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1 Shopatron ebook 4 Compelling Cases for Ship-from-Store Shopatron ebook 4 Compelling Cases for Ship-from-Store 1

2 ecommerce is Transforming: Multi-Channel Retailers During the 2013 holiday shopping season, US retailers received only a third of the foot traffic they received just three years earlier. And in the last four years, brick-and-mortar retail sales shrank by $30 billion, causing big name retailers like Borders and Circuit City to close physical storefronts. Conversely, ecommerce is approaching $300 billion in U.S. sales and is the only trillion-dollar industry showing double-digit annual growth. The days of fighting for shelf space are over. Today, anyone with a product and a website can enter and disrupt the retail game. Shopatron ebook 4 Compelling Cases for Ship-from-Store The disruption of traditional retail poses many challenges for multichannel retailers. Those that will achieve success as the landscape continues to transform are those that can capitalize on both the physical and digital shopping experiences. Enter Ship-From-Store fulfillment. By distributing online orders to brick-and-mortar stores for fulfillment, multi-channel retailers can compete and win in this uncharted retail territory. Here are four compelling cases for using Ship-From-Store. 2

3 1. Best Buy Battles Amazon via Ship-from-Store The increased popularity of showrooming has severely impacted retail giants like Best Buy. By rolling out a ship-from-store program, Best Buy is now battling the almighty Amazon and winning. According to Hubert Joly, Best Buy CEO, With the roll-out of ship-from-store, we are looking at our stores strategically in relation to our longer-term supply chain strategy. We strive to deliver inventory to our customer when and where they want to receive it. Now with over 400 ship-from-store locations, which act as mini-warehouses, Best Buy has shorter delivery distances and can offer delivery times comparable to Amazon s. It s not just that they ve implemented ship-from-store, explains Kevon Hills, VP of Research at Stella Research. They re doing it better than everyone else. Other big-box retailers have rolled out shipfrom-store, but Best Buy seems to have created a blueprint that is having a tremendous impact on With the roll-out of shipfrom-store, we are looking at our stores strategically in relation to our longer-term supply chain strategy. We strive to deliver inventory to our customer when and where they want to receive it. - Hubert Joly CEO, Best Buy its business. Shopatron ebook 4 Compelling Cases for Ship-from-Store 3

4 2. Macy s Mainstreams Omnichannel with Ship-from-Store Macy s recently announced its plans to ditch distribution centers and instead implement shipfrom-store fulfillment. Terry Lundgren, CEO of Macy s explained, We re no longer going to need fulfillment centers anymore. We ve got 800 of them, and they re called Macy s stores. By investing in technology and infrastructure that supports Macy s omnichannel vision, the company is able to place inventory online and push it out of their physical stores. As a result, online orders can be packed and shipped to the customer from a nearby store, fulfilling the ship-from-store promise of getting the product to the consumer as quickly and efficiently as possible. According to Lundgren, this whole omnichannel subject is just full of opportunity for us, as we continue to get better and better at servicing the customer. Shopatron ebook 4 Compelling Cases for Ship-from-Store The number of Macy s stores doing ship-from-store grew from 23 to nearly 300 in 2012, with 200 more planned for At Macy s, 10% of online orders during the 2012 holiday season were fulfilled by local stores. 4

5 3. Dick s Sporting Goods Wins Big With Ship-from-Store Dick s Sporting Goods has embraced ship-from-store fulfillment with gusto, using all of their retail locations as distribution centers. CEO Edward Stack says, we look at [ship-from-store] as having over 500 distribution centers across the country that can get product to customers quickly and inexpensively. As the sporting goods retailer continues to utilize its ship-from-store program, the many benefits are readily apparent. According to Michele Willoughby, EVP Inventory, Supply Chain and ecommerce at Dick s, having every Dick s store participating in shipfrom-store has many benefits: it allows us to connect online customers with any inventory in any store; it improves inventory utilization; it lowers shipping costs; and improves speed to our customer, allowing us to now compete on speed. 75% of our orders are shipped to a customer within a 15-mile range of a Dick s store. Retailer Benefits of Ship-from-Store Inventory In Stores. Not Warehouses. Increase inventory turns and reduce carrying costs, by allowing retail stores to fulfill online orders with items sitting on their shelves. Out-of-Stock Online? Never Again. Avoid purchase abandonment caused by out-of-stock online inventory, by fulfilling online orders from any retail location. Maximize Margin on Store Inventory. Use ship-from-store fulfillment to turn inventory in slow-moving stores, without resorting to margin-crushing discounts. Shopatron ebook 4 Compelling Cases for Ship-from-Store 5

6 4. Wal-Mart Steps Up Online Delivery Wal-Mart has entered the ship-from-store game, using their stores as fulfillment centers to provide same-day and next-day delivery of online orders at very low cost, explains Joel Anderson, President and CEO of Walmart.com. Two-thirds of the US population live within five miles of a Wal-Mart store, giving them a leg up on shipping costs and delivery speed compared to competitors like Amazon. It is really efficient to use our stores, Anderson Explains. We ve been picking and putting items in boxes for years. Ship from store is no different. We are picking items from the shelves and putting them in a box. Ship-from-Store will enable us to do same-day and next-day delivery at a low cost to us and offer convenient and expedient delivery to the customer - Joel Anderson President and CEO, Walmart.com Shopatron ebook 4 Compelling Cases for Ship-from-Store 6

7 Recap: The Benefits of Ship-From-Store Ways to Win With Ship-From-Store Improve Delivery Speed Reduce Inventory Carrying Costs Increase Inventory Turn Avoid Out-of-Stock Scenarios Decrease Markdowns Shopatron ebook 4 Compelling Cases for Ship-from-Store By implementing Ship-From-Store programs, large multi-channel retailers have proven that alternate methods of fulfillment can reinvigorate their brick-and-mortar businesses and position them for success. As today s retail landscape continues to transform, more retailers need to adopt technologies that facilitate advanced fulfillment such as Ship-From-Store. If you would like to learn more about how you can launch a Ship-From-Store program in under 90 days with Shopatron, contact us at 7

8 Shopatron is the world s leading provider of cloud-based, ecommerce fulfillment solutions. Shopatron is the world s leading provider of cloud-based, ecommerce order management solutions. Our patented Shopatron Order Exchange allows manufacturers and multi-channel retailers to seamlessly leverage the available inventory of every retail storefront and distribution center when fulfilling online orders. Unlike legacy order management software or custom-built solutions, Shopatron makes it easy and affordable to deploy advanced capabilities like in-store pickup, ship-from-store, inventory lookup and vendor drop-ship. With Shopatron, retail channels join forces to increase sales, turn inventory, and deliver a superior purchase experience to online shoppers. For more information about Shopatron, visit us online at shopatron.com North American Office Shopatron Inc. 825 Buckley Road, Suite 200 San Luis Obispo, CA United States Telephone Outside US Fax European Office Shopatron UK Ltd. Newport House Newport Street Old Town, Swindon SN1 3DX United Kingdom Telephone +44 (0) Fax +44 (0) Shopatron ebook 4 Compelling Cases for Ship-from-Store 8

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