The pandemic has reshaped consumer behavior in unprecedented ways, triggering a rapid transformation in the retail industry. Within the 3PL/fulfillment industry, the crucial role that e-commerce plays in today’s market is evident. In this blog, we will examine how e-commerce fits into the post-pandemic retail landscape and discuss strategies for success.

The EY Future Consumer Index reveals that 80% of U.S. consumers are still altering their shopping habits, with 60% visiting physical stores less frequently than before the pandemic. Notably, 43% of consumers have increased their online shopping for products they previously bought in brick-and-mortar stores. This shift underscores the diminishing significance of geographical location, as long as there’s an internet connection.

The pandemic catalyzed a remarkable change in the prioritization of e-commerce. Retailers, recognizing the importance of digital channels, invested approximately $10 billion in e-commerce initiatives between May and July 2020. These investments ranged from enhancing logistics for last-mile delivery to exploring asset-light approaches such as ghost kitchens and dark stores. Additionally, retailers embraced digital capabilities in AI and blockchain.

To thrive in the e-commerce landscape, retailers must shift their focus from asking what e-commerce investments are required to creating a profound consumer experience. This shift represents a cultural change for many retailers rooted in traditional brick-and-mortar thinking. The key is to build a consumer journey based on deep, enriching relationships rather than mere transactions.

The future of retail necessitates an integrated consumer journey, where online and in-person shopping complements each other. As consumers seek social interaction post-pandemic, retailers should consider how to merge the online and offline experiences seamlessly. The EY Index reports that 38% of consumers plan to continue shopping online while visiting stores that offer exceptional experiences.

Retailers must address several critical questions when defining their investment and operating models:

• Do I possess an agile, adaptive technology platform that caters to diverse consumer journeys?
• Is my organizational structure free from silos that disrupt the consumer experience?
• Have I harmonized my online and in-store assortments strategically?
• How can I remain price-competitive while ensuring a seamless online shopping experience?
• What strategies can I employ to orchestrate a smooth transition between digital and physical shopping?
• How can I maintain a superior experience all the way to the consumers’ doorsteps?

In e-commerce success, the last mile is paramount. Consumers today demand accessibility, affordability, and convenience. The EY Index indicates that only 21% of U.S. consumers are forgiving when it comes to service disruptions due to Covid-19. Retailers must excel in the last mile, as it has become a cornerstone of the e-commerce experience.

Many consumers now prefer online orders with in-store pickup. However, retailers must ensure that this experience is seamless, with efficient inventory management and minimal wait times. Effective communication between business units is crucial as this service scales.