The retail world is evolving faster than you can hit "add to cart" on Black Friday.
For consumers, instant gratification isn't just desired but expected. Retailers, meanwhile, are sprinting to keep pace with consumer preferences for receiving their orders how, when, and where they want.
How can retailers and consumer brands use digital solutions to improve the delivery experience and meet customers' demands?
In partnership with eTail, the Delivery Solutions team created a report that reveals exactly how digital transformation is reshaping retail delivery.
Featuring data from over 50 retailers, "Optimizing Delivery and Fulfillment Through Digital Transformation," dives deep into how retailers and consumer brands leverage digital solutions to revolutionize the customer experience.
Let's examine some of the report's key takeaways, from the struggles of "pickup anywhere" to the power of real-time data.
Takeaway 1: The need for speed (and convenience) is higher than ever
Remember when waiting a week for your package was normal? Or was “please allow six weeks for shipping and handling” the norm?
That wouldn’t fly today. Customers want their purchases yesterday—and they want options.
Pickup anywhere? Check. Same-day delivery? You bet. A locker that is located on your drive home from the gym? Why not!
But here's the kicker: according to our data, 66% of retailers find "pickup anywhere" and standard ship-to-home services challenging.
With all the moving parts in last-mile, it can feel like attempting to plan a long trip with friends. It’s impressive when it goes smoothly, but you'll have frustrations and headaches if you make a mistake or two.
And that’s where technology steps in.
Takeaway 2: Retailers need a solid tech stack to keep last-mile running smooth
With so many systems and touchpoints to manage between customers placing and receiving the order, savvy retailers are letting technology shoulder the effort of last-mile logistics.
Respondents to our survey mentioned using the following tools to manage the process:
- Real-time order management software
- Analytics tools
- Collaboration tools
- RFID technology
- Automated order preparation systems
- Post-purchase tracking systems
Adoption of these systems varied depending on the type of service the retailer offered.
While not directly stated in our report, many retailers use some form of centralized data management system for one very important reason.
Takeaway 3: Data silos need to go
100% of respondents believe that having data in one location is essential for making actionable decisions.
This unanimous agreement speaks volumes about the challenges of fragmented information systems when things move as fast as they do in retail.
The reality for many is that this is still a work in progress. Retailers deal with many different kinds of data in systems that may need to fit better with each other.
Breaking down these silos isn't just a nice-to-have. It's becoming a critical factor in any retailer's ability to respond swiftly to market changes, anticipate customer needs, and optimize fulfillment strategies.
Takeaway 4: Strategic staffing for online orders is a must
Automation and AI continue to reshape every industry. Retailers, though, have recognized that specialized human teams play a vital role in managing the complexities of online orders.
62% of retailers invest in dedicated staff for online order fulfillment. This underscores the enduring value of human expertise despite the overwhelming shift toward a digital marketplace.
Having dedicated staff members allows them to handle more nuanced customer requests, resolve intricate fulfillment issues, and provide personalized service that automated systems can never really deliver.
This, in turn, ensures a smoother online shopping experience.
Read the full report
While we've touched on some key takeaways, they're just the tip of the iceberg.
The full report, "Optimizing Delivery and Fulfillment Through Digital Transformation," offers a wealth of insights that this brief overview has not covered.
The report comprehensively examines the state of retail delivery in 2024, from deeper dives into post-purchase experiences to detailed breakdowns of fulfillment strategies across various retail sectors.