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Retail Business Review | Tuesday, April 12, 2022
The challenge being laid today is to understand that in-store fulfillment is a workaround, not a scalable solution, for retailers penetrating further into eCommerce.
FREMONT, CA: No customer would prefer to race the internet to get the last onion in the produce aisle at Whole Foods on a Sunday afternoon or the frustration of knowing the item they want is in the store but out of stock. During the early days of the COVID-19 pandemic, in-store fulfillment models such as gig delivery services and buy online pickup in-store (BOPIS) expanded and are credited on earnings calls with increasing revenue potential and maintaining margins.
Gig delivery and BOPIS, on the other hand, ignore the entire customer journey, particularly the one that involves unlucky souls pulling a cart through the aisles of a store to complete a purchase at a physical checkout. It's enough to entice you into the metaverse. The current difficulty is recognizing that in-store fulfillment is a workaround, not a scalable solution, for merchants looking to expand their internet presence. If the physical customers have a negative experience due to technical processes it means the whole customer journey as a whole was a failure.
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At retail locations, store fulfillment generates delays and disturbances. On weekends and during peak hours, grocery store shelves are bare as gig workers crowd the aisles and empty stores of supplies that will be delivered to customers' homes. BOPIS models benefit the retailer rather than the customer, basically outsourcing the final mile by moving the transportation and delivery responsibility to the customer. BOPIS also requires employees to divert time away from other tasks to hunt for products set aside for pickup by consumers, which causes confusion in checkout lanes and clogs traffic flow. Most crucially, when completing eCommerce orders from retail store locations, demand planning and inventory allocation may never be entirely correct. There is no method to update real-time inventory levels, and charges are frequently only partially fulfilled when products are promised to numerous channels, resulting in a negative customer experience for some shoppers.
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Retailers must focus on how their eCommerce activities affect the overall customer experience. When in-store fulfillment is prioritized, many customers are lost in the shuffle, whether they are elbowing their way through the dairy aisle or strolling through stores with shelves that have been emptied to fulfill online orders. With the rise of connected fulfillment networks, brands can now provide the customer experience that each specific consumer wants, regardless of their choice, thanks to software that centralizes order sources, inventory availability, and delivery options in one location.
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