Shifting Retail Strategies: From Creating Demand to Finding New Avenues of Supply & Fulfillment

In today’s online retail environment, buying patterns have shifted to essential products but there is still consumer demand for the non-essentials and the challenge has shifted from creating demand to fulfilling it. People still need, and in many cases, now more than ever, kitchen appliances, humidifiers and air purifiers, and a long list of other consumer goods. Home Entertainment has become the only available source of entertainment and the need for these products has, and will see, growth. Home Fitness is another major growth area. In other words, while demand patterns have shifted, consumers are still buying, but more conservatively and at in specific concentrated categories.

What has changed are the fulfillment dynamics and what the customer expectations are relative to delivery. A month ago, it was all about speed-to-door and Amazon Prime as well as other major retailers were racing to get orders delivered in one day or, in many cases, same day. Today, with Amazon setting the precedent, it is no longer the world of Prime 1 or 2-Day delivery on most products and it is more about how long the protracted delivery windows are. Shop Amazon today and try to buy almost most type of exercise equipment and you will see delivery windows into late April and sometimes as far out as May.

Companies and brands need to think ”outside of the box” and go backwards in their supply chain to find the earliest point at which they have the ability for direct-to-consumer fulfillment. With Amazon fulfillment centers not taking in most non-essential products, the ability to offer Fulfillment By Merchant for Marketplace Sellers or Direct Fulfillment for Amazon Vendors is a key strategic advantage. This also transcends beyond Amazon to every other pure-play and omni-channel retailer as well. The ability to by-pass retailer’s distribution and fulfillment centers is a gamechanger at a time where we do not know when things will come back to any sort of “normal”. If there was ever a time to experiment and find new ways to service the consumer, either directly or through retail partners, the day has arrived.