Logistics in eCommerce:

Direct to Consumer

Made in

Dominican Republic

Agenda:

• Customer Experience

• eCommerce Logistics Solutions

• Multi-channel Solutions

• Returns

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Current Trends – Customer Experience A recent survey by Endeca identifies Customer Experience to be a top

priority for eCommerce retailers as a point of differentiation

64%

48%

44%

38%

35%

31%

Customer

Experience

eCommerce

Platform

Product Content

Mobile Apps

Multi-channel

Integration

Mobile Web Sites

Top Areas for Investment for 2011 Survey of 430 eCommerce professionals • Investment in Customer Experience is

the largest opportunity to drive

additional revenue, with 64% of online

retailers surveyed report optimizing the

user experience with features like:

•Enhanced search

•Navigation

•Product content

•Overall ease of use

• Retailers are also adding confidence-

building elements that drive

transactions like:

•User reviews

•Communities

•Personalization

D2C

Customer

Experience

Universe

Situation Analysis Current State of the Customer Experience’s Improvement efforts

Price

Merchandise

Selection

Website Design &

Functionality

Accuracy and

Trustworthiness

Current e-commerce customer

experience improvement

efforts focus on pre-

purchase…

There is a gap in the

customer experience

equation…

Logistics processes are

only dealt with piecemeal in

the customer experience

universe.

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D2C

Consumer

Experience

Universe

Situation Analysis Logistics Completes the Customer Experience Cycle

Price

Merchandise

Selection

Navigation

Accuracy and

Trustworthiness

Delivery Options &

Tracking

Delivery Experience (e.g., timeliness, service

flexibility, consumer

control)

Returns Practices

Shipping Cost &

Promotions (e.g., free shipping)

Many logistics topics are directly

related to the customer experience.

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Current e-commerce customer

experience focus on pre-

purchase…

6

7

8

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Customer Experience Linking comScore Results with UPS Solutions

• Give customers more flexibility and control.

In the comScore survey, online shoppers expressed the need for flexibility to control their

deliveries – at check out and afterward.

UPS Solutions: Tracking APIs, UPS My Choice, UPS Delivery Intercept

• Communication about delivery times is critical.

Shoppers want to know when an item will arrive -- and when it has arrived.

Inform them automatically when the order is placed and again if anything changes.

UPS Solutions: Quantum View Notify and Manage, Tracking APIs

• Give shoppers a choice of delivery dates.

67% in the survey said they use the most economical delivery option most of the time.

But the majority also desires the option to speed things up occasionally, such as for a gift

or urgent need.

UPS Solutions: Domestic and international shipping portfolio

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Customer Experience Linking comScore Results with UPS Solutions

• Easy returns generate greater returns.

In the comScore survey, 62% of shoppers said they have returned a product online.

Almost half of those would shop more often and even recommend a retailer to friends if

returns options were easier. Online shoppers generally gave retailers low scores, with

only 65% of online shoppers satisfied with retailers for having “an easy returns policy.”

UPS Solutions: Industry’s largest, most diverse returns portfolio

• Free Shipping: Pricing is a marketing strategy.

There is no one size fits all approach to free shipping. The survey results suggest that

the price of shipping, like the price of a product, should be considered a marketing

strategy to help attract, retain or reward your customers.

Free shipping is not the main driver of shopper decision-making compared to other

elements.

eCommerce Logistics Solutions

Software Solutions for Customers

• Availability of UPS Ready® third-party solutions that fit eCommerce needs

• Select from an approved list of UPS Ready providers who can help you

integrate UPS technology

The UPS Ready® Program offers you the following benefits:

• Access to UPS's shipping and visibility services hassle-free with an easy to use

out-of-the-box integration experience

• Streamlined business operations and fast integration of new services

• Peace of mind knowing that 3rd party UPS Ready solutions meet UPS

standards

eCommerce Logistics Solutions

Software Solutions for Customers

The UPS Ready® Program:

• Shipping/Order Management: Ship and process your orders efficiently

• Marketplace/E-Commerce: Manage and Grow the business online

• Accounting and Financial Management: Easily track and manage Logistics Expense

• Enterprise Resource Planning: Facilitate order entry, processing and information flow

between business functions

• Transportation/Warehouse Management: Manage the movement and storage of goods in

the warehouse

• Integration Software and Services: Link your company’s internal systems, softwares or

databases to a UPS shipping system

eCommerce Logistics Solutions

UPS Ready Program for Software Companies

(Business Application Developers)

Program Benefits:

• Provide your customers with the ability to ship products with the click of a button through

the integration of UPS services in software and hardware solutions.

• Benefits include:

─ Access to UPS's portfolio of visibility and shipping products

─ Regular service and technology enhancements that create product differentiation and

encourage customer usage/upgrades

─ Responsive technical support and advanced access to technical specifications

releases

─ Use of the UPS Brand

eCommerce Logistics Solutions

UPS Ready Program for Software Companies

(Business Application Developers)

UPS Developer Kit:

• Logistics experts designed the UPS Developer Kit to improve your company's

efficiency, accuracy, and flexibility. These Application Programming Interfaces

(APIs) let you integrate our technology into your existing business systems or

website and allow you to boost customer satisfaction while containing costs.

Multi-Channel Logistics Solutions

Synchronize Your Business

• When you've got stores, a website and even a catalog it feels like you're all

over the place. You need customized multi-channel solutions

Location

• It matters where you are--and it matters where you're going. The greater the

distance your shipments travel, the more expensive delivery can be. You need

to have ways to help reduce those costs.

• If you house e-commerce inventory separate from your store inventory, you

may be driving up your carrying costs. As an example UPS CampusShip® lets

you ship products directly from a retail location or a distribution center, allowing

you to choose which location is closest to your customer.

Multi-Channel Logistics Solutions

Bypass Obstacles

• Perhaps the best solution for your supply chain is to bypass your distribution

center altogether. Move your product from overseas suppliers directly to your

stores or to your customers' doors

• Example: UPS Trade Direct®

─ Consolidate your international freight

─ Provide customs clearance

─ Deliver to multiple addresses within a destination country.

─ Deliver faster and at the lowest possible cost.

Returns

Process and track return shipments quickly and efficiently:

• UPS Return Plus:

Return shipments with pickup service

• UPS Return Exchange:

Simultaneous pickup and delivery for your high-value returns and replacements

• UPS Reverse Logistics:

Services to recover and disposition service parts

• UPS Return Technology:

Enable your customers to request a return shipping label directly from your

website

Consistently Deliver Excellence

• Yes, you want to make the sale, but you also want to create an

experience that will keep your customers coming back again and again.

• Provide flexibility with shipping options, delivery locations, and returns

processing, and give your customers the convenience to track their

own packages. If you do that--and do it well--your customers will give

you loyalty and positive word-of-mouth.

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Thank You!