Amazon and Ebay’s ‘Click and Collect’ dominance increases pressure on smaller etailers
Consumers’ desire for convenience and the continued war between eBay and Amazon has led to some exciting developments in the ‘click and collect’ arena in the past few weeks.
Hot on the heels of the announcement that Sainsbury’s had acquired eBay’s partner Argos and was therefore now expanding eBay’s available Click and Collect points nationwide, came the news that Morrison’s were installing hundreds of Amazon lockers in their stores this year. This takes the number of these points to over a thousand including the stations, universities, shopping centres, convenience stores and airports already in existence.
Picking up much needed goods whilst doing the weekly shop is not only extremely convenient and time saving but is now becoming the norm for UK consumers, certainly in the lead up to the holiday season.
Major Retailers on how Click and Collect benefits their customers
Comments from the major retailers involved in this exercise highlight the continued growth and need in this sector of the market. Sainsbury’s chief executive John Rogers commented that “It’s an exciting time in retail. As customer shopping habits change, people increasingly want flexibility, speed and choice both online and in-store,”. This was closely followed by John Tagawa, Amazon’s vice president of UK Operations “Amazon Lockers are the delivery option of choice for many customers who want to pick up their shopping at a time and place that suits them best. Morrisons’ supermarkets are ideal locations for Amazon Lockers which allow people to pick up their parcels while on the move.”
Finally, this sentiment was echoed by Trevor Strain, chief financial officer of Morrisons, who said: “Many busy customers can’t wait at home for their delivery, and we believe the option to pick it up from one of our hundreds of conveniently located supermarkets will be attractive.”
How will Click and Collect impact retailers during the rest of 2016?
As the consumer need for immediate delivery options, including click and collect, increases, this is going to put more and more pressure on Etailers to consolidate orders from all channels, ensure enough stock is available and to despatch these goods as quickly as possible, whilst being in constant contact with shipping couriers to ensure that they are able to meet the delivery promises of one hour, three hour, five hour windows that consumers are signing up for.
We predict that those Etailers that have the systems and processes in place to capitalise on this niche have the possibility of making a significant amount of money in the coming months, particularly due to the fact that consumers are busy and often leave shopping to the last minute (certainly around Christmas-time). An Etailer who can optimise their pick/pack/despatch process to accommodate these needs is going to see significantly more order volumes versus one who is only providing a 2 – 3 day delivery option presently. So investing in an ERP system that gives Etailers this ability to manage these immediate increases allows them to capitalise on this surge in demand and significant revenue stream.
Predictions are that Christmas 2016 will see an increase of 10% in sales over the same time last year (according to a report by PWC) and it goes without saying that the big winners are generally the larger retailers that have the right systems in place to manage any major fluctuations in order volumes and the associated demand that this puts on a business in terms of increased returns and customer service requirements. So a stark warning to all Etailers out there – are you ready to make this investment and to step up a gear or are you going to be left behind again this Christmas?
If you would to learn more about how our ERP solution can help you deliver the shipping the options that your customers’ require, whilst staying lean, mean and keen this Christmas, then contact us today and request a free demonstration of Khaos Control.