What Amazon and Whole Foods wish they knew about in-store fulfillment

MINDS WERE BLOWN last week when Amazon.com announced its intention to acquire Whole Foods Markets 461 locations in a $13.7B cash buyout. A media and analyst frenzy followed that has kept the world of retail business on edge for many days.

As it happens, your intrepid storyteller was already deeply involved in a project focused on the in-store fulfillment of online orders. Click & Collect has been coming on strong for many months, and it seems like Amazon’s serial adventures with AmazonFresh Pickup, AmazonGo, Prime Now and Prime Pantry have been a primary catalyst. Obtaining a portfolio of physical stores is its most audacious experiment to date. Now the competition gets interesting.

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At Shoptalk: Fulfillment’s Faster, Freer Finale

IN THE FRICTION-FREE WORLD of online retailing, getting the order is easy. Delivering on the promise is hard.

At the Las Vegas Shoptalk conference last week retail thought-leaders shared insights about the fulfillment challenge. Their consensus: it’s not going to get any easier.

“My bet on shipping is faster and freer,” said Jason Goldberger, president, Target.com and Mobile Target, in a panel on The Changing Role of Stores in Ecommerce Fulfillment.

“It used to be that our guests just wanted free shipping,” he added. Now they demand overnight delivery and same-day store pickup.

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Michael Tobin, SVP Strategy & Innovation at Macy’s, explained that successful and cost-effective fulfillment now requires a sophisticated algorithm that considers multiple factors, including the ship-to address, units on hand, units to ship, location capacity, combinability of items in an order, and more. “We’re on the 3rd or fourth version of that algorithm,” he said.

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