As an independent retailer you could be forgiven for thinking the game is up for the physical store. On a global scale we’re constantly bombarded with news and articles about how the retail world is changing. Indeed journalists seem to have their go to sources when they want to back this up. Amazon and Walmart get far more than their fair share of column inches especially as we get more and more of our statistics and data from US skewed sources. But guess what Global retail was worth a massive $22 Trillion dollars in 2016. The giants Amazon and Walmart accounted for 0.45% and 2.3% respectively. So the two giant US based retailers accounted for less than 3% of global retail.
And what might be a little surprising is the fact the physical retailer Walmart had five times the sales of the media darling Amazon. Now there’s no doubt Amazon is incredibly innovative and is not beyond flying the odd kite in an effort to remain at the very front of the consumer’s mind. But here’s the rub, at it’s core Amazon is a physical retailer. It differs from the Walmart’s and Tesco’s of the world in the manner in which it gets products in front of consumers but they do deal in real tangible product and in that regard they are very much physical.
They have brick and mortar fulfillment centres to house physical stock and use physical means of transport. Until Jeff finally announces his guys have perfected the teleportation device of the beam me up Scotty variety they still have many of the same issues of a traditional retailer regardless of size.
In short Amazon are just another route to market for manufacturers, suppliers and retailers of brands. They do bring many advantages to suppliers and brands and can leverage size and volume to deliver value and convenience to the consumer. But none of their core activities are patentable or not open to being copied. The reason they laud their speed of delivery is in part due to the fact they have to. Unlike a local brick and mortar store a consumer cannot simply just drop in and pick up an item on a whim or in an emergency. So Amazon’s answer is to get it to the consumer ASAP when needed. But in general outside of emergency situations who cannot wait a day or so for that new dress, box of Persil or those bangin’ new headphones. In fact Amazon are rather predictably in our view looking to navigate their way into the physical space for the reasons outlined above. Sometimes it’s just easier to drop into a store or have a place to drop off a return. For the retailer there’s the benefit of offering a replacement product there and then or better again up-selling and offering what Amazon really can’t a true impulse buying opportunity.
So where are we going with all of this? Well it’s to remind SME retailers they they too hold a lot of cards. At it’s core, retail is all about satisfying a consumers need. Getting a physical product out of a warehouse or off a shelf and into the hands of the consumer is what it’s all about. Whether the consumer starts their journey on a website or in a store the goal is the same. How do we get that product from point A to point B otherwise known as the consumers hands. As a retailer with a physical store you already have much of the hard work done. You have the relationships with the suppliers and the consumers. In the case of our target retailers they also have the means of fulfillment in-house.
You have the ability to give the consumer more confidence than a eCommerce only retailer. That ability comes from having a physical location a consumer can have last resort to. You have the fulfillment centre already on tap and again that’s your physical store. You have local market knowledge and relationships again due to your presence in the community. All that’s left now is to leverage all of the advantages you have and connect them to the power of the web. You could get moving and connect the final piece of the jigsaw with eCommerce capabilities. But yet you haven’t done this. So what’s stopping you? Technology, resources, time, finances? Worried you’ll end up with an increased workload, almost like running another business.
No longer acceptable excuses. Why? Because we can take on the heavy lifting. Leverage the power of your suppliers, automate all of your eCommerce sales, retain all the consumer and sales data involved. We tick all of those boxes and much more. Get in touch at firstname.lastname@example.org and we can arrange a demo and show you how you can quite literally open up a whole new world of opportunities.
Independent retail is very well placed to become a force in eCommerce. It’s easier for you to become a multi-channel retailer than it is for say the Amazon’s of this world. It’s easier for you to stand out from the crowd and leverage your local loyal customer base than it is for the larger chains. You have a level of exclusivity that the multiples don’t enjoy. Not everyone wants to look or be the same, right? So if you’re in retail you should be in eCommerce. You have 90% of the work done. You know your business, you know your customer, you have your product so why not do what you do when you have a plumbing or car issue. Find somebody to get the job done for you or as in our case with you. Independent retail has diversity, individuality, exclusivity and many other advantages over the larger chains so don’t let insecurity about your level of technical knowledge stop you. Take it from us at www. COVAWORLD.com cost or technical knowledge is no longer a barrier to entry.