Retailers Delivery Trends - Shaping up in the industry during Covid-19
The retail industry has been deeply impacted because of the coronavirus. People have reduced their spending across all non-essential items and are only buying essentials. Many physical stores have closed, and consumer confidence remains low.
Consumers now need more support on the delivery and logistics front. This sudden change has meant that the retail industry has to adapt quickly. The companies have to protect the health of its workers and customers, while also coping with the rising demand for products.
Here are some of the trends that are shaping up in the industry:
Grocery delivery services and meal subscription companies gaining demand
New and repeat users have increased for online groceries. There is an increasing number of senior citizens who are now using online groceries. This means that E-groceries can use this opportunity to acquire long-term customers.
For instance: Meal delivery companies can potentially gain more consumers if they provide high-quality food with temperature-controlled protein.
Reducing delivery options requiring social interactions :
The retailers are reducing the delivery options like PUDOs (Pick Ups and Drop Offs) or BOPIS (Buy Online and Pick-Up In Store) because these options create social interactions. They have even extended these contactless interactions to fleet drivers too.
Retailers should provide all possible delivery options for consumers. Also, they need to carefully manage the delivery of non-essentials and diversify their last-mile operations for it.
Provide communication and transparency :
Retailers are experiencing an increase in customer contacts leading to long wait times and dissatisfied customers. They should create transparency in their operations through clear communication. The information and insights into the business help retailers to build brand trust and boost consumer confidence.
Utilizing multiple carrier options
Consumers are continuously ordering products through online shopping. Retailers who entirely depend on a single carrier could suffer from a significant disruption.
Multiple carrier integrations can help retailers overcome the inability to fulfill delivery requests and ensure business continuity.
Online spending has increased :
Social distancing has multiplied online consumer spending. Brick and mortar retail stores are closing and are focusing on earning their revenue dollars online. Many retailers in the US have announced the hiring of additional warehouse workers to manage this increase in online shopping.
Preference shifted towards product availability than brand loyalty "
Whether consumers shop online or in-store, they are facing a shortage of products. The ‘out-of-stock’ situation has shifted the preference of consumers to availability rather than brand loyalty.
These sudden peaks in demand require inventory planning tools, or Artificial Intelligence tools to normalize supply chain operations.
