New Data from Radial Reveals Omnichannel Order Volume Spiked 72 Percent During the 2015 Peak Season | Radial

New Data from Radial Reveals Omnichannel Order Volume Spiked 72 Percent During the 2015 Peak Season

Press Room

January 18, 2016

January 18, 2016

Omnichannel Technology Critical to Skyrocketing Demand for “Have it Your Way” Fulfillment as 2016 Kicks Off

Radial, a leading independent omnichannel operations provider for the world’s leading retailers and brands, today announced the findings of its Digital Commerce Index based on data from millions of orders processed in 2015. The data shows ecommerce order volumes fulfilled by stores increased 72% during peak season. The Index also reports drastic increases in omnichannel commerce sales and fulfillment capacity to mitigate out-of-stock situations, save sales and meet tight delivery timelines during the holiday season.

“It’s no secret that shoppers are moving online, but the physical store isn’t going anywhere if you leverage them differently,” said Tobias Hartmann, president of Radial. “This is the year retailers are putting a stake in the ground by creating continuous shopping experiences, whether the checkout lane is a couch or store aisle. As the workhorse behind after-the-click commerce, we believe the transformational shifts in ecommerce and mobile present opportunities for retailers to leverage technology, processes and people to make this year a game-changing one for the industry.”


The Radial Enterprise Digital Commerce Index offers guidance on how retailers can increase profitability and customer loyalty in 2016. Data and outlook trends include:

Omnichannel fulfillment is more critical than ever to keep pace with ecommerce demand

Index data from November 23, 2015 to December 23, 2015 shows heavy reliance on stores to fulfill ecommerce orders during peak season.

  • During this period, ecommerce sales fulfilled by stores reached $515 million – a 62% increase from 2014 – which can be largely attributed to consumers truly embracing a seamless shopping experience, particularly during the holiday season. 
  • Omnichannel fulfillment isn’t just a seasonal tool. Index data shows retailers rely on stores as mini fulfillment centers throughout the year with year-over-year total annual order volumes and sales increasing 43%.


Retailers must leverage Ship-from-Store to mitigate out-of-stock situations

While many retailers are becoming more sophisticated in their use of omnichannel fulfillment, those capable of Ship-from-Store are better able to meet out-of-stock conditions on high volume days.

  • Last year’s Cyber Monday surpassed $3 billion in total digital sales, making it the highest volume in a single day; however, out-of-stock rates on Cyber Monday were twice as high as they were on an average day.* This is staggering, as it represents lost sales to retailers.
  • * Adobe Systems Inc.’s Adobe Digital Index
  • Data from the Radial Digital Commerce Index also showed a significant uptick in Ship-from Store orders on Cyber Monday – an increase of more than 30% in sales and order volume over 2014. Retailers that used Ship-from Store were able to respond to demand and leverage stores to eliminate a significant amount of lost sales due to out-of-stocks.


Meeting the industry standard for risk management won’t be enough to prevent online fraud

According to ACI Worldwide, ecommerce fraud attempts registered a 30% increase in 2015. In 2016, fraudsters will only continue to get more sophisticated and find new ways to execute attacks. EMV chip technology will also cause more fraud to move online.  In November of 2015, Radial’s Fraud Technology Lab released its first-ever Holiday Fraud Index that detailed how criminals are becoming more creative during peak season. A major way retailers can combat online crime is through the application of big data technologies.

Radial’s risk management practices and processes significantly and consistently surpass industry averages:

  • 1.54% manual review rate versus 27% industry standard*
  • 99.73% average approval rate across verticals versus a 97.7% industry average*
  • 50% chargeback recovery rate versus a 27% industry standard*
  • *2015 Cybersource Online Fraud Benchmark Report


Omnichannel gains popularity in Asia Pacific region

This region is an attractive location for retailers and brands looking to expand their operations, due to the number of potential new customers and already established brand recognition. The Digital Commerce Index shows a global footprint increase of 40% in 2015.

Radial technology ‘turned on’ for leading retailers in 21 countries, with significant expansion into China, Japan, Singapore, Malaysia, Thailand and the Philippines. 


About Radial

Radial is the leader in commerce technology and operations, enabling brands and retailers to profitably exceed retail customer expectations. Radial’s technical, powerful omnichannel solutions connect supply and demand through efficient fulfilment and shipping options, intelligent fraud, payments, and tax systems and personalised customer care services.

Hundreds of retailers and brands confidently partner with Radial to simplify their post-click commerce and improve their customer experiences. Radial brings flexibility and scalability to their supply chains and optimizes how, when and where orders go from desire to delivery.

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