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Carry on at your (ultra-)convenience
By Michael Kliger, VP International, eBay Enterprise
Customer demand will continue to push convenience to the top of the e-commerce agenda in 2015. Innovative partnerships, greater flexibility, and the blurring of the lines between online and high street will be crucial to retailers and brands’ creation of immersive and satisfying shopping experiences, says Michael Kliger
2014 was the year that the retail experience emphatically stopped being defined by the schedules of retailers, fulfilment providers, and delivery companies, as consumers began to claim back a degree of control and influence over the shopping process. Driven by ever-increasing demand for convenience, adoption
of facilities such as click-and-collect, ship-from-store, and same- day delivery has become more widespread among brands and retailers; omnichannel retailing is fast becoming the “new normal”. Tis wind of change shows no signs of abating over the coming year, with 2015 set to be the year of “ultra-convenience”. Here are some key developments to watch out for.
Same-day becomes ultra-fast
A number of brands and retailers have engaged in an “arms race” of sorts, driving down delivery times in search of competitive advantage. Same-day delivery has become a popular and useful option for customers who want or need to get hold of their purchases right away, but even that won’t be soon enough for some people. Consumers may spot a dress or t-shirt on their commute home from work that they want to be able to wear out to a party later that same evening. Engaging these shoppers requires a turnaround time of around two hours. Retailers looking to tap into this market for ultra-fast delivery will need to be able to source stock from the nearest or most convenient location – often a local high street store or distribution centre, rather than their central warehouse – and work with fulfilment partners that can offer high levels of flexibility and the right mix of carriers.
One transaction, multiple delivery points
Convenience does not always mean speed, though. Flexibility is just as important, which often means being able to offer delivery to a customer’s preferred location at a time of their choosing. A customer’s single shopping spree could include a sofa that they need to be home-delivered at the weekend, a book that they want
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to pick up at the Tube station to start reading on the commute home, and a new jacket that they will collect from the store when they visit on their lunch break to pick out a tie and cufflinks. Customers will want to send multiple products to different locations at varying times, and to be able to do so as part of a single transaction. Tis will require retailers to implement order management systems capable of matching stock availability across all available distribution points, whether stores or warehouses, with the appropriate delivery or collection options available for each product and location.
Innovative partnerships create new opportunities
Omnichannel solutions such as ship-from-store and click-and- collect have enabled brands and retailers to turn convenience into a source of competitive advantage, and this could in turn lead to more innovative ways of working. In 2014, we saw House of Fraser enter into a partnership with Caffè Nero that enables customers to collect their orders from a local coffee shop, or enjoy a latte while they browse for clothes using a bespoke tablet app. Expect to see further innovative collaborations in 2015 as retailers look to identify synergies in brand values and commonalities between their customer base and that of retailers in complementary sectors.
Omnibrand replaces omnichannel
In August of 2014, Apple won the right to trademark the striking design of its distinctive high street stores in Europe. While some saw this as a defensive move, it is indicative of the increased importance that retailers are attaching to the look and feel of their physical outlets and the experience of shopping in them. As established high street retailers continue to plough resources into enhancing their online presence with responsive website designs, dedicated smartphone and tablet apps, and the like, a growing number of online pure-plays are moving in the opposite direction and opening bricks-and-mortar stores to showcase their products
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