In the dynamic world of retail, mid-market companies occupy a unique position, straddling the line between small businesses and large enterprises. With annual revenues ranging from $10 million to $1 billion (the mid-market range as defined by the Harvard Business Review), these organizations face a distinct set of challenges and opportunities. Walmart GoLocal is committed to providing solutions that address the specific delivery needs of mid-market retailers.
Understanding mid-market dynamics
Mid-market retailers often find themselves in a quandary, unable to leverage the economies of scale enjoyed by larger enterprises while still grappling with complexities that exceed those of smaller businesses. This in-between status presents unique challenges, especially when setting up a cost-effective last mile delivery program. Some common issues shared by mid-size retailers include:
- Scalability: Maintaining consistent operations and systems across multiple locations can be a daunting task.
- Technology resources: Mid-market retailers may lack the extensive technology resources of larger retailers, hindering their ability to implement sophisticated systems.
- Labor shortages: The ongoing labor shortage poses a significant challenge for all businesses, but mid-market retailers may face difficulties in securing and retaining qualified workers, especially when trying to establish an internally powered delivery program.
How does this impact last mile delivery services?
In today’s world customers expect fast delivery.
When retailers don’t meet expectations, order volumes can take a massive hit. Industry insights published by Flexe report that “85% of consumers [will] search elsewhere for better options when delivery speeds are too slow.” On the flip side, fast and reliable shipping can lead to higher conversion rates and increased customer loyalty. According to Digital Commerce 360, “68% percent of consumers say fast shipping leads them to place an online order.”
But are mid-market retailers set up to meet customer demands? How can smaller teams compete with the likes of large businesses? The good news is the gap isn’t too large, yet.
According to a recent survey reported by Chain Store Age, 99% of retailers say they will start offering same-day delivery within the next three years, compared to 35% who say they are able to do so today. The survey also found that 36% of respondents reported a lack of technology for same-day delivery, a good indicator for mid-sized businesses.