Retailers are offering faster delivery services to Internet shoppers in order to grow sales and profit margins.
Fulfilling Internet orders from store locations is a popular strategy in US retailing right now; using outlets as distribution warehouses cuts down on staffing and rental costs as well as offering more delivery options to customers.
US retailers are working hard to grow market share in the critical holiday retailing period. Using competitor price monitoring tools to compete more aggressively on price, the operators using price intelligence to drive dynamic pricing and fulfilling orders from a combination of stores and warehouses will tempt more shoppers into closing sales transactions over the holiday season.
Walmart, the world’s biggest retailer by sales, recently started same-day delivery trials in Minneapolis, Philadelphia, San Francisco, San Jose and Virginia. The retailer is now using a selection of its stores as distribution centres for the fulfilment of Internet orders.
Profitero checked out the shipping strategies of a selection of US multichannel retailers and pure-play online sellers for the upcoming holiday season:
Best Buy
Online orders can be collected from a store for up to eight days after being placed online. The retailer has promised a better Internet ordering service this year – customers experienced online order fulfilment issues over last year’s holidays.
Walmart
Same-day delivery for holiday season – $10 flat fee for online orders of televisions; toys and and general merchandise are shipped to shopper from nearby stores.
Toys “R” Us:
Most stores are operating under the company’s “Ship from Store” program – in-store inventory is used to fulfil online orders.
EBay
Trial of same-day delivery of online orders from stores such as Target, Best Buy and Toys “R” Us in San Francisco
Amazon Prime
The membership programme offers free two-day shipping in the US – subscription fee of $79 per year / $7.99 per month. Amazon is also installing lockers in more third-party store locations.
© Profitero 2012
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About Profitero
Pricing intelligence company Profitero works with retailers and manufacturers to help them increase sales and maximise their profits by using competitor price, promotions and stock information at scale. For more information on Profitero price intelligence and competitor monitoring, visit www.profitero.com or email sales@profitero.com.
