RC360-在线零售如何应对冠状病毒（英文）-2020.3-30页_2mb

Summary of FLASH REPORT: How Online Retailers Are Responding to Coronavirus

Core Content

The coronavirus pandemic has significantly disrupted the retail landscape, particularly affecting online retailers. With physical stores closing, online sales have surged, especially in categories like groceries, household essentials, and health products. However, the shift has also created challenges such as supply chain disruptions, fulfillment delays, and inventory shortages. The report outlines how retailers and Amazon sellers are adapting their strategies to manage these issues and maintain customer satisfaction.

Main Views

• Shift in Consumer Behavior:

  • More consumers are turning to online shopping, especially for essential items.
  • There is a noticeable increase in demand for products like toilet paper, hand sanitizer, and disinfectants.
  • Panic buying has led to significant inventory spikes in some categories, with sales growing by over 250% in some cases.

• Retailer Adaptations:

  • Retailers are adjusting their operations to include more online sales, offering options like curbside pickup and no-contact delivery.
  • Many are extending return periods and modifying their fulfillment strategies to accommodate the current situation.
  • Some retailers are reducing store hours to focus on restocking and cleaning, while others are reserving specific times for vulnerable customers.

• Amazon's Role:

  • Amazon has suspended shipments of non-essential products from third-party sellers to its Fulfillment by Amazon (FBA) warehouses.
  • This move aims to prioritize the delivery of essential items and reduce delays.
  • Amazon is also increasing its market share by placing massive orders for a wide range of products, not just those related to health and cleanliness.

• Impact on Retailers:

  • The pandemic is creating both opportunities and risks for online retailers.
  • While some categories like groceries and household supplies are seeing growth, others like discretionary items may suffer due to economic uncertainty and reduced consumer spending.
  • Amazon's dominance is a threat to smaller online retailers, especially those not in essential categories.

Key Information

• Online Sales Surge:

  • Online sales have increased by 52% compared to the same period last year.
  • In "non-essential" categories, sales grew by about 25% in March compared to February.
  • In "essential" categories, sales growth ranged between 30-100%.

• Fulfillment Challenges:

  • Retailers are struggling with delivery delays and inventory shortages.
  • Amazon's decision to halt non-essential product shipments has forced many sellers to rethink their fulfillment strategies.

• Best Practices for Retailers:

  • Offer customers flexible delivery and pickup options.
  • Use available store inventory to support fulfillment operations.
  • Extend return periods and configure Order Management Systems (OMS) to handle exceptions.
  • Consider backorders and presells to manage inventory gaps.
  • Provide 24/7 customer support and conversational guidance to assist in product searches.

• Consumer Behavior and Expectations:

  • 84% of consumers demand more assistance and guidance when shopping online.
  • Retailers must make the online shopping experience more conversational and personalized to meet these expectations.
  • Consumers are increasingly relying on digital channels for all their purchasing needs, even those they previously wouldn’t consider.

• Market Trends and Predictions:

  • The long-term impact of the pandemic on ecommerce is uncertain, but it is expected to boost online shopping, especially in groceries and household goods.
  • The holiday season may see increased online shopping if the virus resurges in the fall.
  • Amazon is likely to dominate the market by leveraging its logistics and resources.

Key Considerations for Order Management Systems (OMS)

• Flexibility:

  • OMS should allow for easy activation and deactivation of fulfillment locations.
  • Enable the use of new or temporary fulfillment sites when needed.
  • Support dynamic routing rules based on labor availability or location impact.

• Inventory Management:

  • Ensure systems can handle backorders and presells.
  • Allow for extended order holding periods with clear communication to customers.

• Customer Experience:

  • OMS should facilitate personalized and conversational customer care.
  • Provide real-time updates and clear delivery expectations.

Conclusion

The coronavirus pandemic is reshaping the retail industry, pushing online sales to new heights while exposing vulnerabilities in supply chains and fulfillment systems. Retailers must adapt quickly to maintain customer trust and business continuity. Amazon, in particular, is leveraging the crisis to strengthen its market position, which presents both challenges and opportunities for other online sellers. The long-term effects of the pandemic on ecommerce are likely to be positive, but retailers must be prepared to navigate the short-term disruptions with strategic flexibility and customer-centric approaches.