PARCEL Forum 2024: Key Takeaways for Ecommerce Merchants

For 22 years, PARCEL Forum has been a hub for supply chain professionals focused on shipping, warehousing, packaging, distribution, and delivery. The three-day event provides actionable insights through expert-led sessions, peer-to-peer networking, and an expansive exhibit hall. 

WSI’s Director of Fulfillment & Technology, TJ McCarthy, attended the event and presented at WSI’s session ‘Customizing a Strategic Approach to Returns.’   

“PARCEL Forum is a vital event for any merchant looking for education and answers to existing issues at their companies,” says McCarthy. “From managing increasing parcel expenses to investing in automation within the warehouse, PARCEL Forum covers it all.” 

If you’re an ecommerce merchant looking to get product into your customers’ hands safely and efficiently, PARCEL Forum is a must-attend event. But if you couldn’t make it this year, don’t worry—we’ve got you covered! Here are the top takeaways highlighting key trends, strategies, and innovations that are shaping the future of ecommerce logistics.

1. Returns are crucial for bottom-line growth 

Managing returns effectively is one of the biggest challenges ecommerce merchants face today. Not only are they costly, but fraud is becoming a larger issue every year. Here’s what experts at the forum had to say about tackling return-related issues:

Return fraud is becoming increasingly sophisticated. 

New tools are being developed to detect fraud by linking databases that track suspicious behavior, identifying geographic anomalies, and analyzing return patterns. Fraud prevention now goes beyond the surface, using data like customer history and details of the shopper’s computer to identify potential red flags. If your brand isn’t investing in technology that identifies bad actors and prevents fraud, it could be costing your bottom line. 

Retailers are testing new ways to offset returns costs. 

It’s no surprise that returns are costly for ecommerce merchants. To offset the rising costs of returns, many brands are experimenting with paid return models where customers can pay premiums for a more convenient returns experience. According to a survey by our returns management partner Loop, 70% of consumers are willing to pay for easier returns, with 50% having already done so.

Speaking of Loop, WSI’s VP of Fulfillment and Chemical Logistics Peter Davis moderated a panel with our partners from Loop Returns, Arrive Recommerce, and Two Boxes. The panel took a deep dive into the new era of returns, how merchants are combating return fraud, and ways to streamline reverse logistics. 

“The best way to process returns? Prevent them from happening in the first place. Strategies like virtual try-ons, cartonization to prevent damage, and keeping an eye out for recurring return reasons can help brands tackle returns before they occur,” says Davis. 

2. Merchants are diversifying their carrier mix 

As parcel shipping costs continue to rise, brands at PARCEL Forum 2024 were looking for ways to manage expenses. Experts emphasized that relying on a single carrier can cause shipping costs to skyrocket. What does this mean for ecommerce brands? A multi-carrier strategy is no longer optional—it’s essential.

A multi-carrier strategy allows brands to compare shipping rates, optimize delivery speed, and access a broader range of services tailored to different regions or customer needs. This means more shipping options during checkout, maximizing customer flexibility and minimizing merchants’ costs. 

Plus, diversifying carriers can protect your business from potential strikes or changes in carrier policies that might impact your supply chain. 

3. AI’s role continues to grow in logistics

Almost every other PARCEL Forum session included a topic about AI in logistics. Artificial intelligence continues to reshape the supply chain, with AI-driven solutions enhancing efficiency at every stage of the parcel lifecycle, from order placement to final-mile delivery. 

AI-driven tools, like unsupervised machine learning algorithms, can analyze supply chain inefficiencies and provide actionable insights to help ecommerce merchants cut costs and boost customer satisfaction.

But, it’s not always easy to know where to start with so many AI technologies throughout the fulfillment process. Brands looking to streamline their operations with AI will need to understand exactly what they want from a partner, and how to identify tools that aren’t worth the cost. 

To avoid any implementation regrets, attendees were advised to focus on building long-term partnerships with AI vendors and executing proof-of-concept trials before large-scale adoption.

4. Sustainability is a growing priority 

Sustainability is no longer a “nice to have”; it’s a key business priority for ecommerce brands. Consumer preferences are shifting towards eco-friendly options, and adopting sustainable practices can enhance customer loyalty.

At this year’s event, there was a strong focus on cutting down on small-package waste. Merchants were encouraged to use sustainable packaging options and optimize package sizes to help comply with environmental regulations and future-proof their operations in an increasingly eco-conscious market. (Plus, smaller packages can help lower shipping costs!) 

But merchants shouldn’t stop at packaging. How they hand returns is also important when it comes to sustainability, with many brands opting to donate products that can’t be resold instead of sending them off to a landfill. Alternatively, for products going back on the shelf, retailers are looking at ways to reduce freight emissions by sending the product to a warehouse closer to the next consumer. 

All in all, merchants should have efficient tracking and reporting capabilities in place to understand their efforts, avoid greenwashing, and ensure accountability.  

5. Customer experience is still king 

No matter the session at PARCEL Forum, the topic of customer experience joined the conversation. Every aspect of shipping directly impacts the customer experience, from the moment an order is placed until it arrives at the customer’s doorstep. 

Many of the sessions brought it back to the end-consumer and how enhancing strategies along the fulfillment process would positively impact their experience. 

• Fast, reliable, and cost-effective shipping options help brands meet expectations for convenience and timeliness. 
• Accurate tracking, flexible delivery windows, and easy returns contribute to a smooth and transparent experience, fostering trust. 
• Packaging plays a role—sustainable, well-designed packaging can leave a lasting, positive impression. 

Conversely, delays, damaged products, or complicated return processes can frustrate customers and do harm. Successful ecommerce shipping isn’t just about moving products—it’s about delivering a seamless, customer-focused experience.

If you missed out on PARCEL Forum 2024, know that these key takeaways offer valuable insights that can help your business stay ahead of the game. Whether it’s reducing the cost of returns, integrating AI solutions, or boosting sustainability efforts, these trends and strategies will be crucial as you plan for the peak season and the upcoming year. And don’t forget to join us next year!