Note From Fred: September 2020
September 7, 2020 - By Fred Killingsworth
In a world of continuing uncertainty across so many aspects of our lives, the one thing that is undeniably clear is the critical contribution of e-commerce to today’s business. In Q2 2020 in the US, e-commerce grew by a whopping 44.5%, and now makes up 16.1% of total retail. According to the Census Bureau of the Department of Commerce, brick and mortar sales shrunk by 3.4% in Q2. For businesses to survive, they have leaned into digital commerce. We firmly believe that the consumers’ embrace of e-commerce will be a lasting behavior change; the pandemic has simply accelerated this shift.
Amazon is still the behemoth, but it has lost some market share to competitors, particularly Walmart.com. Walmart.com has grown by 74%. Walmart.com has continued to build its marketplace. Walmart now offers Walmart Fulfillment Services (WFS) – this is a game-changer for sellers who have resisted selling on the Walmart marketplace in the past over concerns about logistics. WFS provides the full suite of fulfillment services including warehousing, picking, packing, shipping, and handling of returns. Walmart’s scale means that their price for these services may be less expensive than in-house solutions. Let us know if you would like to review options and make the best strategic decision for your business.
Beyond fulfillment, Walmart.com has also enhanced its marketplace platform advertising, such as sponsored brands, sponsored products, and product carousels. If you aren’t selling on Walmart.com yet, reach out to us to learn how to get started. PMX platforms like Salsify will enable you to synchronize your content across all of your different e-commerce sites. Hinge Global has established a managed service and partnership solution to help leverage this technology to provide economies of scale to your content investments – contact us to learn more.
Online businesses should already be preparing for Q4: be sure you have updated your demand plans, solidified your inventory levels, set your promotion strategies, and reviewed all of your fulfillment options. The devil is in the details, but no business can afford to go out-of-stock during peak season, especially this year. There have been a lot of requirement changes to the Fulfill By Amazon and Seller Fulfilled Prime programs – please read this article to make sure you are familiar with these if they impact you. HINGE has a number of creative solutions to logistics challenges that will help you maximize Q4 and future revenue.