Microfulfillment Strategies – Top Priorities for Retailers

The COVID-19 impact on consumer buying behavior cannot be underestimated. According to the latest data from Adobe’s Digital Economy Index, U.S. e-commerce sales showed a year over year increase in August of 42%.

By the end of 2020, e-commerce sales are expected to reach $374.3 billion in the U.S., and $476.4 billion by the end of 2024. Online grocery helped drive the increase in sales and is expected to grow by 40% in 2020, compared to an increase of 22% in 2019.

Not surprisingly, retailers have scrambled to meet new customer demands in an environment where the fastest, lowest-cost delivery and most convenient customer experience win the day. Customers want the ability to buy online, have their product delivered in 24 hours, (and increasingly within the hour), or pick up curbside at their convenience.

Retailers and grocers alike are trying to figure out ways to best serve their customers through the pandemic changes, while keeping a close eye on the bottom line. Microfulfillment promises to meet customer expectations by allowing for fast delivery while reducing final mile costs.

At the same time, back-of-store, dark store and hub microfulfillment center automation technology promises to deliver on minimizing costs and increasing efficiencies — a game changer in the grocery environment, where gross margins are wafer thin.