Ware will we store inventory? 📦
This week’s Dose highlights: the growing warehouse problem, the face of experiential retail, and the rise of chatbots.
Ware will we store inventory? The growing space issue for B2B & B2C
The B2B and B2C ecommerce markets continue to grow at a rapid pace—B2B saw $900M in sales last year. However, the U.S.'s warehouse industry has not been able to keep up—last year alone builders constructed 183M sq. ft. of space. Right now, the nation has 9.1B sq. ft. of warehouse space, but the average age of a warehouse is 34 years old. Talk about lack of high ceilings, load bays, and floor space for automated supply chain capabilities.
What stood out to us? We wonder if the recent launch of UPS's Ware2Go—a technology platform used to match B2B shippers with available warehouse space—will affect the need for new warehouses. Or at least the need for 183M sq. ft. of new space each year.
What we heard? New Jersey warehouses ordering a 2x2x2 off the senior menu at IHOP.
Experiential retail? Just do it.
This summer, Nike leveraged data in a new way to create a personalized shopping experience for customers in LA. Nike Live—a concept store combining physical and digital worlds—uses data from online purchases in the area to inform the store inventory. This hyper-localized approach relies on brand loyalists using the Nike retail app, online services, or Nike Plus. Focusing on CX, the store refreshes inventory every two weeks and lets customers pre-reserve sneakers.
What stood out to us? From selling Air Jordans on Snapchat to building a digital basketball court in the Philippines, Nike is no stranger to targeting the generation with the highest spending power. But the new Nike store is particularly aligned with customers' ideal store of the future: grab and go capabilities and tech-focused features.
What we heard? Last call for one of REI's brand-led camping trips.
Demand rises for chatbots in ecommerce
With 83% of online customers needing support during purchase and 71% using chatbots to solve problems fast, more ecommerce stores are implementing online chat functionality. According to Forrester, 5% of companies are using chatbots, 20% are piloting chatbots, and 32% have plans to use them in the future. Chatbots are quickly becoming another component of the omnichannel experience.
What stood out to us? Many big name companies are using AI-powered chatbots via Facebook Messenger. And in more ways than just customer support. Look at Domino's pizza ordering assistant, Dom. Or Burberry's play to order customers an Uber to the nearest store location.
What we heard? The death of AIM hasn't stopped the rise of Chatbots.
In the Headlines
- Magent-no: 5,000 Magento stores were infected by MagentoCore, a payment card data-stealing skimming malware.
- Wee offer ecommerce: Website-builder Weebly announces new ecommerce features for mobile app.
- Dream crazy: Nike tags Colin Kaepernick as the face of its 30th anniversary campaign.
- Last minute Mercedes: Up from 4,500, Amazon orders 20K vans from Mercedes-Benz for last-mile delivery program.
Because we can
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"After the consumption eras of the 1980s and 1990s, people now tend to forgo accumulation of possessions for experiences and more special items – especially if they have been personalized or customized."
Google wants to kill the URL?
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Media is sourced from: giphy