ROI of Omni-Channel, eCommerce Transformed презентация

to Win Tour 2014

U.S. retail sales will be omni-channel.

Source: Forrester Research, Inc.

of all online purchases are returned

Offering in-store returns gives retailers an opportunity to save or lift online sales

Offering in-store pickup and returns gives retailers an opportunity to cross-sell additional items

Source: Kurt Salmon US Inc.

December 2013

are enabling ship-from-store.
Vs.
37% report that they are in the process of getting online visibility to in-store inventory.


50% of retailers think ship-from-store is valuable.
Vs.
74% who believe in-store pickup is valuable.

49% are rolling out ship-from-store programs
Vs.
36% are rolling out in-store pickup.

on the most profitable location.

#2

Rethink how sales and costs of sales are allocated in cross-channel fulfillment.

Source: RSR Research

2X

Retail winners are twice as likely to prioritize attribution as retail laggards.

Retail Winners: Retailers that achieved higher than average YoY sales growth.

Retail Laggards: Retailers that achieved lower than average YoY sales growth.

driving omni-channel adoption?
VP Supply Chain
Store Operations
CIO
VP Marketing

Who should be driving omni-channel adoption?
VP Supply Chain
Store Operations
CIO
CFO

Retailers have:
Don Draper

Retailers want:
Warren Buffet

Source: Retail Systems Research

routing logic

Optimize your return policies and procedures

Prioritize financial sales attribution

$

loss!”

“With distributed order management software, we’ll be able to roll out a ship-from-store program, which will double our inventory turn.”

CFO

VP Omni-Channel

Leverage Order Routing Logic to Convince Your CFO of Omni-Channel ROI

distributed order management software, we’ll be able to implement logic that factors in the location of the inventory that’s selling the slowest and route orders to that location for fulfillment. The money we save from reduced mark-downs will offset any additional shipping costs resulting in higher-margin sales across the board.”

CFO

VP Omni-Channel

account for shipping?
Or are all of your return policies consistent?

Changes to Return Policies May Impact Revenue Recognition

*

Consider the fact that CFOs look at historical return data to estimate sales returns. If this cannot be reasonably estimated, the sale might not be recognized until after the return period ends.

challenging in an omni-channel environment:
How do retailers credit an omni-channel sale?
How do retailers decide which channels to invest in?
How do retailers track web-influenced sales?

Order management software helps retailers:
Identify the source of a sale
Credit the store that originated the search instead of the store that supplied the inventory

But there are other factors to consider:
Volume goals of each store
Incentive programs and compensation

orders shipped from store (based on average retailer data); previously shipped from warehouse
First year return: $300,000 savings in inventory carrying costs
Client achieved a 30% boost in top line sales by using store-based inventories to avoid stock-outs

In-Store Pickup:
Assumes 3% conversion lift (from having ISPU), plus 25% of pickups resulting in incremental purchases ($100 ticket with $30 incremental in-store sale)
First year return: ~$2.4 million in new sales