eCommerce Strategy Consultant - Rick Watson - RMW Commerce Consulting

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

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.