“Retailers Scale Up Online Sales Distribution Networks”

http://www.wsj.com/articles/retailers-scale-up-online-sales-distribution-networks-1447792869?mod=ST1

home depot

“Home Depot says it opened its third U.S. distribution centre in the third quarter dedicated to e-commerce fulfillment as online sales soared”

In the recently years, many retailers expanded their e-commerce supply chain because online sales have grew tremendously; one of which is Home Depot – it can now can ship to 90% of its U.S. customers within two business days after recently opening its third online-order fulfillment center in Troy Township, Ohio.

” E-commerce revenue grew far faster than in-store sales. Online revenue increased 25% compared with the same quarter a year ago against 6.4% growth in Home Depot’s overall revenue.”

In comparison to in-store sales, online sales are more attractive, convenient for both sellers and buyers. Relating this news to what we discussed in E-Marketing class, many retailers such as Best Buy and Future Shop are shutting down stores around the world, due to waste of labour and capital. By switching to online shops or vending machines, the cost reduce by massively. There is also a trend that is causing retailers to shut down stores, which is ‘screening’. Many customers go to the stores to check out the products, and copy down the ‘code’ to search online to purchase at a lower price. It seems like online selling and marketing will keep growing until something more advanced replaces.

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