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Wednesday, June 12, 2019

Cutting Out of Stocks: Reality and Perception

A favorite topic.   Availability is essential to support marketing, else whats a shelf placement for?   Thus too while online works well.

Stores have cut out-of-stocks. Why don’t consumers know that? in Retailwire  by Andrew Blatherwick

Research shows that online retailers have significantly lower service levels when compared to traditional retailers that operate warehouses and stores. Still, the perception persists that Amazon.com can quickly and efficiently deliver any product to your doorstep, while brick-and-mortar retailers constantly run out of stock on items. Why the disconnect and, more importantly for traditional merchants, how do you overcome that perception?

The perception disconnect is rooted in the fact that customers have grown accustomed to high availability as retailers have improved their supply chains and technology over the last 20 years. For physical retailers, an out-of-stock is as clear as the hole on the shelf. It’s tangible, and shoppers experience a time delay in acquiring the out-of-stock item — whether by visiting a competitor’s store or placing an order online.

While ecommerce customers may be unimpressed by poor availability, they are far less inconvenienced because switching to a competing online retailer takes just a moment’s time and a few mouse clicks. The negative impact on long-term loyalty in the ecommerce scenario is lower because it’s easier to shop multiple online retailers than multiple traditional retailers.  ... ."

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