February 2, 2018
By 2022, it is projected that 10% of all Consumer Packaged Goods (CPG) sales in the U.S. will occur via ecommerce channels, including direct ecommerce, marketplaces, etc. The most significant sales growth will occur in the categories of Home Care, Health & Beauty and General Merchandise.
A few years ago, the CPGs’ main concerns were the emergence of so many ecommerce channels and how to prevent conflict from one to the next. Many CPG brands were focused on offering their products through their own ecommerce channels. However, they had to walk a fine line: offering products on their own website while maintaining strong relationships with the brick-and-mortar retailers that stocked their products. Determining pricing and maintaining strong retail relationships were key pieces in making sure that emerging ecommerce channels didn’t compete directly with retail sales.
Within the past few years, the CPG industry as a whole has undergone major changes; Amazon Prime, Amazon Dash and (fast) Home Delivery of common household items have disrupted old CPG sales models. Shifts in the consumer mindset and the use of smartphones in parallel with in-store experiences have added new challenges, too. It is no wonder that CPG product brands are feeling the need to provide alternative channels for exposure — in today’s world, as their customer bases evolve, they must adapt in order to grow (or simply to maintain market share).
Today, CPG brands are challenged to manage traditional brick-and-mortar channels, big box retailers — and the constant emergence of new ecommerce channels. It’s not just about pricing from channel to channel…challenges can include everything from detailed nuances, like packaging for in-store sales vs. direct-to-consumer orders, to how a distribution center is set up.
We have helped some of the largest CPG brands in the U.S. set up their marketplaces, dropship orders and enable direct-to-consumer channels. Fill out the form below to learn more.