The accelerated growth of ecommerce in the global retail market has been a game changer for small and large businesses alike. Knowing how to take advantage of this innovative approach is essential for a successful business and a seamless distribution operation. Read on to find out more about the role of ecommerce in distribution.
What is the role of e-commerce in the distribution industry?
Ecommerce is an essential distribution channel due to the many benefits that it can offer your business and consumers. The growing desire for convenient and smart alternatives for shopping and service rendering has increased the need for e-commerce and the distribution industry to work hand-in-hand. Incorporating ecommerce into your business model should not only streamline your supply chain services but should also help with significant cost reductions.
The role of ecommerce in the distribution industry has necessitated various changes. For instance, it has made more room for logistics through the surplus of product delivery. This has also impacted the dynamics of the relationship between businesses and service providers by changing traditional roles. As a result, more businesses rely on the distribution industry to meet their supply demands.
Has e-commerce opened up new markets for distribution?
Ecommerce has elucidated the way that businesses pursue trends that emerge in the global digital marketing economy. For example, partnerships with retailers not only provide dynamic solutions for product and service delivery but also allows businesses to tackle new and foreign markets. The driving forces that have influenced the growth of ecommerce to open up new markets for distribution are the presence of customers, the demand for products, the availability of resources, and collaborations. Ecommerce has become a very instrumental distribution channel. In fact, it is redefining the retail and distribution industries. It has eliminated the need for traditional brick-and-mortar stores, yet it still enables businesses to still expand their customer base.
As a sales catalyst in business, ecommerce should also play a huge role in distribution management. The thing is, consumers want to buy from several distribution channels. As a result, the integration of ecommerce systems and cutting-edge software solutions to create databases is essential. This should accelerate productivity that can be maximized to open up new markets for distribution.
Take JAM Paper for instance. New York is great, but for now-CEO of JAM Paper and Envelope Andrew Jacobs, it was only the beginning. Brought on as the Director of Ecommerce at JAM in 2005, he guided the company from a bricks-and-mortar chain known as “The Best NYC Paper Store” to an Internet Retailer Top 1000 ecommerce player and key player on online marketplaces. But as with any transformation as fast and significant as JAM’s, there were bound to be a few growing pains along the way. View the on-demand webinar to hear their story.
How to take advantage of e-commerce in the distribution industry
The National Retail Federation has estimated that in 2021 ecommerce sales may account for 18% of global retail sales. If you are an online retailer or a distributor you should be considering strategies to take advantage of this expected growth. The following are strategies that you should keep in mind when assessing potential growth strategies.
- Building your brand. This should remain a key part of your strategy. Consistent emphasis on your brand should build awareness and recognition.
- Utilizing automated shipping software. This should save time and money on the shipping process.
- Providing quality customer service. This includes transparency of your returns policies.
- Investing resources in customer engagement. Every strategy aimed at improving the business model should consider customer-friendly and focused alternatives.
In summary, streamlining the efficiency of your business operations is an essential part of taking advantage of the ecommerce boom. The increase in the ecommerce presence in the retail industry has not only enhanced brand visibility but has also improved productivity.
Let MIBAR guide you
From wholesale distribution to manufacturing and retail, MIBAR has solutions for businesses in all sectors and of all sizes. As you push to compete in an ever-shrinking world, rely on MIBAR and business intelligence to usher you into a space you’ve never seen before! Schedule a free consultation to learn more.