Buy now pay later (BNPL) usage continues to grow, as cash- and credit-strapped consumers dinged by inflation use it for a wider variety of purchases. The share of online purchases using BNPL increased by 14% and revenue grew by 27% in 2022, according to new data from Adobe Digital Insights.
With the anticipation of lower foot traffic in stores coupled with inventory concerns, prioritizing your ecommerce channel from a planning perspective, even at the intentional detriment of having lower stock levels in stores, may save sales during this peak holiday shopping period. And omnichannel is no longer an option.
With peak season upon us, vetting prospective ecommerce 3PLs should focus on their ability to execute under peak conditions. While some may be good at a few aspects of ecommerce operations, the ability to scale up is crucial, and doing so end to end is a rare quality indeed. Here’s how to separate the 3PL posers from the pros.
The outsourcers who can truly do it all according to each brand’s requirements are the real pros. 3PLs that can’t do it all – at scale – are just posers.
Dick’s Sporting Goods, like Target and Walmart before it, is seeing strong results in the pandemic era, increasing overall sales 19.8% in the fourth quarter, while ecommerce was up 57% and same-store sales increased 19.3% as its omnichannel execution excelled.
As expected, Black Friday 2020 saw tremendous success online but was a bust in stores, as shopper behavior has been altered irrevocably by the ongoing pandemic. Adobe Analytics reported $9 billion in ecommerce sales on Black Friday, up 21.6% from $7.4 billion in 2019. Store traffic meanwhile was down 48% to 52%.
The harsh truth is that this holiday season will be a true test for retailers and brands – can they meet demand while exceeding high customer expectations? Those that can’t quickly adapt will lose out to fierce competition. Technology can help them scale up and optimize their fulfillment and delivery to win the 2020 holidays.
The pandemic has brought about challenges to every organization, forcing them to reexamine their business models and operations. But it has also shown their resilience. As retailers and brands look to pave the path forward, they need to continually adapt and keep a critical eye on what’s working and what’s not.
The monumental shift to ecommerce is causing businesses to re-evaluate their fulfillment experience to make sure they get it right. At the heart of that process is understanding how to improve the status quo by putting the customer relationship front and center. The stakes are high, but those who get it right will see substantial growth.
With states reopening for business, experts wonder how grocers will continue to adapt, and how ingrained online buying patterns will be. Jon Hauptmann, Senior Director of Retail Pricing and Analytics Solutions at Inmar Intelligence, discusses Inmar’s recent survey findings and what’s next in this MCM CommerceChat podcast.
Those who have embraced omnichannel retailing by allowing customers to do everything from browsing to payment on their personal device have found it much easier to adapt with tactics like BOPIS to ensure the safety and health of employees and shoppers. The current crisis will serve as a catalyst for long-term process changes.