eCommerce & Online Retail Logistics
Online Retail, Ecommerce Logistics, Ecommerce Logistics Consulting,
eCommerce and online retail sales are growing at a rate of 20.7% for small and medium business and make up more than a third of all online sales. What is your strategy?
There is no doubt that a large part of the future of retail and business to business (B2B) supply chain will be online. The current online retail market is still only scratching the surface with an estimated 7% of retail sales delivered via the internet, but growing at a rate of 20.7% for SME (but only 13.5% p.a. for large corporates) compared to only 4.2% for conventional retail. Some retailers are combining eCommerce with conventional retail outlets with massive success (see Cell Bikes case study). Other companies are investing heavily into pureplay online retail and eCommerce start ups.
New supply chains are created for each eCommerce start up. This activity effectively transfers work out of the established supply chains of the major retailers into the hands of new eCommerce businesses with great ideas but often little logistics and warehouse experience.
Many will start in a garage or shed or the back of the retail shop, but quickly grow into a small warehouse and distribution operation requiring a business system with order and inventory management linked to their online business system. This was the exactly the story with Go-To Skincare. At some point in time the owner of the eCommerce business starts to recognise that they might not be managing their distribution as well as they should:
- they have growing customer complaints and declining service levels, or
- their margins are thin and their distribution costs too high, or
- capacity or inefficiencies are holding back their growth and they know they will need to invest to grow
but are not sure what will deliver the results they need
The owner will then start searching for some logistics help!
, Ecommerce Logistics Consulting
, Ecommerce Start-Up
, Ecommerce Supply Chain
, Online Retail
, Online Retail Logistics