimated at $ 5.5 trillion, and that figure will only increase in the coming years. After the pandemic, more people are patronizing online stores over physical alternatives. With that new pattern, the pressure on Ecommerce companies is increasing to deliver products to distant locations in the shortest possible time. In response, technologic advancement has given us a possible solution in the form of drone delivery.

As the name suggests, drone delivery uses drones or unmanned aerial vehicles to deliver packages from one location to another. Over the years, drones have been used in many other industries to deliver parcels. During the COVID-19 pandemic, for example, many medical supplies were transported by drones. However, the use of this technologie in Ecommerce is a more recent phenomenon that looks promising.

DRONE DELIVERY: THE PAST AND THE PRESENT

The first mention of drone delivery in e-commerce came in 2013 when Jeff Bezos revealed plans for Amazon Prime Air. The pace of development has been slow since then, mainly due to strict FAA regulations in the US. However, Amazon Prime Air is finally ready to launch at the end of 2022. Other Ecommerce giants such as Zipline, Wingcopter and UPS are also planning to launch drone delivery operations.

In other parts of the world, the outlook is much better. The Irish company Manna is perhaps the best example of successfully delivering products with drones. Interestingly, Manna already recorded 3,000 deliveries in 2021. The company is now ready to expand deliveries to other parts of Europe and the US. In Africa, Ecommerce brand Jumia recently started drone delivery operations in Ghana, in partnership with Zipline.

From the examples cited above, the wave of drone delivery is spreading rapidly. This method of delivery has many advantages, but it is not without its drawbacks. We examine both perspectives of the divide below.

ADVANTAGES

DELIVERY TO ALL LOCATIONS

The delivery technologyologie for drones is not limited by location. Drones allow Ecommerce brands to easily reach all customers, especially those who live in places where access by road is difficult.

PROMOTES FASTER DELIVERY

At least 80% of modern shoppers wants same day delivery. Moreover, 61% would prefer their orders to arrive within 3 hours of payment. Most drones can fly at 80 km/h and will probably get faster with more upgrades. Therefore, drone delivery offers the best chance of consistently meeting these high expectations.

LOWER ENERGY CONSUMPTION

Drones produce significantly less emissions than cars, planes and ships. Drone delivery can thus be an environmentally friendly, sustainable option that saves energy.

BETTER CUSTOMER EXPERIENCE

Ultimately, drone delivery will solve many problems affecting business and customer interactions. For example, faster delivery times are likely to increase customer satisfaction and decrease product return rates. In addition, shopping cart abandonment will decrease with the use of this device as customers are guaranteed same day delivery. All of these will contribute to a better customer experience and loyalty.

CONS

HIGH FIRST COST

While drone delivery promises to be cost-effective in the long run, it requires a high initial outlay. Currently, the cost of purchasing hardware, software, and personnel for this service can easily run into the thousands of dollars. Therefore, small businesses may be left behind, increasing inequality in the market in favor of larger establishments.

DISTANCE RESTRICTIONS

There remains a major limitation in the distances that drones can travel. Currently, drones run on lithium polymer batteries that may not have enough charge for drones to fly long distances and back. Therefore, there is a need for significant improvement in battery life if drone delivery is to be sustainable.

WEIGHT VULNERABILITIES

Amazon Prime Air drones can carry just 5 pounds, while Manna supports 4.4 pounds. Therefore, drone delivery is still limited to smaller packages. However, drones with a payload of up to 500 pounds already exist. Maybe we'll see these drones in e-commerce.

SECURITY AND PRIVACY CARE MEASURES

Despite the good that drones offer, there are still many concerns about security and privacy. For example, if a drone experiences glitches and malfunctions during flight, the resulting damage from crashes can be significant. Drones in the air can also collide with obstacles, which can lead to explosions and material damage. In addition, drones carry cameras that companies need to monitor the delivery process. Therefore, there is a risk of invading people's privacy that could inadvertently be filmed while delivering a drone.

FINAL THOUGHTS

Drone delivery in Ecommerce is a concept still in development volop. Many progressive steps are being taken to overcome the shortcomings of this technologie. For example, Amazon's drones are equipped with a sense-and-avoid system to reduce the risk of damage. In addition, Drones-as-a-service companies are becoming increasingly popular. This service allows smaller companies to offer drone deliveries to their customers at an affordable cost.

In conclusion, drone delivery remains in Ecommerce a potential game-changer for the industry. However, it may be a few years before this technologie becomes part of the Ecommerce space. However, it is definitely worth keeping an eye on.

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