Retailers have been looking for different ways to offer a better shopping experience to customers, aiming to stand out in an increasingly competitive market, where technology is driving new forms of consumption. The omnichannel method, which offers several options for the consumer (whether in the physical or virtual world), has shown itself to be very promising.
Several brands are diversifying their service channels to generate new values and experiences to consumers. And thus, consequently, grow and strengthen the business.
To this end, numerous strategies have been implemented, such as Ship-from-store is one of them. In this article, we will talk about this model, what it is about, and how to use it in your business in order to meet the needs of consumers eager for increasingly faster deliveries.
What is the Ship-from-store strategy all about?
The Ship-from-store strategy Ship-from-store strategy (in free translation, "Shipping from the store") is an omnichannel fulfillment process that uses the physical store's own inventory as a distribution center to fulfill orders placed through virtual channels, rather than e-commerce demands from a distribution center (DC).
In other words, ship-from-store (SFS) transforms the physical store into a hub hub. Products are shipped to consumers who buy online from there, or can be picked up on-site if that is the customer's preference.
In this way, retailers are able to optimize the customer's shopping experience, particularly with regard to the speed with which online orders are received and also the possibility of free shipping.
Advantages of implementing the Ship-from-store strategy
You must be wondering what are the advantages of implementing SFS strategy in your omnichannel retail, right?
The most notable one, especially during the pandemic, was the reduced damage caused by the closure of physical stores. Since brands can use their spaces as "mini distribution centers", allowing same-day deliveries - according to proximity.
But that's not all. See below for other advantages of the ship-from-store strategy:
- Store efficiency: When employees are not busy in the store, the retailer can improve their efficiency by directing them to fulfill online orders;
- Support for click-and-collect: by using ship-from-store, your business will also have the perfect structure for customer order pickup, using the same resources and processes but without shipping, thus saving shipping fees;
- Higher inventory turnover: With a smaller amount stored and products going out all the time, inventory turnover becomes high. This way, the company will be able to make newer products available, improving the shopping experience;
- Reduction of lost sales: By using your physical stores as hubs distribution hubs, you will be able to meet customer demands, reducing the risk of stock-outs;
- Better results: besides bringing advantages to customers in terms of the agility in delivery and the possibility of pickup, the Ship From Store also generates savings for the company. Increasing sales and consumer satisfaction.
How to use ship-from-store in your business strategy
Although it is possible for any company, before implementing SFS in your omnichannel retail strategy, it is important to know your customer well and have good inventory control. In addition to a good structure and well-integrated processes. This is because the crucial point for the operation of the ship-from-store is precisely the integration of stocks between all sales channels, having a comprehensive view of the flow of goods.
However, there are other relevant details that must be taken into consideration. Check below some tips on how to use the ship-from-store in your business strategy:
1 - Make sure there is enough space in the stores
The first step is to check if there is enough space to store the products in the physical stores, since the warehouses will be used to accommodate and move all the stock, both that which will be sold online and that which will be sold in the physical store.
2 - Organizing the operation in the store
To work with SFS, it is necessary to create an entire internal logistics process and train employees. For this strategy to work, it is necessary to have a team prepared to perform the steps of stock control, picking, and shipping orders.
3 - Integrate the inventory control systems
As mentioned above, when working with ship-from-store, online and physical inventories must be integrated. After all, when operating with deliveries from the store, you need to ensure that the item is available in the physical store after the customer makes an online purchase.
4 - Ensure reverse logistics
It is common for online stores to have a rate of order returns. Therefore, ensure that your physical store is prepared to perform reverse logistics and make exchanges and returns with agility.
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