Consumer expectations in the retail world are dramatically changing in terms of deliveries, products, and customer loyalty. With the consumers relying heavily on the e-commerce retail space in order to fulfill their needs, their expectations are further getting moulded by the market pulse. The retailers on the other hand are working tirelessly to develop a seamless link between online and offline offerings.
According to a recent report by Alixpartners, 75% of customers say free shipping greatly impacts their ordering decisions, 18% of customers think they can’t wait for more than two days for delivery of their chosen products. Fast deliveries are fast becoming a norm, and 10 minutes delivery is becoming a new rat race for the new-age brands.
Keeping these new trends at the backdrop, it has now become a much-needed requirement for all brands to upgrade their fulfillment options, in order to enable quicker pickup and delivery of orders.
To know how the fulfillment centers are creating an exceptional customer experience, India D2C Summit 2022, as part of the D2C Insight chapter organized a session on ‘Fulfillment emerges as a big hero in D2C’. The session was moderated by Nupur Chakraborty, Managing Editor, Images Group and the panelist included:
- Ankur Bhatia, Founder, Jimmy’s Cocktail – Radiohead Brands
- Vishesh Khurana, Co-founder, Shiprocket
- Speeding up the fulfillment centers to boost sales
- Fast fulfillment elevating the customers’ experience
Faster deliveries reducing the cost of CPA
Fast & flexible product delivery key to keeping the consumers happy in new normal
Nowadays online grocery, marketplaces and food aggregators are sending their delivery in just a few minutes. Owing to the pandemic, the mindset of Indian consumers has drastically changed and they are open to changing their brand choices, if they fail to receive timely delivery from their choicest brands. The report also mentioned that consumers are increasingly expecting faster shipping and will reward a brand with 75% more sales if the brand can offer 1-2 day delivery. Talking about this and how they are fulfilling the customer needs, Ankur Bhatia told us “We launched our brand in 2019 and in the pre-covid, we were majorly a retail focussed brand, that’s how we used to work. In March, we pivoted to D2C business and categories like us can only work in faster delivery models, that’s the reason for our growth which is majorly contributed from quick commerce platforms. Overtime, D2C gave us a lot of benefits like sampling of data, and consumer understanding becomes easy. Therefore, we moved to Shiprocket to make our business more powerful.”
The product offerings from Jimmy’s Cocktail require timely delivery and the products are also perishable in nature. When asked on how they adding customizations and solutions to deliver this category of products on time, Vishesh Khurana highlighted “The solution starts by identifying the product first and then determining and designing the supply chain accordingly, and that starts with choosing the right partner that can put the products in warehouses and assign people who can handle fragile products. We are focussed to deliver the products as fast and also manage the data accordingly. The SOP’s are helping us to translate the perishable product deliveries across the country.”
Khurana also highlighted that F&B is contributing 30% of their business as people are innovating in this category every day. New products are getting launched daily keeping an eye on the category and its consumer trends and demands.
Logistics operation: a way to reduce CPA
The e-commerce operation is the backbone of any D2C brand, and plays a vital role in driving the sales and reducing the cost per acquisition. Therefore, it becomes important to rightly process the technology with the logistics operation to ensure a seamless delivery that will result in the reduction of CPA. According to experts, fast fulfillment can reduce the CPA from 10-50%. Talking more about it, Bhatia stated “Categories like ours, as we offer products that have a shelf life of 12 months and are fragile in nature, surely need a team like Shiprocket that can ensure the right partnering and in case of any issues the customer service team can escalate fast, to provide a solution. Challenges will be there, we have to find a resolution to it, as the quick commerce segment is becoming a huge surge in the beverage industry. We’re also working with Shiprocket preparing for the future in which the D2C brand will be able to deliver the products in 20 minutes to a customer directly coming from the website.”
Khurana in this context stated, “The brand understood this as customers are getting impatient everyday, in that case the execution starts with demand planning. We start with analyzing the patterns of geographical areas where the demand pockets are not there for a particular product and placing a right SKU’s there.Once that’s done, the last mile experience becomes easy, and just place a right infrastructure to execute that. We have rider networks, partners, companies who are executing this. The challenge is about demand planning and keeping the right stock at the right place.”