Leveraging inventory and space to make it easier for customers to receive their orders has become a key need for retailers. With legacy retailers like Amazon and Walmart making 2-day shipping the expected norm, other retailers must find ways to shorten the distance between their goods and their customers and decrease delivery times.
And with the pandemic continuing to snarl supply chains, ecommerce brands are looking for any way to maximize their current network and make online orders a quick alternative to in-store purchases. This has led to a proliferation of other order fulfillment enhancements such as same-day delivery, curbside pickup, and in-store pickup.
All of these options have one thing in common — customer satisfaction. Similar to buy online, pick-up in store (BOPIS), where convenience is key, ship from the store fulfillment leverages retail store locations and uses that inventory to get orders shipped to customers faster.
However, as with any new process, ship from the store fulfillment has its benefits and challenges and may not be the best option for all retailers. Let’s examine exactly what ship from store fulfillment is, how it works and what challenges and opportunities it creates.
What does ship from the store mean?
When a customer places an order on a website or via the app, the order is fulfilled from a local store, using on-hand inventory. This store location is typically selected because it has the relevant items in stock and ready to ship and is located closer to the end customer.
By using this fulfillment process, retailers can leverage their brick-and-mortar locations as more than a storefront; they become, in effect, mini distribution centers. It expands the brand’s footprint, while simultaneously shrinking shipping costs by fulfilling orders closer to customers.
How does ship from the store fulfillment work?
Ship from the store fulfillment is not easy to implement if you don’t have the right tools. The first priority is accurate inventory planning. An order management system that can provide real-time updates of available inventory throughout the day is key to ensuring that orders are correctly fulfilled and that online shoppers are not frustrated by erroneous “sold out” flags. Inventory management software is the key to getting accurate inventory counts.
When an order is placed, your online store portal should be able to route the order to the proper store for fulfillment and shipment. Only with accurate inventory and order management is this possible. The order is then picked and packed at the store and prepped for shipment to a last mile carrier, which will deliver it to the end customer.
Benefits of shipping from your store
The United States Postal Service estimates that 57% of all retailers will use ship from the store by the end of 2022. Here’s three ways you can leverage the benefits of this trend in retail.
Increase delivery speeds
By using stores closer to your end consumer, you can speed up delivery. You can also keep shipping costs low by reducing the physical distance packages must travel. This also will increase customer satisfaction as people will have less time to wait to receive their goods.
Leverage existing retail space
Instead of looking for new warehouse locations, leverage the existing space of current brick-and-mortar stores. This optimizes space and can reduce costs. Plus, your store associates can be trained to manage this fulfillment strategy.
Decrease shipping costs and increase sustainability
One of the key benefits when using ship from the store is the decrease in shipping costs. By shipping to the customer from a nearby location — and not a warehouse hundreds of miles away — last mile delivery costs are reduced. Also, with less distance to travel, there is a decrease in carbon footprint, increasing your brand’s sustainability.
Embrace omnichannel fulfillment
Omnichannel refers to interacting with and selling to customers across a variety of channels, including physical and digital. It combines digital channels like ecommerce stores, social media, and other online marketplaces with the more traditional brick-and-mortar stores. By using all of your company’s means to fulfill orders, you can embrace an omnichannel mindset with order fulfillment as well.
Challenges of shipping from your store
Any change to processes and procedures is bound to come with challenges. This is especially true of ship from the store where careful thought and planning will need to go hand in hand with implementation to enhance your customer’s online shopping experience.
Stores may not equipped for fulfillment
Perhaps the biggest challenge to implement shipping from your store is that retail store may not be outfitted for an efficient pick, pack and ship model. However, by carefully choosing which locations to use this fulfillment option, you can avoid costly upgrades and still reap the benefits.
