Dick’s sales increased significantly by 2015; thus, his agreement with eBay cost significant revenue. Notably, eBay collected fixed commissions on all products Dick’s sold online. The more Dick’s business was growing, the more the agreement with eBay was costing. Therefore, many successful companies decided to move their e-commerce operations away from external vendors like eBay (Reinhardt, 2018). Another problem related to dealing with external vendors was the complicated process of customizing pre-made software and services. In 2017, Dick’s decided to leave eBay and take over its e-commerce operations because of the high pressure to decline the physical growth and decrease the expenses of maintaining real estate. Dick’s omnichannel strategy included ensuring better support for shipping online orders from physical Dick’s stores.
Therefore, Dick’s started to transform its stores into distribution centers. Consequently, this strategy enabled efficiency and improved delivery times. According to Dick’s omnichannel strategy, 80% of e-commerce orders are delivered within the geographical location of a physical store. In addition, customers have the possibility to pick up orders at local stores. The first step is to connect legacy systems and new systems without losing access to data. Secondly, hiring a slew of new employees is crucial to manage the system and avoid implementation delays. Finally, integrate physical and virtual sales, and offer a mobile platform to enhance brand loyalty.
Notably, the primary benefits are purchasing online and pick up at the store, the opportunity to deliver from or to a store, and its associate ordering system. The system also allows breaking down and testing various pricing and marketing approaches by region. In addition, it has a better search function and analytical capabilities. Moreover, the system combines its mobile application with fitness trackers to motivate customers to follow health trends and exercise more often.
Reference
Reinhardt, E. (2018). Dick’s Sporting Goods to add e-commerce fulfillment center to distribution site in Conklin. CNYBJ. Web.