The intersection of payments, logistics, and search is disrupting the entire retail ecosystem right from how consumers search, order, receive products to how they pay for them.
FREMONT, CA: Search and logistics are the dominant forces shaping the modern retail payment landscape. Their strong impact has resulted in the waves of consolidation of the payment processing space and the merchant acquiring. The intersection of payments, logistics, and search is disrupting the entire retail ecosystem right from how consumers search, order, receive products to how they pay for them.
Currently, the traditional merchant-acquiring players that own a legacy physical store are not the top preference for those who are getting adept in a digital-driven retail world. New retail models and numerous product gateways are emerging to blend online and offline platforms. It is further promoting the idea of an interconnected search, logistics, and payments, which is providing a new paradigm to the future of retail payments. Here’s a brief insight into the transformations and the modern framework:
The digital world has challenged traditional physical stores with numerous alternatives, payment methods, and better logistics. The web suddenly became the store unleashing the endless aisle pointing and recommending the customers to see and buy.
But the online stores have limitations too. It does not support the numerous payment methods, unlike the physical stores where the customers have options such as payment via cash or check. And even after the incorporation of online payment methods, checkout is often complicated with numerous redirections.
Delivery assurance is another challenging aspect in the digital market space. Uncertainty over the delivery time that often requires more than ten days leaves the customers distrustful. Even today, delivery takes an average of 5 days. Those who can minimize the delivery time and overcome their supply chain limitations will certainly have an edge against the other players.
The Search-Payments-Logistics Framework
Search-Payment-Logistics is an abstract idea that includes the end-to-end product journey that begins at the customer's search for the desired product, covers the logistics activities, and even includes the payment overheads for the accomplishment of transactions. Facilitating search, logistics, and payment comprise the bare minimum as per the consumer’s expectations. An interesting observation would be the driving force behind the current sales. Increasingly, finding and possession of products is influencing the customer’s shopping behaviors. Consumers tend to pay for the services where they are sure of the delivery within an appropriate timeframe. The marketplaces, aggregators, social channels are striving to create experiences that deliver value for the buyer as well as the seller. Thus there is a huge competition and opportunity for everyone involved in the retail industry that can be leveraged.