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Rethinking How Retailers Deliver Merchandise

Can omni-channel fulfillment be profitable?

Amazon is pushing the boundaries of order fulfillment. To be competitive, brick and mortar retailers need a profitable omni-channel fulfillment strategy. This white paper explores ways to achieve it. Highlights include:

  • Amazon had over $1 billion in net shipping losses in each of the last two quarters
  • Only 19% of the top 250 retailers say they can fulfill omni-channel demand profitably
  • 60% of ‘buy online pick up in store’ customers reported some sort of service failure

Document Details

Pages: 10

File Size: 2.22 MB

Year Published: 2015

Author(s): Jim Bengier, Chief Customer Officer, Bridge Solutions Group

Abstract

When will retailers learn that they are retailers? Dictionary.com defines retail as the sale of goods to ultimate consumers, usually in small quantities. Notice the key word here; “sale”. The definition does not mention delivery. Retailers have used delivery as a marketing means to sell. First there was free shipping, then ship to store, in-store pick up, and now same-day delivery. These are all excellent ways to drive revenue, but at what cost?