Retailers are increasing their investment in online platforms, and competition in the e-commerce sector will become more intense in 2022

Linnworks has released new findings from an international study that surveyed retailers on how they are preparing to adapt to new consumer expectations about how they shop – anywhere, through any channel, on any device, at any time.

The report showed that 96 % of respondents said the pandemic had accelerated their company's adoption of new sales channels, and 92 % agreed that investing in omnichannel capabilities was a top priority for their company's 2022 budget.

“ The pandemic has heightened the urgency for retailers to focus on the customer experience, a critical part of their brand. This research shows that many companies don’t have the infrastructure in place to operate in a truly multi-channel and omni-channel way. Only 14% of respondents have a single platform that manages fulfillment, inventory and all sales channels in one place , ” said Linnworks CEO , Steve Jobs .

Centralized operations are key to omnichannel success

For retailers, the past year has been one of expansion, as 52% of respondents said they took advantage of online marketplaces . Unsurprisingly, Amazon topped the list, with 79% of retailers reporting they had started selling on the major platform , followed by Facebook and eBay .

The impact of e-commerce on stores

To support the shift to e-commerce at the onset of the pandemic , 83% of respondents said their companies repurposed their physical storefronts/retail spaces as e-commerce fulfillment and distribution facilities.

However, for many retailers , the pandemic has changed how they use physical space permanently — only 32% are turning converted space back into storefronts. Now, 46% of businesses use their physical sites as showrooms, with a small marketing/customer display space at the front and the majority of the space as a fulfillment warehouse for e-commerce purchases.

Supply chain disruptions affect 2022 planning

39% of retailers said their supply chains were disrupted by disasters ( such as the Suez Canal blockage, winter storms, wildfires, etc.) in the past 12 months, in addition to the pandemic . For those who experienced disruptions, the impact was devastating, with 88% of retailers reporting a negative impact on customer service and 76% losing company revenue.

Sustainability is increasingly influencing retailers

89% of respondents said that consumer interest in corporate sustainability has increased dramatically. However, less than half ( 44%) of retailers currently say they are already operating a sustainable business, while 53% of retailers do not yet, but say it is on their one to five year roadmap.

2022

Retailers

E-commerce