eCommerce Supply Chain
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At last! the start of global retail pricing appears as David Jones drops prices by up to 50%

At last!  the start of global retail pricing appears as David Jones drops prices by up to 50% | eCommerce Supply Chain | Scoop.it

DJs drop their prices as a result of their strategy to harmonise local and international pricing to compete with overseas internet sales.  Some people are asking if we have been ripped off in the past and why didn't they do this before.  

 

People are blaming DJs but it is not entirely their fault. Yes we have all known about international price discrepancies for as long as we have had international travel (since colonisation). But it was and is the brand owners who were using Australia as a profitable milk cow.

 

Pricing into a market has nothing to do with the cost of the item and everything to do with how much the market will bear. So if the general market pricing is high then why would you price your products significantly lower than other similar brands? What has forced the change much greater price transparency coupled with the ability to purchase that the internet has given to everyone globally.

 

The market is now global and the brand owners local market price gouging strategy is crumbling. Well done DJs for fighting this much needed fight. This is part of the inevitable set of permanent changes to retail that is working its way through the economy. It feels like its long overdue but the impact of internet sales is still relatively small (5-8%) and recent. Large companies, complex systems and long term business arrangements are slow to react, but at least we are seeing a move.

 

I am sure the other large retailers are doing the same thing and the mid-market and smaller retailers will get the flow on benefits.

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Is your customer service working to change feelings?

Is your customer service working to change feelings? | eCommerce Supply Chain | Scoop.it

Great thought from Seth Godin on the real purpose of customer service vs. how it often works in practice.  

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Toll NParcel

Toll NParcel | eCommerce Supply Chain | Scoop.it

Toll teams up with newsagents to operate as local freight hubs for online deliveries.  A great play to capture the online freight market.

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Parcel Lockers - Australia Post

Parcel Lockers - Australia Post | eCommerce Supply Chain | Scoop.it

Here is Australia Posts version of the locker.  Still in free trial mode will they need to add cost for this service or keep it free to retain market share from Toll and Parcel Point?

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Coles click and collect lockers trial at Windsor, Victoria

Coles click and collect lockers trial at Windsor, Victoria | eCommerce Supply Chain | Scoop.it

What a great idea! Shop online in the morning and pick up in the afternoon.  When do Coles and Woolworths start replacing stores with lockers in new or marginal sales areas?

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Mark Bouris' TZ wins parcel locker partnerships, as bosses crack down on personal parcel deliveries at work

Mark Bouris' TZ wins parcel locker partnerships, as bosses crack down on personal parcel deliveries at work | eCommerce Supply Chain | Scoop.it

Personal deliveries at work are getting unsustainable as eCommerce increases.  The commercial development of the last mile of the supply chain is underway.  TZ want you to install a locker at home but are having a bet each way and also supplying lockers to Coles and Parcel Point.

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Amazon.com forced to collect online sales tax in U.S., why not our GST?

Amazon.com forced to collect online sales tax in U.S., why not our GST? | eCommerce Supply Chain | Scoop.it

Could forcing the collection of GST for international online purchases save retail stores? Probably not. The real issue for retail stores vs. online is that there is now international price transparency and the manufacturers are now being caught out with their differential pricing around the world.

 

Last night I bought 6 Oral B toothbrush heads from Coles for $44.40, I later checked Ebay and you can get 20 of the same item for $20 with free delivery from an Australian seller! That's $1ea online (including GST) vs. $7.40ea in the store. Examples of massive price differences between local retail and overseas sourced products are everywhere.

 

So the argument that the lack of GST on international online sales is fuelling the online boom and the demise of the retail store is, and always has been a complete furphy. Retailers are caught in a wave of technological and social change. Lewis and Dart in "The New Rules of Retail" predict that 50% of retailers will ultimately disappear as their businesses become unsustainable. If you are a retailer and wondering what to do this book is a good place to start.

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The web leaves companies with nowhere to hide!

The web leaves companies with nowhere to hide! | eCommerce Supply Chain | Scoop.it

One of the big themes of the 21st century is the free flow of power transparency and control of information to the consumer.  KV Pharmaceuticals were granted exclusivity by the FDA on a life saving drug that used to cost $20 but they raised the price to $1500.  They were called out for unconscienable behaviour in a Facebook campaign and are now in Chapter 11 bankruptcy.

 

The consequences for KV were dire but the principal applies to all companies everywhere.  The internet leaves you nowhere to hide if your price, service, fulfillment, social or ethical behaviour, environmental policies or whatever does not meet with acceptable standards you risk being found out and publicly called out by your customers or commentators.

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An eye opening presentation from Phil Ruthven of IBIS

An eye opening presentation from Phil Ruthven of IBIS | eCommerce Supply Chain | Scoop.it

This presentation is well worth a read for all those in the supply chain as it maps out global and local statistics and trends for industries in the supply chain.  It also reinforces the pressure supply chain is under to reduce costs and implement best practice in processes, systems and technology.

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The last mile and the smashing of the power of centralised distribution

The last mile and the smashing of the power of centralised distribution | eCommerce Supply Chain | Scoop.it

What does it all mean?  Find out in my blogpost on the last mile.

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ParcelPoint

ParcelPoint | eCommerce Supply Chain | Scoop.it

Get your parcels shipped to a convenience store near you and avoid missing the delivery for only $2.95.

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Amazon rolling out lockers for online delivery in the US

Amazon rolling out lockers for online delivery in the US | eCommerce Supply Chain | Scoop.it

This is the future of small parcel deliveries.

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Bouris looks for partner for e-shopping lockers

Bouris looks for partner for e-shopping lockers | eCommerce Supply Chain | Scoop.it

More on TZ's lockers for home use.  Do I really want one of these if I can just pick my stuff up from a local delivery point on my way home from work?

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Working From Home - an essential challenge that must be met in the green economy

Working From Home - an essential challenge that must be met in the green economy | eCommerce Supply Chain | Scoop.it

A new study has found increased productivity for work from home employees.  People are getting more used to connecting with others remotely in their social lives, it is only a matter of time before this becomes common place in the business world.  This is an essential change for the green economy to reduce fuel and energy use by commuting and office buildings.  Will it work for everybody? - no. but it doesn't have to, if only 20-30% of staff worked from home on average this would make a significant reduction in congestion and energy use.  This challenge is more social and cultural than technological.  It requires a new set of attitudes by workers and managers based on outcomes and results rather than visibility.

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A lesson in how not to do retail stores from Best Buy (and nowhere to hide)

A lesson in how not to do retail stores from Best Buy (and nowhere to hide) | eCommerce Supply Chain | Scoop.it

This article led to a series on Best Buy by Larry Downes at Forbes. It unleashed a wave of public comment against Best Buy that reinforces once again, that companies have nowhere to hide.  

 

Best Buy is not going well;  full of hubris, it is in decline and denial and clutching at failing strategies.  Maybe it's just the market trends of online shopping  turning against it, but more likely just a poor in store experience that is turning customers away.

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