Survey: Retailers are not optimizing omnichannel fulfillment
Despite the chance to significantly boost margins, fewer than one in three retailers have optimized seamless processes such as BOPIS.
According to a recent survey of over 300 North American retailers from Manhattan Associates and IHL, retailers that optimize omnichannel fulfillment offerings see substantial improvements in their margins. This includes an average 7.5 margin point improvement in buy-online-return-in-store (BORIS), 7.2 margin point improvement in buy-online-pickup in-store (BOPIS), and 6.3 margin point improvement in buy-in-store-ship-from-another-store.
However, despite these results, 30% or less of the retailers surveyed have optimized these processes. Specifically, optimization results include:
• BORIS – 30%
• Ship from store to consumer – 28%
• BOPIS -27%
• Buy online local delivery from store – 24%
• Same-day click & collect – 22%
• Buy in-store ship from another store – 16%
“With expanding fulfillment options and rising customer expectations, the retail market is rapidly growing in complexity,” said Greg Buzek, president of IHL. “Retailers need to quickly pivot to solutions designed and engineered for the way consumers shop today and into the future. Those who have optimized these customer journeys are racing ahead in profitability. Those who have not are losing many points of margin on every sale.”