What Emerging eCommerce Fashion Retailers Need to Know About Fashion Fulfillment and Optimizing Inventory
Fashion fulfillment is a hot topic for many new and growing clothing and apparel brands. Due to months of quarantining, consumers were hit with the same reality: they have nothing to wear.
The opportunities for eCommerce small and medium businesses are vast—and so are the challenges, especially in fashion fulfillment. However, there are solutions. These solutions range from managing eCommerce orders to returns, and more for fashion and apparel startups. We’ll start by reviewing the potential in today’s market.
Today’s Fashion Frenzy in Just the Tip of the Trend
Months ago, the signs were starting to appear. Over half of the consumers surveyed by Shopify last year said they’ve shifted more of their spending online. Thus, apparel was a big winner. According to Statista, 55% of fashion consumers bought clothes online in 2020.
Peak shopping periods look especially promising for eCommerce brands in 2021. The shift to purchasing clothes online was especially prevalent during last year’s peak shopping period. Going into the holidays, consumers said they intended to spend 64% of their holiday budget online. Cyber Week 2020 ended up being a digital shopping spree. Consumers made 35.2% of sales through online channels—the highest percentage ever.
The surge we’re seeing is part of a larger growth trend. The global apparel market is expected to grow from $527.1 billion to $842.7 billion by 2025. Consequently, that means a lot of fashion fulfillment.
Consumers need clothes and they’re increasingly going online to find them. Don’t expect this behavior to change, either. 53% of American buyers say the pandemic changed the way they will shop going forward. That makes having an optimized eCommerce website and fashion fulfillment strategy a must.
Great Timeing for Your Digital Storefront
Fortunately, launching or expanding a fashion or apparel brand has never been easier. Due to tried-and-true eCommerce business models. Sell your products on your own website or on marketplaces like Amazon and Etsy—or all of the above. Without a physical storefront and all the related capital investment, you can be up and running quickly. A superabundance of turnkey platforms like Shopify makes sure of that.
A digital storefront opens markets unconstrained by geography. Your growth is only limited by your inventory, ability to get orders out fast, and fashion fulfillment costs. In today’s always-evolving eCommerce landscape, many solutions are available to address each of those challenges.
eCommerce Fulfillment Technology Advantages
Software for order management, inventory management, warehouse management, and transportation management is available to help etailers. This allows these small businesses to improve efficiency, optimize processes, manage costs, and scale. It’s possible to integrate many functions with an eCommerce platform. Then you can easily manage the supply chain and shipments from your computer.
In addition, the existing networks of small parcel deliverers enable etailers of all sizes to offer two-day shipping. This is the same as big retail chains and allows brands to compete. It’s easy for sellers to compare shipping rates and print labels themselves for deliveries anywhere in the U.S. Last-mile delivery has gone from $31.25 billion in 2018 to $50.95 billion to meet the needs of online merchants.
When small clothing sellers grow and inventory needs become too much for owners’ living rooms and garages, options are available. Small businesses and start-up needs are increasing. They need to be able to hold larger amounts of inventory. Thus, warehouse space across the country continues to grow. 264.7 million square feet of new warehousing space was added in 2020, an increase of 9.5 percent from 2019.
Get the Most of the Market with a Fashion Fulfillment Partner
Storage agility, turnkey technology, and access to fast shipping options make market expansion a real possibility for companies. Even still, etailers find that as sales grow, so too do the complexities of managing and continuously optimizing their fulfillment.
Managing fulfillment in-house can be challenging and expensive. Expectations of today’s consumers demand you offer fast and affordable shipping to compete. Third-party logistics (3PL) providers are supply chain experts. They can help you streamline shipping for lower costs and efficiency. Fulfillment centers near customers so you can take advantage of ground shipping rather than paying for expensive expedited air. 3PLs like GEODIS eLogistics have locations located strategically in the U.S. The fulfillment centers are near all major urban areas. Further, the team has relationships with local partners that provide additional cost and convenience advantages.
Fashion Fulfillment Centers and Warehousing Crunch
Additionally, buying warehouses and staffing fulfillment centers require an investment of time and capital. These are both that few emerging apparel and fashion brands have. It also requires commitment, which is difficult in the constantly changing world of eCommerce. Your budget gets tied up that would be better spent on inventory, product development, or marketing. With a fashion fulfillment service provider, you can scale up quickly. This is accomplished by moving inventory into a 3PL’s warehouse and leveraging their fulfillment operations. You can scale back easily as well when demand wanes, like after a peak shopping period.
Finally, technology is a great equalizer in inventory planning. IMS provides data that aids in forecasting signals when it’s time to reorder products. Thus, etailers are able to spot slow-moving inventory in time optimize shelf space. 3PL plus technology supports cost savings and customer satisfaction—two musts for the success of online storefronts. 32% of consumers will leave a brand after one bad experience.
Smooth Returns and Happy Customers
Smooth returns management is a key component of customer satisfaction. However, it’s a time-consuming and costly aspect of eCommerce. 15-40% of online purchases are returned, and clothing ranks at the higher end of that estimate. Many 3PLs like GEODIS eLogistics can relieve etailers of this duty. The team will be receiving, inspecting, logging, and replenishing useable returns back into stock.
The more you sell, the more returns you’ll see. It’s one of an increasing number of fulfillment challenges that—if mishandled—can hurt customer satisfaction. That’s why etailers need to choose between becoming logistics experts themselves or leaving the logistics to the pros so they can focus on how best to dress—and address—buyers’ needs.
Ensure your business roars through the 2020s with inventory planning and eCommerce fulfillment that keeps pace with your sales. Talk to us about taking the next step in optimizing your processes.
