Trust is usually the first thought when choosing the right fulfillment service to deliver purchases. As we adapt to a new normal post-Pandemic, trust is even more important than ever. US ecommerce penetration experienced a decade of growth in just 90 days due to Covid-19 which means that the entire landscape has changed and we need to be prepared, be able to pivot and know that we need to win at supply chain and fulfillment.
Image Credit: Enhanced DNA
While no one could have expected our current situation with COVID-19, Laura Heller, Forbes Contributor, forecasted these key points at the 4th Home Improvement eRetailer Summit. She stated that “optimized digital assets are trusted more than copy/text” and to sum up what she believed retailers should focus on when winning over consumers, she chose the word TRUST. This was covered in Sonya’s blog Who Do You Trust To Deliver Your Stuff?
From July to September 2020 (the latest period for which data were available), consumers spent $199.44 billion online with U.S. retailers, up 37.1% from the same quarter the prior year, according to Commerce Department estimates. That meant nearly $1 in every $5 spent came from orders placed online during last year’s third quarter. When the Commerce Department publishes its fourth quarter 2020 estimates, the numbers are highly likely to show ecommerce capturing a sizable share of consumers’ spending, especially for Christmas purchases.
While online retail has seen an enormous uptick in growth, I would suspect that the experience has increased the trust among consumers, that it can be easy, convenient and safe from a privacy standpoint. Retail delivery solutions had to unexpectedly step-up and supply an immediate high-demand from consumers sheltered in place.
The Gap announced yesterday 2/24/2021 that it plans to open a state-of-the art 850,000-square-foot Customer Experience Center in Longview, Texas, to deliver its online sales quicker and more efficiently. This will be a $140 million investment and create more than 500 jobs by the end of 2023, which will grow to more than 1,000 jobs by 2026. Construction is scheduled to begin in April, and the facility will be fully operational by August 2022. This will be The Gap’s seventh distribution center.
Ahold Delhaize, whose business units include the Stop & Shop and Food Lion supermarket chains, is expanding its micro-fulfillment technology through a pilot—announced last week—with the GIANT Company supermarket chain in Philadelphia. The project is being run by Peapod Digital Labs, and its purpose is to driven digitalization and personalization. The pilot is being scaled to fulfill about 15,000 online orders per week for delivery to customers’ homes via a planned ecommerce fulfillment center in Philly.
Whether it is standard shipping, one-day delivery, same day delivery, curbside pick-up or just pick-up in store; retailers are currently being challenged everyday like never before. For retailers this is a time period to build trust from consumers that they can count on you during the worst of times.
It is imperative that retailers and suppliers stay on top of the latest ecommerce market trends. During the upcoming discussions at the 5th Home Improvement eRetailer Summit, we will focus on adapting to this new normal, and maintaining trust with our customers through supply, demand and volume, and the learnings that have been realized over the past year. While buzzy tech words like AI, AR and Driverless Delivery make headlines in ecommerce, there are actionable steps manufacturers and suppliers can take with digitally enabled retailers and wholesale partners to move projects faster and loosen pinch points – and if done well, establishes trust with customers.
The 5th year of the Home Improvement eRetailer Summit will be conducted as a virtual event March 16-17 and for the first time will be open to all retailers and dealers. Retailers and Dealers can register here.
Taking direction from the Summit’s Advisory Council, comprised of an hybrid of online retailers, brick & mortar retailers and a third-party fulfillment company, the overall event will include panel discussions and presentations with chat opportunities following each session. Through industry experts and the shared learning from their experiences, retailers/dealers and manufacturer/distributors can learn how to establish or maintain trust in their businesses. Manufacturers and Distributors can request an invitation here.
We hope you can join us at the 5th Home Improvement eRetailer Summit. We promise you will receive real information that you can immediately use to make your ecommerce business more efficient delivering on your committment to your customers.
Sonya Ruff Jarvis, is the Managing Member of Jarvis Consultants and the Founder of the eRetailer Summit and JC Event Group. An expert in her field, Sonya has been published in numerous retail industry b-to-b publications. Sonya shares her experiences in her book series Mindful Minutes: A Marketer’s Journey Through Business. In addition, Sonya collaborated in publishing an anthology, Mentoring Moments: 14 Remarkable Women Share Their Breakthroughs to Success. Purchase Sonya’s books here.
Sonya has a M.B.A. in Marketing. She is married and has a daughter.
Follow Sonya on twitter at @jarvisconsult or @eretailersummit