Posted on 10th June 2017
E-commerce has a few challenges that other formats do not have. A consumer sees a product in store and walks out with it. There ie no time for a re-think. In e-commerce, there is a lag between the order palcement and fulfillment. If the gap is wide, chances are the consumer may change her mind. To minimize this chance, firms need to get the goods out of their warehose and on to the customer fast. This calls for a high degree of automation. Anuj Kapuria and Kunal Pruthi of Hi-Tech Robotic Systemz Ltd. write about the challenges in e-tailing.
With the ever-increasing reach of Internet, e-commerce is also growing at an unprecedented pace. We are all witnessing a major confluence of traditional commerce & e-commerce. In 2016, retail e-commerce sales worldwide amounted to 1.91 trillion USD which is just 8% of worldwide retail spending. Multifold growth is expected and by 2020 e-tail revenues are projected to cross 4 trillion figure. Over 40% of the world population now has internet access and everyone in the industry wants to expand their online presence to capture this market. Every retailer is making a foray into becoming a leading “e-Tailer”.“Omni-channel” is the buzzword now. The vast majority of the population prefer an experience where they can browse and compare multi-brand products in digital as well as physical stores and whoever succeds in offering this experience will win the customer.
In order to take a lead in this fast pace market, it isn’t enough to just have access to customer through an online presence. Success of an e-commerce player specifically an e-Tailer is determined by the efficiency of its supply chain, which is much harder to manage than it sounds. There’s a plethora of issues which a company in this space must tackle to take the lead.