E-Commerce & Walmart: Lessons to Learn from COVID-19
As the demands for online services, especially groceries, have surged during the COVID-19 pandemic there has been a greater pressure on businesses to deliver products on time. Walmart has seized this opportunity, overtaking Amazon on the US iPhone App Store as the most downloaded app in the Shopping category.
To overtake Amazon and other retailers, Walmart has used its existing infrastructure of in-store retail to support a digital delivery strategy that has enabled the company to keep up with consumer demands.
Lessons to Learn
Initially beginning only just a few years ago, Walmart has been able to expand its services by equipping 3,200 stores with pick-up and 1,600 stores with delivery support. As COVID-19 demand for groceries is making it difficult for customers to book delivery slots or find the correct items in-store, the company’s pick-up service allows customers to order items to be delivered in-store for faster collection.
Walmart is still dealing with addressing capacity issues, as delivery slots are becoming more infrequent and difficult to book. However, this is a widespread issue for grocers as Amazon Prime Now, Amazon Fresh, Ocado and others, have all experienced increases in order volume.
Unlike its competitors, Walmart’s pick-up services have the capabilities to reach the highest number of people, thanks to its vast network spanning thousands of stores in the US. It is estimated that around 90% of the US population lives within 10 miles of a Walmart store.
While the current increase in online grocery shopping is not expected to maintain such high figures once the pandemic is over, Walmart’s position is advantageous. The company’s response shows that by quickly pivoting existing infrastructure to support customer demands, businesses can:
Reduce the pressure on fulfilment in stores by delivering more goods through digital channels, focusing on best-selling products or essentials that customers need the most
Use customer data to discover peak traffic channels and shopping patterns, online or in-store, and deliver additional support
Analyse SKUs and optimise supplier processes to prevent shortages by using digital systems to connect all channels
Online grocery sales account for about 2% of food and beverage sales in the US, showcasing steady growth boosted by the ongoing pandemic. In the UK, China, France and Japan, the figures are higher.
Once the pandemic passes, bigger data samples will provide a more in-depth understanding of the effects of COVID-19 on consumer shopping patterns. Currently, businesses are forced to seek new methods of engaging and converting customers through e-commerce channels. By understanding the current data and using it to create better processes for the future, businesses can establish a stronger position in the future.