As the global $1.9 trillion e-commerce landscape continues to expand, companies are facing difficulties successfully managing cross-channel commerce across continents, supply chains, and software systems, and are losing revenue as a result.
In fact, 53% of merchants and suppliers experience a knowledge gap within their organization when it comes to understanding the value of cross-channel capabilities, according to 1WorldSync’s Charting Course for Global Commerce.
Merchants and Suppliers Face Significant Roadblocks in Navigating Cross-Channel Commerce
Key findings suggest that a majority of merchants and suppliers are not fully prepared to meet the varied demands of modern customers. Channel readiness is a significant struggle throughout the supply chain as e-commerce continues to evolve. Other data highlights include:
• Future investment plans don’t address current e-commerce weakness: Forty-five percent of merchants and suppliers have lost more than $1 million in revenue due to cross-channel commerce challenges, and more than one in ten (13%) have lost more than $3 million.
• Lack of content solutions hamper success: Half of merchants and suppliers do not use a third-party content provider, which hinders their ability to syndicate product content across channels and platforms.
• Merchants lag when it comes to cross-channel commerce: Fifty-one percent of merchants cannot support mobile commerce, and 80% don’t integrate product information management across web, mobile, applications, and physical stores.
“In the dynamic world of digital commerce, merchants and suppliers are facing significant issues capitalizing on the opportunities within different channels and geographies," says Karin Borchert, CEO of 1WorldSync. "As the space has evolved, there are more regulations to comply with, more channels to be present on and more partners to trade with than ever before. Before both sides of the retail equation can truly master omni-channel commerce, they have to ensure their digital investments address their current challenges.”
Market Leaders Show the Path Forward
While many merchants and suppliers surveyed struggle with different aspects of the retail experience, there are clear lessons to be learned from market leaders (defined as companies that complete 51% or more of sales online). For companies looking to learn from these market leaders and upgrade their e-commerce capabilities, top action items include:
• Invest now in cross-channel capabilities: Sixty-five percent of market leaders have dedicated more than 30% of their commerce budget to digital and mobile commerce expansion in the last year. Today, 73% of merchant market leaders can fully execute mobile commerce, nearly 20% more than market laggards. Investments here help in the short and long term.
• Engage with a third-party content provider: Eighty percent of market leaders use a third-party content provider, which is undoubtedly one reason this group reports greater visibility between trading partners.
• Migrate to the cloud: Ninety-five percent of supplier market leaders use a cloud-based product information system, which simplifies the online sales process and enhances supply chain efficiency.