Business Insider: Rampant shipping delays and limited stock amid the coronavirus outbreak reveal why e-commerce hasn’t defeated physical stores just yet
Story originally appeared in Business Insider on April 12, 2020. Excerpts from the story below. To see the full story visit BusinessInsider.com.
Jim Hull, senior director of retail industry strategy at Blue Yonder, said he’s heard from several consumers who said they attempted to place orders through Instacart or similar delivery services, only to find that the next available time was more than six days out.
“With people spending so much time at home now, they are still trying to figure out what their consumption patterns truly look like,” he said. “People that used to buy lunch and eat out two to three evenings per week are now running through basics like bread and milk much faster than before. A two-to-three-day wait for the basics will be unacceptable, which will trigger a trip to a brick-and-mortar location.”
While consumers are spending more online, they’re spending less in general. According to a consumer survey conducted by digital fulfillment platform Blue Yonder, 59% of respondents said they are purchasing less than they normally would “because they are avoiding going out in public and cannot purchase things in-person.”
Of course, there are several other factors contributing to reduced spending — namely rising unemployment rates contributing to less disposable income, as well as requests to restrict the purchase of nonessential items from major retailers like Walmart. However, Blue Yonder researcher JoAnn Martin wrote that retailers seeing a boom in e-commerce should be cautious in banking on this continuing in the future.
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