How Can the Retail Market Meet Customer Pressure for On-demand?

Updated: Jul 18

A Changing Market

In 2005, Amazon changed the world when it introduced its Prime membership program, offering 2-day shipping to its members at no additional cost.

The company has since expanded to same-day and 2-hr shipping options, forever changing the nature of e-commerce.

Customers’ expectations for companies are higher than ever. For example, a recent study showed that 75% of consumers desire same-day shipping, yet only a small number of retailers offer this service (Source).

There is a clear gap between consumer demand and companies’ ability to meet them. In a world of instant gratification, brands must find a way to meet their customers’ needs and make sure they are satisfied.

Ole is committed to closing this gap within the luxury fashion industry by providing convenient and on-demand home delivery that makes both consumers and companies happy.

Online shopping is on the rise but falls short of customer expectations.

E-commerce has seen an increase in popularity in recent years, with the Covid-19 pandemic only catalyzing this trend. A study shows that 67% of respondents used an online format to buy clothing during the pandemic (Source).

Though e-commerce has seen a rapid increase in popularity in recent years, the main disadvantage to current models is the lack of instant product access.

Only 44% of customers reported that they would be willing to wait 2 days for a shipment to arrive. However, this percentage drops to 25% for 3-4 day shipping options (Source).

Customers want to have products in hand before they commit to purchasing. A Business of Fashion article says that 60% of survey respondents wanted to see or touch products in-person before buying, and half prefer in-store shopping for its immediacy.

As same-day shipping becomes more available in conglomerates like Amazon, Target, and Walmart, customers expect faster delivery times on all fronts. As a result, companies must implement models that speed up the shipping time to meet this demand.

How can companies combine instant product access with the convenience of online shopping?

Some of the large retailers have adopted the in-store fulfillment model.

For example, Target utilizes “buy online, pick up in-store,” (BOPIS), and “buy online, ship from store,” (BOSFS), to adapt to the increased demand for ultra-fast delivery. This is usually made possible through their own logistics companies (e.g., Target has acquired Shipt) or 3rd-party costly carrier service providers.

For this reason, smaller fashion retailers can’t afford to offer costly same-day delivery.

The options they’re left with are expedited shipping through UPS/FedEx, but since their operational model is fulfilled through remote distribution centers, it takes between 2-3 days to reach the end customer- and that’s not good enough for 2022 customers.

Companies have also tried to create micro-fulfillment centers, but it’s not the ultimate solution for fashion, as every collection has hundreds of variants (colors/sizes) and new drops every week.

The food industry was the first to embrace the gig-economy model through services like UberEats, DoorDash, and GrubHub. After that, more industries joined, like groceries and pharmaceuticals, and now it is the era of on-demand fashion!

By partnering with Ole, companies can take the logistics burden off of themselves. In addition, Ole’s convenient omnichannel model saves time and costs for both consumers and companies.

With same-day, 50-minute delivery, customers can get the same instant gratification as they would while shopping in-store, and with the try & buy service they can get the changing room experience at the convenience of their home.

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