{"id":1179,"date":"2020-12-18T12:35:00","date_gmt":"2020-12-18T12:35:00","guid":{"rendered":"https:\/\/www.toscaltd.com\/uk\/2020\/12\/18\/how-retailers-are-approaching-exploding-e-commerce-demand\/"},"modified":"2025-01-08T16:51:43","modified_gmt":"2025-01-08T16:51:43","slug":"how-retailers-are-approaching-exploding-e-commerce-demand","status":"publish","type":"post","link":"https:\/\/www.toscaltd.com\/tr\/blog\/how-retailers-are-approaching-exploding-e-commerce-demand\/","title":{"rendered":"How grocery retailers are approaching exploding e-commerce demand"},"content":{"rendered":"

The\u00a0grocery\u00a0e-commerce\u00a0industry has been on a steady path of growth for some time now, and with the\u00a0added\u00a0impact of COVID-19,\u00a0growth is\u00a0set to compound significantly.\u00a0In 2018,\u00a0online grocery shopping sales\u00a0in the US\u00a0reached\u00a023.9 billion\u00a0and\u00a0then grew to 28.68 billion in 2019, a 16.6% increase.\u00a0\u00a0Since the\u00a0start of the new year,\u00a0stay-at-home orders alongside the closures of\u00a0restaurants\u00a0throughout the nation\u00a0have\u00a0increased aggregate sales projections\u00a0immensely;\u00a0with some experts\u00a0projecting industry\u00a0sales growth of up to\u00a040% by\u00a0the\u00a0year\u2019s end<\/a>.\u00a0[1]\u00a0[2]\u00a0<\/p>

With all this growth\u00a0in such a short period of time,\u00a0retailers are being forced to\u00a0quickly\u00a0adapt\u00a0without risking their current in-store customer experience.\u00a0To succeed, retailers need to\u00a0accommodate\u00a0a wave of customers that\u00a0determine\u00a0their\u00a0retailers of choice\u00a0based on the\u00a0usability\u00a0of their\u00a0digital platforms,\u00a0timeliness\u00a0of delivery, quality of\u00a0products, and other factors that\u00a0make up\u00a0the user experience.\u00a0Tosca\u2019s line of E-commerce\u00a0Reusable Plastic Containers (RPCs) are\u00a0built\u00a0to\u00a0create a streamlined and consistent approach\u00a0to\u00a0the\u00a0picking, storing, and delivery of online\u00a0grocery\u00a0orders.\u00a0\u00a0E-commerce is bringing change to the industry, and retailers are taking several approaches\u00a0to meet customer needs:\u00a0<\/p>

Curbside Pickup<\/strong>\u00a0is\u00a0the most manageable\u00a0approach for retailers dealing with\u00a0the grocery e-commerce boom.\u00a0Virtually all\u00a0major retailers have adopted this method.\u00a0\u00a0With this approach,\u00a0retailers\u00a0can\u00a0satisfy customers\u00a0hoping to avoid\u00a0traditional in-store shopping without\u00a0having to invest\u00a0large\u00a0amounts\u00a0of capital\u00a0in\u00a0their\u00a0infrastructure.\u00a0The customer\u00a0can\u00a0place their order online\u00a0and have\u00a0it ready for pickup within a designated time period.\u00a0Retailers have\u00a0team members fulfilling orders in store\u00a0and staging areas for order pickups.\u00a0Tosca\u2019s E-commerce RPC is designed for ergonomics and stability throughout the picking process. The built-in handles of our plastic totes allow for easy handoffs and maneuvering throughout retail aisles.\u00a0\u00a0<\/p>

Partnered Delivery\u00a0services<\/strong>\u00a0such as\u00a0Instacart\u00a0began to turn profits for the first time ever\u00a0in the past year.\u00a0The shift in demand for grocery delivery created a gap in the market that retailers were not able to take on alone.\u00a0Some of the main retailers\u00a0using\u00a0partnered delivery include\u00a0ALDI and Target.\u00a0With these third parties\u00a0taking on the process of collecting and delivering\u00a0grocery orders, retailers\u00a0can\u00a0focus their attention on\u00a0other parts of the business such as\u00a0inventory management.\u00a0\u00a0<\/p>

One of the main\u00a0risks\u00a0for retailers willing to\u00a0bring in a third party\u00a0is the lack of\u00a0control, both from a customer service\u00a0and branding perspective.\u00a0\u00a0When customers deal with the third party instead\u00a0of\u00a0the retailer,\u00a0the retailer\u2019s\u00a0brand vanishes\u00a0from the interaction, thus devaluing\u00a0it.\u00a0To combat\u00a0this lack of presence, Tosca\u00a0can\u00a0brand all e-commerce RPCs with the desired logo.\u00a0<\/p>

Direct\u00a0Delivery<\/strong>\u00a0is an\u00a0option offered\u00a0by\u00a0a few\u00a0retailers,\u00a0most notably\u00a0Walmart\u00a0and Amazon.\u00a0Customers\u00a0can\u00a0have\u00a0groceries delivered straight to their house,\u00a0often on the same day the order is placed.\u00a0Tosca\u00a0e-commerce RPCs are stackable and designed to pick and store orders in tight areas while protecting\u00a0customers’\u00a0orders\u00a0during\u00a0delivery.\u00a0Direct\u00a0delivery differs from partnered\u00a0delivery, as\u00a0retailers\u00a0manage the delivery process in-house.\u00a0It requires significant resources to manage\u00a0an\u00a0e-commerce\u00a0platform and\u00a0build out infrastructure\u00a0such as\u00a0transportation\u00a0and warehouse space.\u00a0[3]\u00a0<\/p>

Micro-Fulfillment Centers\u00a0(MFCs)\u00a0<\/strong>are quickly becoming the\u00a0preferred\u00a0model for retailers\u00a0building out their e-commerce\u00a0systems.\u00a0Kroger\u00a0has become\u00a0one\u00a0of\u00a0the\u00a0main\u00a0advocates\u00a0of these systems, partnering with\u00a0the\u00a0online grocer Ocado to\u00a0add sites\u00a0across the US.\u00a0These centers are\u00a0specifically\u00a0meant for\u00a0fulfilling online purchases\u00a0and are\u00a0either\u00a0attached to existing\u00a0brick and mortar locations or\u00a0they\u00a0stand\u00a0alone\u00a0in urban areas.\u00a0They are\u00a0much smaller than the\u00a0standard\u00a0fulfillment center\u00a0and when paired with high levels of automation and robotics\u00a0at a large scale,\u00a0MFCs\u00a0are\u00a0one of the most\u00a0cost-effective\u00a0models for grocery e-commerce.\u00a0However,\u00a0for automation\u00a0to be implemented effectively,\u00a0MFCs\u00a0need containers that are\u00a0standardized and durable, such as Tosca\u2019s reusable plastic totes.\u00a0The main drawback\u00a0to these centers is the added\u00a0hassle of maintaining two\u00a0separate inventories, however with\u00a0built-in automation the process is quite\u00a0streamlined.\u00a0[4]\u00a0<\/p>

Omni-commerce is becoming the new normal in the\u00a0grocery\u00a0industry and\u00a0whether\u00a0you\u2019re a retailer or supplier,\u00a0your customers are expecting the same thing:\u00a0consistently\u00a0high-quality\u00a0products.\u00a0\u00a0Being able to provide that comes\u00a0from having\u00a0a strong operational\u00a0structure that\u00a0is efficient\u00a0and\u00a0ensures\u00a0fresh,\u00a0non-damaged products.\u00a0All e-commerce\u00a0fulfillment\u00a0structures require a reusable plastic container solution that is durable enough to protect products throughout motion and storage, while maintaining the efficiency needed to sustain a\u00a0high-volume\u00a0operation.\u00a0Tosca\u2019s line of\u00a0e-commerce\u00a0RPCs\u00a0keep\u00a0groceries safe throughout the picking\u00a0process, and the space-saving design of our plastic totes and foldable crate optimizes space in retail settings\u00a0where it\u2019s becoming more of a commodity.\u00a0\u00a0<\/p>

Learn More About the Benefits of Reusable Plastic Containers in E-Commerce<\/h2>

To learn more about\u202freusable plastic totes and\u202fhow they can\u202fstreamline your\u202fe-commerce\u202foperations, visit\u202fwww.toscaltd.com\/tr\/e-commerce<\/a>\u202for\u202fcontact our sales team<\/a>\u202ftoday.\u202f\u00a0<\/p>

To learn more about the numerous benefits of reusable plastic containers, click here.<\/a><\/p>

<\/p>

[1]\u00a0https:\/\/www.statista.com\/statistics\/293707\/us-online-grocery-sales\/<\/a>\u00a0<\/p>

[2]\u00a0https:\/\/www.supermarketnews.com\/online-retail\/online-grocery-sales-grow-40-2020<\/a>\u00a0<\/p>

[3]\u00a0https:\/\/corporate.walmart.com\/newsroom\/2020\/04\/30\/walmart-introduces-express-delivery<\/a>\u00a0<\/p>

[4]\u00a0https:\/\/www.foxbusiness.com\/markets\/kroger-grocery-ecommerce-fulfillment-centers<\/a>\u00a0<\/p> ","protected":false},"excerpt":{"rendered":"

The\u00a0grocery\u00a0e-commerce\u00a0industry has been on a steady path of growth for some time now, and with the\u00a0added\u00a0impact of COVID-19,\u00a0growth is\u00a0set to compound significantly.\u00a0In 2018,\u00a0online grocery shopping sales\u00a0in the US\u00a0reached\u00a023.9 billion\u00a0and\u00a0then grew to 28.68 billion in 2019, a 16.6% increase.\u00a0\u00a0Since the\u00a0start of the new year,\u00a0stay-at-home orders alongside the closures of\u00a0restaurants\u00a0throughout the nation\u00a0have\u00a0increased aggregate sales projections\u00a0immensely;\u00a0with some experts\u00a0projecting industry\u00a0sales growth of up to\u00a040%…<\/p>\n","protected":false},"author":30,"featured_media":431,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2,7,133],"tags":[287],"topic":[19,154,288],"class_list":["post-1179","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-reusable-packaging","category-e-commerce","category-traceability","tag-ecommerce","topic-rpcs","topic-reusable-food-packaging","topic-ecommerce"],"acf":[],"yoast_head":"\nRPCs in Exploding E-commerce Demand - Tosca TR<\/title>\n<meta name=\"description\" content=\"Grocery e-commerce retailers must take new approaches to meet customer needs in a changing industry. 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