Whether or not there’s an incoming resurgence of physical retail stores is up in the air. What’s clearly undeniable, however, is the impact that online retailing has had over the industry within the past decade. Whether it be the numerous customers shopping online for a safer experience throughout COVID-19’s toughest moments, or just for the convenience of not having to visit the physical store. Some would argue that these customers aren’t getting the full experience, but the truth is, the functionality offered through online shopping has extended its depth as well. For example, comparing products based on their unique features, customer reviews and price isn’t as easily accomplished in the store. This post will detail the ways in which struggling online retailers can hopefully make the differences necessary to continue drawing in customers.
The challenge that many of these aforementioned businesses face is that they’re competing against Amazon. There is no company that has had a larger impact on the way that businesses view the e-commerce space. Amazon’s marketplace offers customers twelve million different products from a wide range of suppliers. The nearly 200 million users per month can then browse to find exactly what they need to purchase. This sort of reach is felt by smaller online retailers at a huge scale. Largely in part due to the expectations that a giant like Amazon sets forth on the rest of the industry. One of the primary expectations that Amazon has given way to for customers is accelerated shipping options.
Shipping options from Amazon are much more robust than what other online retailers are capable of offering. With nearly 90% of shoppers reporting that their Amazon shopping experience makes them expect similar shipping times from other online retailers, it can be a real challenge to keep up. This is why it’s so important for smaller retailers to remain dynamic and find additional ways to improve their customers’ experiences without the need for accelerated shipping times.
For example, rather than attempting to tackle the largest challenges first, it’s best to start small. Assess the convenience of the online shopping experience of your customers. How easy is it for first-time customers to make a purchase? Will these customers have to create an account? Or will they be able to purchase your products as a guest? Are there any benefits to creating an account? Identifying ways in which your business can differentiate amongst the competition, specifically Amazon, is going to make the largest impact.
When considering how to please the largest set of customers, businesses must also consider the fact that the cost associated with shipping is nearly equally as influential on a customer’s likelihood to purchase from a business. Nearly 70% of those online shoppers who prefer faster shipping times have indicated that they’d rather wait longer for their order if it means they don’t have to pay any shipping costs. If accelerating your delivery capabilities is out of the question, think of ways in which you can decrease shipping costs. For example, an automated storage and retrieval system meant to better coordinate warehousing and transportation efforts is an excellent start. For more information on these systems, be sure to check out the infographic paired alongside this post.
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.
