Ship from Store: definition, operation and key benefits
What if your stores were transformed into logistics centres, thus allowing you to ship more orders, improve customer experience and maximise your turnover? This is the Ship From Store promise, with unique business benefits for omnichannel retailers.
So what exactly is it? What are its benefits? How can it be integrated?
OneStock, Europe’s Order Management Systems (OMS) and Ship From Store leader, tells you all you need to know!
What is Ship From Store?
Ship From Store is a well-known omnichannel solution that allows web orders to be shipped from stores.
How? Thanks to the OMS, that unifies stock, and a powerful orchestration algorithm that allocates the order to the right store to reduce delivery costs and time.
In this way, the point of sale becomes a mini-warehouse that over from the web warehouse when it doesn’t have the product in stock or when it is more advantageous to ship from a store.
The goal? To combat stock-outs, a real problem for retailers.
In the clothing, footwear and cosmetics sectors, the average rate of unavailability online is 22% at the beginning of the season and 41% during the clearance sales period (source Google/Ipsos)!
Ship From Store: a major challenge for retailers
Faced with strong competition from online pure players and new consumer expectations, retail must reinvent itself. Rolling out an efficient omnichannel strategy with services like Ship From Store, Click & Collect or even Return to Store is essential to deliver an optimal customer journey.
The fight against product unavailability is no longer an option for brands. Especially since a stockout often results in the customer going to a competitor.
A OneStock survey of 5,000 European consumers reveals their behaviour when faced with a stockout:
- 79% of online shoppers switch to another brand when faced with a stock-out
- 38% of them are less likely to buy from a brand after again having experienced a stockout.
In addition to the loss of turnover, there are indirect consequences such as customer dissatisfaction and brand image damage.
Faced with this situation, big retail names such as Phase Eight, Pets at Home and Jigsaw have taken the plunge into unified commerce and Ship From Store.
How does Ship From Store work?
The basis for Ship From Store is the Order Management System, which unifies stock.
As a result, each stock point in the network has access to the entire catalogue, regardless of the location of the product.
Here are the different steps to implement a Ship From Store solution:
- Implementing an OMS (Order Management System)
The OMS manages the technical unification of stock and provides an accurate, real-time view of available stock. An orchestration algorithm then allocates the order to the right shop according to the state of its stock, its turnover rate and its geographical location.
Of course, OMS can be configured according to the retailer’s needs and strategy.
- Adapting the stores
Each point of sales must be transformed into a point of stock capable of preparing and shipping an article. As such, sufficient reserve space is required.
This also implies the implementation of order management and logistic tools. Moreover, effective collaboration with delivery services is essential.
- Training the store staff
The implementation of Ship From Store implies new tasks for the store staff. Change management is, therefore, necessary to train and share the benefits of the initiative. As such, most retailers allocate the sale to the store that ships the item. In this way, web sales can contribute to the store’s commercial objectives.
The benefits of Ship From Store
An effective solution to avoid stockouts
Thanks to Ship From Store, an online sale can be made even if the product is unavailable in the web warehouse. In this case, the stock in stores is used.
This is a very effective omnichannel solution to avoid the financial consequences and bad customer experience caused by stock-outs.
A clear increase in web turnover
With Ship From Store, no more lost sales! The deployment of this solution allows an immediate return on investment, with growth in web sales of up to 30%.
Better stock management
The unification of stock allows for better product rotation. As an example, if a store doesn’t have an item in stock, another store will be asked to send it.
Moreover, many rules can be configured to optimise stock. For example, it is possible to organise discounts on the web in order to sell off end-of-line items present in shops.
More involvement of store staff
Motivating your store associates is essential. Ship From Store is an effective way to help staff achieve their sales targets.
With Ship From Store, the store takes on a new role. It is no longer just a classic point of sale, but rather a logistics platform.
Interested in implementing a Ship From Store solution? OneStock can help you with your project.