There is no doubt that we are in an economy where delivery times are the fastest, we have ever seen. The average item takes a total of four business days from the time of purchase to reach its end user. This is quite impressive, but can companies sustain these incredible speeds? Time will tell; however, retailers are making great strides to reduce delivery times in order to compete with Amazon and their warehouse business model of moving products closer to customers in order to get them items quicker. Target and Nordstrom are harnessing Amazon’s strategy by adding more warehouse space within current brick-and-mortar locations to store items closer to consumers for quicker delivery.
Shipping is a delicate balance for a lot of retailers. They want to still be able to make profitable returns without paying more for shipping. In the current market, many retailers are also refraining from utilizing air transportation to move products around as it is extremely costly and instead are focusing on moving their products around via trucks. According to the article, customers felt that when buying products, the accuracy of the delivery date is the most critical component when shopping online. Although current economic times are difficult to navigate, ensuring products arrive on time makes customers happy and allows retailers to capture and keep market share.
To read more, click the link below.
About The Author: Jeff Dervech
Jeff Dervech is a Tampa local commercial real estate agent, specializing in the arena of retail strip center and shopping centers.
More posts by Jeff Dervech