Target found the COVID-19 outbreak to be a two-edged sword in the first quarter, driving stratospheric ecommerce sales growth of 141%, while impacting profits due to about $500 million in associated costs, the company reported. It also saw over 5 million customers shop on Target.com for the first time in Q1.
Ship from store and curbside pickup are not new to multichannel businesses, but many smaller ones are trying to implement this model, often without the infrastructure and systems in place to support it. Here’s what you need to do to set up streamlined, store-level picking and curbside fulfillment during the coronavirus pandemic.
Many ecommerce companies are trying to stay open while keeping their employees and customers safe through the coronavirus pandemic. Others have temporarily shut down and are thinking about how and when they can reopen. Here are some things to keep in mind based on our consulting work with retail and wholesale companies.
The world is a different place than it was just a month ago. As companies try to maintain their business and stay afloat, many are wondering about the long-term impact of coronavirus on the retail and ecommerce industry. Here are some ways the dynamics of retail and services may be impacted in near term and in the years to come.
If nothing else, bad actors perpetrating ecommerce transaction fraud are clever opportunists, and a crisis like the ongoing coronavirus outbreak is proving a perfect opportunity for them to prey upon unsuspecting sellers and consumers, experts agree. The rise of contactless deliveries and working from home are among the entry points.
E-grocery penetration in the U.S. reached 4.5% of the overall food/beverage market in 2019, according to figures from Deutsche Bank cited by e-fulfillment technology provider Fabric, after hovering around 2% for years. It’s expected to exceed 10% by 2024 and hit 12% the following year.
Target’s strong Q3 performance, with 31% growth in ecommerce sales – just under the 34% in Q2 – continued the trend of same-day order fulfillment services driving growth. Target is the first to offer curbside pickup in all 50 states. In Q3, sales volume fulfilled by Shipt more than doubled, while curbside sales grew by more than 500%.
Amazon waited an entire month to swing back at Walmart’s new same-day grocery delivery program, making delivery from Amazon Fresh and Whole Foods free for Prime members by eliminating the $14.99/month charge on $35 and up orders. It’s available in 2,000 cities and towns, mostly through Amazon’s 480 Whole Foods stores.
Best Buy is getting into the holiday spirit early and pushing back on major competitors, offering free next-day delivery on thousands of items from Thanksgiving through Christmas, and free standard shipping in the few areas where next day isn’t available. The company says it’s available in 42 U.S. markets, covering 99% of its customers.
Walmart’s answer to Amazon Prime on the grocery side, Delivery Unlimited, is expanding nationwide, the company said, reaching 1,400 U.S. stores now and 1,600 by the end of the year. The program had been piloted in Houston, Miami, Salt Lake City and Tampa, and will now be in all 200 markets where grocery delivery is available.