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CPG Ecommerce Trends to Keep Your Business Competitive

Shopping online has become a way of life. You can get pretty much anything you want delivered to your house without leaving the couch, and consumer packaged goods (CPGs) are no exception. CPGs are items used on a daily basis that require routine replacement or replenishment like food, beverages, vitamins, makeup, pet food and other household products from companies like Amazon, Dollar Shave Club, Chewy.com, HelloFresh, Keurig Green Mountain, and more. Ecommerce fulfillment is the fastest-growing part of the CPG brand industry, and if brick and mortar businesses don’t keep up with consumer demand, they’ll lose momentum and sales.

 

In 2018, online sales in the CPG ecommerce industry grew by almost 35 percent-and they continue to gain steam. In fact, in 2021, it is anticipated that ecommerce CPG spending will account for more than 6 percent of total spending (more than $60 billion). In order to stay competitive in this growing CPG market and increase your ecommerce sales opportunities, it’s important to monitor CPG ecommerce trends to best serve your customers’ ever-changing needs. This means adapting to consumer behavior by offering things like discounted subscription refills, allowing in-store pickup if you have a physical store, and offering custom ordering and delivery scheduling.

In fact, in 2021, it is anticipated that ecommerce CPG spending will account for more than 6 percent of total spending (more than $60 billion).

 

 

 

 

 

More Diversified CPG Ecommerce Offerings

The growth of CPG ecommerce is affecting a variety of CPG players, many of which have been in the space for a long time. A traditional retailer in the CPG space now needs to compete with consumer brands that are able to leverage retail websites and use an omnichannel strategy to cater to everything their customers need. Grocery purchases are an area where this has blown up. Everyone from local grocers to big box stores like Walmart and Amazon offer same-day delivery for groceries in certain markets. Smaller, direct-to-consumer digital brands are disrupting the market because ecommerce is the foundation of these businesses and they have truly mastered it. An example of this is subscription-based meal kits such as HelloFresh and Blue Apron that ship pre-proportioned ready-to-cook meal ingredients, including organic and healthier options, directly to customers’ homes. This convenience and reduction of food waste are very appealing to today’s shoppers. Carrying a wide variety of products and leveraging omnichannel strategies like mobile-optimized websites and apps, options to buy online and pick up in store (BOPIS), and customizable delivery frequency are vital for reaching potential customers and retaining current ones. It’s important to note that when your business provides a multitude of items to choose from, small price differences are not always influencers in purchase decisions-convenience and quality are key for customers. However, when making the move to offer more products, it is important to ensure that your CPG company logistics are equipped to handle an increase in inventory and a variety of shipping or pick up options to meet every need.

 

 

Faster, Convenient Deliveries in CPG Logistics

For CPG companies, customer satisfaction is extremely important. Just like every other industry, customers know that if you don’t offer the shipping options they want or the items they need, another company does. CPG ecommerce trends show that convenience is key for offering a great customer experience. Companies that provide an easy way for consumers to get a product they need without having to go to the store have tapped into a niche that people seem to love. No matter what kind of CPG product you sell, it is vital that you prioritize fast shipping and ease of use. If you offer a subscription service, make sure that your timed deliveries for each customer are set up correctly, so they never run out of product. Your customers may love convenience, but if a late delivery causes them to run out of their favorite makeup, razors or pet food, don’t underestimate their willingness to take their business elsewhere. Ensuring your CPG logistics game is strong, allowing for fast and convenient delivery options will put you at an advantage over your competitors.

Man shaving with CPG products

Better Packaging as a Part of CPG Ecommerce Strategy

The number of CPG companies and CPG manufacturers continues to increase, and competition is becoming fierce-so it’s more important than ever to stand out on the digital shelf. According to the latest CPG ecommerce trends, one of the ways CPG brands are standing out is through unique, attractive and distinct packaging. Studies show that consumers prefer bold, bright colored packaging conducive to sharing on social media. You can use great packaging as part of a greater CPG ecommerce strategy to increase customer engagement and brand presence. Think about what your customers like about your brand and incorporate it into your product packaging. Do your customers prefer environmentally friendly packaging that they can easily recycle? Or maybe they’re looking for something bright, bold and colorful to put on their Instagram stories. Not only can this be another way to communicate what your business is all about and connect with your buyers, but it also makes them brand ambassadors for your company.

 

 

Partner with ITS Logistics to keep up with CPG Ecommerce Trends

At ITS Logistics, we pride ourselves on thoroughly understanding current CPG e commerce trends. We know how important it is to stand out from the fierce competition in the CPG industry and we use our expertise to implement strategies and ecommerce best practices to help grow your business. Our ecommerce team members execute kitting, packing and timely shipping specific to your brand with the goal of meeting customer expectations and increasing your CPG sales, brand loyalty and overall market share. For more information about our services, contact us today!

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For more information about our CPG ecommerce services, call (775) 353-5160 or Get a Quote today.

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