{"id":25801,"date":"2019-07-22T12:44:32","date_gmt":"2019-07-22T12:44:32","guid":{"rendered":"https:\/\/www.parcelpending.com\/blog\/the-best-ecommerce-supply-chain-strategy-for-improved-e-commerce-success\/"},"modified":"2023-04-04T17:27:15","modified_gmt":"2023-04-04T17:27:15","slug":"the-best-ecommerce-supply-chain-strategy-for-improved-e-commerce-success","status":"publish","type":"post","link":"https:\/\/www.parcelpending.com\/en-ca\/blog\/the-best-ecommerce-supply-chain-strategy-for-improved-e-commerce-success\/","title":{"rendered":"The Best Ecommerce Supply Chain Strategy For Improved E-Commerce Success"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">In the last decade, the rise of e-commerce has fundamentally shifted the power relationship between consumers and retailers. Not long ago, retailers were able to set trends and dictate where consumers would retrieve goods, but the abundance of fulfillment options available to modern consumers has given them the power to dictate which companies thrive and fail. The keys have officially changed hands.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In light of these developments, many businesses\u2014namely those that rely on brick and mortar stores to drive the majority of their revenue\u2014have found themselves in a tricky situation. Competing with online retailers has become a massive and frustrating challenge, and failing to discover a timely solution can lead to financial difficulties or worse.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this article, we\u2019ll explain how an improved supply chain strategy can help <a href=\"\/en-ca\/how-to-survive-the-rise-of-e-commerce\" target=\"_blank\" rel=\"noopener noreferrer\">brick and mortar retailers survive the rise of e-commerce<\/a> and provide context for why that is by reviewing:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The popularity of e-commerce and how it will continue to grow<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">What customers expect from e-commerce exchanges<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The paradigm-shifting advent of omnichannel retail<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">How the click and collect strategy can dramatically improve <\/span><span style=\"font-weight: 400;\">e-commerce <\/span><span style=\"font-weight: 400;\">and<\/span><span style=\"font-weight: 400;\"> supply chain<\/span><span style=\"font-weight: 400;\"> success<\/span><\/li>\n<\/ul>\n<h2><strong>The Rise of Ecommerce<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">At the heart of e-commerce\u2019s success is the convenience it offers consumers. Retail customers can browse websites for their favorite goods from wherever they are via mobile, purchase a variety of items, and reasonably expect them to be delivered within 24 to 48 hours.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Never before has it been so easy to shop, and companies that prioritize consumer convenience when generating their supply chain strategy will find the most success.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While many businesses understand that e-commerce is important to their financial future and that the effectiveness of their supply chain plays a major role in that process, reviewing the statistics related to e-commerce can drive home why making adjustments is so vitally important.<\/span><\/p>\n<h3><strong>1.92 Billion Global Buyers<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">A <\/span><a href=\"https:\/\/www.statista.com\/statistics\/251666\/number-of-digital-buyers-worldwide\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">study by Statistica<\/span><\/a><span style=\"font-weight: 400;\"> calculated the number of digital buyers worldwide from 2014 to 2019 and predicted how many there would be by 2021. The results are, in a word, <\/span><i><span style=\"font-weight: 400;\">compelling<\/span><\/i><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">In 2014, there were 1.32 billion digital buyers worldwide, almost one-sixth of the world\u2019s population at that time<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Since 2014, the proliferation of smartphones and advances in technology have only increased the number of online buyers<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">2019 is expected to field 1.92 billion global buyers, and by 2021 that number is expected to reach 2.14 billion\u00a0<\/span><\/li>\n<\/ul>\n<h3><strong>13.7% of All Retail Sales Will Be Conducted Online in 2019<\/strong><\/h3>\n<p><a href=\"https:\/\/www.statista.com\/statistics\/534123\/e-commerce-share-of-retail-sales-worldwide\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Another study<\/span><\/a><span style=\"font-weight: 400;\"> conducted by Statistica found that the percentage of retail sales conducted online has increased dramatically in the last several years, and the trend seems to be increasing.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">In 2015, the study found that only 7.4% of worldwide retail sales were conducted online, but by 2018 that number had increased to 11.9%<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">This year, that number is expected to jump two percentage points, to 13.7%<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">By 2021 the percentage of overall retail sales conducted online is expected to leap all the way to 17.5%<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The takeaway? Businesses that don\u2019t adopt efficient supply chain strategies will be overlooked by consumers who can acquire orders more easily from competitors.\u00a0\u00a0<\/span><\/p>\n<h3><strong>Poor Customer Experiences Cause 80% of Customers to Walk<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Finally, one particularly prickly problem for businesses in the e-commerce era is how finicky customers can be. This is largely due to the amount of options available to them, which further drives home the importance of an efficient supply chain.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A <\/span><a href=\"https:\/\/blog.hubspot.com\/news-trends\/customer-acquisition-study?__hstc=200701681.448f4caa5408e12806e11271b936f002.1542992562448.1542992562448.1547466725565.2&amp;__hssc=200701681.2.1547466725565&amp;__hsfp=2938336133\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">study showed that up to 80% of people<\/span><\/a><span style=\"font-weight: 400;\"> will stop frequenting a business after having a poor customer experience<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">What constitutes a \u201cpoor customer experience\u201d can range from a bad experience with an employee to having a challenging time fulfilling an order<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Minimizing the number of customers who deem they\u2019ve had a \u201cpoor experience\u201d should be at the top of every business\u2019 priority list. To do so requires an understanding of customer expectations, which, in turn, explains the rising popularity of omnichannel retail strategies that utilize click and collect to improve supply chain efficiency.\u00a0\u00a0<\/span><\/p>\n<h2><strong>Customer Expectations<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">To understand why omnichannel retail strategies have soared in popularity and helped businesses increase revenue while competing in tough markets, it\u2019s useful to understand how the rise of e-commerce has shifted customers\u2019 expectations. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">While the following list of expectations should be carefully studied, the clever observer will note that they are all guided by a similar theme: convenience.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A retail website that is easy to navigate<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The ability to access products through a mobile device<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">If applicable, a wide array of products<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Efficient delivery<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Hassle-free refunds and returns<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Customers expect that their ability to locate, buy, receive and possibly return a product will be a painless process.\u00a0<\/span><\/p>\n<h3><strong>Website That\u2019s Easy to Navigate\u00a0<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Everyone knows what it\u2019s like to shop online through a website that is aesthetically unappealing and difficult to navigate. In fact, a <\/span><a href=\"https:\/\/moosend.com\/blog\/cart-abandonment-stats\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">whopping 69% of online shopping<\/span><\/a><span style=\"font-weight: 400;\"> carts are abandoned by users, and it\u2019s believed that this largely has to do with the amount of clutter that many websites force consumers to wade through.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Make sure that your website is easy to visually process and scroll through. It\u2019s essential to the success of online sales. Every business has competition, and it\u2019s too easy for consumers to turn to a competitor if they grow frustrated.\u00a0\u00a0<\/span><\/p>\n<h3><strong>Mobile Access<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Even if your business doesn\u2019t have an app, making sure that your website is designed to accommodate mobile users is incredibly important.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A study published this year found that <\/span><a href=\"https:\/\/www.outerboxdesign.com\/web-design-articles\/mobile-ecommerce-statistics\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">79% of smartphone users<\/span><\/a><span style=\"font-weight: 400;\"> used their mobile device to make a purchase within the last year<\/span><\/li>\n<\/ul>\n<h3><strong>Diverse Products<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">While your company may rely on a core product or two, offering a variety of products and solutions is a great way to keep customers on your website, returning to your store, and curious about what you have to offer.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Product diversity also helps businesses cultivate customer loyalty. A mix of products to choose from will keep your brand at the front of the customer\u2019s mind and help with demand. It\u2019s hard to understate the importance of customer loyalty when given the fierceness of e-commerce competition in any industry.\u00a0<\/span><\/p>\n<h3><strong>Efficient Delivery<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Retail giants like Amazon have started to standardize next-day shipping practices. While not every company is expected to offer such quick turnaround times for deliveries, most customers expect that their order will arrive in a short, reasonable timeframe.\u00a0<\/span><\/p>\n<h3><strong>Hassle-Free Refunds and Returns<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Companies that develop a reputation for possessing difficult return policies will have trouble maintaining customer loyalty in their industry. The expectation is that products that are ordered will be simple to return and that refunds of some variety will be available.\u00a0<\/span><\/p>\n<h2><strong>What is Omnichannel Retail and How Does it Affect Supply Chain Strategy?<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">By now, most retailers are familiar with the multi-channel retail management strategy. Instead of a single point of contact for customers to interact with your businesses\u2014like a brick and mortar store\u2014multiple-channels, including web and mobile apps, can increase the points of contact that a consumer has with a business.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><a href=\"\/en-ca\/omnichannel-retailing\" target=\"_blank\" rel=\"noopener noreferrer\">Omnichannel retail<\/a>, which has been dubbed the future of commerce, is a strategy which creates seamless integration between these disparate channels. The result is a streamlined sales experience for both consumers and employees. They are able to locate a product from any device and ensure that the product arrives to a store or delivery location that is as close as possible to the consumer.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The myriad benefits of an omnichannel retail strategy include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Easily trackable transactions<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Meet customers where they are<\/span><\/li>\n<\/ul>\n<h3><strong>Simple to Track Transactions<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">It\u2019s much easier to track transactions and keep tabs on sales trends when using an omnichannel retail strategy in comparison with a multi-channel retail strategy.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Where omnichannel retail strategies integrate all channels and produce a single pool of data, multi-channel strategies require each channel to be monitored individually and the results to be compiled.<\/span><\/p>\n<h3><strong>Meet Customers Anywhere<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Perhaps the greatest benefit of an omnichannel retail strategy is that customers can access your business from wherever they are. They are no longer limited to a single channel, and can seamlessly order and retrieve products.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This remarkable benefit also entails the necessary shift in supply chain strategy. In order to maximize the potential of omnichannel retail, businesses need to make multiple retrieval points accessible to customers. Parcel Pending <\/span><a href=\"\/en-ca\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">smart lockers <\/span><\/a><span style=\"font-weight: 400;\">offer one of the most reliable methods for delivering on that promise.<\/span><\/p>\n<h2><strong>Click and Collect<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">While click and collect has been a staple in the supply chain strategy of many UK businesses for years, it\u2019s only now starting to gain traction in the United States. It functions as a component of an omnichannel retail strategy which allows shoppers to buy products wherever they are (click) and then retrieve those products from either the store or another convenient location (collect) established by the retailer. These types of fulfillment services speed up the shipping process and make it easier for customers to get their shipment.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The benefits to both revenue and the supply chain are numerous and virtually instantaneous once a pick-up point, such as a Parcel Pending locker, is installed.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Customers have the option to pick up products from a variety of destinations<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Utilize Parcel Pending smart lockers for easy shipping and returns<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Increase foot traffic<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Encourage impulse sales<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Lower costs for retailers<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Keep up with e-commerce trends<\/span><\/li>\n<\/ul>\n<h3><strong>Various Pickup Options<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Click and collect offers consumers various pick-up options. When they order products online, they can pick up items from third-party destinations like convenience stores or shops near their home, they can pick up items in-store from locker systems like those crafted by Parcel Pending, or they can retrieve goods from a centralized click and collect hub.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This enhanced retrieval system instantly improves a company\u2019s supply chain process and makes it easier for customers to both pick-up and return packages.\u00a0<\/span><\/p>\n<h3><strong>Utilize Parcel Pending Smart Lockers<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Parcel Pending greatly enhances both customer and retailer experience. When a product is delivered to a Parcel Pending locker, it sends out an instant notification to the customer alerting them that their product is ready for pickup. For people on the go, this makes it easy to time and coordinate the retrieval process around their busy schedule.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Installing Parcel Pending lockers also allows retail staff to dedicate more of their time to in-store engagement, which allows them to drive further in-store purchases.\u00a0\u00a0<\/span><\/p>\n<h3><strong>Increased Foot Traffic and Impulse Sales<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">It\u2019s becoming increasingly difficult to drive foot traffic through brick and mortar stores, click and collect has the potential to change that. Instead of waiting for products to be shipped to their house, they can visit the store to retrieve the item immediately after purchasing it.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While inside the store, studies have shown that <\/span><a href=\"https:\/\/theconversation.com\/why-retailers-want-you-to-click-and-collect-83094\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">almost 50% of consumers<\/span><\/a><span style=\"font-weight: 400;\"> will make an \u201cimpulse purchase,\u201d realizing that they want something else before they return home. The boost in revenue provided by the impulse sales can be a difference maker for businesses that are struggling.<\/span><\/p>\n<h3><strong>Lower Costs<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">With click and collect, delivery costs that would have been incurred by the retailers are instead absorbed by the shoppers when they travel to the store. This means retailers don\u2019t have to pay for delivery drivers, rental vehicles, etc.\u00a0<\/span><\/p>\n<h3><strong>Keep Up with Ecommerce Trends<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Click and collect is here to stay, and companies that refuse to jump on the trend will likely struggle.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A <\/span><a href=\"https:\/\/www.nielsen.com\/us\/en\/insights\/news\/2018\/curb-appeal-are-you-ready-for-click-collect.html\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Nielsen report from February 2018<\/span><\/a><span style=\"font-weight: 400;\"> found that most millennials would rather use click and collect than delivery for grocery shopping<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Another study found that by 2025, in-store purchases <\/span><a href=\"https:\/\/postandparcel.info\/71804\/news\/uk-online-delivery-and-click-and-collect-to-double-by-2025-claims-new-report\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">will be down 60%,<\/span><\/a><span style=\"font-weight: 400;\"> and click and collect will account for 10% of total sales\u00a0\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><a href=\"https:\/\/www.cnbc.com\/2016\/01\/13\/like-it-or-not-click-and-collect-is-here-to-stay.html\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">CNBC reported that 71%<\/span><\/a><span style=\"font-weight: 400;\"> of US shoppers have taken advantage of a click and collect opportunity in the last year\u00a0\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In short, the trend that will revolutionize your supply chain will also keep your business on the cutting edge of sales trends.\u00a0<\/span><\/p>\n<h2><strong>Conclusion<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">Every trend, statistic, and news report points to one thing: e-commerce is here to stay. Businesses that embrace this change and learn how to streamline their supply chain through omnichannel retail and click and collect strategies will thrive. Those who don\u2019t will be left behind.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When a business takes steps to improve its <\/span><span style=\"font-weight: 400;\">e-commerce supply chain<\/span><span style=\"font-weight: 400;\">, they see a boost in consumer growth, increase their average order value through impulse purchases, and see higher conversion rates due to increased foot traffic.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The only way for businesses to tap into this growth potential is by improving their existing infrastructure. There is no better way to do that than through investing in products like Parcel Pending<\/span><a href=\"https:\/\/www.parcelpending.com\/en-ca\/markets\/retail-parcel-lockers\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\"> retail lockers,<\/span><\/a><span style=\"font-weight: 400;\"> which are smart, safe, and reliable.<\/span><\/p>\n<p><b>Sources:<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Cart Abandonment Stats: Tackling Shopping Cart Abandonment in 2019. (2019, April 3). Retrieved May 14, 2019, from <\/span><a href=\"https:\/\/moosend.com\/blog\/cart-abandonment-stats\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">https:\/\/moosend.com\/blog\/cart-abandonment-stats\/<\/span><\/a><\/li>\n<li><span style=\"font-weight: 400;\">Curb Appeal: Are You Ready for Click &amp; Collect? (2018, February 14). Retrieved May 15, 2019, from <\/span><a href=\"https:\/\/www.nielsen.com\/us\/en\/insights\/news\/2018\/curb-appeal-are-you-ready-for-click-collect.html\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">https:\/\/www.nielsen.com\/us\/en\/insights\/news\/2018\/curb-appeal-are-you-ready-for-click-collect.html<\/span><\/a><\/li>\n<li><span style=\"font-weight: 400;\">Smith, J. (2019, April 22). Mobile eCommerce Stats in 2018 and the Future Online Shopping Trend of eCommerce. Retrieved May 17, 2019, from <\/span><a href=\"https:\/\/www.outerboxdesign.com\/web-design-articles\/mobile-ecommerce-statistics\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">https:\/\/www.outerboxdesign.com\/web-design-articles\/mobile-ecommerce-statistics<\/span><\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>In the last decade, the rise of e-commerce has fundamentally shifted the power relationship between consumers and retailers. Not long ago, retailers were able to set trends and dictate where consumers would retrieve goods, but the abundance of fulfillment options available to modern consumers has given them the power to dictate which companies thrive and [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[324],"tags":[],"class_list":["post-25801","post","type-post","status-publish","format-standard","hentry","category-blog-retail-en-ca"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Best Ecommerce Supply Chain Strategy | Parcel Pending<\/title>\n<meta name=\"description\" content=\"The key to ecommerce success is customer convenience. 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