Dark stores, or “click and collect” shops, operate without an eye-catching storefront. They provide click-and-collect delivery along with online purchases. They’re typically unassuming establishments along major highways or in remote areas with low footfall. They are staffed by pickers, who collect the goods ordered by online shoppers and dispatch them for distribution. What differentiates them from conventional brick-and-mortar stores?
Dark Stores Are Micro-Warehouses Located near High Demand Areas
In e-commerce, dark stores are gaining ground as online delivery options become more convenient. As consumers prefer to buy goods conveniently, retailers turn to this strategy to increase sales and reduce cart abandonment. This strategy involves building an online shop, fulfilling orders inside the dark store, or contracting a third-party logistics company to fulfil orders. To get the complete data about “Direct to Consumer (D2C)” as indicated by a general perspective, visit the site “Warehousity.”
Essentially, a dark store is a micro-warehouse specializing in delivering internet orders. These stores can support retailers with a wide area and offer same-day delivery and store pick-up. Ultimately, these stores will play a key role in future supply chains. By allowing customers to purchase online and pick up products in-store, dark stores enable customers to avoid the hassles of grocery shopping.
While a dark store can support several stores in a given geographic region, it requires continuous attention to ensure a high-efficiency level. The managers must continuously monitor operations and communicate their shortcomings to staff to do this. In addition to managing the dark store, digital assistants help collect information on procedures and coordinate efforts among team members. The right technology is critical for optimizing a dark store.
Despite being smaller than conventional warehouses, dark stores are equipped with inventory tracking tools. Moreover, these systems help retailers identify overstocking. These tools help reduce human error. In addition, dark stores are more accessible to operate than conventional warehouses. Moreover, they can improve efficiency and boost ROI. And because they are smaller, dark stores can be more profitable than traditional warehouses.
They Are Order Fulfillment Platform
A functional dark store does not let customers inside the store but instead features a separate pick-up area. It is laid out to maximize picking and storage capacity, guaranteeing a more excellent product assortment and faster order fulfilment. The YRC experts at YRC can set up and manage an inventory management system in a dark store, and they can also help retailers manage their inventory. This way, they can save money on shipping costs, too.
Dark stores focus on internet order fulfilment in high-demand geographic areas and can support many different retailers across a vast area. They are crucial in the future of supply chains, as they enable same-day delivery and store pick-up. Dark stores are essentially distribution centres specializing in fulfilling online retailers’ orders. Those who buy online can also purchase products in-store and pick them up the next day at the exact location.
Dark stores help brands expand their distribution, get closer to customers, and increase profitability. By leveraging its tech platform, ZFW has already serviced over 20,000 orders per month and plans to hit the 50,000 mark by this quarter. The D2C market in India has grown exponentially after the coronavirus pandemic and is highly competitive. ZFW has already made connections with brands like Baskin Robbins, Keventers, NOTO, Epigamia, and Kitchens Plus. They plan to have 500 dark stores across 25 cities by 2022.
As the online grocery industry grows, retailers need to ensure that they meet consumer expectations in real-time. Dark stores are becoming an increasingly popular solution to the omnipresent problem of shopping online. By providing on-demand delivery, retailers can increase their profit margins and minimize the rate of cart abandonment. With mobile technologies, consumers expect service providers to be proactive and responsive across platforms. Dark stores can help retailers meet these expectations and keep their customers happy.
They Can Manage A Large Volume of Orders
Curbside pick-up is one of the most convenient and efficient ways for dark stores to handle high D2C orders. Curbside pick-up typically consists of a dedicated parking space near the store entrance. A retailer employee will bring the order to the curbside, where customers can pay and collect their purchases. While curbside pick-up is not always possible, it is still a convenient option for customers. In addition to convenience, it saves the retailer money on delivery costs.
Another benefit of a dark store is that it can fulfil orders from consumers that would typically have to go through multiple steps to pick up their purchases. Instead of going through a lengthy, stressful checkout process, customers can place their orders online and receive them at the door. This allows for fast local delivery while providing affordable shipping for all customers. A dark store can help retailers take full advantage of physical retail space by ensuring close to the customer base.
YRC’s retail experts can help dark stores manage a high volume of orders for D2C. With the assistance of their experts, they can implement inventory management systems and guide managing a dark store. In addition to providing specialized services, YRC can also help the stores manage their customer’s orders and provide guidance on improving the quality of their products. Our retail consultants will help you set up an inventory management system that can handle all types of orders.
The benefits of dark stores include:
- Reducing costs.
- Optimizing the supply chain.
- Leveraging the power of the internet to increase customer satisfaction.
This concept has helped many retail chains, and ecommerce merchants grow and meet customer demands. Although grocery and fashion retail were already giant in dark stores before the ecommerce pandemic, the concept has caught on across the industry. Instant delivery and curbside pick-up are two other services that dark stores offer.
They Can Reduce Last-Mile Delivery Costs
Curbside pick-up is an excellent way to minimize last-mile delivery costs. Dark stores have parking stalls outside the store for customers to park, and employees bring out their orders. It’s convenient and easy for customers, allowing retailers to fulfil their sale promises. In a pandemic, a curbside pick-up can also reduce last-mile delivery costs since customers can pick up their orders without conflict.
Many grocery chains have begun experimenting with robotic-run dark stores, and others are exploring similar concepts. For example, ride-hailing service Ola has announced plans to open 500 dark stores in 20 cities in India, and its Ola Dash service currently operates in nine cities. Other companies are opening similar convenience stores as well. Meanwhile, DoorDash is launching DashMart convenience stores in the U.S.
In addition to cutting last-mile delivery costs, dark stores can offer more flexible working hours. While some dark stores may have a retail store environment, they are entirely dedicated to fulfilment operations and are often located in strategic urban areas closer to the customer base. This approach reduces logistics costs by 10% to 30%. Further, dark stores are an excellent option for maximizing the use of physical retail space.
For e-commerce businesses, dark stores improve the efficiency of order fulfilment. They can support multiple stores, allowing pickers to travel aisles without encountering shoppers or carts. Dedicated fulfilment locations also increase visibility and accuracy of inventory, enabling a more agile order fulfilment process. These benefits are just the tip of the iceberg. However, dark stores are not for every retailer. And for those sceptical about their suitability as a last-mile delivery option, it’s worth researching the benefits of a dedicated fulfilment location.
They Simplify the Picking and Packing Process
Several big-name companies have experimented with dark stores, including Walmart, Kroger, and Bed Bath and Beyond. In September 2020, Whole Foods will open its first online-only store in Brooklyn. In addition to large-scale retailers, many smaller retailers realize the benefits of dark stores. These stores can serve local consumers, but they can also extend their client base at a lower cost.
While most D2C businesses ship their products to a customer’s front door, dark stores offer curbside pick-up. Curbside pick-up is convenient for consumers and allows the retailer to reduce the need for shipping, and it protects the customer during a pandemic and lowers shipping costs. Moreover, a dark store’s pick-up area is located near the front entrance, allowing consumers to quickly pick up their orders without worrying about walking around a store and handling shipping fees.
One of the benefits of dark stores is their ability to increase productivity. Picking and packing tasks become more straightforward thanks to automation. Orders are prepared and delivered using autonomous carts. These stores are not customer-facing, so they avoid the hassle of crowds and stress-inducing environments. Most pick-ups are made in the middle of the night, so customers do not have to worry about missing an order.
Another benefit of dark stores is that they allow retailers to sell their products in stores without requiring store visits. This way, shoppers can purchase their products online, pick them up from the store and avoid the hassle of shipping and receiving. With the help of dark stores, retailers can also offer doorstep delivery for local customers. These benefits make dark stores a valuable part of a growing online retail business. And dark stores can also be a great way to expand globally during a COVID-19 pandemic.
Why Should You Choose Warehousity?
Warehousity is a trusted and durable provider of various Bonded Warehouse for its customers. The business is determined to solve the challenges of managing supply chains for its clients. It provides warehouses for customer fulfilment and data security delivered electronically. It offers its customers warehouses that are part of the extensive and expanding collection of functional warehouses.
