While online shopping margins were on the rise prior to COVID-19, the pandemic surge was immensely beneficial to many retailers’ online channels. As organizations began prioritizing safety at the forefront, they began strengthening their online shopping capabilities as it had become the safest shopping option for their customers. The increase in sales throughout the year jumped from years prior, with 2019 contributing nearly $3.5 trillion dollars globally; with almost two billion unique shoppers browsing the web for online deals.
None of this success would be possible without the contributions of Amazon. No other company has had such an impact on the way online retailing is handled. Boasting such an incredible marketplace, millions of products become available to their nearly 200 million customers every month. Considering this scope, many customers fail to realize how smaller online retailers will struggle against the competition. In fact, many shoppers have come to expect the many benefits that Amazon has in regards to order fulfillment from other retailers in the space. With recent studies indicating that nearly 90% of shoppers expect faster shipping and delivery times after their dealings with Amazon, many smaller retailers have been put on notice.
How can these smaller online retailers make a significant enough impact to maintain their customers, though? These retailers must prioritize developing strategies meant to keep their customers happy despite their logistical woes. What most retailers do in hopes to appease to their customers is provide branded tracking pages or member-based shipping prices. Rigorous tracking info doesn’t solve a customer’s need for their product at an expedited speed, but it can provide them the agency to stay up to date on the processing and shipping cycle of their orders.
The most significant way that these online retailers competing with Amazon can attempt to make a difference is through revitalizing their website and customer experience. Many considerations are made in regards to convenience and the user friendliness of a website. Smaller retailers look to provide benefits for users that do create an account on their website. Often times it’s as simple as saving shipping and payment information for future purchases. Other times it’s algorithmic recommendations of new products based on their previous orders. Sometimes these retailers will even provide discount codes exclusive to users who create accounts on the website. Retailers have found that the more opportunities provided for customers, the more they’re willing to take advantage of. Prioritizing ways to save the customer time and money is always one way to continue competing against Amazon.
While smaller retailers will struggle to manage customer expectations and shipment capabilities simultaneously, there are certain strategies and service providers that can help ease the situation. For more information on those providers and their services, be sure to review the infographic included 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.