Mobile Commerce Daily – While retailers and consumer goods manufacturers are investing heavily in omnichannel selling capabilities and often putting mobile at the core of these efforts, new research from JDA Software and PwC reveals that only 16 percent of companies’ efforts are profitable when it comes to fulfilling omnichannel demand.
The report, The Omni-Channel Fulfillment Imperative, highlights how the high cost of fulfilling orders is eroding retailers’ margins as they focus on enabling consumers order online and either have items delivered to their homes or pic them up at a nearby store. Mobile opens up opportunities for retailers to drive more profits from the omnichannel experiences by leveraging a shopper’s geolocation to minimize shipping costs.
“While most retailers aren’t doing it today, leveraging geolocation information of mobile shoppers represents a huge opportunity to minimize shipping costs for omnichannel sales and improve the customer experience,” said Ken Morris, principal at Boston Retail Partners. “Based on a shoppers physical location, retailers can identify the closest store with the product (on hand) that they are browsing on their smartphone and direct the consumer to that store.
“This benefits both the retailer and the consumer,” he said. “The consumer can get the product quickly and see and/or try the product on, which makes the purchase easier and reduces the hassle of returns.
“The retailer can minimize shipping costs, reduce the costs associated with returns and potentially increase sales with incremental purchases when the shopper visits their store.”
READ THE FULL ARTICLE: Retailers embrace omnichannel selling but profits are elusive