Everything changed when the COVID-19 pandemic spread worldwide—and the fulfillment industry was no exception. Fulfillment market trends for August 2020 are a result of the changes many organizations had to make to adapt to the new e-commerce landscape. From contactless delivery to boosting online presence, these changes since February have drastically shifted the fulfillment industry and businesses are expected to settle into this “new normal” as quickly and efficiently as possible. Here are the key e-commerce market trends to know for 2020, so that you get up to speed.
The COVID-19 pandemic took everyone by surprise. Businesses were forced to close, and people were unable to shop and go about their business as usual. But even as many governments around the world have begun to reopen businesses and resume services, things still are not the way they used to be. The pandemic has reshaped the retail world and more consumers have started shopping online to get the products they need. If you operate an e-commerce business, here’s why contactless order fulfillment is the new normal for 2020 and onward.
Growing Demand for Contactless Order Fulfillment
The pandemic has accelerated a shift away from shopping in physical brick-and-mortar stores to shopping online. Department stores have seen significant declines and many smaller shops have had to shut down indefinitely. In fact, in the first quarter of this year, department store sales and other non-essential retailers noticed a decline of 25%. In the second quarter, this increased to a 75% decline.
It’s not all doom and gloom for small- and medium-sized business, however. E-commerce is projected to grow by nearly 20% this year, according to reports.
The United States has been one of the hardest hit countries around the world when it comes to the COVID-19 pandemic. Social and physical distancing guidelines encourage more and more people to stay home as much as possible and only go out to do essential errands. That means more and more people are placing online orders. As a result, business owners have been forced to rethink and reformulate their existing product fulfillment and distribution strategies to better meet the growing consumer demands.
To avoid having to deal with various physical distancing and mask-wearing guidelines or store regulations, more people are ordering their products online from the comfort of their own homes.
No matter the size of your business, order fulfillment issues are a common encounter in e-commerce. Errors can occur during the warehousing, packaging, shipping, and delivery process, and each of these aspects can have their own set of complications and stresses. If you want to ensure your business runs smoothly and successfully, here are some important facts about the most common e-commerce fulfillment challenges, and how you can resolve them.
Maintaining your current customer base is an ongoing challenge for all e-commerce businesses. That is why it is critical to utilize different ways to increase customer retention.
Here are some customer retention strategies to employ on an ongoing basis to ensure your e-commerce business is successful.
Importance of Customer Retention for Your Business
Some business owners may notice that the Pareto principle applies to their customers: Roughly 20 percent of your customers can bring in nearly 80 percent—or more—of your business’s revenue. There are many other benefits to customer retention upon closer analysis.
There are many different strategies to improve customer satisfaction, and implementing these strategies should be one of your top priorities as a business. When customers have a good first or second experience with your business, you’ll have a greater chance of turning them into loyal customers that stay with you for the long term. Happy customers are also more likely to recommend you to their friends and family, which works as free advertising for you. If you want to improve customer satisfaction with an order fulfillment center, here are some tips that can help you.
Ways to Improve Customer Satisfaction with Order Fulfillment
When it comes to getting the absolute best order fulfillment, customers are extremely appreciative. People are like elephants when it comes to poor service—we tend to never forget. However, great experiences condition customers to come back again and again.
The Importance of Customer Loyalty for e-Commerce Businesses
Customer loyalty is the main driving factor for any fledging or established e-commerce business. Sometimes, customers harbor doubts and fears about ordering online that affect their decision-making process. Whatever you can do to endear their loyalty will be a big boost for your brand.
Kitting services refer to the assembly of individual items into ready-to-ship packages. Many businesses choose to outsource kitting services for a variety of reasons. If you currently conduct your kitting and assembly services in-house and are thinking about outsourcing them, take a look at this list of the benefits of kitting outside your own company.
E-commerce fulfillment refers to the processing and shipment of online orders to customers. For the e-fulfillment process to go smoothly and without error, there are many processes that need to be optimized and completed efficiently—from when a customer checks out online to when they receive their package, and all the steps in between. E-commerce order fulfillment can be a lot to handle, and it requires a ton of effort and manpower to be carried out effectively. Since a large portion of your customers experience depends on your order fulfillment speed and accuracy, it might be worth your while to hire a company that specializes in e-commerce fulfillment services. Wondering how outsourcing your fulfillment responsibilities will benefit you? Keep on reading.
There are many misconceptions about e-commerce order fulfillment, especially when it comes to outsourcing these services. Order fulfillment is a complicated process that takes a lot of manpower, organization, and a certain level of experience to master. Since it has the ability to affect customers and the experiences they have with your company, order fulfillment shouldn’t be taken lightly. There are a ton of e-commerce order fulfillment companies that can carry out your order fulfillment services, as these third-party logistics companies were designed to be able to offer companies a thorough and convenient service to help improve their customer satisfaction and grow their business.