E-Commerce Data From an IHL and RIS News Survey
Some interesting E-Commerce statistics from a recent survey by IHL Consulting and RIS News. The chart shows the share of retail sales taken by each fulfilment method across a sample of US retailers.
At least 86% of US retail sales are fulfilled from stores. The split varies by retail segment, but clearly retail stores are not going away any time in the foreseeable future. Other recent surveys have shown that online orders delivered to customers’ homes lose the retailer money, or reduce the margin on orders, while orders fulfilled by click and collect (BOPIS) preserve profit. The growing volume of customer returns is a real margin killer.
Ways to exploit this include:
- Planning in advance to ask shoppers collecting orders if they have the relevant accessories – a cover for the iPAD, a tie for the shirt, etc. Have some examples ready at the collection point.
- Asking customers to open items in the store and make sure they are what they need and that they fit if clothing or shoes. A potential return can sometimes be avoided by swapping an item for a better color or size in the store.
A more complete list of ways to leverage the success of stores and the growth of online is included in the Retail and Consumer Goods Industry WIKI.
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Posted by Brian Hume
22nd March 2024
