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Target’s Success with Same-Day Deliveries, MSC Industrial Supply’s B2B App, and Amazon’s Donation Program

Target’s Success with Same-Day Deliveries

Walmart isn’t the only big box retailer making strides in ecommerce. This week Target reported a 34% increase in ecommerce sales year over year for its second fiscal quarter of 2019. A number of factors contribute to Target’s ecommerce success, notably including in-store pickup, same-day fulfillment, and most notably, deliveries by Shipt, a same-day grocery delivery service that Target purchased in 2017. Deliveries by Shipt is the fastest-growing branch of Target’s ecommerce strategy, and it accounted for a third of the company’s ecommerce revenue and three quarters of its ecommerce growth. “As we shift our fulfillment from upstream distribution centers to our stores, we see our cost go down by upwards of 40%,” says Target CEO Brian Cornell. “When it moves to one of our same-day options, pick up in-store, drive-up or Shipt, we see a 90% reduction in that cost.”

What stood out to us?

Costs go down upwards of 40% when fulfilling from stores.


MSC Industrial Supply Expands with New B2B App

For metalworking and industrial distributor MSC Industrial Supply, ecommerce accounts for 60% of its total sales. While its B2B ecommerce sales continue to grow, MSC is planning to expand the offerings of its online store MSCDirect.com with a new mobile app. ControlPoint, the new app, lets B2B buyers use their smartphone or tablet camera to scan MSC product barcodes and then add them directly to their mobile cart, and scan competitor barcodes to compare or review their order. The app also allows B2B buyers to order products for drop-shipment directly from a manufacturer, and send orders to MSCDirect.com for final checkout. “The app gives maintenance, repair, and operations professionals more versatility,” says Mike Roth, senior director of ecommerce at MSC. “Especially with their tablet while on the shop floor or job site.”

What stood out to us?

A mobile first approach. Smart.


Amazon Launches Unsold Products Donation Program

To help third-party sellers avoid dumping products and harming the environment, Amazon is launching a new donations program. The program, called FBA (Fulfillment by Amazon) Donations, will be the default option for third-party sellers that their inventory in Amazon’s warehouses who want to dispose of unsold or unwanted products. The donations will be distributed to a network of U.S. nonprofits including Good360 and UK charities such as Newlife and Barnardo’s. “At Amazon, the vast majority of returned products are resold to other customers or liquidators, returned to suppliers, or donated to charitable organizations, depending on their condition,” says Amazon in a statement to the press. “This program will reduce the number of products sent to landfills and instead help those in need.”

What stood out to us?

If only Amazon could use data to recommend that these products never be built.


In the headlines

  • Super Stadia Bros.: Google’s cloud-based video game streaming platform, Stadia, launches this November.
  • Rent-a-Style: To adapt to changing consumer habits, Banana Republic, Bloomingdale’s, and Macy’s will all offer clothing rental services.
  • Deep-Trouble: Overstock CEO Patrick Byrne resigned after making controversial deep state-related comments.
  • Cross-Continent Commerce: Russian steel suppliers Severstal and Novolipetsk turn to ecommerce to reach European customers.

Before you go

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