3 Truths in Today’s Retail Environment
1.) Online Sales account for an increasing percentage of retail transactions.
– About 20% of global retail sales in 2021
– Projected to account for 30% of global retail sales by 2026
2.) Brick and Mortar retail remains relevant.
– Global ecommerce sales grew 20-25% annually from 2015-2019
– Post Covid, online sales growth slowed to 14-16% annually
– Annual online sales growth is anticipated at 10-15% over the next few years
3.) Customers overwhelmingly prefer “Click and Brick” retail
– Over 73% of shoppers use multiple channels to shop
– Online purchases for in store pickup increased by over 50% during Covid
– Omnichannel customers spend over 30% more on average
Providing an omnichannel experience is an increasing necessity for most retailers, whether large or small. The question for most is not so much whether an omnichannel strategy should be employed, but how.
Selecting and presenting on the best sales channels for a given business is only part of the equation. Executing the strategy effectively also requires a strong logistical backbone supported by the right technology and executed with operational excellence.
At a minimum, this calls for an Order Management System (OMS) that routes orders properly, so that in store pickups are sent to the store and fulfillment orders are sent to the fulfillment warehouse. (Depending upon one’s requirements and inventory management plan, it may also mean that orders for in store pickup are routed to the fulfillment warehouse and fulfilled in bulk to the proper retail location). A good 3PL provider not only offers these capabilities, but also does so with an OMS that allows you to apply manual control of specific orders when you need to.
Effectively managing inventory levels across a click and brick spectrum is another important piece of the puzzle. This can be accomplished with a central ERP system that acts as a sole source of inventory truth, or with advanced 3PL OMS/WMS (Warehouse Management System) technology that is built to fully support a complete omnichannel business model.
Every business is different. A good 3PL provider will council with each client to develop and install the right integrated approach for their needs. If you need a click and brick operation, contact us and we’ll explore how our 3PL capabilities can help move your business forward.