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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For years, the logistics industry has talked about automation as if warehouses will eventually run themselves. Robotics, AI, and warehouse technology have absolutely transformed fulfillment operations — and they will continue to play an important role in the future of supply chains. But despite the headlines, one thing remains true: great warehouse operations still depend on great people. At Barrett Distribution, technology is designed to support our teams, not replace them. Behind every successful shipment, inventory count, retailer-compliant order, and customer experience is a team of people making critical operational decisions every day. Warehousing Is Still a People Business Automation can improve efficiency, reduce repetitive tasks, and help operations scale. But fulfillment is far more dynamic than many people realize. Every day, warehouse teams are adapting to changing order volumes, retailer requirements, customer expectations, inventory challenges, transportation disruptions, and seasonal spikes. Technology helps create visibility and efficiency, but people are what keep operations moving when conditions change. That human element is especially important in omnichannel fulfillment environments where accuracy, flexibility, and responsiveness matter just as much as speed. The Best Operations Combine Technology and Experience At Barrett, operational excellence comes from combining modern logistics technology with experienced warehouse teams who understand the importance of execution. Our facilities utilize advanced warehouse management systems, transportation systems, robotics, reporting tools, and analytics platforms to improve efficiency and visibility. But technology alone does not create strong customer partnerships or consistent service levels. Experienced team members help drive inventory accuracy, quality control, retailer compliance, process improvement, customer responsiveness, and operational consistency. The most successful logistics operations are built around people who care about the outcome. A Culture Built Around People One of the things that stands out most when visiting Barrett facilities is the culture inside the buildings. During recent visits to several Barrett warehouse locations, one thing became immediately clear: the people are the foundation of the operation. Teams take pride in their work, support each other, and genuinely care about the customers and brands they serve. In many facilities, Barrett has employees and families who have worked with the company across multiple generations. That kind of long-term commitment says a lot about the culture that has been built over decades. Warehousing can often be viewed as transactional from the outside, but the reality is much different. Strong operations are built by people who show up every day with experience, accountability, and a shared commitment to getting the job done the right way. Automation Should Support Employees — Not Replace Them The future of logistics will absolutely include more automation and technology. But the goal should not be removing people from operations entirely. The best warehouse technology allows employees to work more efficiently, reduce unnecessary movement, improve accuracy, prioritize higher-value tasks, and make faster operational decisions. At Barrett, technology investments are focused on empowering teams and improving customer outcomes while maintaining the people-first culture that has helped drive long-term growth and customer relationships. The Human Side of Fulfillment Still Matters In an industry increasingly focused on speed and automation, it is easy to overlook the people behind the operation. But successful fulfillment still depends on communication, accountability, problem-solving, and operational experience. That human side of logistics is what allows strong warehouse operations to adapt, improve, and consistently deliver for customers. At Barrett Distribution, the combination of experienced people, operational discipline, and technology-enabled fulfillment continues to be a key differentiator — because even in a highly automated world, supply chains still run on people.
