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Redefining E-commerce: What you need to do NOW and what can wait

4/25/2021

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Online retail sales are forecast to more than double over the course of the coming years, reaching a projected total of 6.5 trillion U.S. dollars.
 
6.5 trillion is a big number, and an opportunity worth pursuing if you’re an existing or aspiring online retailer.
 
Since the early days of e-commerce, online retailing was defined by four pillars: Selection, Price, Experience and Convenience. The cost of entry was relatively minimal - if you had an assortment of products at good prices in a beautiful online store with free shipping, you could compete. But not anymore, those days are gone. 
 
Over the past few years, particularly post-Covid, consumer expectations for online shopping have drastically changed. In 2021, a relevant selection must include personalized products and sustainable brands, and convenience means curbside pick up and Afterpay.  While some of these “enhancements” are optional, most are crucial if you want to gain market share. 
 
For most cash-constrained retailers, it is difficult to determine where to invest resources to stay competitive. The most common mistakes are made when retailers chase the market or their direct competitors. My advice: don’t do that. 
 
Instead, start with your target customer and a few leading questions: 
 
What are their priorities? Values? 
What are their shopping habits? 

What do they expect when shopping in your store? 
 
Identify your direct and indirect competitors. Through the lens of a customer, evaluate their selection, pricing model, experience and conveniences. Do this often. 
 
Use available data and relevant KPI’s to analyze your business and assess progress. Test repeatedly. Fund the things that work, and kill quickly those that don’t work. 
 
The market is moving quickly, and increased expectations have led customers to switch brands. To mitigate your risk, you must aim to meet and exceed your customers needs. 
 
Here the four pillars, and what I deem are non-negotiables if you want to compete and lead. Additionally, I have included some optional elements to leverage as you evolve your channel.                  
 
Remember to use your target customer as the filter for decsions.   
 
        
1- SELECTION 

“Customers spend 48% more when their shopping experience and product  selection is personalized.”

Imperative: 
  • Curated, focused selection 
  • Personalization 
  • In-stock inventory 
  • Seasonal Must Haves 
  • What’s NEW shop  
  • Shops by category, brands or trend 
  • Sustainable brands 
  • Shoppable Social Media feed 

Optional:
  • Subscription - with a free trial 
  • Shoppable editorial content 
  • Customization
  • Saved list of personal favorites 
  • Wish list for out of stock items with immediate notification 
  • Extended sizes 
  • Eco-friendly products (especially in Home) 


2- PRICE / INCENTIVES     
    
“84% of consumers say they’re more apt to stick with a brand that offers a loyalty program. And 66% of customers say the ability to earn rewards actually changes their spending behavior.”

Imperative:
  • Discount off first purchase, minimum 10% off 
  • Competitive pricing 
  • Loyalty programs / rewards - easy to understand and quick redemption

Optional: 
  • Member discount / birthday discount
  • Early access to new arrivals and sales 
  • Special promotions 


3- EXPERIENCE 
 
“Video marketing isn’t an emerging trend anymore — it’s here.
Today, videos are a vital component of every ecommerce brand’s marketing strategy. And for good reason.”
 

“Animoto found that as many as 73% of customers are more inclined to purchase a product after watching an explainer video about it.” 
    
Imperative: 
  • Seasonal Style Guides 
  • Consumer generated product reviews 
  • Product recommendations based on prior purchases and search 
  • Detailed product filters in search based on customers activity
  • Size survey to find size as compared to other brands
  • Dedicated APP 

Optional:
  • Product videos 
  • Online chat with stylist or expert 
  • Editor or buyer reviews 
  • Exclusive invitations for virtual or live events 
  • Consumer generated product reviews including size, height and weight for accuracy 
  • Email or text reminders for items in cart 

 
4- CONVENIENCE 

THE AMAZON EFFECT: 
“Not only will customers abandon a cart if the shipping costs are too high, they’ll also abandon a cart if the shipping takes too long. Even if the cost is free, shipping that takes longer than customers are willing to wait can be a deal breaker.”

 
SHIPPING / DELIVERY 
Imperative: 
  • Free and fast shipping
  • Curbside pick up 
  • Easy to track delivery on personal device 
Optional: 
  • Same day or within 24 hours 

RETURNS 
Imperative:
  • ​Free returns with minimum 30 day timeframe
  • Simple instructions included with original package
  • ​Fast processing of refund
Optional:
  • Multiple drop off locations including physical store 

PAYMENT 
Imperative:
  • All credit cards 
  • Apple Pay / 1click payment
  • PayPal 

Optional:
  • Deferred payments i.e. Afterpay
  • Venmo
  • Amazon Pay

Your Next Step: 
 
Once you’ve checked the boxes, create a set of clear priorities and action items that are filtered through YOUR target customer. Identify the resources needed: capital, human, and technical. Develop a near term and long term road map, and adjust it often. 
 
If we know anything, we know that nothing is certain. Be nimble and prudent.  
 
Contact me for additional information at lorettasoffe@live.com 
 



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