Commercial Drones Circa 2017

Posted on June 14, 2017 by bermanevansretail

Predictions about the coming use of drones in retail deliveries have been made for several years. Click here for a 2013 video example of this involving Amazon.

So, where are we as of today? Let’s turn to some highlights from a recent study by BI Intelligence: 

“Drones could allow firms to bypass many challenges with the ‘last mile’ of delivery — when a package gets to the customer’s doorstep. It is the most expensive and inefficient part of delivery, and many firms are exploring how drones can speed the last mile and cut costs. E-commerce firms want to cut delivery times and costs to improve customer satisfaction and loyalty; legacy retailers seek the same advantages to grow online sales.”

“Yet, delivering packages by drones to consumers is still years away from being a common occurrence. Important obstacles need to be overcome relating to drone regulations, developing autonomous flight and traffic control systems for drones, and consumer acceptance. Mainstream adoption will take place in stages over the next few years as regulations are put in place and drone technology improves. Today, most tests are limited in scope, take place in rural areas, and do not actually deliver packages to customers’ front doors. These tests will gradually progress, eventually bringing drone delivery to more customers in populated areas.”

“In a new report, BI Intelligence examines the benefits drone delivery can provide as an E-commerce fulfillment method, and explains the different approaches firms are taking as they experiment with nascent technology. In addition, we detail the key players working in the space and discuss the challenges drone delivery faces in reaching mainstream adoption.”

 

Here’s the potential for Walmart.


 

Posted in Part 2: Ownership, Strategy Mix, Online, Nontraditional, Part 3: Targeting Customers and Gathering Information, Technology in Retailing | Tagged , , , , | Leave a comment

How Shoppers Use the Return Option for Online Purchases

Posted on June 13, 2017 by bermanevansretail

Navar recently surveyed almost 700 U.S. consumers who returned at least one online purchase over the preceding 12 months to better understand people’s reasoning with regard to returns when shopping online.

Here are some of the key findings:

  • “The Bedroom is the New Fitting Room — Online shoppers are buying to try, with the intention of keeping their favorite item and returning the rest. This trend, called ‘bracketing,’ is most common among millennials, high-income, and female shoppers. It represents a large opportunity for retailers to transform returns into an experience catered to consumer needs. It also signals that returns are not the end of the customer relationship, and can drive both loyalty and new revenue.”
  • “E-commerce Drives In-Store Foot Traffic with Convenient Returns — 
    Consumers like returning online purchases in stores, and retailers who make this process easier earn a competitive advantage. Shoppers like to return items to stores because they get immediate credit back; and they can shop for other items while in the store. This is especially true for high-income consumers and those under age 30.”
  • Transparency Helps Amazon Shoppers Forgive a Difficult Returns Process — Amazon’s return requires shoppers to take more steps, such as contacting the retailer for return authorization. However, the E-commerce giant also provides greater transparency into the process. As a result, Amazon shoppers rate their overall satisfaction higher.”

Click the image to read more of the highlights from the Narvar study.


 

Posted in Online Retailing, Part 1: Overview/Planning, Part 2: Ownership, Strategy Mix, Online, Nontraditional, Part 6: Merchandise Management and Pricing | Tagged , , , | 2 Comments

Warby Parker’s Distinctive Approach = Success

Posted on June 12, 2017 by bermanevansretail

Warby Parker is a highly successful online — and now store-based — retailer of eyeglasses and sunglasses (“Prescription eyeglasses, starting at $95, with free shipping and free returns.”). As it notes on its Web site:

“Warby Parker was founded with a rebellious spirit and a lofty goal: to offer designer eyewear at a revolutionary price, while being a socially conscious firm. Every idea starts with a problem. Ours was simple: glasses are too expensive. We were students when one of us lost his glasses. The cost of replacing them was so high that he spent the first semester of grad school without them, squinting and complaining. The rest of us had similar experiences, and we were amazed at how hard it was to find a pair of great frames that didn’t leave our wallets bare. Where were options?”

“There was a simple explanation. The eyewear industry is dominated by a company that has been able to keep prices high while reaping huge profits from consumers who have no options. We started Warby Parker to create an alternative. By circumventing traditional channels, designing glasses in-house, and engaging with customers directly, we’re able to provide higher-quality, better-looking prescription eyewear at a fraction of the going price. We believe that buying glasses should be easy and fun. It should leave you happy and good-looking, with money in your pocket.”

“We also believe everyone has the right to see. Almost one billion people worldwide lack access to glasses, which means that 15% of the world’s population cannot effectively learn or work. To help address this problem, Warby Parker partners with non-profits like VisionSpring to ensure that for every pair of glasses sold, a pair is distributed to someone in need.”

 
Take a look at this Inc. video with Warby Parker founder Neil Blumenthal.

 

Posted in Career Video Clips, Online Retailing, Part 3: Targeting Customers and Gathering Information, Part 5: Managing a Retail Business, Part 6: Merchandise Management and Pricing, Part 7: Communicating with the Customer | Tagged , , , , | Leave a comment