Cue Adapts to In-Store Order Fulfilment for Online Orders

Recent research has shown that more retailers are looking to turn their bricks-and-mortar stores into mini warehouses, to better accommodate rising consumer demand for seamless omnichannel shopping experiences.

Cue is among the first Australian direct-to-consumer businesses to take steps to make this a reality, as the company’s Chief Information Officer, Shane Lenton, announces that its  POS printers have been the driving force behind the new store-to-door delivery service.

Shippit has enabled us to do a lot of things around distributed fulfilment,” he says. “We estimate a 20 percent growth in online, and it also gives us the capability to push 100 percent of our traditional online orders into stores as opposed to fulfilling out of our warehouse.”

Within the company’s POS system, Cue can reportedly print shipping labels as receipts, directly from its in-store registers. This new approach has been adopted to meet the requirements of the fashion retailer’s recently launched three-hour delivery and 30-minute click and collect services.

“As a retailer, our counters aren’t set up to have another printer, and I don’t have enough USB ports. The cost of label printers is also really high, and then there’s added maintenance and label costs”

“We were really excited that we could get couriers to accept shipping labels printed on POS printers.  It’s a real game-changer for us as a business to get that over the line with Shippit.”

Cue and Shippit team up
Cue partners with Shippit to turn its stores into mini-warehouses. Source: supplied.

According to Lenton, staff not only need to print shipping labels, they also have to pick and pack online orders within 20-minutes of receiving them. This store discipline has reportedly been a key factor in the success of Cue’s approach to unified commerce.

Cue has reportedly worked closely with Shippit to turn its stores into distribution centres, without any additional infrastructure or disruption to the in-store customer experience. Lenton claims that this partnership and the ability to use standard receipt printers for shipping labels have saved the business $600 per store on new label printers, as well as any additional maintenance and label costs.

It’s also estimated that the business will be cutting existing shipping costs through this new store-to-door strategy, as the business currently operates 90 stores across the country, with approximately 240,000 orders placed per year. At a 3c cost per label, the business was spending thousands of dollars on labels alone, a cost which has now been reduced.

According to Rob Hango-Zada, the CEO and co-founder of Shippit, the in-store fulfilment initiative is proof that stores are the “sleeping giant” in the battle for improved customer experience.

“We’ve found that CX is about doing more with the physical infrastructure that is crying out for throughput. Printing shipping labels out of existing receipt printers means that there is virtually no capex or change to in-store infrastructure to enable a rapid and sustainable roll-out,” Hango-Zada says.

“Once an item is marked as ready for collection, the label is generated, it automatically prints and then a carrier is automatically allocated by Shippit.”

Since Cue started distributing online orders directly from its stores, the business has reportedly experienced an uplift in monthly sales.

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