No longer just an online bookstore, the rise of Amazon has changed the way the world shops for everything. The Amazon Fulfillment concept has set the standard. The “each pick” becomes the norm. The challenges that face thousands of retailers today are countless. Amazon’s “no regrets” approach has forced traditional retailers like Walmart, Nordstrom, and Macy’s to spend heavily to offer their products online. The consumer is equally likely to purchase on-line as they are to go to a store. Many of the great minds that streamlined the DC’s have had to rethink everything. The ideas of same-day shipping, free shipping, and subscription-based business models are here to stay. Not convinced? Walmart is on pace to grow their on-line business by over 30% for 2019.
The idea that you can do both within one facility is a challenge. The investment in “process”, software, skilled management team and staff is required. Forward-thinking has allowed traditional retailers to leverage their network of stores to act as fulfillment centers. Walmart and Target are offering more SKU’s for free same-day and next day shipping than any other competitors to Amazon.
The pressure to compete is tremendous. Rising labor costs and scarcity of labor within the US add to the challenges. Margins are impacted by the absorption of shipping costs.
ABCO Systems provides both startups and established “brick and mortar” retail with insights into industry trends and provides solutions that reduce costs and improves shipping times. Contact us today to have an ABCO engineer work with you on the right solution for your business.