Target grows ecommerce through the store

Author

Stephen Babcock
July 28, 2022

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Target announced this week that it is adding sortation centers and piloting higher-capacity delivery as it adds to fulfillment capabilities. Yet this ecommerce process all starts at its brick-and-mortar stores. It reflects a five-year-old strategy that was seen as bucking convention when it was launched, but brought growth in the pandemic years. 

DTC brands aren’t just going wholesale. They’re also going to Amazon. With advertising getting more expensive, the audience and conversion-optimized product pages available on the largest ecommerce marketplace are proving to be enticing. Still, brands must consider whether they want to give up a measure of control, as well as early relationships with customers that can provide valuable insights.

For the second straight month, the Federal Reserve raised interest rates at unusually high levels to fight inflation. Chairman Jerome Powell added that the effects of the back-to-back hikes likely aren’t being felt yet by the economy, so expect more slowdown to come. Get the latest on all of the economic data released so far on a busy week.

The demise of the third-party cookie is moving further out on the horizon. It comes as Google is continuing to test a new set of APIs that aim to balance privacy and advertising effectiveness. Over the next two years, it will roll these out with publishers and developers to gather feedback before moving into wide release.

Looking ahead to the next five years, a new report from Edge by Ascential says ecommerce marketplaces that serve as the facilitator for brand-consumer interaction are set to become the fastest growing area of global retail. In all, these marketplaces will account for 60% of ecommerce worldwide by 2027, the report says.

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