![]() ![]() “Having a wide range of fulfillment options, including delivery to home, collection from store – and by using stores for fulfillment – allowed Walmart to ramp up capacity in a way that many other players struggled to do. In the third quarter of 2020 Target’s Drive Up sales were up 500%, home delivery sales were up 280% and in-store order pickup was up 50%. These services have also contributed to Target’s eCommerce sales growth with Target’s online sales up 155% in the third quarter of 2020. But that is exactly what is happening and these services continue to grow in popularity. The popularity of pickup services has challenged the notion of what consumers want from eCommerce. It seems like a misnomer that someone will place an order online at home and then will put on their jacket get into their car and go to pick it up. More than 1.7 million packages are lost or stolen each day in the United States with a third of consumers reporting they have had a package stolen. This service is also beneficial for consumers worried about their goods being stolen after they are dropped off. Control over where and how they receive their online orders.īe honest, before the pandemic weren’t you were part of the vast majority of consumers that had never tried curbside pickup? Instead of waiting and wondering exactly when your order from Amazon is going to arrive Walmart’s pickup services remove that uncertainty. Since 90% of the United States’ population lives within 10 miles of a Walmart store this move has become a game changer for the retailer.Ĭonsumers love shopping online but what they really want is control. ![]() Who would have thought having a network of stores would be so critical to selling merchandise online? Walmart had this foresight and a decade ago in 2013 it started testing a grocery pickup service. The secret to eCommerce success turns out to be….stores. If you want to learn more about what has contributed to Walmart’s strong eCommerce performance then read on.ġ. Omni-channel retailing is working. While Walmart trails Amazon by a wide margin in online sales Walmart is gaining ground. Walmart is now the second largest eCommerce retailer in the United States with eCommerce making up over 13% of its sales. Then in 2022 Walmart’s eCommerce sales were up 12%. Walmart’s US eCommerce sales were up 79% in 2020 and were up 11.0% in 2021 on the back of strong growth in the prior year. Walmart’s strength in eCommerce can be seen in its results. For many years analysts were saying stores are dead but if Walmart didn’t start testing grocery pickup back in 2013 its grocery pickup services would not have performed so well when put to the test during the pandemic. One of the things Walmart has done very well is it has focused on its own assets and how to best leverage them. The 60 year old retailer has stood out for taking a challenging situation brought on by the pandemic and turning it into an area of strength. Before everyone was focused solely on Amazon but as retailers were forced to shift sales online during the COVID-19 pandemic a number of retailers came to the forefront with their eCommerce savvy and Walmart is one of those retailers. ![]() 2020 is the year when the eCommerce narrative shifted in a major way. ![]()
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