E-commerce sales continue to grow, generating over $300 billion in the U.S. alone in 2015. But e-commerce still remains a small percent of overall retail sales at approximately 10%.
So what can multichannel and ecommerce retailers do to increase their online sales?
How would e-commerce look in 2018?
What skills Solution Providers would need to support retailer's technology needs?
a multichannel approach to sales that seeks to provide the customer with a seamless shopping experience whether the customer is shopping online from a desktop or mobile device, by telephone or in a bricks and mortar store.
Mobile Device Purchasing Will Grab a Larger Market Share Consumers Will Expect Greater Fulfillment Flexibility Contextual shopping will replace personalization
Created in 2005, Amazon Prime is a $99 Amazon membership that offers free two-day shipping within the continental U.S. on eligible purchases and discounted one-day shipping rates. Membership also includes Amazon Instant Video, an instant streaming of movies and TV shows, as well as access to the Kindle Owners’ Lending Library, Prime Music (unlimited streaming of songs) and Prime Photos (unlimited photo storage).
The everything store: “In 2004, an Amazon engineer named Charlie Ward used an employee-suggestion program called the Idea Tool to make a proposal” Speedy shipping club for consumers who are sensitive and who are not price conscious “ “Bezos decide on $79 per year, saying it needed to be large enough to matter to consumers but small enough…” Service was expensive to run. The service turned customers onto Amazon addicts
http://techcrunch.com/2016/04/06/amazon-brings-same-day-delivery-to-nearly-a-dozen-more-u-s-metros/ In total, that means Amazon’s same-day delivery is now available in 27 metro areas across the U.S., or more than 1,000 cities and towns.
Amazon long resisted building warehouses to take advantage of tax loopholes, but now that the tax benefit is no longer quite so lucrative, they’re building space rapidly to keep pace with consumer demand and training buyer’s delivery-time preferences.
Prime Air — a future delivery system from Amazon designed to safely get packages to customers in 30 minutes or less using small unmanned aerial vehicles, also called drones. Prime Air has great potential to enhance the services we already provide to millions of customers by providing rapid parcel delivery that will also increase the overall safety and efficiency of the transportation system. Putting Prime Air into service will take some time, but we will deploy when we have the regulatory support needed to realize our vision.
UberRUSH - connects you with a courier to make a delivery. Your courier will arrive at the push of a button, ready to take your items and deliver them wherever they need to go.
On-demand delivery is something consumers have come to expect. With that in mind, startup Dispatch is building a fleet of autonomous delivery vehicles designed for sidewalks and bike paths. https://youtu.be/_PKyKluMcNM
At the Amazon fulfillment center in DuPont, a robot, at right, zooms away as Byron Struble removes packages from the container on top of another robot and then places them onto a conveyor belt. Thousands of robots and about 500 workers coexist at the plant. (Ellen M. Banner/The Seattle Times)
“$480 billion in online sales by 2019”
“Rapid smartphone adoption continues to be a
major driver for eCommerce
as consumers spend more time online,
increasing the likelihood that they will engage
in an online
“an omnichannel strategy isn’t optional”
Forrester Research eCommerce Forecast,
2014 To 2019 (US)
“by 2017, U.S. customers’ mobile engagement
behavior will drive mobile commerce revenue
in the U.S. to 50% of U.S. digital commerce
“US MOBILE AND TABLET COMMERCE TO TOP
$293B BY 2018”
Retail sales through tablet are expected to
triple in 2018
82% of people consult their phone regarding a
purchase they’re about to make in a store.
90% of people use multiple devices for
purchase related activities.
TREND: INCREASING CHOICE OF FULFILMENT OPTIONS
extended pickup and delivery times1
a self-service delivery location to pick up5
Convenience shopping becomes a must-have for large retailers
The retail customer is getting used to convenience.
2005 2007 2012
2014 2016 Amazon Prime Air
AMAZON PRIME AIR
INCREASING CHOICE OF FULFILMENT OPTIONS
Domino's Robotic Unit
THE DIGITAL WORKPLACE BECOMING HOME TO SMART
Amazon fulfillment center OSHbotOcado Automated Warehouse
• OSHbot works as a retail
assistant in downtown San
• 5-foot-tall autonomous robot
• just recently celebrated his
one-year anniversary at the
store, which is owned by
• help customers find items they
need, and help store managers
with inventory tracking
• products that are delivered
to a consumer as and when
they are needed
• Contextual shopping will
• Using data from devices
smartphones, and smart
thermostats, the Internet
of Things can help to
streamline the shopping
• Amazon Dash uses AWS IoT
buttons to seamlessly
intertwine ecommerce and
the real world applications
• Big Data
OPPORTUNITY - SKILLS REQUIRED
The Everything Store: Jeff Bezos and the Age of Amazon. Brad Stone