Quick response and omnichannel retail operations with the ship‐to‐store program

Abstract

To better integrate online businesses with offline stores, fast‐fashion retailers roll out the “ship‐to‐store” (STS) initiative, which is an omnichannel fulfillment method that allows consumers to order online and have their parcels delivered to selected stores for pickup. To study the impact of STS on fast‐fashion operations, we consider four scenarios: multichannel retailing, multichannel retailing with quick response (QR), omnichannel retailing with STS, and omnichannel retailing with both STS and QR. Moreover, we investigate how STS influences the value of QR. The results show that although STS benefits firms in many situations, STS under a QR strategy can reduce a retailer's profits when inventory information disclosure due to STS dampens cross‐selling opportunities. Our findings also reveal that the implementation of STS may lower the value of QR when customers who encounter stockouts offline opt to purchase online directly rather than use STS.

Effect of the buy‐online‐and‐pickup‐in‐store option on pricing and ordering decisions during online shopping carnivals

“…From the perspective of consumers, some scholars conducted empirical analysis to investigate the factors that affect consumers’ shopping behaviors, such as the purchasing process (Fernández et al., 2018) and channel selection (Lu et al., 2018). In addition, some papers examined the effect of omnichannel retailing modes on consumer behavior and retailer operational decisions by developing a theoretical model (Radhi and Zhang, 2018; Jin et al., 2020; Park et al., 2021; Yan et al., 2020b; Yang and Zhang, 2020a, 2020b). Gao and Su (2017a) investigated how retailers could affect consumers’ information collection and purchasing through three information mechanisms: physical showrooms, virtual showrooms, and availability information.…”

Implementing E-Commerce from Logistic Perspective: Literature Review and Methodological Framework

“…Gallino et al [52] studied benefits and negative aspects of BOPS strategy as an increase in online sales, an increase in additional store sales from customers who use BOPS and buy additional products in store, and an increase in traffic. Yang et al [53] compared different strategies, i.e., BOPS and BOSTS with the implementation of the quick response, which is an operational strategy that is based on a set of information technologies and expedited logistics, and aims to shorten lead time and enhance SC flexibility. They stated that for omni-channel enterprises implementing the quick response might be less convenient with BOSTS strategy.…”

Online channel introduction under contract negotiation: Reselling versus agency selling

“…Jiang et al (2020) consider that a dominant physical store uses a buy‐online‐and‐pickup‐in‐store channel and examine the interaction between such a retailer and a manufacturer's pricing strategy. Yang and Zhang (2020) study how quick response and the ship‐to‐store program influence the operations of online and offline channels in the fast‐fashion industry. Few works consider the online spillover effect.…”