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Other newsletters will call the end of the complimentary phone charger Apple’s biggest news. But in our neck of the woods, it’s the Bloomberg report that Apple will fulfill online orders for the latest iPhone (and other gadgets) from its stores.
The standard model: Retailers including Target and Walmart began testing ship-from-store fulfillment pre-pandemic. In recent months, brands from Sam’s Club to Kendra Scott gave store fulfillment a shot.
- Some brands have even built dark stores for online orders (Whole Foods) or converted existing stores to permanent microwarehouses (Bed Bath & Beyond).
The iOS update: Apple will fulfill online orders from some of its ~300 stores in the U.S. and Canada, so long as shoppers 1) live within 100 miles of a store and 2) live closer to a store than a distribution center. One-day delivery may be possible in some areas.
Surprise and deliver
Shipping routes hit potholes when retailers swap warehouses for stores. But retailers are still incentivized to pack boxes in the aisles—for reasons beyond boosting delivery speeds.
- Apple told staff cutting delivery distances is more environmentally friendly.
- Despite recent surges in curbside pickup, most shoppers would rather commute to their welcome mats. 77% of U.S. shoppers want their purchases shipped directly to their homes, according to a September Accenture survey.
But the ship-from-store armada will have competing priorities when converting stores’ supply closets to fulfillment centers.
Their people: “Having a flexible, cross-trained workforce is critical to running a robust back of house operation while also ensuring that customers in the front of house receive a high level of customer service,” Rebekah Kondrat, founder of consultancy Kondrat Retail, told me.
- Foot traffic timeframes should determine which tasks workers focus on, Kondrat said: Stores can flex teams to front of house ops during busy times, and leave order fulfillment for slower periods.
- Store associates need to memorize their corporate-sanctioned greetings and master quick picking and packing. Those are different skill sets—and retailers shouldn’t shift workers from one to the other without adequate training.
Their inventory: As much as retailers want to take the Oprah approach to fulfillment, there’ll be days when online and in-store shoppers compete for the last AirPods Pro. The solution? Kondrat said, “Creating an inventory buffer for in-store customers [and] conducting regular cycle counts to ensure inventory accuracy will ensure customers aren't disappointed.”