What is in this article?:
- Omni-Channel Fulfillment is Future but Not Yet Profitable
- Speed of Supply Chain Matters More to Frequent Online Shoppers
Only 19% of the top 250 retailers are currently fulfilling omni-channel demand profitably, according to a new study.
While 71% of CEOs of consumer goods companies cite omni-channel fulfillment as a top priority for future investment, only 19% of the top 250 retailers are currently fulfilling omni-channel demand profitably, according to a new study by JDA.
The third annual Walker Sands Future of Retail Report, offers insight into consumer attitudes towards different aspects of retail, including the growing importance of the supply chain.
Key findings include:
- Nearly a third of consumers (31%) now shop online at least once a week, an increase of 41% from two years ago.
- Only 9% of consumers have used same-day shipping in the past year, but almost half (49%) say same-day shipping would make them shop more online if it were offered more frequently.
- 40% of consumers expect to receive their first drone-delivered package in the next two years or less. Less than a third (31%) think it will take more than five years.
- Among consumers who don’t trust drones to deliver packages, theft and damaged packages are the top concerns (72% each), but safety (68%) and privacy (60%) seem less risky than they were a year ago.
Growing Importance of the Supply Chain
Over the past three years, findings have shown that seamless shipping, delivery and returns have become more and more important to consumers, making them primary future drivers of e-commerce growth. According, fulfillment has become a top investment area for retailers, with 29% of capital expenditures last year going toward solutions like transportation and logistics, delivery options, order management, inventory visibility and returns management.