The digital age continues to impact the state of physical retail locations and stores, in mostly negative ways. As online shopping and e-tail continue to evolve and more and more consumers continue to navigate through these pandemic stricken times, physical retail continues to struggle. Even some of the most essential physical stores such as grocery and supermarkets have found ways to service their customers safely online. What is drawing so many consumers to shopping online over in-store, though? Capabilities like viewing an entire organization’s stock and comparing it via functionality, price and reviews makes all the difference.
Perhaps one of the most influential factors to this market’s success is Amazon. Amazon has completely revitalized the way online retailing operates. Through their online marketplace, customers have access to millions of products, most of which aren’t even provided by Amazon themselves. Third-party merchants are responsible for a great deal of these products and are an integral part of Amazon’s strategy. With nearly 200 million Amazon users visiting the marketplace platform each month, these third-party merchants sure come in handy. Realizing the scope of Amazon’s reach makes it easier to understand how smaller online retailers can struggle in comparison. Online shoppers have grown accustom to the many benefits that Amazon has in regards to order fulfillment. In fact, a recent study indicated that nearly 90% of shoppers expect faster shipping and delivery times from other online retailers as a result of their purchases from Amazon.
For smaller retailers lacking the logistical prowess of Amazon, this can be a major issue. In order to make up for being unable to ensure two-day shipping on each of their orders, smaller online retailers have had to adapt in every way they know how. One of the major changes these retailers have made is providing robust tracking information for online orders. Customers are able to visit a branded tracking page that will detail each step of the processing and delivery process for their orders. So despite having to wait a bit longer for their packages, customers remain informed.
Another way that these smaller online retailers can look to keep up with Amazon is through revitalizing their website and customer experience. Most of the time this comes down to convenience and how user friendly a website is. For example, what are the benefits of creating an account on your website? Do your customers get to save their shipping and payment information for future purchases? Do you recommend them new products based on their previous orders? Are there any discount codes exclusive to users who create accounts on the platform? The more opportunities you create for your customers to take advantage of, the more likely there are to make repeat purchases. Saving the customer time and money is always priority number one.
Unfortunately, even with some of these considerations, smaller online retailers will continue to struggle in comparison to Amazon. Rest assured, though, with more of the information found within the infographic paired alongside this post, these retailers can find additional success.
Author bio: John Hinchey is VP of Sales for Westfalia Technologies, Inc., a leading provider of logistics solutions for plants, warehouses and distribution centers. He has more than 20 years of experience in manufacturing and warehouse automation.