Small Online Retailers Can Compete with the Big Guys

Posted on January 30, 2014 by bermanevansretail
Even though E-commerce via the Web has become very popular for the “big guys,” there still remain many opportunities for smaller firms.
As Julie Neumann reports for Bigcommerce, an E-commerce platform serving 50,000 stores in over 65 countries:
“If you want to build a small- to medium-sized business that can stand up to the big-box retailers, where is the best place to start? If you want to pivot your store to a more successful vertical, what should you sell? We studied data from our 50,000 stores to identify which categories are growing and dominating the competition online. One bonus insight before you get to the infographic — the worst industry to be in is ‘unknown.’ Commit to what you want to do before you get started and you’ll be ahead of the game.”
Click on the infographic to access a larger version from Bigcommerce.


 

Posted in Global Retailing, Online Retailing, Part 1: Overview/Planning, Part 2: Ownership, Strategy Mix, Online, Nontraditional, Part 3: Targeting Customers and Gathering Information, Part 6: Merchandise Management and Pricing, Part 7: Communicating with the Customer, Part 8: Putting It All Together | Tagged , , , , , , , , , | 1 Comment

Are Some Customers Overstaying Their Welcome?

Posted on January 28, 2014 by bermanevansretail
We’ve written several times before about the crucial nature of customer service and experiential retailing (click here, for example). And we’ve also written about some customer service issues that retailers such as McDonald’s have faced (click here, for example).
Now, some retailers are confronting the question of whether their customer service has been too good. Yes, you read that right — too good. What do you think about the scenario described below?
For several years, a growing number of retailers have been encouraging shoppers to stay longer in the hope that they will buy more. They offer free Wi-Fi, cafes where people are welcome to lounge as long as they want, and so forth. Even department stores such as Macy’s offer free Wi-Fi.
So, isn’t this wonderful — retailers getting customers to spend more time in their stores and enjoy the ambience of those stores? Isn’t this a great hedge against showrooming? Seems that the proper answer is sometimes yes, sometimes not.
Consider these comments by Sarah Maslin Nir, writing for the New York Times:
“With its low coffee prices, plentiful tables, and available bathrooms, McDonald’s restaurants all over the country, and even all over the world, have been adopted by a cost-conscious set as a coffeehouse for the people, a sort of everyman’s Starbucks.”
“But patrons have also brought the mores of cafe culture, where often a single purchase is permission to camp out with a laptop. Increasingly, they seem to linger over McCafe Lattes, sometimes spending a lot of time but little money in outlets of this chain, which rose to prominence on a very different business model: food that is always fast. And so restaurant managers and franchise owners are often frustrated by these, their most loyal customers. Such regulars hurt business, some say, and leave little room for other customers. Tensions can sometimes erupt. Is the customer always right — even the ensconced penny-pincher? The answer seems to be yes among the ones who do the endless sitting.”
Click on the image of a Brooklyn McDonald’s outlet to read more. Has this outlet overreacted or is it following good business practices?
Photo by Michael Appleton for the New York Times

 

Posted in Part 2: Ownership, Strategy Mix, Online, Nontraditional, Part 3: Targeting Customers and Gathering Information, Part 5: Managing a Retail Business, Part 7: Communicating with the Customer | Tagged , , , , , , , | 1 Comment

How Important Is the Christmas Shopping Season for Online Retailers?

Posted on January 26, 2014 by bermanevansretail
The Christmas holiday season is very important for online retailers — and this varies by country.
In a recent study (as reported by EMarketer), Adobe looked at E-commerce holiday sales as a percentage of annual sales for online retailers in several countries.
Take a look at the chart below.

 

Posted in Global Retailing, Online Retailing, Part 2: Ownership, Strategy Mix, Online, Nontraditional, Part 3: Targeting Customers and Gathering Information, Part 7: Communicating with the Customer | Tagged , , , , , , , , | 1 Comment