Margin-Focus on the Decline: Flexibility Is The Real Key To The Future

eCommerce
Written By Rick Watson

A lot of people ask me what I'm seeing next for retail and eCommerce.

The big mega trend for me is that we are exiting a period where 100% margin optimization was king, and entering a period where flexibility is more important.

Flexibility/agility particularly with regards to supply chains, vendors, and procurement. What good is having optimized spend if you don't have options?

The world is connected in ways that most people still do not appreciate. With global instability still at the forefront, that extra half point of margin will not help you if your primary supplier is now out of business. The company with multiple backup options will be the one that survives and thrives.

It goes back to a simple concept that I mentioned at the height of COVID: inventory availability is marketing.

Rick Watson

Rick Watson founded RMW Commerce Consulting after spending 20+ years as a technology entrepreneur and operator exclusively in the eCommerce industry with companies like ChannelAdvisor, BarnesandNoble.com, Merchantry, and Pitney Bowes.

Watson’s work today is centered on supporting investors and management teams incubating and growing direct-to-consumer businesses. Most recently, in partnership with WHP Global, Rick was a critical resource in architecting the WHP+ platform, a new turnkey direct to consumer digital e-commerce platform that powers AnneKlein.com and JosephAbboud.com.

Watson also hosts a weekly podcast, Watson Weekly, where he shares an unbiased, unfiltered expert take on the retail sector’s biggest players.

In the past year alone, Rick has spoken at many in-person and virtual events as well as podcasts on topics ranging from retail/ecom to supply chain/logistics and even digital grocery including CommerceNext IRL, ASCM Connect, and Retail Innovation Conference.

https://www.rmwcommerce.com/
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