Amazon Is Set To Account For 1/5th Of Online Spending By 2024 – Here’s How To Get Your Share Too
There’s no denying that Amazon is a dominant driver within the retail market. The online platform has received both praise and scrutiny for its involvement in changing how people shop both online and in-store.
There’s no denying that Amazon is a dominant driver within the retail market. The online platform has received both praise and scrutiny for its involvement in changing how people shop both online and in-store. Research suggests that the ‘Amazon Effect’ isn’t the only thing causing a flux in the market though, with the weather and political climate both having a hand on the wheel.
We recently reported how the unexpected warm weather in February caused a sales boom, with the industry recording its strongest growth in six months. In comparison, May has been a slow month for retail, with sales taking their biggest slump in 24 years. It’s an unwelcome change after a promising start to the year, but the data suggests that it’s not all set for doom and gloom. Early projections for June showed that Father’s Day could help propel retail to a better sales performance, however Amazon still seems to be taking the lion’s share.
Studies released this month showed that 45% of shoppers were planning to shop on Amazon for their Father’s Day gift inspiration this year. Additionally a new report from GlobalData – the Amazon Strategic Review 2019 – has predicted a rise of 58.2% over the next five years to reach £15.7bn by 2024. According to the report, Amazon has experienced worldwide revenue growth of 161.7% between 2014 and 2018, with numbers reaching $232.9bn (£183.89bn) in 2018.
So, with the warmer weather starting to peak, if retailers are going to make the most of the summer boom, they need to look into how they can remain competitive as Amazon continues to dominate shopper interest.
How can retailers claim their place in the market?
With almost 90% of UK shoppers using Amazon, it’s not surprising that the number of sellers on the platform has reached near two million. If you’re selling on Amazon, you need to ensure you’re using the right listing and product management tools to remain competitive on price and win the Buy Box more often. You also need to look at what is making Amazon and their Prime service so enticing to consumers – the speed of their fulfilment.
40% of consumers have said a lack of convenient delivery options was one of the main reasons they abandon their online purchases. To compete with Amazon, you need to get your product into the hands of the customer quickly.
By pushing greater automation within your operations, you can increase the number of orders you can ship to your customers and the speed at which it’s done.
But how can you better automate your processes?
- Implement faster walk routes – minimise the amount of time your picking staff spend walking between bins by ensuring they always take the most efficient route to collect products. This is the simplest change you can make to achieve faster results. You could also take it one step further by considering if stock could also benefit from being relocated within the warehouse.
- Eliminate paper processes – barcode scanners allow you to drive streamlined processes and maintain outstanding accuracy. Barcode scanning technology eliminates mispicks, helps you keep accurate stock levels and record serial numbers for full traceability. Importantly, by removing the need for paper within your warehouse, you can reduce the risk of paper pick notes getting lost or wrongly altered, minimising the chance of orders being sent out incorrectly.
- Despatch goods on arrival – if a product is in hot demand, think about eliminating double-handling and despatch it at the point of goods arrival. Not only will this reduce time, it will maximise your despatch volumes and boost your capacity for more next day deliveries.
- Speed-up deliveries – if you deliver through your own vehicles, consider whether it would be worth creating an organised schedule for runs. This way you can ensure that drivers take the fastest and most efficient routes.
- Reduce missed deliveries with alerts – By using tools that send automated email or SMS notifications, you can keep your customers in the loop and reduce the volume of failed deliveries. Plus, it promotes excellent customer service!
- Consider robotics as part of your mid-term planning – in most standard warehouse operations, staff spend on average 50-70% of their time travelling between locations to collect stock. Amazon have combatted this inefficiency through the utilisation of robotics technology. By using goods-to-person robots, you can improve your picking speeds and back-end fulfilment processes. This ensures that every order you process costs you less and allows your business to grow without the need to employ more warehouse staff.
Get faster, more accurate fulfilment with OrderWise
OrderWise can help you streamline your processes and create the most-effective solutions to maximise your business offering. With trusted Business Management Software and cutting-edge robotics, you can bring all strands of your business together and optimise your operations.
If you’d like to learn more about how OrderWise can work with your business, give us a call on 01522 704083 or email firstname.lastname@example.org