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Store owners once viewed e-commerce as a mounting threat to their survival. Now, more bricks-and-mortar stores are thriving after integrating their properties with the online shopping experience. Shoppers browse in person to see, touch or try on items before ordering them online. They are picking up or returning purchases in stores. Retailers are increasingly relying on their shops as fulfillment hubs, shipping items ordered online from store stockrooms in addition to warehouses. Overall, nearly 42% of e-commerce orders last year involved stores, up from about 27% in 2015, according to research firm GlobalData. “There was a narrative that as online grew, stores would become less relevant. But it hasn’t worked out that way,” said Neil Saunders, managing director at GlobalData. “In many ways, the store is still the heart or hub of retail.” It is another example of how online-only retail has its limits, and why physical stores are making a comeback. After years of overbuilding that lead to a sharp contraction, retailers are on track to open more stores than they close in 2024 for the third consecutive year, according to advisory and research firm Coresight Research. Many retailers have found that it is too expensive and difficult to attract and retain customers without physical stores. And using stores as pickup and drop-off points helps lower the labor, packaging and shipping costs involved in online orders. Big-box retailers started building up their store-fulfillment operations and infrastructure for in-store pick ups and returns before the pandemic after realizing that returns were higher for items bought online and that digital sales were less profitable. Kohl’s now fulfills more than a third of its online orders in stores, Walmart more than half, and Target nearly all its sales from its network of roughly 2,000 locations, according to the companies. E-commerce’s growth and impact on the retail landscape shouldn’t be understated. Online sales accounted for 15.4% of total retail sales last year, up from 14.7% in 2022 and 6% in 2014, according to the U.S. Department of Commerce. And not all types of retailers have figured out how to make services like in-store pickup profitable. Grocery stores, which already operate on thin margins, are struggling to make money on fulfilling online orders, which are labor-intensive and require setting aside significant additional space in the store for the refrigeration of items awaiting pickup. 

Why Retailers’ Obsession with Conversion is Keeping Them from…Converting It’s no secret that retailers and brands have become obsessed with driving conversion in their quest to recover the more than half of shoppers who abandon checkout before completing their purchase. But too often, in trying to reach this final destination, retailers are missing out on the proverbial journey — and that journey is usually far more lucrative than the typical take-no-prisoners, myopic approach to “conversion.” #retail #ecommerce #customer #sales #conversion #brand #shopper #checkout

The shift from in-store to online shopping is accelerating. Convenience stores are facing a tough challenge as customers turn to Amazon and Walmart for frictionless shopping. How can pharmacies and convenience stores reclaim consumer loyalty? Explore more in the shared article. #RetailChallenges #Ecommerce #CustomerExperience #StoreInnovation

Why Retailers’ Obsession with Conversion is Keeping Them from…Converting It’s no secret that retailers and brands have become obsessed with driving conversion in their quest to recover the more than half of shoppers who abandon checkout before completing their purchase. But too often, in trying to reach this final destination, retailers are missing out on the proverbial journey — and that journey is usually far more lucrative than the typical take-no-prisoners, myopic approach to “conversion.” #retail #ecommerce #customer #sales #conversion #brand #shopper #checkout

The shift from in-store to online shopping is accelerating. Convenience stores are facing a tough challenge as customers turn to Amazon and Walmart for frictionless shopping. How can pharmacies and convenience stores reclaim consumer loyalty? Explore more in the shared article. #RetailChallenges #Ecommerce #CustomerExperience #StoreInnovation

How often does your customer's shopping cart sit idle, eventually leading to abandonment? Picture this: a customer meticulously selects items for their cart, but then a call comes in, or a new tab distracts them from their purchase at hand. Time slips away. What's concerning? The unique stock piece they desired might just vanish from the shelves in their absence, leading to disappointment when they finally return to checkout. The remedy? Transparency and urgency. By displaying the exact date and time until which an item is available at a chosen pickup location, retailers can fuel quicker purchasing decisions. It's about infusing a sense of immediacy, subtly nudging customers to act. HotWax Commerce implements this strategy on the Shopify platform by allowing retailers to feature a clear "reserved until" date and time. The product is then kept on hold for the customer within this window. But once this timeframe lapses, they'd need to refresh their cart to confirm the item's real-time availability. Such straightforward deadlines not only streamline BOPIS transactions but also foster customer commitment, pushing down cart abandonment rates. So, as retail trends evolve, how are you ensuring your customers stay engaged till the very last click? Check out our new Same-Day Buy Online Pickup In-Store solution page to learn more about how you can offer your customers an upgraded BOPIS experience: https://hubs.la/Q02tkcBN0 #ShoppingandtheRetailIndustry #BOPIS #OmniChannelRetail #BOPIS #FashionRetail

Online Shopping on the Rise, But Stores Aren't Dead Yet 💪 📢 Online shopping is booming! Convenience & vast selection win consumers over. But missing out on physically seeing products is a drawback 🔮The future? Both online & physical stores have a place, but online will likely grow stronger. Sustainability, efficiency, and correct product information are the key. Traditional stores, adapt or risk falling behind! 🚀 Read more about the future of retail stores and e-commerce! ✨ #ecommerce #retail #futureofretail #icecat #productinformation #pim

How eCommerce Changed the Way We Buy And What’s Coming Next In the era of technology, shopping has changed in ways that were unthinkable only a few decades back. What we use today as eCommerce was not only a change in our buying habits but also the re-orientation of world economies.The process of purchasing items has altered with time over the years from purchasing items in physical stores to online shopping where e-commerce has changed every step of consumer experience. Click here to read more... https://lnkd.in/gGpUA5Rp #ecommerce #buy #technology #Shopping #onlineshopping #onlineshop #onlinestore

How can brick-and-mortar stores compete with their online retailer competitors? If your main operations are in a physical store, your team should focus on building a unique customer experience in person. Check out these tips: #OnlineRetail #BrickAndMortar https://lnkd.in/gxZvFZJt.

In-Store Pickup, Online Bliss: The New Retail Paradigm Store owners once viewed e-commerce as a mounting threat to their survival. Now, more bricks-and-mortar stores are thriving after integrating their properties with the online shopping experience. E-Commerce & Retail Integration: Bricks-and-mortar stores are no longer just physical spaces for shopping; they are increasingly becoming essential components of the e-commerce ecosystem. Retailers are integrating their online and offline channels to create a seamless shopping experience for customers. This integration allows customers to browse products online, make purchases, and choose between home delivery or in-store pickup. Store-Fulfillment Growth:Last year, nearly 42% of e-commerce orders involved physical stores in some way. This is a significant increase from 27% in 2015. Retailers are leveraging their existing store networks to fulfill online orders more efficiently. In-store fulfillment centers help reduce shipping costs and delivery times, especially for local customers. Advantages of Physical Presence: Having physical stores provides several advantages for retailers: Customer Acquisition: Physical stores attract foot traffic, which can lead to new customers discovering the brand. Brand Experience: In-store experiences allow customers to interact with products, try them out, and receive personalized assistance. Returns and Exchanges: Customers can conveniently return or exchange items at physical stores. Reduced Shipping Costs: In-store pickup options reduce the cost of last-mile delivery. Omnichannel Expectations: Customers now expect a seamless omnichannel experience. They want the flexibility to shop online, pick up in-store, or have items delivered to their doorstep. Retailers that successfully blend their online and offline channels can meet these expectations and retain loyal customers. In summary, the synergy between e-commerce and physical retail stores is reshaping the way consumers shop, and retailers are adapting to meet these changing demands. #economy #ecommerce #retail #technology #cre #cref #wsj https://lnkd.in/e9Qq6eXT