A massive shift to ecommerce has already created peak-like conditions for shippers and carriers in 2020. Now comes the actual holiday season, a huge unknown but still expected to generate staggering volumes. This report taps ecommerce logistics experts who discuss the extraordinary challenges facing shippers this Q4.
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.
With store restrictions and the shift to ecommerce, retailers must reorient their strategies to an evolving landscape. As they approach the holiday season, they need to navigate these challenges to maximize profit during the biggest selling season of the year by focusing on timely deals and multichannel visibility to motivate shoppers.
Like UPS before it, FedEx reported a blowout first quarter fueled by pandemic-era ecommerce demand, with revenue and profits exceeding estimates and average daily volume in its ground parcel network increasing by 31%. Executives said they are ready for a massive peak holiday season with personnel, facilities and technology.
Now keenly aware of their vulnerabilities, retail and ecommerce companies are much more likely to build events like pandemics and other crises into their business planning. They are reevaluating sourcing, warehousing, fulfillment and transportation practices to future proof their business. Here are 6 ways a 3PL can help.
While total e-grocery sales in the U.S. declined 20% in August vs. June to $5.2 billion, other factors indicate strength in the sector, such as growth in average order value and repeat usage intent, according to a survey by Mercatus and Brick Meets Click. AOV reached a high of $95, the survey found, 32% higher than a year ago.
Companies that are resistant or slow to change face real threats from the emergence of a new group of DTC brands, boosted by technology, that can deliver a complete end-to-end customer experience. Laggards need to address their operations urgently, or risk being digitally leapfrogged and left behind by the pack of hungry DTCs.
Third-party sellers sold on average more than 6,500 products per minute on Amazon Marketplace in the past year, with over 450,000 sellers utilizing Fulfilled By Amazon (FBA). In recent months, however, FBA has been placing restrictions due to pandemic volumes. One option is using Merchant Fulfilled Network (MFN); here’s how it works.
Amazon is working with Simon Property Group, the largest owner/operator of shopping malls in the country, to convert some shuttered J.C. Penney and Sears anchor stores into local fulfillment centers to augment its already massive network and facilitate last-mile speed, the Wall Street Journal reported.
The uncertainty around schools reopening has made this back-to-school season unlike any before it for retailers, with school supplies lists often unknown as districts work out details, and the normal cadence of discount events and promotions disrupted as well, experts say. Apparel has been hit hardest while tech items are winners.