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.
Recent Blog Posts
Switching warehouses is a significant decision, and it's natural to worry about potential disruptions to your operations. However, with the right third-party logistics (3PL) partner, the transition can be carefully planned and executed with minimal impact on your customers or day-to-day business. A successful warehouse transition begins with a detailed implementation plan. This includes reviewing your inventory, integrating systems, validating data, coordinating inbound inventory transfers, and thoroughly testing processes before orders begin shipping. Clear communication and collaboration throughout the onboarding process help identify potential challenges early and keep the project on schedule. An experienced 3PL will also dedicate resources to training staff, establishing performance benchmarks, and monitoring operations closely during the first few weeks after go-live. This "hypercare" period ensures any issues are resolved quickly while maintaining service levels and order accuracy. At Barrett Distribution, every customer implementation is supported by a dedicated project team that guides the transition from discovery through stabilization. Barrett's structured onboarding process emphasizes detailed planning, system testing, proactive communication, and cross-functional collaboration to help customers make a seamless transition. By focusing on data accuracy, operational readiness, and continuous support, Barrett helps businesses minimize risk and build a strong foundation for long-term success. While every business has unique requirements, switching warehouses doesn't have to mean disrupting your operations. With an experienced logistics partner and a well-executed implementation plan, businesses can transition confidently while positioning themselves for future growth.
When it comes to fast, reliable shipping, warehouse location matters more than many businesses realize. Where your inventory is stored directly impacts transit times, shipping costs, and your ability to meet customer expectations. A strategically located distribution center allows products to travel shorter distances, reducing the number of shipping zones and helping orders reach customers more quickly. This not only improves delivery speed but can also lower transportation costs and increase overall supply chain efficiency. Why Location Matters As ecommerce continues to grow, customers expect deliveries in just a few days—or even the next day. Businesses that position inventory closer to their customers are better equipped to meet those expectations while maintaining competitive shipping rates. Warehouse location also affects access to major transportation networks. Facilities located near interstate highways, parcel carrier hubs, rail lines, ports, or airports can move products through the supply chain more efficiently, reducing delays and improving delivery reliability. Finding the Right Distribution Strategy There is no one-size-fits-all approach to warehouse placement. The ideal location depends on where your customers are located, your order volume, and your distribution goals. Some businesses benefit from a single, centrally located distribution center, while others may require multiple facilities to support nationwide delivery. Regularly evaluating shipping data, customer locations, and transportation costs can help businesses determine whether their current warehouse network is supporting—or slowing down—their operations. How Barrett Helps Customers Ship Faster Barrett Distribution works with customers to develop fulfillment strategies that align with their business goals and customer demand. With strategically located distribution centers across the United States, including facilities in key logistics markets, Barrett helps businesses position inventory for faster, more efficient delivery. For example, Barrett's Olive Branch, Mississippi facility provides convenient access to major interstate highways and the greater Memphis logistics network, making it an ideal location for reaching customers throughout the Southeast and across the country. Combined with advanced transportation management technology and real-time inventory visibility, Barrett helps customers optimize shipping performance while controlling transportation costs. Warehouse location is more than just a place to store inventory—it's a strategic advantage. Choosing the right location can shorten delivery times, reduce shipping expenses, and improve the overall customer experience. By partnering with an experienced 3PL like Barrett Distribution, businesses can build a distribution strategy that supports both operational efficiency and long-term growth.
As supply chains continue to evolve, more companies are looking beyond traditional distribution hubs—and Tennessee has become one of the country's most strategic logistics destinations. With its central location, world-class transportation network, and business-friendly environment, the state offers brands a cost-effective way to reach customers across the Southeast and across the United States. West Tennessee, in particular, has become a premier location for warehousing and distribution. The Memphis region provides direct access to major interstate highways, extensive rail networks, the Mississippi River, and the FedEx World Hub, making it one of the most connected logistics markets in North America. This combination enables businesses to reduce transit times, improve delivery performance, and optimize transportation costs while reaching a large percentage of the U.S. population within two days. Tennessee's continued investment in manufacturing, distribution, and industrial development has created a thriving supply chain ecosystem. From apparel and footwear to health and beauty, consumer packaged goods, and ecommerce, companies across industries are choosing the state to support growth, improve service levels, and build more resilient supply chains. Today's logistics providers help brands capitalize on these regional advantages through advanced warehouse management technology, real-time inventory visibility, omnichannel fulfillment, value-added services, and scalable distribution solutions. Barrett Distribution Centers' Tennessee operations provide businesses with the strategic location, technology, and operational expertise needed to support both direct-to-consumer and retail fulfillment while maintaining the flexibility to grow alongside their business. As customer expectations for faster delivery continue to rise, Tennessee remains one of the nation's strongest logistics hubs. For brands looking to improve transit times, strengthen their supply chain, and control fulfillment costs, Tennessee offers a competitive advantage—and partnering with an experienced 3PL like Barrett Distribution Centers helps turn that advantage into long-term growth.
