For those of us in the parcel shipping field, it was always difficult to understand how organizations could fail to appreciate the important role that shipping expertise plays in driving bottom and top-line results. That, of course, began to change more broadly during the pandemic when skyrocketing e-commerce adoption underscored the dramatic impact that parcel shipping has not only on how much it costs to fulfill consumers’ online orders, but also the role the savings and efficiencies it generates play in everything from product pricing strategies to the management of capital expenses.
This blog will cover the advantages and challenges of omnichannel fulfillment, how analytics and automation can streamline shipping, and where retail shippers should go from here.
What is Omnichannel Fulfillment?
Omnichannel fulfillment ensures that inventory, order, and return processes are streamlined, regardless of channel.
Omnichannel fulfillment is the process of receiving, picking, packing, and shipping orders that are sold across multiple channels, stores, and marketplaces. It’s a unified approach to managing inventory and order processing so businesses can meet the needs of their customers more quickly and efficiently.
Why is Shipping And Fulfillment Important for Omnichannel Retailers?
We are seeing the resulting trend line – a greater appreciation of just how important parcel shipping is to the success of omnichannel retailers – grow ever more apparent. More specifically, retailers are coming to see not only that parcel shipping is arguably the most crucial driver of ecommerce success, but also that parcel shipping expertise is only growing more impactful as online shopping volumes increase.
Here are a few reasons why shipping and fulfillment is vital for omnichannel retailers:
- Customer Expectations: In the age of Amazon Prime, customers have grown accustomed to fast, reliable, and low-cost (or even free) shipping. Any delays or errors in shipping can negatively impact customer satisfaction and lead to a loss of trust.
- Brand Experience: Shipping is often the last touchpoint in the customer journey, and it can significantly affect the overall brand experience. A smooth and timely delivery can leave a positive impression, while a delayed or incorrect delivery can lead to negative reviews and reduced repeat business.
- Competitive Differentiation: For omnichannel retailers, shipping can be a key differentiator. Offering flexible delivery options, such as same-day delivery, click-and-collect, or curbside pickup, can set a brand apart from its competitors and attract more customers.
- Inventory Management: Efficient shipping is also linked to inventory management. Omnichannel fulfillment requires real-time visibility into inventory across all locations—stores, warehouses, and distribution centers—to ensure that products are available when and where customers want them.
The Advantages of Omnichannel Fulfillment
Implementing an omnichannel fulfillment strategy offers several advantages for retailers:
- Increased Sales Opportunities: By providing multiple channels for customers to shop, retailers can capture sales from various touchpoints, whether in-store, online, or through social media.
- Improved Customer Loyalty: A seamless shopping experience across all channels encourages repeat purchases and fosters customer loyalty. Customers are more likely to return to a retailer that provides convenience, consistency, and reliability.
- Better Inventory Utilization: Omnichannel fulfillment allows retailers to optimize inventory levels across multiple locations, reducing the risk of overstocking or stockouts and minimizing carrying costs.
- Enhanced Customer Convenience: With options like buy online, pick up in-store (BOPIS), same-day delivery, and curbside pickup, omnichannel retailers offer greater convenience, catering to varying customer preferences and needs.
Analytics and Automation Are Streamlining Shipping
Omnichannel retailers are looking for shipping solutions equipped with advanced analytics and automations to optimize their shipping and fulfillment processes. Advanced analytics can help retailers predict demand, manage inventory levels, and identify the most cost-effective shipping methods, ensuring a smoother fulfillment process.
Automation allows for real-time inventory tracking across all channels, providing visibility into stock levels at every location. Advanced inventory management helps retailers manage their inventory more effectively, reducing the risk of overstock and stockouts.
Retail Parcel Shippers Will Be More Influential Than Ever
The impact that retail parcel shippers will have on their brands is only going to continue. Two recent events put this perspective in focus.
First, the latest quarterly retail e-commerce sales report estimates that first quarter 2024 e-commerce sales increased 8.6% over the first quarter of 2023. And then there is Prime Day, Amazon’s online sales celebration that has evolved to become its own cultural event. Consumers spent an awe-inspiring $14.2 billion, a full 11% percent more than last year, in this year’s event over July 16-17.
Both underscore an increasingly undeniable fact: consumers’ affinity for online shopping is only increasing, and consequently the impact of parcel shipping success is even greater. For retail parcel shippers the future is clear: onward and upward.
Reveel’s powerful PSM 2.0 solutions utilize advanced analytics, modeling and simulation, statistical analysis, and machine-generated real-time insights to ensure that your organization’s omnichannel shipping strategy remains effective and efficient. Learn more here or request a demo.
