5 Online Shopping Facts: Leveraging 3PL for Support
Scott Hothem • March 14, 2014
It is undeniable that the way consumers are selecting and purchasing products is evolving. In order to satisfy these new demands, keep your brand relevant and continue to advance your business, the way you operate needs to evolve as well. Online shopping from home and mobile devices has drastically changed the expectations of consumers. Not only are younger demographics fitting this trend, but your traditional buyers are moving in this direction also. According to iacquire.com, the 45-64 demographic makes up 40.4% of online shoppers. The importance of how your business handles these changes and embraces an omni-channel operation has never been higher. As technology continues to expand in its capabilities, the conventional methods of fulfillment and logistics are proving increasingly out dated. The specialization required to address these changes can be both expensive and difficult to implement within your organization. Leveraging the services of an experienced, capable third party logistics provider (3PL) can allow you the resources to stay ahead of the curve. Below are 5 facts about on-line shoppers that put this growing element of business into perspective.
- The largest share of online revenue generated in 2012 was from retail shopping websites which totaled $186.2 billion. This number is projected to increase to $361.9 billion by 2016 (E-Commerce-Statista Dossier 2013). With such a substantial increase in the size of this market expected, utilizing a 3PL can position your business to capitalize on this rapidly growing segment.
- 42% of consumers chose to find a better price online as their reason for purchasing after shopping in a store (RIS/Cognizant). Price points are becoming a bigger consideration for shoppers. Streamlining fulfillment operations and reducing costs can create a competitive advantage with lower prices.
- The number of U.S. digital shoppers is expected to grow from 137 million in 2010 to 175 million by 2016 (eMarketer). This growing consumer base will also have higher demands as far as fulfillment and delivery options. Your ability to deliver product when and where they desire can create significant new opportunities.
- Half of shoppers say that tracking services for online purchases are essential (comScore). Customers today are avoiding stores and ordering remotely for convenience. A part of that convenience is being able to maintain visibility of their purchase and expect it on a certain date. A 3PL cannot only provide this tracking service, but ensure its accuracy.
- 74% of online shoppers cite having a variety of shipping options available as a key to overall satisfaction (comScore). Does your organization currently have the capability to offer a variety of shipping options? And are these options affordable for the consumer while making sense for your bottom line? The efficiencies and expertise afforded by a 3PL can create a wider variety of shipping methods while also making fiscal sense on both ends of the transaction.
All of these statistics point to a growing variable that cannot be ignored. With the number of existing customers, potential customers, competitors and dollars expanding, you need to be able to position your business to compete. The resources and efficiencies available from a 3PL partner can be specifically geared to face these new challenges and opportunities.
At Barrett Distribution Centers, we work with our clients to create the best supply chain plan for their business. We embrace visibility and technology to generate ROI and a higher level of service.
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The Growing Challenge of Food Supply Chains The food and beverage supply chain has become increasingly difficult to manage. Brands are navigating rising transportation costs, shifting consumer demand, retail compliance requirements, and ongoing disruptions across ports and carrier networks. For many companies, reducing supply chain risk now starts with warehouse strategy. One of the most effective ways food brands can improve resiliency is by positioning inventory closer to major East Coast ports and consumer markets. Strategic warehousing allows companies to move products through the supply chain faster while improving visibility, reducing delays, and creating greater flexibility across retail and ecommerce channels. Why Port Proximity Matters For import-heavy brands, proximity to East Coast ports can have a major operational impact. Facilities located near ports like Baltimore allow inventory to move from container to distribution more efficiently. This helps brands reduce drayage costs, improve inventory availability, shorten replenishment timelines, and respond faster to changing demand. By reducing the distance between inbound freight and final distribution, brands can create a more agile and responsive supply chain. Faster Access to East Coast Consumers East Coast warehousing also provides access to some of the largest consumer populations in the country. Strategically positioning inventory closer to customers helps brands improve parcel transit times, support retailer distribution requirements, lower transportation spend, and improve the overall customer experience. As delivery expectations continue to rise, warehouse location plays a larger role in both customer satisfaction and operational efficiency. The Importance of Food-Grade Warehousing For food brands specifically, facility standards and inventory controls are critical. Food-grade warehousing requires more than storage capacity. Companies need strong operational processes to maintain product integrity and compliance throughout the supply chain. Key capabilities food brands should prioritize include: Lot tracking and expiration date management Strong inventory accuracy controls Retail compliance expertise Omnichannel fulfillment capabilities Strong inventory controls help reduce spoilage risk, improve traceability, and maintain service levels across all sales channels. Managing Omnichannel Fulfillment Complexity Many food and beverage companies now support a mix of retail distribution, Amazon replenishment, direct-to-consumer fulfillment, and wholesale operations simultaneously. Managing these channels efficiently requires flexible infrastructure and integrated systems that support both B2B and DTC operations. As brands grow, fulfillment partners must be able to scale operations while maintaining accuracy, compliance, and visibility across the supply chain. Technology and Visibility Reduce Risk Technology also plays a significant role in reducing supply chain risk. Real-time visibility gives brands the ability to make faster operational decisions and identify issues before they impact customers. Modern logistics technology should provide: Real-time inventory visibility Order and shipment tracking KPI reporting and analytics With better visibility into inventory and fulfillment performance, brands can operate more proactively and reduce costly disruptions. Building a More Resilient Supply Chain At Barrett Distribution, food and beverage brands benefit from strategically located East Coast warehousing, food-grade operational standards, omnichannel fulfillment expertise, and technology-enabled visibility tools designed to support scalable growth. Barrett’s Curtis Bay, Maryland facility, located near the Port of Baltimore, supports consumer products and food brands with strong inventory controls, retail compliance capabilities, and integrated fulfillment operations. While supply chain disruptions may continue to evolve, brands that invest in strategic warehousing and operational flexibility will be better positioned to improve service levels, reduce transportation challenges, and build more resilient supply chains for long-term growth.
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