Consumer buying patterns are ever-changing, and as you look to optimize the eCommerce experience for web visitors, this moving target poses many challenges. To hit the bullseye, you need to constantly monitor trends and make changes at all phases of operations, including fulfillment. Here are three ways to adapt to help your business keep up with evolving industry eCommerce trends.
Invest in Strategically Located Warehouse/Fulfillment Space
One direct effect of the increase in eCommerce retail sales as a percent of total sales is the growing demand for warehouse storage in convenient locations near major transit hubs.
If you are in this scenario – or anticipate it as you continue to grow – here are factors to consider to make the best decision:
With rental rates rising, you also need to make the decision whether you’ll want to keep fulfillment in-house or work with a third party provider. One of the benefits of working with a third party provider is that you won’t be paying direct rental costs monthly.
Ensure Your Technology Is Inventory-Management Focused
Whereas brick-and-mortar retailers are restricted to selling only what they can fit on the shelves, eCommerce brands are less limited. Though offering more SKUs can be beneficial, inventory mismanagement can negatively impact your business. Working with a third-party logistics (3PL) partner that understands this is crucial.
Here are key things to look for in a capable fulfillment partner:
Be Subscription Fulfillment Friendly
Whether it’s food, clothes or cosmetics, shoppers – especially Millennials – value online subscription services. The convenience factor means customers can receive items specified to their individual styles, tastes or interests. They can count on orders being delivered on a recurring basis. At the same time, brands who use this model can benefit from an increased long-term customer value and revenue associated with recurring invoices.
Adding a subscription model to your revenue streams can be strategic, but you’ll need to work with a fulfillment partner that understands subscription fulfillment needs. Her are some things to keep in mind.
eCommerce brands who investing in operations improvement, including fulfillment, are more likely to experience healthy growth. To learn more how you can make sure your current fulfillment operations is in line with evolving eCommerce trends, click here to contact us.