Ecommerce News

Increased ecommerce demand prompting streamlining of distribution for efficiency

Jason Jeffries
17 August 2011
As consumers alter their buying habits and make more purchases via mobile sites, smartphones, and online payment gateways, U.K. retailers are being forced to change how they distribute supplies and goods, reports Retail Gazette.

Today, shoppers have more choice and flexibility in how and where they choose to shop. Given the changing needs of consumers, businesses that have moved to sell online, and have had proven success, are restructuring their distribution portfolios.

As a result of increased online demand, retailers must deliver faster and to wider consumer bases. Traditional retailers are under pressure to become more flexible and efficient as a result, streamlining their warehouse models, staffing and storage

As their business models are not typically suited for international and wider national customer bases, they are increasing hiring third-party services to compete with the delivery models of purely online service providers like Amazon and Asos.com.

Ecommerce models are centralised, as are their warehousing models. Products of all kinds are stored before distribution in one warehouse, where returned items can also be stored.

Though sales in traditional shops are not showing much growth, ecommerce is on the rise in the U.K. Widely known brands, like Debenhams and Next, have had reported great spikes, such as 77 percent growth for Debenhams alone, in online sales over the past year, according to the news source.