Jeff Bezos: Amazon planning more stores—at some point
Speaking at his company’s annual shareholders meeting, Amazon CEO Jeff Bezos said the online giant will open more stores—but he didn’t specify when, according to the Seattle Times.
“We’re definitely going to open additional stores,” Bezos said. How many? We don’t know yet.”
Bezos said Amazon will continue to add features to entice people to sign up for Amazon Prime, the report said.
“Our goal with Amazon Prime, make no mistake, is to make sure that if you are not a Prime member, you are being irresponsible,” Bezos said. To read more, click here
Survey: Lack of speed kills consumer expectations
How fast a retailer offers delivery of online purchases plays a big role in sales conversion and loyalty.
According to a new survey of 650 U.S. consumers from same-day delivery provider Dropoff, 60% of respondents reported they have decided not to purchase from a retailer due to slow delivery speed. Almost all consumers (97%) said speed is at least somewhat important in determining whether or not they will purchase a product. Forty percent said it is very important.
Consumer expectations of delivery performance are also increasing. While only 1% of respondents said they expect to receive retail items the same day they ordered, 40% said they want to. Forty-six percent said they expect companies to deliver faster than they did a year ago.
One positive finding is that retailers who do provide fast shipments can build customer loyalty the same way they can with free shipments. Seventy-seven percent of respondents said receiving free shipping made them more likely to purchase from that retailer again. One in three said it made them irritated when a different company would charge for shipping, and 40% said it made them expect free shipping from others. Those experiencing fast shipping report similar loyalties.
Other notable findings include:
• 95% of respondents say ability to track their package is important.
• 58% cite friendliness of delivery personnel as being important.
• 70% say delivery personnel arriving in uniform is important.
“Retailers who don’t understand how and why consumers are expecting things faster will struggle to compete,” said Sean Spector, CEO of Dropoff. “Much like we saw with free shipping and free returns, those who offered it first set the tone for the industry and reaped the rewards of more loyal customers and higher sales conversions. Smart retailers need to be out ahead of this trend and deliver on the expectations consumers describe in the study.”
Momentum 2016: The supply chain goes digital
The Momentum 2016 conference held by Manhattan Associates May 15-17 in Orlando, Florida offered attendees plenty of insightful sessions and interesting information about how omnichannel commerce is affecting the supply chain.
First, let’s review some data points shared by Brendan Witcher, principal analyst, e-business and channel strategy, Forrester Research:
• By 2020, purchases made by mobile phone and tablet will represent 48% of all online sales.
• During 2016, 49% of U.S. retail purchases, or $1.68 trillion of $3.4 trillion, will be influenced by or made online.
• Seventy-five percent of consumers are more likely to visit a store if inventory is visible online.
• Twenty-six percent of consumers, and 33% of millennial consumers, are less likely to visit a store if inventory is not visible online.
• Fifty-three percent of consumers expect in-store online pickups to be ready in two hours or less.
• Only 19% of consumers think store associates are the best source of product information.
There were also many notable quotes from numerous speakers throughout the conference. Here are some highlights.
“Bed Bath & Beyond has more than 1,000 stores. That means we have 1,000 warehouses and 1,000 returns centers.”
Alex Zelikovsky, VP, omnichannel solutions and supply chain technology, Bed Bath & Beyond
“Sales and conversion don’t reflect the value of most online and mobile touchpoints.”
Brendan Witcher, principal analyst, e-business and channel strategy, Forrester Research
“Supply chain is at the heart of retail. Merchants think they’re king, but they’re not.”
Rachel Mushahwar, head of global retail, hospitality and CPG enabling team for Internet of Things, Intel Corp.
“If I had to do an omnichannel rollout all over again, I would start with store fulfillment and do click and collect first.”
Joe Marotta, VP of supply chain and corporate systems, Michael Kors
“Transformation is more cultural than anything.”
Raj Govindarajan, senior manager, supply chain initiatives, Ulta Beauty
“A sale is a sale is a sale”
Uma Bhemisetty, VP, retail systems The Men’s Wearhouse
“The POS terminal business is terminal”
Eddie Capel, president and CEO, Manhattan Associates