Partnering with an experienced shipping and logistics provider helps retailers expand their omnichannel offerings while ensuring customer satisfaction.
With companies like Amazon promising rapid delivery and quick returns, consumers’ expectations for personalized, convenient services are on the rise. To meet these growing demands, many retailers are adopting an omnichannel strategy.
Omnichannel retail — i.e., using multiple methods and digital channels to reach consumers — caters towards those who now have the option of purchasing items in-store, ordering online, or picking up pre-ordered products at a brick-and-mortar location. While omnichannel is an important part of attracting and retaining customers, many businesses are struggling to find a cost-effective way to manage the high volume of inventory and shipments.
In order to meet consumer demand and scale in the e-commerce economy, many businesses with an eye toward omnichannel retail are turning to trusted logistics partners to help streamline their supply chain.
How Omnichannel Helps Retailers Succeed
Omnichannel retail has become increasingly important for businesses that want to thrive in today’s consumer-driven marketplace. A recent study by DC Velocity and ARC Advisory Group showed that retailers participate in omnichannel commerce for three main reasons: to increase sales (63%), increase market share (57%), and improve customer loyalty (47%).
Those who use an omnichannel approach have seen significant benefits, especially when it comes to ensuring customer satisfaction. Studies show that companies with omnichannel strategies experience a nearly 10% year-over-year increase in annual revenue. These retailers also saw an 89% customer retention rate, as compared to 33% for companies with weak omnichannel engagement.
The Challenge of Reverse Logistics
Consumers place a high value on the ability to return unwanted items, with 58% of those surveyed expecting a hassle-free, “no questions asked” policy. Similarly, consumers expect their online and in-store experiences to be seamlessly integrated, with the choice to purchase a product online and then return it in-store, or vice versa. In fact, studies show that 62% of shoppers are more likely to buy something online if they can return it in-store.
These results indicate that the option to return items quickly and easily is an essential part of customers’ shopping experience. While it may place a strain on retailers’ resources, adopting an omnichannel strategy that includes reverse logistics is key to sustained success.
Where Logistics Partners Fit In
While cutting-edge retailers have adopted omnichannel engagement as a way to maintain customer loyalty, many small- to medium-sized businesses struggle to meet rising expectations with in-house resources; rapid returns, for example, are especially difficult for retailers to manage due to the costs of added labor and worker training. With an experienced third-party logistics (3PL) partner or integrated logistics services provider (ISP), however, businesses can depend on industry experts to help them develop an omnichannel strategy of their own.
Thanks to over 20 years of experience, Primary Freight is uniquely positioned to help you implement a sophisticated omnichannel strategy — one that’s ready for the world of e-commerce. We have the personalized service, expert knowledge, and industry contacts necessary to accommodate your logistics needs and help your business to scale. Whether you’re looking for targeted omnichannel support or a wholesale update of your supply chain, Primary Freight has the infrastructure you need to thrive.
If you’d like to learn more about how Primary Freight can lower costs and streamline your supply chain, give us a call at (800)-635-0013.