After seeing so many big box retailers shut down several stores (if not all) in the past 18 months
(Payless, Toy R Us, Kmart, Unlimited, etc.) I can only wonder if our kids will be able to picture
what it felt like to go window shopping.
With over 6,000 stores closing down in 2017/18 and a multifaceted e-tailer such as Amazon growing on multiple directions, the digital era is taking more than one brand by surprise and those who don’t adapt get quickly swallowed.
The problem is that adapting to E-Commerce is much more than just uploading product pictures on the web and start selling. E-Commerce entails a whole different marketing strategy, heighten customer service and a complete re-structuring of product logistics.
From a marketing point of view, in order to sell online, you need to get in front of the right people, not physically but where they browse – not a simple task as there are many different preferences between your potential customers and there are also many other brands after them. Instead of just opening a shop at a mall and waiting for your clients to go to you, now you have to chase them virtually.
Customer Service also plays a crucial part on client retention and future sales strategy. Online shopping is such a democratic shopping experience where all clients have equal access to the same stores, (unlike physical stores located strategically near those who can afford them) that consumers develop a very strong connection with the brands - for good or for bad. This is why Customer Service is extremely important for e-Commerce: an unhappy client can leave an unfavorable review and influence potential clients yet to come.
And from a warehousing perspective, the logistics of an ecommerce operation is much more sophisticated and accurate than the logistics for shipping bulk merchandise to stores. For internet orders, you can’t miss a deadline, send the wrong item or send items with near expiration date. Furthermore, you need to be able to receive and process returns, which are very common in online shopping. Retailers' old logistics partners that were able to ship boxes of merchandise with weeks of notice need a very heavy (and pricey) IT revamp and staff training in order to become a fully functioning and effective e-commerce product fulfillment warehouse with only 24 hours to ship orders.
For many brands, the three challenges mentioned above are the reason they are not succeeding in the US market. Below are some suggestions on how to tackle them:
- To develop your online marketing strategy there are a few good inbound marketing agencies that specialize in the subject such as Riezen (Miami) or Full Funnel (Boston).
- Customer Service is always better if it is managed by your own staff. However, if you decide to use a 3rd party for this service, it's always better to pick a local company, such as TeleDirect (Florida) who will make your clients feel more valued.
- In the logistics arena, Ameriworld Logistics Services (Miami) specializes in pick and pack services and currently serves thousands of orders daily with impeccable e-tailers’ scores.
If your store is turning the page onto this new chapter make sure you consider all aspects. For a 3PL specialized on eCommerces, call +1 305-777-0548 – we are here to help!