How Retailers Run Their Businesses

September 8, 2014 at 12:03 am
filed under Media & Printing Services

For the first time in many years, revenue from online shopping seemed to surpass all other monies raised from retail businesses. This happened during the last month of 2013, and experts believe that the trend will continue for quite some time. Some experts even believe that the world has no option other than to completely embrace this form of shopping and abandon any other. Anyone who appears unprepared to carry out business online may be left behind as his rivals move on to tap into the great resources and opportunities that e-commerce present. Many retailers have realized the losses they stand to suffer by failing to take care of the needs of customers who do their shopping online.

A look at some of the leading retailers shows that they have reported drop in sales from the regular channels, but a huge increase in online sales. All major retailers around the globe have reported increased sales by online shoppers by between 10% and 14% during the last few months. Interestingly, the same global retailers say that online sales grew by a much higher percentage compared to regular sales. Retailers who embraced this form of shopping have seen a larger increase in online sales than their rivals who entered the fray much later. What this means is that the numbers will keep increasing in the next few years as more retailers cater for customers who would love to do their shopping online.

It is not as if this form of shopping does not have any challenge. The challenges that sellers and buyers encounter by shopping online is similar with what other new industries have experienced. To some retailers, this form of shopping has become a monster, which they have no choice but to feed. For example, customers who prefer to do their shopping online have become faceless. Gone are the days when buyers and sellers would do their transactions face to face, and not behind some devices such as Smartphone and computer or laptop. With advancement in technology, customers and retailers have to think of new ways of doing business online continuously, thus driving e-commerce into new grounds that were hitherto unknown.

The other challenge that retailers complain of is that they cannot explain why their customers love certain products and not the others. This is because the two groups cannot meet face to face and share with one another on a wide range of issues, such as tastes and preferences. Most retailers understand why they must work harder to retain the new online customer, instead of waiting to find out if new customers will come his way. To achieve this, retailers have opted to launch several promotional products, like promo pens in Australia as a way of showing their appreciation to their customers. Such products could be free or sold at huge discounts. The goal is to give the customer something back so that he has no reason to leave and go elsewhere.

Whatever happens next, the fact is that as more customers prefer to shop online, retailers have no option than to serve them.

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