Several reports have confirmed that Amazon will shutter its Webstore service by July 2016. Amazon has notified its online retailers that are using the ecommerce platform on their own sites of the shutdown, according to SmartBusinessTrends.com.
Seeing what is happening to their customers and feeling the heat from possible threats, technology companies are increasing spending on security for their own systems, according to a survey of chief financial officers. Meanwhile, incentives to spend big on security are still in short supply for retailers and other private companies.
Online shoppers around the world want the ability to search and shop on
multiple channels and devices, expect to see alternate delivery and payment options, and when it comes to shipping and returns, "free" is a driving factor to complete the sale.
Analyst Insight: The double-digit growth of the ecommerce channel is indisputable; yet, it's still only 6 percent of total U.S. retail spend. Amazon may seem like it's the 600-lb. gorilla, but it may just be Humpty Dumpty sitting on a wall. Omnichannel is certainly getting its share of hype. We believe connected consumer commerce will be a competitive mandate for bricks and mortar retailers. Are you ready for the disruptive changes to the rules of the game? – Rich Sherman, author and founder at Gold & Domas Research
Although the term "omnichannel" has become most associated with success in retail and consumer goods, few companies are confident in their omnichannel abilities, according to a new study by Ernst & Young and the Consumer Goods Forum. They blame the supply chain.
Analyst Insight: E-commerce continues to grow by double digits and many companies are striving to achieve omnichannel success. A successful omnichannel strategy means having the capability to meet customers' increasingly high expectations by enabling them to buy anywhere, take delivery where they want to take delivery, and make returns where they choose. While today's leading retailers understand the need for omnichannel success, the majority are falling short of meeting their objectives. – Kelly Reed, Executive Vice President, Tompkins International
Analyst Insight: The rise of omnichannel fulfillment and e-commerce is having a dramatic impact on distribution network design. As omnichannel fulfillment becomes the new normal for consumers, distribution and logistics professionals are increasingly reassessing their fulfillment networks, the attributes of their distribution facilities and the expectations placed on their partners. This reassessment is leading to more innovative fulfillment options, but uncertainty remains on the profitability of additional customer service solutions. – Barry Blake, Vice President, Research, SCM World
Analyst Insight: While e-commerce is buzzing, it's still only 6 percent of total U.S. retail spend. For CPG companies, the Online Search to Offline Purchase (O2O) market (30 percent to 40 percent of retail spend) growth is driven by mobile commerce. Some 74 percent of smartphone owners use their device while shopping with 79 percent ultimately making a purchase as a result, according to Retailigence. As the "moment of truth" shifts to the "point of demand", more information is available to support supply chain decisions. – Rich Sherman, author and founder at Gold & Domas Research
Analyst Insight: Consumer products companies are making far greater use of alternative sales channels than ever before. They are proactively reaching out to customers, whether in B2B or B2C environments, to gain share of mind and increase sales. Consumer products companies have also become much more active using their own websites and utilizing marketplaces as a means to increase their product's visibility and availability to potential customers. – Bruce Tompkins, Executive Director, Tompkins Supply Chain Consortium