TAKEAWAYS [ IN FOCUS ] Shaping the Future of the Global Supply Chain
WHERE DO CONSUMER LOYALTIES LIE? With 72%of consumers saying they will continue buying online via pickup or delivery, retailers need adequate local shipping processes as well as speedy delivery, says a recent report from SOTI. Highlights from the survey reveal:
Direct-to-Consumer Gets Trendy Direct-to-consumer (DTC) e-commerce has changed the way people shop for everything from razors to sofas, to the point where retailers with more traditional supply chains are catching on. New e-commerce brands and traditional retailers alike can follow these five DTC trends in 2022 to stay competitive, says a Forbes report: 1. Traditional retailers go DTC. With less foot traffic in physical stores, more large, traditional retailers will emulate online DTC brands. Their focus will shift to capturing tech-savvy consumers who shop from their devices and use physical space for e-commerce order fulfillment. 2. DTC brands expand their categories. Although the pandemic inhibited growth for many brands, demand has soared for athleisure and self-care products as consumers work from home. Digital-native companies will continue to grow as they introduce those products into their supply chains. 3. Consumers flock to DTC brands. At the start of the pandemic, one of the most urgent needs for retailers was an efficient e-commerce platform and fulfillment strategy. That’s something DTC brands already had, giving them an early advantage. Two years later, the trend continues with U.S. e-commerce sales in Q3 2021 up 45.6% compared to Q3 2019. 4. DTC brands go headless. The next generation of headless companies— in which a consumer-facing website is separate from the e-commerce fulfillment platform—is developing solutions to enhance existing websites. DTC brands can now serve up content powering the storefront with a simple click of a button. 5. Returns are a differentiator. Shoppers are strongly influenced by return policies, with most preferring online retailers that offer free shipping for returns and refund the original form of payment. Consumer-centric brands will make investments to upgrade their returns process and how they present products to avoid returns altogether.
Shipping experience influences consumers’ purchase decisions:
• 56% of consumers find shipping time the most frustrating aspect of ordering goods online. • 49% expect same-day pickup for any item they order online. • 42% say if delivery or pickup takes more than two days, they look elsewhere. • 41% are buying more online and having purchases delivered directly to them. • 57%are less likely to order an item shipped fromoverseas than one year ago. Loyalty hinges on transparency and flexibility: • 69% of shoppers expect to know where their order is at all times. • 64%say they continue shopping with brands that deliver goods the fastest. • 50% are more likely to shop from a retailer’s store if multiple return points are offered. • 35% say knowing who a retailer’s delivery partner is resulted in abandoning their order. Acceptance of new delivery options: • 83% of consumers say they are open to in-home delivery due to shopping frustrations they experienced in 2020 and 2021. • 73% say they’re open to delivery at a designated dropoff point. • 59%would consider delivery via autonomous vehicles or drones.
18 Inbound Logistics • February 2022
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