1 / 16

Internet Grocery E-tailing

Internet Grocery E-tailing. Very few consumers shop Internet for groceries 1 in 5 Internet users who are the primary household grocery shopper are interested 42% would like to spend less time shopping for groceries Almost 40% Internet users enjoy shopping for groceries. Delivery Models.

joelchism
Download Presentation

Internet Grocery E-tailing

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Internet Grocery E-tailing • Very few consumers shop Internet for groceries • 1 in 5 Internet users who are the primary household grocery shopper are interested • 42% would like to spend less time shopping for groceries • Almost 40% Internet users enjoy shopping for groceries HED 460

  2. Delivery Models • Next day service (Peapod, homegrocer) • 2 hour delivery window • $19.95/month • Order-on-demand (webvan) • 30 minute delivery window • Pre-scheduled, unattended delivery (streamline, shoplink) • $35/month • Receptacles/refrigerators HED 460

  3. Preferred Service Models HED 460

  4. Fulfillment Models • Stores (beeline) • Distribution Centers/Warehouses • Hand held radio frequency scanners to help pick products • Delivery to consumers • 10 drivers/150 orders, now 28 drivers/500 orders HED 460

  5. Financials • No one is making a profit • Grocery profit is usually 1-2% • Potential profit percent of up to 12% • Infrastructure is the main barrier to profits HED 460

  6. Fulfillment Issues • Product availability • Order processing • Delivery • Returns • Customer service HED 460

  7. Fulfillment HED 460

  8. Keeping Customers in the Loop • Circuit City • Local store pick-up (Express pickup) • Identify up to three local stores • Checks availability at the local stores • With Express Pickup no shipping • Pick up at customer’s convenience HED 460

  9. Keeping Customers in the Loop • Staples • Enter zip code at start of shopping for real-time inventory availability • Anything in-stock is available for next day delivery HED 460

  10. Returns HED 460

  11. Delivery/return solutions • zBox (portal) • Eponymous bin for secure delivery and return • Activated by keypad • $5/month and $60 security deposit • Empori.com (portal) • Parcel pick-up and return depots (Toronto) for Internet merchandise • Free • Storage lockers (climate controlled) • Accessible by password HED 460

  12. Order Status HED 460

  13. Returns/Back Orders HED 460

  14. Cost as % of Revenue HED 460

  15. Fulfillment Challenges Today • Fulfilling orders on time • Managing peak season volume • Lowering total fulfillment costs HED 460

  16. Fulfillment Challenges Tomorrow • Distributing globally • Lowering total fulfillment costs • Managing peak season volume • Keeping up with order volume HED 460

More Related