2. How to Win in an Omnichannel World
• Retail customers are now “Omnichannel” in their outlook
and behavior — they use both online and offline retail
channels readily.
• To thrive in this new environment, retailers of all types
should reexamine their strategies for delivering information
and products to customers.
3. How can retailers effectively adapt to an
Omnichannel environment
• Consumers’ Omnichannel behavior is spurring innovations in the ways retailers
provide information and products.
• Both traditional and online retailers should consider hybrid online-offline
approaches.
• Hybrid approaches include inventory- only showrooms and “buy online, pick up
in store” options.
4. THE INFORMATION AND FULFILLMENT MATRIX
• In an omnichannel retail environment, customers can either visit stores
to obtain information, or they can seek information remotely. They can
also either visit a store to pick up items, or the store can “come to them”
when products are delivered.
5. INFORMATION DIMENSIONS
• Information Remote vs Direct Access
• Fulfillment: Delivery vs Pickup
• Information Online, Fulfillment Offline
• Information Offline , Fulfillment Online
6. INFORMATION REMOTE VS DIRECT ACCESS
• In Online quadrant ( 2 & 4)This gives customers information by
remote means via catalog and website
• This form of information delivery is most suited to products
containing a few non-digital attributes
• When companies operate in quadrant (1 & 3) they customers direct
access to product information via physical access to store.
• This method of information delivery is well suited for retailing
products having “high touch value”.
7. FULFILLMENT: DELIVERY VS PICKUP
• With regard to fulfillment, there are important differences in
customer experience and business impact with
quadrant(1&2) and quadrant(3&4)
• From consumers point of view obtaining a product after a
visit to store and also by delivery has advantages and
disadvantages
• From Retailers point of view, fulfilling orders in stores
quadrant (1&2) and quadrant(3&4) pose very different
changes
• When orders are fulfilled in stores important store-design
and location to be made. In case of delivery fulfillment can
be centralized from a distribution center in a less expensive
area.
8. INFORMATION ONLINE, FULFILLMENT OFFLINE
• This is a hybrid strategy by quadrant (2) eg.( Crate & Barrel and
Toys “R” Us ) implemented a Buy Online &Pick up in store (BOPS)
• The BOPS offers shoppers a compelling value position, and there
are two reasons
1. They can get accurate information about price and
availability of product before placing order.
2. Since they can pick-up the item, they get gratification from
immediate access to the purchased product.
• Management expectation was that post-BOPS, online sales in U.S
would increase , but that didn’t happen. In fact online traffic into
website went up. Hence overall sales went up
9. INFORMATION OFFLINE , FULFILLMENT ONLINE
• This is an strategy by quadrant(3) eg.(Warby Parker)
implemented sampling program “Home Try On”
• They were well aware of customers like touch and feel
experience, prior to buying it.
• They started inventory online showrooms, that displayed
and gives trials of product, and delivered online.
• Hence the company was able to expand the sales by
providing information offline, also found that website sales,
where mainly in showroom nearby and adjacent areas.
• Thus offline showroom thus appear to confer awareness and
brand legitimacy benefits such that new customers show up.
10. CONCLUSION
• Product information gets delivered to potential customers
not just by a retailer, but also by other customers of retailers.
• Prior, to the research shown that online sales of the
commodity products vary significantly with variations in real
life factors such as population density and access to store.
• Bonobos.com a men’s fashion brand with E-commerce as
core distribution channel, began life in quadrant 4 later
developed offline “guide shops”
• These important information benefits translate to the online
world, that online sites would have better information
delivery and thus can reduce product returns
11. CONCLUSION
• Customers are omnichannel is their thinking and behavior.
Sellers need to be as well
• The Research underscores the best seller will win the
omnichannel revolution by working across the information
fulfillment. Which offering right combination of experiences
for customers demand.
• The article describes shopping process in which a customer
undermined the efficiency of company’s existing information
and fulfillment method.
12. NEWS CORNER
Amazon FBA Program
• Fulfillment by Amazon or FBA is one of the most popular ways to start selling on Amazon. Many
people take advantage of Amazon’s state of the art shipping and fulfillment services, and
amazingly FBA sellers can even earn more sales than Amazon Prime customers.
• But in order to find out how much money can you make with Amazon, you have to know the
whole process.
13. • Amazon’s FBA is an eCommerce program that allows you to sell products on
Amazon without managing your storage and logistics. All you need to do is send
your products to Amazon, and they will handle orders, returns, and refunds.
• Experts predict that by 2025, there will be more than 500 million autonomous
mobile robots in warehouses to fulfil customer’s orders. This will increase the
speed and flexibility of operations if you run a business on Amazon’s FBA
program.
14. Walmart trimming corporate jobs as part of
omnichannel strategy
• Walmart is reportedly slicing corporate jobs as part of its quest to
merge its online and physical businesses and become a stronger
omnichannel retailer.
• The U.S. retailer has not stated how many jobs will be cut
and told CNBC it would provide further detail after employees have
been informed.
• Walmart has already laid off hundreds across several business units,
according to a Bloomberg report.
• In May, it announced it was shuttering its online store, Jet.com, and
recently announced it was creating Walmart+, a subscription service
tailored as an Amazon Prime competitor.
