About 45% of merchants and suppliers have lost more than $1 million in revenue due to inability to understand the value of cross-channel capabilities, and 13% have lost more than $3 million, according to a new survey released by product content network 1WorldSync.
About 53% of respondents admitted they have experienced a knowledge gap within their organization when it comes to understanding cross-channel requirements. The study further stated that 51% of merchants can’t support mobile commerce, and 80% don’t integrate product information management across web, mobile applications and physical stores.
“Merchants and suppliers are facing significant issues capitalizing on the opportunities within different channels and geographies. As the space has evolved, there are more regulations to comply with, more channels to be present on and more partners to trade with than ever before,” said Nihat Arkan, CEO of 1WorldSync. “Before both sides of the retail equation can truly master omnichannel commerce, they have to ensure their digital investments address their current challenges.”
The data comes from a survey in which 1WorldSync talked to 400 merchants and suppliers from Europe and the U.S., all of them with more than $500 million in annual revenue. So, this is not a case where a bunch of tiny merchants said they weren’t understanding or acting on cross-channel commerce requirements. Instead, those involved are of a size and revenue strata where we can assume the see regular cross-channel revenue opportunities coming their way.
With 45% of merchants losing the chance at $1 million in revenue, 53% admitting they don’t know how to handle cross-channel opportunities and 51% saying they don’t support mobile commerce, we are seeing some of the same problems we witnessed throughout last year with retailers’ omnichannel strategies. They are being told what they need to tackle, but either lack the resources, the expertise or the proper partnerships to get it done.
Still, the percentages above mean a healthy number of companies have made strides. Not all of them are in the same leaky revenue boat, and maybe those that are having trouble should start copying what the market leaders are doing.
So, what can be learned from the market leaders? The survey showed that 65% of companies that complete 51% or more of sales online have dedicated more than 30% of their commerce budget to digital and mobile commerce expansion in the last year. Today, about 73% of that market-leading group can fully execute mobile commerce.
The survey also found that about 80% of market leaders use a third-party content provider to help them improve product visibility. That number, if you didn’t get it, is the nugget herein as far as 1WorldSync is concerned, since it’s in that business. Furthermore, the survey indicated that about 95% of supplier market leaders use a cloud-based product information system, which simplifies the online sales process and enhances supply chain efficiency.
Ultimately, this is another study telling retailers exactly what they need to do and where they need to invest to improve their ability to capture cross-channel dollars. Will they do it?