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Impulsive Shopping and Post-Pandemic Consumer Behavior

shopping

Impulsive Shopping and Post-Pandemic Consumer Behavior

Picture this. You are in the supermarket in your neighborhood queuing to pay and see some delicious and totally irresistible chocolates that you did not even think about buying but that now are something that has become essential. That is what in marketing is called “impulsive buying” and, for example in the case of supermarkets, it is their main source of benefits.

Let’s take it up a notch. Have you thought about how you can translate an Instagram or Facebook like into a sale? That’s called Influencer Marketing, and I’ll show you how to unleash this online technique by starting a conversation and ultimately driving sales and establishing impulsive shopping, whether this was your initial objective or not. Remember, one like, share or comment, might equal one sale.

The Internet and mobile devices, as instant tools, favor impulsive purchases. Different promotions present on your website can trigger unplanned purchases by Internet users. Imagine being able to have those displays that are in the boxes of the supermarkets integrated into the design and shopping experience of your online store… How much extra income could they bring you? The experience may surprise you.

Flash sales (Time-limited): Flash sales are time-limited sales that are very often used in e-commerce to encourage impulsive buying. Generated by an attractive offer but limited in time, the user has to make a quick decision if he does not want to miss this opportunity. It works very well, especially in specific seasons where people are willing to spend more money (Christmas, back to school, Halloween).

Free shipping: The hook is to set a minimum purchase price so that the shipping costs are free and, if the customer does not yet have that amount, offer low-cost products in the checkout process that achieve the minimum required quantity. If we use products that far exceed the minimum amount, it will not work, but if they are inexpensive and related to the purchase that has been made, success is practically guaranteed.

Stock level: Showing available stocks can, to some extent, favor impulsive buying. If the number of products in stock is low, the interested visitor will tend to buy their product for fear of not finding it again at the price proposed in your online store.

Give away discount coupons or free products (gift): On condition of making a purchase, of course. This type of tactic has been shown to also boost sales since the customer must buy in order to receive their gift.

Expiration date:  Discounts on these types of items range between 20 percent and 50 percent of their initial price. For example, if they are products that expire the next day, the price is usually cut in half, but if we talk about products that have weeks to expire, the discount stays between 20 percent and 30 percent. Stores free themselves of products that would end up in the garbage and without any benefit if not bought, while customers get a good deal for a product that they would either buy or just purchase to take advantage of that specific occasion.

After the pandemic

From toilet paper in the early pandemic to bleach and flour, during this crisis consumers have modified its consumption and its way of making the purchase. But what will the consumer be like after pandemic? It is evident that many consumers have had to test the online channel as a result of this crisis, and they have realized how comfortable and safe it is for them.

The confinement has made the segment of the population that least bought online, those over 55-60 years old, now the group that needs it the most, especially those over 70, who are the most vulnerable to the disease and those who, therefore, should be more confined and without the help of their families. Although the consumer preferred to buy some specific products in person; if consumers verify that the product they receive at home meets their expectations, it is very likely that after the crisis it will continue to do so.

On the same line of shifting consumer behavior, for instance, some of the most popular products today are related to protecting employees and separating consumers with employees, like speak-thru devices, trays and shelves, and sliding service windows.

Where do impulsive purchases predominate: in physical stores or on the internet?

Physical stores are the main claim to get a customer to buy without having thought about it before. This fact is partly logical because most impulsive products are food, clothing, drinks, and personal care products. If discounts and promotions are added to that, the mix is ​​perfect. Supermarkets, shopping malls, and convenience stores are the central places for this type of sales.

Furthermore, some stores go the extra mile by using techniques that play with your senses, by releasing exquisite coffee and fresh cookie smell to get you in, even if they’re not in the food business.

Online advertising is the least appreciated to generate buying impulses, but that does not mean that their tactics are useless: Brands that use digital platforms as the first approach and establish the first connection have the potential to reap the benefits when the time comes to make the final purchase in the store, according to a study by Geoblink. 69 percent of those surveyed stated having bought between one and five products spontaneously in the last week, while 26 percent admitted having made between six and ten purchases of this type.

The millennial generation is the one that buys the most on impulse: a small group of 7 percent have bought up to 11 items without foresight in the last week. The previous facts serve as a great opening remark of the aforementioned Influencer Marketing technique. If you got until this part of the story, it means that there’s impulsive buyer material within you.

Influencer Marketing is nothing more than getting the right people to talk about you, firstly triggering your target audience to talk about you, secondly prompting that audience talking to each other about you, and finally you and the audience listening to each other. When this two-way conversation is in place, it is very probable that some of your social media likes, whether on Instagram or Facebook, are in fact translating into sales in your physical or online store.

There are a couple of exceptions to this rule on digital impulsive buying: the first, that those who already have a subscription to a platform like Amazon, which avoids having to go through several stages before buying, are better able to combat the impulsive factor. The second: when the object to buy is an electronic item. 55 percent of the participants chose the Internet as the preferred medium for the impulsive purchase of these items.

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Featured in the Best Online Shops 2020 – Newsweek, DK Hardware is one of the largest online home improvement retailers for a variety of hardware manufacturers all over the United States and Canada.

supply

E-Commerce Logistics and Supply Chains: Journey to the Future

The transition of commerce to an electronic format is a well-established and economically sound process which is in its prime. Shopping and paying online has already become an integral part of modern life. Conversion of e-commerce platforms is more than 7% versus just 3% in the retail sector. But how has the transformation of e-commerce affected logistics?

The transportation of products remains a physical process that cannot be realized through the Internet. However, electronic administration of logistics processes is available now, and advanced technologies help optimize the product movement along the supply chain. How does this all happen and what are the current trends – let’s understand.

Why Classic Logistics Has Become Obsolete

The answer is simple: needs are growing.

If we immediately exclude the possibility that a business delivers goods on its own without involving third parties, then, in any case, there is some company in the chain between the brand and the consumer. With its help, goods get into the hands of buyers from different cities and countries.

But if earlier, in most cases, it was a matter of delivering the product to stores and other retail structures, now everything is much more sophisticated. Buyers may request delivery to their nearest post office, special pick-up point, or even directly to their home. This required a qualitative change in storage conditions and technologies used.

Reasons for the Rapid Development of Logistics

In order to take their place under the sun in a trading niche, brands choose the most effective methods. This is what is most appreciated by any buyer – a wide range of products and short delivery time: who would want to wait for their goods for several months? The same goes for digital commerce. Therefore, you should not be fooled, for example, a case of Photza digital photo retouching service, when they reduced the delivery time from 3 days to 2 and began to send ready-made photos not only through your personal account on the website, but also duplicated by email link to Dropbox, increased conversion by 17.3%.

A good example of successful adapting to new realities is Amazon. By activating 50 picking warehouses throughout the United States, this giant got the opportunity to promise customers next-day delivery. With the help of a special code (SKU), each item was designated, then it arrived at the distribution center, and was ready to be further piece-picked for individual orders.

The closer the inventory to the buyer, the faster the delivery. Other retailers and businesses quickly realized this and began to deploy new capacities, using both internal departments and shared resources managed by third-party partners.

New Trends and Their Impact on Logistics

Implementation of Digitalization

This is a crucial thing that makes sense to mention. Advanced technologies, the ability to create and use customized software adapted for each business and its logistic model, electronic databases and much more allowed many brands to reach a new level.

Digitalization not only accelerates work, but it also provides greater stability and sustainability in the implementation of supply chains. With its help, brands can check the availability of products in any storehouse at any time, request information on the latest deliveries as well as the status of different orders, manage inventory and pre-compile optimal routes.

The Same-Day Delivery

The question of how to speed up the process of getting the product into the hands of the buyer continues to occupy the minds of brands. The most relevant category of goods for delivery on the same day is, of course, food. One can also include consumables here. Short-lived commodities do not stand the test of time, therefore, special conditions must be provided for them. And this is not a whim of the client or the quirk of the manufacturer, but an urgent need.

Moreover, there is a certain relationship between service and money, which people consider appropriate to pay for it. This balance should be carefully calculated and taken into account. It is also interesting that more than 60% of clients are willing to pay more in order to receive the goods on the same day or at least the next day. If the brand has the opportunity to fulfill this desire, then we can say that it is already one step ahead of its other less savvy competitors.

To reduce the cost of delivery and ensure its optimization, platforms such as Uber implement market models that analyze and compare supply and demand. For example, they select available couriers and orders received in real time and, by appointing a courier to deliver a product, seek to minimize the average travel time. The whole system is fully automated: large amounts of money were invested to ensure its correct functioning. Notably, they fully paid off, because as a result, the organization has received a platform that provides stable and trouble-free operation.

The scheme of working with local couriers is gaining momentum, and in the near future, many large retailers are expected to switch to it. This is convenient and, as indicated above, requires the greatest cost only at the initial stage of implementation. With the correct formulation of the problem and the determination of the goals pursued, success will not be long in coming: it remains only to maintain the system and periodically update it. No one wants to be left overboard as an outdated option.

Couriers Robots

Delivery of goods by robots is also not as far away as it might seem. Starship Technologies is already launching its standalone food delivery robots in Tempe. Self-guided robotic vehicles can carry orders weighing up to 40 pounds over a distance of 3 miles. Autonomous navigation is provided by a 360-degree camera, which makes a robot an absolutely independent counterpart to couriers, reducing labor costs by more than 70%. Bots work best in urban centers.

There is no information about possible obstacles to their movement yet. In addition, such machines encounter far fewer legal barriers than their unlucky colleagues – drones.

The Power of Social Media

While marketing and link building strategies allow the brand to improve its online visibility, social networks dominate in matters of instant communication with customers. Clarification of address details, obtaining prompt feedback and providing the information requested by customers optimize logistics processes from a coordinating point of view.

SaaS Options to Streamline Supply Chains

Manual supply chain management with modern production volumes nowadays seems almost impossible; to say the least, then certainly both an outdated and inefficient method. Therefore, many businesses resort to various software-as-a-service supply management options.

This process became especially popular after the entry of cloud computing into the game. It made available timely informational and structural updates and created easy ways to manage infrastructure costs.

Advanced Product Tracking Scheme

The use of GPS has become another milestone in the history of an e-commercial boom. With its help, it became possible to track the location of the goods at any stage of their journey, whether it be moving to a regional storehouse or last-mile delivery. Moreover, tracking is a useful option for customers: they can clearly imagine and assume how much they have left to wait for their goods.

In the event of an unforeseen situation, brands can immediately detect problems and take all necessary measures to restore the procedure for transporting products to the buyer.

In the End

Modern problems require modern solutions. Therefore, in parallel with the new e-commerce opportunities, up-to-date options appear that handle the transportation of small and large goods equally well. Digitalization has given a significant impetus to the growth of new capabilities. Timely delivery at a price that satisfies the customer is what businesses strive for by updating their logistics models.

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Marie Barnes is a Marketing Communication Manager at LinksManagement, where you can buy real backlinks, and is a writer for gearyoda. She is an enthusiastic blogger interested in writing about technology, social media, work, travel, lifestyle, and current affairs.

boohoo

The Boohoo’s Trade Ascendency – What Can we Learn?

The Coronavirus crisis has taken it’s fair share of victims in the world of retail, tolling the death knell for a whole slew of companies including Debenhams, Long Tall Sally, Cath Kidson, Warehouse and Oasis. And yet, recent news tells us all is not lost – Boohoo has stepped in and bought the online businesses of both Warehouse and Oasis for a bargain £5.25m. It’s no surprise that e-commerce based retailers have been less hard-hit than their high-street counterparts, but even so, the majority of e-tailers have reported losses during the crisis. Not so Boohoo. Despite a slight downturn when the crisis hit, sales shot back up in May and they closed the first quarter with a 45% sales increase on the previous year. So what is it that makes Boohoo so special?

Their secret it seems is in their provisioning – the “Test and Repeat” model. Rather than making major forward orders and holding large amounts of stock in their warehouse, they instead purchase small product runs, test them on the site, and then restock quickly the products that work well, discarding those that don’t. This has been vital during the COVID-19 crisis as it allowed Boohoo to switch their product range from party and club styles to loungewear and athleisure within a matter of days, adapting to their audience’s requirements without missing a beat. As the retail sector faces an uncertain future it’s worth considering whether this business model may be the solution for retailers everywhere, whatever their size.

The difficulty is sourcing products quickly enough to make it work. There’s no point in having a successful test-run of a certain product if, when the first batch sells out, your restock order from suppliers in China or India can take up to 2 months to arrive – by this point the bird will have well and truly flown. Boohoo combats this by stocking mainly UK based suppliers, and with imports affected by travel restrictions and breaks in the supply chain, sourcing products locally is, without doubt, the obvious solution (particularly with Brexit on the horizon). Some retailers may balk at the higher prices, but with lower risks and less deadstock, the benefits do seem to outweigh the increased costs.

The Coronavirus crisis has forced an entire industry to stop and think, literally. How can we change the way we work to face the challenges that have taken us all by surprise? Short-order provisioning may be a way for businesses to adapt to this new situation and respond to the rapid changes in consumer demand that are sure to continue over the coming months, however, this is likely to be a step outside of the comfort zone for many retailers who are used to ordering for season months in advance.

The good news is that there are simple options to help with the switch to the “Test and Repeat” model. TradeGala offers ready-to-ship stock from over 50 independent fashion brands covering womenswear, menswear, childrenswear, accessories, gifts and shoes. It’s simple to register and you can go from initial order to receipt of goods in just a few days. Whether or not the recent changes signal the future of the fashion retail industry, as with any business, adaptation is survival. Is your retail business ready for the “new normal”?

Global Trade Magazine Opens Nominations for 8th Annual “Americas 50 Leading 3PLs”

Global Trade Magazine has officially kicked-off its 8th annual “America’s Top 50 Leading 3PLs” nominations. This year’s selected nominees will showcase the most competitive movers and shakers transforming domestic and international logistics, exceeding client expectations while maintaining an exemplary company profile with competitive solutions.

Following last year’s focus on “needs-based” and “high demand” categories, the 2020 feature will spotlight specialty industries including E-commerce/Omni-Channel, Temperature-Controlled, Hazmat, Distribution, Freight Forwarding, and much more.

“It’s a measure of the quickly growing/changing/evolving global marketplace that arguably the most critical industry serving it, Third Party Logistic Providers (3PLs), continues to grow, change and evolve at a dizzying pace,” explained former senior editor Steve Lowery.

Global Trade Magazine will determine the final 50 nominations based on industry reputation, outstanding operational excellence, game-changing initiatives, disruptive technology solutions, and unmatched levels of innovation. This list showcases leading companies while providing a comprehensive list for businesses seeking new partnership opportunities.

“It’s easy to say that one must move faster, deliver services quicker, be more innovative and have organizational agility to flex with the world, but it takes something quite different to lead the cultural transformation that is required to make these goals a reality,” said Rich Bolte, CEO of BDP.

“Leadership will have to change as well. Leaders will be measured by their ability to innovate and create potential disruptions. The old paradigm of measuring only performance and execution has changed.”

To see a complete list of recipients, please visit globaltrademag.com to view the current issue.

Nominations are currently open and will be accepted through August 15 at 5 p.m. CST.

CLICK HERE TO NOMINATE YOUR 3PL

supply chain employee

Supply Chain Employee Engagement – 5 Benefits for your Business

Whether you operate out of a small warehouse or work as an international shipping company, employee engagement can be pivotal for your business’ ongoing success. According to Inbound Logistics, 85% of employees have reported that they feel disengaged from their jobs around the globe. However, those that feel engaged have reported 41% lower absenteeism, 24% less turnover and 70% fewer safety accidents on the job.

In terms of employee management, Forbes published a report which stated that 89% of HR leaders agree that ongoing employee feedback and engagement is crucial. Likewise, 89% of workers whose companies engage its employees are likely to recommend them as good workplaces to their friends and associates.

These numbers showcase that supply chain employee engagement factors into your business’ performance far more than it might seem at first glance. The way you treat your employees will have ripple effects on your overall output, brand reputation, and the subsequent bottom line as a direct result. Let’s take a closer look at why supply chain employee management matters so much, as well as the practical benefits of implementing it going forward.

Why Supply Chain Employee Engagement Matters

Let’s look at why supply chain employee engagement is pivotal before we move on to the benefits of active communication with your employees. Supply chain management is an industry with a flat vertical curve when it comes to warehouse and storage management employees. The HR structure typically isn’t built with vertical advancement and career development in mind (apart from mandatory hard skill development).

However, this doesn’t mean that you can’t pay closer attention to your employees, their feedback, opinions, suggestions and personal goals. Tyler Jonas, Head of HR at Top Essay Writing spoke recently: “All employees have equal rights for engagement. You don’t have to offer elaborate rewards, position advancements or paycheck bumps to make your employees happy. Sometimes all it takes is to open a line of communication and discuss what can be done to make the work environment more enjoyable for everyone.”

Some of the common complaints and bottlenecks which hinder supply chain employees’ performance include:

-Lack of hands-on leadership and coordination from managerial staff

-High focus on supply chain ROI instead of employee wellbeing

-Poor health coverage and off days management

-Undefined employee advancement systems

Benefits of Supply Chain Employee Engagement

Let’s assume that you’ve rooted out the above-mentioned bottlenecks in your company’s supply chain management – what happens next? As you can see, the complaints most employees have in terms of engagement are not irrational – they are simply absent from the supply chain management pipeline. If you decide to pursue to correct these shortcomings, you will effectively gain a plethora of benefits in regards to your employees, including the following:

1. More Efficient Coworker Communication

Supply chain employees who are satisfied with their work methodology and engagement are far more likely to cooperate and coordinate efficiently among themselves. This will come as a natural outcome of better communication with the upper management and their efforts to make the work environment more appealing.

Aim to emancipate your employees to cooperate autonomously. Let them know that you value their opinions, experience and expertise – delegate certain decisions to their discretion to facilitate coworker communication. Once that happens, your employees will feel free to communicate their thoughts and concerns for the benefit of your company as a whole.

2. Higher Employee Retention

A major point of concern for the supply chain management sector lies in employee retention and how to entice people to renew their contracts regularly. As we’ve mentioned previously, employees who don’t feel valued or engaged by the company will likely seek greener pastures. This will leave you with a roster of employees who are there simply because they have no other option at the moment.

Such a scenario can quickly lead to a toxic work environment which will reflect poorly on your overall quality of service and brand reputation. You can avoid both points by investing time and resources into establishing a communication channel with your employees proactively rather than reactively. Don’t wait for things to go bad in your supply chain management department before opening a dialogue – increase your retention rates early on.

3. Better Productivity & Morale

Coworkers who are satisfied with the way they are being treated by the upper management will subsequently perform better in their daily work routines. This same rule applies to supply chain management as well as other industries which naturally involve a more hands-off approach from the management.

Regardless, engaging your staff frequently and communicating about what works and doesn’t in the company will help gain a lot of points in your favor. This will inevitably raise the morale and energy in your staff, leading to further improvements in productivity and their sense of belonging in the company.

4. Lowered Margin for Errors

Shipping errors and supply chain mistakes, in general, are something you want to mitigate as much as possible in your company. While mistakes are bound to happen even in the best-maintained companies, their frequency will speak volumes of how you treat your employees. Dissatisfied employees who lack any faith in their managerial staff are likely to make accidental mistakes simply because they lack the morale to do otherwise.

These mistakes can cost your company tremendously in terms of reputation, resources, time and B2B partners if they persist. However, by introducing a communication channel with your supply chain employees early on, you will effectively lower the margin for error significantly. Employees will pay far closer attention to their work and do their utmost to avoid mistakes simply because their managerial staff cares about them more.

5. Healthy Coworker Competition

Lastly, a major benefit of engaging your supply chain employees goes back to their internal communication. More specifically, employees who are simply happy with their work environment are likely to develop internal camaraderie and healthy competition among coworkers.

This will raise your staff’s morale significantly and ensure that people are more satisfied with their place in your company due to consistent vertical communication. Remember that while your B2B networking may be efficient, ground-level operations still depend on the efficacy and dedication of your supply chain employees. Facilitating a healthy coworker competition and emancipating your staff through it will bring about a plethora of improvements in your supply chain pipeline.

Parts of a Whole (Conclusion)

A company consists of numerous departments which all rely on one another to make the company viable on the market. As such, paying closer attention to your employees in supply chain management will allow the company to thrive internally. Besides the obvious increase in productivity, this will also improve your reputation on the market and make your company more attractive to future employees. Meet your staff halfway and establish a meaningful dialogue – you will undoubtedly be pleasantly surprised with the results.

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Kristin Savage nourishes, sparks and empowers using the magic of a word. Along with pursuing her degree in Creative Writing, Kristin was gaining experience in the publishing industry, with expertise in marketing strategy for publishers and authors. Now she works as a freelance writer at ClassyEssay, Studyker and Subjecto. Kristin runs her own FlyWriting blog.

small businesses

U.S. Metros With the Most Small Businesses Per Capita

Small businesses across the United States face dire circumstances following the COVID-19 outbreak. While each individual small business might seem inconsequential to the broader economy, in aggregate, these firms are critical to the country’s financial well-being.

According to the most recent data from the U.S. Census Bureau, small businesses with fewer than 50 employees makeup approximately 95 percent of American business establishments and employ 40 percent of private sector workers. These 7.4 million small businesses (or 2.27 per 100 residents) also account for roughly a third of total private sector payroll.

Unfortunately, research shows that small businesses and their workers are particularly vulnerable during recessions and other periods of economic hardship. A recent survey conducted by the New York Fed found that even prior to the pandemic, 64 percent of small businesses faced financial challenges in the preceding 12 months. The same survey reported that a two-month loss of revenue would cause 86 percent of firms to take a serious financial action, such as using the owner’s personal savings, taking out a loan, or cutting staff salaries.

Moreover, small businesses in some industries have a larger economic impact than others. Among small businesses with fewer than 50 employees, those in accommodation, food services, and retail trade—coincidentally, the sectors hit hardest by COVID-19—employ the most workers. These industries, combined, account for more than 16 million employees and $362 billion in annual payroll.

Like the businesses themselves, small business employees are also more financially vulnerable than their large-firm counterparts. Data from the Bureau of Labor Statistics shows that fewer small business employees have access to retirement benefits, healthcare benefits, paid sick leave, life insurance, or disability insurance. Troublingly, only half of employees in small businesses have health insurance through their company and only two-thirds have paid sick leave.

While small businesses are a critical component of the national economy, some parts of the country depend more on small businesses than others. To find the metropolitan areas with the most small businesses, researchers at Construction Coverage, a review website for workers’ compensation insurance and construction software, analyzed the latest data from the U.S. Census Bureau. The researchers ranked each location according to the number of small businesses per 100 residents. Researchers also included statistics on the total number of small businesses, the number of retail, accommodation, and food service businesses, and the share of workers who are self-employed. For the analysis, small businesses were defined as those employing fewer than 50 workers.

To improve relevance, only metropolitan areas with at least 100,000 people were included in the analysis. Additionally, locations were grouped into the following cohorts based on population size: large metros (1,000,000 residents or more), midsize metros (350,000-999,999 residents), and small metros (less than 350,000 residents).

Here are the large metropolitan areas with the most small businesses per capita:

For more information, a detailed methodology, and complete results, you can find the original report on Construction Coverage’s website: https://constructioncoverage.com/research/cities-with-the-most-small-businesses

How Warehousing has Evolved Over the Years

In the last ten to twenty years, warehouses have evolved massively. The industry has come a long way just in the last decade and has evolved to adapt to a faster pace. Driven by the evolution of various factors that influence the global market, warehousing continues to rise and change to remain one of the vital components in many industries.

The rule in business nowadays is simple: either you adapt or you break. The warehousing sector can confidently say that it has successfully adapted to the trends set by consumers and competition. From retail to manufacturing, every business that involves logistics has managed to or has to manage by making planned changes through the use of recent developments, which has so far produced positive results.

As warehousing experts and pros continue to tread the path driven by trends and change, they have to educate themselves. An important part of the adaptation process and preparing to move forward is looking back at what put you in your current position – a review of sorts.

To help you see the direction warehouse management is headed, this article will highlight how warehousing has evolved over the years.

More Strategic and Complex

Warehousing management has become more strategic and complex over the years. The simple warehouse which was once a small portion of the supply chain is not what it used to be. The primary concept of which warehouses were derived is still there: storage; however, the warehouse is now being called on to handle more complexity than it ever had.

There are many different types of warehouses that exist now that could play an important role in the near future. Warehouses such as high ceiling facilities and pop-up warehouses were developed throughout time to meet different requirements. Still focusing on adapting, it’s critical that current warehouses are agile and can adapt to changing conditions.

Accessibility

Historically, warehouses were only available to large businesses with a large-scale budget. Now, warehouses are more accessible even to small and medium businesses. This is driven by everyone wanting to manage their own operations and taking matters into their own hands.

The demand for industrial real estate has risen and continues to do so since the boom of ecommerce and the customer’s expectations of faster and more affordable shipping. For instance, there is accessible industrial real estate in many locations such as the warehouse in Kansas City that a business can either lease or purchase for different purposes. This all caters to businesses of all sizes.

Shift to Ecommerce Drives Automation

As aforementioned, the ecommerce industry is one of the main driving forces of the warehousing evolution. Ecommerce pros are facing the challenge of meeting customer expectations of cheaper and faster delivery and shipping. One of the strategies to address this demand is to automate.

Automated systems effectively reduce overstock and shortages and will boost profits in the long run. Automation cannot do it alone though, as it has to be partnered with quality warehouse storage systems to help an operation run smoothly.

Conclusion

Warehousing evolved in the past years by becoming more strategic and complex, accessible, and pushing for automation. It will continue to evolve in the next decade or so, as it depends on variables that can disrupt the majority of workplaces in many industries. Warehousing will continue to be pushed to adapt by the ever-changing fast-paced world.

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Angelo Castelda works as a contributor for a news magazine in Asia. On his free days, he likes to read books about the logistics industry and warehouse management. He also gets frequently invited to schools and universities to hold talks about the supply chain system and warehouse operations.

online

PREVENTING TRADE IN ONLINE FAKES

Online Buyer Beware

U.S. consumers spent over $600 billion dollars with U.S. merchants online in 2019. For consumers, online shopping is enticing for its convenience. With credit card in hand, shoppers can easily compare prices, make a purchase, and have the products shipped directly to their homes. The ability to sell online has transformed the ways in which manufacturers, shippers and retailers conduct business.

The evolution from brick and mortar to online stores has also made it more convenient for illegitimate businesses and criminals to pass off counterfeit products, which has attracted the attention of the U.S. government. Since November 2019, a flurry of government activity has focused on protecting consumers in the e-commerce environment.

Trade in fake goods 3.3 percent of world trade

Political Hue and Cry

The Senate Finance Committee examined online counterfeit goods last November when it issued a bipartisan report highlighting two key fact findings: U.S. businesses have difficulties preventing the sale of counterfeit goods online, and e-commerce platforms have no affirmative obligation to police counterfeit goods listings or to proactively remove suspected counterfeit items.

In January, the Department of Homeland Security (DHS) issued a report titled Combating Trafficking in Counterfeit and Pirated Goods, in which DHS found that e-commerce has contributed to a shift in the sale of counterfeit goods in the United States. As consumers increasingly purchase goods online, counterfeiters are increasingly producing a wider variety of goods that may be sold on websites alongside authentic products. The report adds that American consumers shopping on e-commerce platforms and online third-party marketplaces now face a significant risk of purchasing counterfeit or pirated goods.

A week after the release of the DHS report, the White House issued an Executive Order “Ensuring Safe and Lawful E-Commerce for U.S. Consumers, Businesses, Government Supply Chains, and Intellectual Property Rights Holders”. The Order implicates express carriers and the international postal system as contributing to the problem of imports of contraband and counterfeit goods.

American brands 24 percent of fake products seized

House Bill 6058, the SHOP SAFE Act of 2020, was introduced in early March in the House of Representatives. The bill proposes to impose contributory trademark infringement liability on e-commerce platforms unless they take steps specified in the legislation. The legislation received immediate support from several prominent industry associations.

The American Apparel & Footwear Association’s CEO stated that “more needs to be done to prevent counterfeit products from unknowingly entering the homes of American families.” In support of the bill, the CEO of the Personal Care Products Council stated that “counterfeit personal care products damage businesses, disregard regulatory protection and more importantly threaten consumers’ health and safety,” adding the Council encourages “Congress to establish a system that makes online marketplaces and others responsible for ensuring that products on their platforms comply with U.S. laws and regulations”.

Two days later, House Energy and Commerce Committee Chairman Frank Pallone (D-NJ) stated that the convenience of e-commerce “has come at a devastating price: a proliferation of dangerous counterfeit goods that endanger consumers and property, and an army of counterfeit merchants from overseas that undermine American small businesses with unscrupulous tactics.”

Counterfeit medicines

Hiding on Plain Sites

In general, the owners of intellectual property (copyrights, trademarks, patents) have had a lot to say about the online platforms and marketplaces that host e-commerce. As summarized in the Senate Finance Committee’s report, e-commerce platforms place the burden of policing and enforcing intellectual property (IP) on the IP owners, suggesting they do not have a duty to police counterfeit listings or proactively remove suspected counterfeit goods from platforms.

The proposed SHOP SAFE Act of 2020 would place a greater burden on platforms. By taking steps outlined in the legislation, platforms would be able to avoid liability for IP violations.

During the week the SHOP SAFE Act was introduced and a hearing held to address the issue of e-commerce threats to consumers and the economy, a technology company, PreClear, announced it is using “technology that pushes out the border and prevents infringing goods and potentially harmful goods from being exported to the U.S.” PreClear’s founder is quoted as saying that the technology is in use 24/7 and rejects thousands of non-compliant items daily.

There is no doubt that the sheer volume of infringing and other non-compliant merchandise available to consumers on the internet begs for a solution. The question is whether protection and enforcement begin after the items are in the stream of commerce in the United States or before the items ship to the United States. One of the missing variables in the trade policy equation remains how to prevent infringing items from leaving the country of origin in the first instance.

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Tim Trainer was an attorney-advisor at the U.S. Customs Service and U.S. Patent & Trademark Office. He is a past president of the International AntiCounterfeiting Coalition. Tim is now the principal at Global Intellectual Property Strategy Center, P.C., and Galaxy Systems, Inc.

This article originally appeared on TradeVistas.org. Republished with permission.

artificial intelligence

Artificial Intelligence Market to Reach $54 Billion by 2026

According to a new study published by Polaris Market Research, the global artificial intelligence market is anticipated to reach USD 54 billion by 2026. The advancements of robots and the rise in their deployment rate particularly, in the developing economies globally have had a positive impact on the global artificial intelligence market.

Augmented customer experience, expanded application areas, enhanced productivity, and big data integration have highly propelled the artificial intelligence market worldwide. Although, the absence of adequate skilled workforce, as well as threat to human dignity, are some of the factors that could affect the growth of the market. However, these factors are expected to have minimal impact on the market attributed to the introduction of advanced technologies.

An extraordinary increase in productivity has been achieved with machine-learning. For instance, Google, with the help of its experimental driverless technology has transformed cars including, Toyota Prius. The integration of various tools by artificial intelligence has helped in the transformation of business management. These tools include brand purchase advertising, workflow management tools, trend predictions among others. For example, Google’s voice accuracy technology has a 98% accuracy rate. Furthermore, Facebook’s DeepFace technology has a success rate of approximately 97% in recognizing faces. Such accuracy in technologies is further anticipated to bolster the market growth during the forecast period.

Currently, North America dominates the global artificial intelligence market attributed to the high government funding availability, existence of prominent providers in the region, and robust technical adoption base. Also, the region is expected to continue its dominance during the forecast period. Moreover, the adoption of cloud-based services in key economies, such as the US and Canada, is considering adding to the market growth in the North American region. The markets in Asia Pacific, MEA and South America region are expected to notice a high growth during the coming years. The growth in the Asia Pacific region is attributed to the increasing demand for artificial technologies by the developing economies. Thus, the region is anticipated to grow at the highest CAGR during the forecast period.

 

Major companies profiled in the report include Google Inc., Intel Corporation, Nvidia Corporation, Microsoft Corporation, IBM Corporation, General Vision, Inc., Qlik Technologies Inc., MicroStrategy, Inc., Brighterion, Inc., and Baidu, Inc. among others.

Key Findings from the study suggest North America is expected to command the market over the forecast years. APAC is presumed to be the fastest-growing market, developing at a CAGR of more than 65% over the forecast period. The artificial intelligence market is presumed to develop at a CAGR of over 55.9% from 2018 to 2026. The high implementation of artificial intelligence in several end-user verticals including, retail, automotive and healthcare is projected to boost the growth of the market over the forecast period. Several companies are making considerable investments to integrate artificial intelligence competencies into their portfolio of products. For instance, in 2016, SK Telecom and Intel Corporation signed an agreement for the development of the artificial intelligence-based vehicle-to-everything (V2X) technology as well as video recognition.

For More Information About Artificial Intelligence Market @ https://www.polarismarketresearch.com/industry-analysis/artificial-intelligence-market/request-for-customization
manufacturers

3 Privacy Compliance Priorities for Manufacturers in Ecommerce

Manufacturing leaders aren’t exactly diving into the world of ecommerce headfirst. Instead, they’re cautiously dipping one toe at a time into the waters. Several things keep them from going “all in,” so to speak, but one of the most serious is compliance with privacy regulations.

In June 2018, California’s governor signed the California Consumer Privacy Act into law. This year, the law officially went into effect. Under the CCPA, companies must notify users if they intend to monetize their data and give them the option to opt-out.

Its reach will be significant. The law is expected to affect more than 500,000 businesses in the United States alone — and many more around the world.

Those that fail to comply will face hefty fines. So if manufacturers are going to survive in the age of ecommerce, they won’t be able to wade in little by little and take on privacy compliance halfway. Privacy regulations are complicated, and compliance can literally make or break a business.

Ignorance of the Law Is Not a Defense

Most companies that do business online have researched state and national laws to some extent, but data privacy laws aren’t easy to understand. To truly comply with all of their nuances and demands, businesses have to hire additional people, integrate complex processes into internal operations, and put forth massive amounts of effort.

Most got into ecommerce with the hopes that having an online presence would help them avoid headaches and reach customers more easily. But when the market matures, regulations do, too. And while most companies know not to send email newsletters to people who didn’t subscribe or sell customer information without permission, they don’t know the finer details of regulations, much less how they differ by state.

For instance, a prospective client reached out to us after it had ended up in court for violating a state privacy law it didn’t know existed. The company’s website was using an assumptive privacy policy, which assumes that users agree to their data being collected and used by merely using the site. Because the company was using the site to do business in a state that banned these privacy policies, it faced a potential fine of $1,000 per site visit. The company ended up settling the case out of court, but it was still a shocking and scary discovery.

Even for well-meaning manufacturers, ignorance doesn’t hold up in court as a legal defense. Intentional violations can cost up to $7,500 per violation. And unintentional violations can be $2,500 per violation, making even accidents a significant cost. Manufacturers are timid about ecommerce because data privacy and compliance are intimidating. Some never pursue ecommerce for this very reason.

Imagine a small manufacturer that’s decided to sell online. It goes through the entire process of building a site, implementing new operations, and calculating shipping as transactions occur. Then suddenly, it has to be responsible and ready for multiple data checks and data wiping. It’s a lot to take on, both from the operations and the financial perspective. In total, meeting compliance standards could initially cost companies up to $55 billion.

Make Ecommerce Security a Priority

As you implement ecommerce in your manufacturing business or work to strengthen compliance with your current ecommerce system, here are three things to focus on:

1. Ensure that your systems are secured and encrypted. Wherever your ecommerce data lives, you need to be 100% sure it’s secured and encrypted. This is especially important if you’re handling, storing, or passing along credit card information.

Doing this is a combination of several elements. First, have an audit done that considers your specific industry so you can be entirely sure you know what regulations to comply with and to what degree. After that, you’ll have to put additional processes into place, and those processes will likely need additional software and hardware systems to serve their purpose.

We’ve worked with manufacturers where credit card information was being stored on-site and transferred between systems in a way that wasn’t secure. Often, older ERP systems don’t have the necessary security fields. It’s key, then, to move to a modern ERP and integrated ecommerce system to avoid and rectify situations like these.

2. Monitor employee access. Be aware of which employees have access to your development, staging, and production systems. While digital hacking is a security concern, physical access to information is, too. The best way to control who has access to private information is to grant permission to only specific roles and for only certain pieces of the system. A developer shouldn’t be making coding changes and publishing unchecked. A combination of role-based technical security and tight control on physical access is the best way to address this concern.

A manufacturing company often has a small technical team. We’ve seen teams of one that have access to all levels of data in these smaller organizations. Hiring multiple people just for data privacy management and security purposes is a serious financial burden, but you need to make having multiple people designated to multiple parts of the privacy process a priority.

3. Keep up with CCPA and GDPR. Being aware of and keeping up with CCPA and the European Union’s General Data Protection Regulation will be essential to staying compliant. If you meet the criteria for CCPA, be sure that you can wipe customers’ information from existence completely upon request.

If your annual gross is more than $25 million or you derive more than half of your annual revenue from selling California residents’ information, you have to comply with the law. This means being transparent about your data-usage policies, giving consumers access to the information you’ve collected about them, offering the choice to sell their information, and being capable of deleting all of their personal information upon request.

Knowing the processes and resources you need to handle compliance obligations is the hard part. You need people who can handle customer requests for data review and deletion and who can remove and keep the right data. Being supported by business and accounting teams will make this process smoother and stronger.

A few years ago, the internet was like the Wild West. Like most wild things, it gets bigger and needs to be tamed and managed. That management is a process. Some laws sound good on paper but will do more harm than good if fully enforced. They can even force honest manufacturers away from ecommerce. Ultimately, we will find a balance with responsible security and data if everyone works together. In the meantime, be aware of laws and make an honest effort to comply with them. There’s plenty of opportunity in ecommerce; you just have to pursue that opportunity with the right systems, team, and security in place.

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Michael Bird is the CEO of Spindustry, a digital agency focused on eCommerce, SharePoint portals, and enterprise websites. He has almost 30 years of experience in interactive development, user behavior, and business solutions.