Increase in GS1 UK membership highlights efforts to drive sales growth through online retailing
Increase in GS1 UK membership highlights efforts to drive sales growth through online retailing
The UK supply chain standards organisation has highlighted a trend towards smaller retailers adopting e-commerce channels to supplement sales growth.
GS1 UK last week revealed, as a result, that its membership has increased to over 25,000, fuelled by the growing UK internet economy. Recent growth in membership has been driven by new small-to-midsized enterprise (SME) members adopting the GS1 standardised system of barcodes to identify products they are selling independently through online marketplaces.
Online marketplace expansion
While GS1 UK members include retailers of all sizes, from small start-ups to the likes of Sainsbury’s, Tesco, Rakuten’s Play.com and Asda, the the not-for-profit organisation said online marketplaces have grown dramatically in scope and attractiveness for smaller players. These large platforms offer smaller and independent retailers a route to market without the need to invest in their own online storefronts, allowing them to start selling quickly and competitively.
Craig Wheeler, operations director at Play.com, commented: “With the online retail sector growing in spite of the general economic downward trend in the UK, it’s no surprise that more and more retailers are looking at digital channels to remain competitive.
“However, getting logistics right is an important issue for retailers, both large and small. Having an accurate and reliable set of barcodes for your products plays a big part in streamlining processes and helps us, and our independent partners, run more effectively and save on operational expenses.”
Efficient supply chain processes
Online branded clothing store The Discounter was the 25,000th UK member to join the supply chain standards body and its founder, James Robinson, said he believes that an efficient supply chain is integral to the success of his business.
“We buy excess stock from chain stores, where the quantities we buy allow us to offer up to 90% discounts to our customers,” Robinson said. “All of our orders are sent within 24 hours, which means an efficient supply chain is crucial and barcodes are an important part of this. Using the GS1 standards will help us improve efficiency and grow the business further.”
Gary Lynch, GS1 UK chief executive, added: “Start-ups are taking advantage of the low barriers to entry offered by the online marketplace and are investing in the software and tools needed to improve efficiency and maximise returns.”
