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Fulfillment centers aiding e-commerce companies to satisfy customers

March 26, 2014

Retailers who sense that they can improve the number of sales made at their online credit card and debit card payment processing terminals are focusing on one aspect of their services to improve: order fulfillment.

Retailers who sense that they can improve the number of sales made at their online credit card and debit card payment processing terminals are focusing on one aspect of their services to improve: order fulfillment.

According to Internet Retailer, more than 80 percent of the top 50 retail chains ranked in their index have begun to use their brick-and-mortar store locations as pickup or shipping points for products ordered online. Amazon, for example, already has 96 different centers for order fulfillment and distribution working, with more to come. 

“As physical stores fight against e-commerce shops and digital giants like Amazon, moves like this—baking distribution center capabilities into retail locations—could give bricks-and-mortar retailers the advantage they need to compete with online retailers for customer retention,” Sean Adkins, managing director at West Monroe Partners, told the news outlet. 

Some retailers have already reported finding success with such shipping options. JL Audio reported to the news outlet that its online sales have increased by 28 percent since 2011 – with thanks due to a program that allows manufacturers of products sold by the site to sell directly to customers. Experts told the news outlet that this practice- and all comparable expedited shipping strategies – is only likely to increase in the coming years. 

Walmart is also betting on fulfillment centers to boost sales
Speaking to Retail Info Systems News, a Walmart representative also recently pointed to fulfillment centers and improved shipping practices as a way of boosting the number of sales made at the company’s online and mobile credit card payment processing pages. 

“I’m happy to report that our e-commerce business continued to perform well,” William Simon, executive vice president at Walmart U.S., told the news outlet. “Customers are rapidly adopting mobile and we’re evolving quickly by enhancing the experience through improved apps. Continued enhancements of our e-commerce platform and fulfillment network are top priorities, and we invested strategically to strengthen these areas.”

Walmart already maintains a fulfillment center in Texas, and has recently opened another in Pennsylvania as a result of the success found. The company reported that it is constantly searching for the logical meeting point between “bricks and clicks.”

“You should expect that [we] will continue to invested in price and improving service, [and] we will also continue to invest in growing our store base,” Charles Holley, chief financial officer at Walmart, said to Retail Info Systems News.

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