Implementing the new ship-from-store service will help Zara compete with Amazon and ASOS simply because they are more likely to be able to get items to customers quicker, which will make a positive impact on customer satisfaction. This is essential for taking on ASOS, who delight customers with their next day delivery service and Amazon, the gods of the speedy delivery who are moving into the clothing market at a fast pace. Customers simply don't expect to have to wait for items anymore and it seems that companies have to offer quicker deliveries in order to even have a chance of staying in the game.
As the online market grows and grows many people often wonder if there is even a need for physical stores anymore. Yet, retailers seem reluctant to let them go and indeed often claim that it is having stores on the high-street that drives the majority of their business. By offering the ship-from-store service Zara are making their stores relevant, these physical stores will certainly be something they have over Amazon and ASOS.
The biggest benefit to Zara in their new venture is that they will be able to more closely monitor their inventory. A company like Zara has to roll out fashion fast and this can often leave them with a huge surplus of clothing. By using stock in stores they can manage the demand and supply across both their physical stores and online retail to mitigate the risk of over-ordering. It also means they can meet the expectations of their customer, as it helps them to better deliver what the customer wants even where it is unavailable on one platform.
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