PepsiCo is investing in e-commerce (PEP)

This story was delivered to BI Intelligence "" subscribers hours before appearing on Business Insider. To be the first to know, please .

PepsiCo has announced that it will be investing in its e-commerce business, which now brings in approximately $1 billion in sales annually,according toBusiness Insider.

The exact amount that will be invested, and how it will be employed, was not revealed, but the funds themselves will be coming from PepsiCo’s savings under the new tax plan in the US. PepsiCo already has ateamof about 200 employees dedicated to its e-commerce business, and this additional investment may further their efforts.

The investment may be an effort to get better at inspiring impulse buys online. E-commerce has changed how impulse purchases are made, and with approximately 30% of beverage sales coming from impulse buys, according to Ali Dibadj, an analyst at Bernstein, PepsiCo, Coca Cola, and other competitors need to find a way to inspire more of them online.

This investment by PepsiCo could go toward developing new digital channels and innovations to give consumers new and exciting ways to buy food and drinks. PepsiCo should also consider determining the best kinds of packaging and presentation to draw impulse purchases online. Since consumers can't feel a beverage’s packaging or see it as they would in-store, which is a driver of impulse buys, having specific e-commerce drink models or marketing could pay dividends.

With the advent of fast delivery and online grocery, food and drink consumer packaged goods (CPG) companies have a better chance of driving impulse purchases through e-commerce.

One-hour delivery and instant pickup lockers give consumers the ability to get their impulse buys almost immediately.
Instant Pickup
Online grocery is growing fast, and consumers’ main concern barely applies to CPG, which should help such companies thrive online.
projected
holdups

To receive stories like this one directly to your inbox every morning, sign up for the E-Commerce Briefing newsletter. Click here to learn more about how you can gain risk-free access today.