2019 eCommerce Fulfillment and Logistics Report
The FLEXE eCommerce Fulfillment and Logistics survey, combined with industry data, uncovered several key insights highlighting both the challenges and opportunities in the market.
Retailers and brands are in an uphill battle: Sales channels are expanding, customers are widely distributed, and Amazon made the official move to one-day shipping for Prime members. Meanwhile, stores continue to close. There have been more store closures year-to-date in 2019 than all of 2018; the “Retail Apocalypse” is still in full force.
From classic department stores like Sears and Barney’s, to fast-fashion retailers like H&M and Forever 21, retailers and brands have struggled to maintain foot traffic and in-store sales.
Retail isn’t dead, but it is different. As more sales move online, buying behaviors continue to change. Retailers who have failed to adapt to new consumer demands aren’t around anymore.
At FLEXE, we help our customers optimize their logistics networks through on-demand warehousing and fulfillment. That starts with understanding how retailers are doing business and the challenges they face in the market.
The FLEXE eCommerce Fulfillment and Logistics survey, combined with industry data, uncovered several key insights highlighting both the challenges and opportunities in the market when it comes to meeting customer demands and staying competitive.
- Customers prefer free delivery over fast delivery, and are even willing to wait longer for free options.
- By a 2:1 margin, survey respondents believe their customers prefer free shipping over fast shipping, yet most respondents are optimizing for faster delivery times, not free shipping.
- Fixed warehousing infrastructure and fewer locations prevent businesses from meeting customer expectations for fast, affordable delivery with many retailers and brands stating that outbound costs are too high with their current logistics network.