This holiday season is expected to be the biggest in ecommerce history, however increased shipping rates and surcharges from FedEx, UPS, and potentially the USPS are adding margin pressure for online retailers.
As online ordering becomes a larger part of the shopping experience, the need to efficiently fill orders while maintaining margins is more crucial than ever. Retailers must do several things now to mitigate the pain this season.
Four Strategies To Reduce Fulfillment Costs Using FindMine Complete The Look
Drive Higher Order Value
Every encounter with a product must come with cross-sells and upsells that tell a story -- the bag that matches the shoes, the side tables that complement the couch, and the earrings that perfectly pair with the necklace.
And remember cross-sells don't just happen on the product page, but in each and every touchpoint along the way. Ads, social posts, emails, and landing pages need to communicate the same storytelling that offers bundled products instead of single items.
Showing the shopper all the ways they can incorporate your products into their lives will give them confidence in making the most out of their purchase decisions.
For Fulfillment Factors
Multi-item orders fulfilled from two or more distribution centers (or drop shippers) can carry the same shipping costs as separate single-item orders. Product recommendations and styling advice must be inventory-aware, adjusting in real-time to minimize fulfillment costs without sacrificing the quality and brand integrity of the recommendations.
Most style recommendation solutions do not allow for this combination. They either promote products that blindly create expensive fulfillment scenarios or they are limited to manually created styling curations that can't possibly cover all products, consumer preferences, or fulfillment dynamics.
Buy Online, Pickup In Store and Curbside Pickup orders offer an opportunity to cross-sell shoppers on products that are available for sale at their local store. During online checkout, recommendations should be made during the ordering process and based on real-time store availability. During order pickup, store associates can be empowered with the same recommendations, through a POS or clienteling app, to make an additional consultative sale with the customer.
and Reduce Returns
Online orders have a reputation for higher return rates than in-store orders. The higher shipping costs this holiday season double when products are returned, so it is critical that customers know how to be successful with the product BEFORE they buy it. The storytelling available in the Complete the Look user experience gives shoppers confidence in their purchase decision and guidance on how to use the products they’ve selected.
"FindMine can analyze a product in a consumer's cart, use machine learning to understand the fashion sensibility of the product and make recommendations for outfits and accessories that match, including prioritizing items that come from the same distribution center." (Click here to read full article)