February 24th, 2014 by Elma Jane
When someone asks what business you are in, how do you typically respond?
For many online sellers, the answer is likely I sell (name of the product), I’m an ecommerce merchant or I’m an online retailer.
Make the focus of your business your customers and its value proposition, not the fact that you sell online. It’s time to simply answer the question of what business you are in with a response that is more or less, “I am a (distributor, retailer, reseller) of (name your products) for (name your market).”
Back then, most business owners who sold products online described themselves as “ecommerce businesses” or “online retailers,” to differentiate from brick-and-mortar or catalog retailers. Most operated their own pure-play online stores. Some sold products on eBay. Amazon’s marketplace was mostly comprised of larger retailers. There’s an evolution in how e-commerce owners describe themselves.
Today, you will still hear many online sellers describe themselves as “ecommerce businesses” or “online retailers.” But, in 2014, those terms don’t really apply. Whatever you sell, you are delivering a set of products to meet the needs of a specific market. “Ecommerce” or “online retailing” is simply a technology and a sales channel.
There is now no difference between “ecommerce” and “commerce.” It’s time to get rid of the “e” in ecommerce. Most businesses participate in ecommerce in some fashion. You engage your customers in many different channels — your own e-commerce site, brick-and-mortar, online marketplaces. Regardless, you and virtually every other B-to-C or B-to-B company are selling goods to customers across those channels.
Why Worry about Labels?
Today, commerce is multichannel and highly competitive. It’s done online, on the phone, face-to-face, and on desktop, mobile, and tablet devices. Make sure your business has an omnichannel strategy, so your shoppers can find you. Make sure the information about your company and products is consistent regardless of the channel. Focus on whom your prospective customers are, what they want to buy, and how much they are willing to pay.
Business owners should think strategically. Part of strategic thinking is focusing on the bigger picture, such as having the right products and ensuring that your buyers can find them.
Omnichannel Focus
Think about omnichannel commerce every day. Get your brand and products in front of your target customers regardless of where they are shopping. Below are some things to consider to facilitate an omnichannel strategy.
Chat and phone. If you don’t offer online chat or take phone orders, consider doing so.
Marketplaces. If you aren’t selling your products in marketplaces outside of your own online store, consider doing so.
Mobile. If you don’t have a mobile strategy, you need one.
Payment options. If you only take credit cards for payments on your website, add alternative payments like PayPal, Google Wallet, or Amazon Payments.
Social media. If you don’t have a social media presence, your market share is likely declining.
Customer Focus
Twenty-five years ago, if you asked a brick-and-mortar retailer or a catalog vendor what business she was in, she would likely respond as, say, “jewelry retailer,” “men’s clothing store,” “a department store,” or “hardware store.” She knew her target customer niche, how to reach them, and what products they wanted to buy. Those businesses that did the best job of (a) matching products to the consumer, (b) offering low prices, and (c) utilizing the right distribution likely won most of the business.
It’s time to get back to that focus. It’s more challenging than it used to be because the purchase cycles are far more complex than in 2002. There is no longer a straight path from identifying the need to research to purchase. Consumers typically identify a need and purchase intent, research products, research prices, research products further, conduct social media research, and then purchase a product and demand instant gratification and free shipping.
To be successful in 2014, commerce – not just ecommerce – requires the following.
Emphasize your value proposition. Regardless of how a shopper finds you, be sure he can quickly find out that you are a leading retailer of products in your market. Being clear on what your business is will also help establish trust with your shoppers.
Execute the 4 Ps of sales and marketing – “product,” “price,” “promotion,” and “place.”
First, make sure you know your target customers and what problems they are trying to solve or the need that you fulfill with your products. Know their demographics, their buying cycles, price tolerance, and where they research and shop.
Know your competitors.
Posted in Credit card Processing, Digital Wallet Privacy, e-commerce & m-commerce, Electronic Payments, Internet Payment Gateway, Mail Order Telephone Order, Mobile Payments, Small Business Improvement, Smartphone Tagged with: alternative payments, Amazon, brick and mortar, catalog retailers, catalog vendor, commerce, credit cards for payments, e-commerce site, ebay, ecommerce, ecommerce merchant, mobile and tablet devices, omnichannel, omnichannel commerce, online retailer, online sellers, online stores, phone orders, sales channel, sell online
January 29th, 2014 by Elma Jane
More than 60 percent of online shoppers returned or exchanged at least one item. About 95 percent of customers will go back to an online merchant and make additional purchases after a positive return or exchange experience, making managing the process important for e-commerce success.
Exchanges and returns will shortly be a hot topic for online retailers as Christmas gift recipients contact sellers in the wake of an exceptional holiday selling season. These Christmas gift recipients will want to exchange and return unwanted gifts, items that are wrong size, or even items that may have been damaged in transit.
Returns and exchanges are important for building long term customer relationships, with some 95 percent of shoppers going back to online merchants that have offered a good exchange or return experience in the past, according to data from Endicia, an electronic postage solution provider. Conversely, about 85 percent of consumers will not return to an online shop after a poor return or exchange experience, again according to Endicia.
What follows are tips for offering a better exchange or return experience for online shoppers.
Create an Opportunity
Returns and exchanges are also an opportunity to make additional sales. As mentioned above, about 95 percent of shoppers will return to an online store and make an additional purchase after a positive return or exchange experience.
Similarly, about 45 percent of shoppers will actually recommend an ecommerce merchant, again according to Endicia, after a positive return experience, meaning that taking care of an existing customers could lead to new customers too.
Consider sending each shopper who returns or exchanges an item a follow-up email, asking for feedback about the experience. Identify ways to improve the return process, and business in general will improve too.
Know the Cost of Returning
A guitarist for a popular party and event band recently ordered a new guitar strap from a merchant on the Amazon marketplace. Unfortunately, there was an error in the shipment, and the merchant apparently sent a shorter strap than expected. When this guitarist contacted the seller about an exchange, he was told that a new strap would be shipped that day and that he could simply keep the smaller strap.
This solution was great for the customer, who did not have to repackage the strap or arrange for a carrier to pick it up. He was generally happy with the experience. This was probably also better for the merchant, who might have simply been able to order a new guitar strap from its distributor for about the same cost has having the strap returned.
To make this sort of business decision, it is important to understand the real cost of managing a customer return, including the cost of the shipping and the labor necessary for processing the return once it arrives back at the seller’s warehouse. If it cost as much or nearly as much to return the item as it would to simply purchase another one wholesale, consider letting the customer just keep it, saving everyone involved time and expense.
Provide Return Instructions or a Return Label in Every Order
Shoppers don’t want to wait for return labels. In fact, about 62 percent of online shoppers want a return label included in the initial shipment, according to Endicia. Including a return label is not difficult, and many online sellers may find that the ability to do so is either built directly into the retailer’s ecommerce platform or is available via an extension to the ecommerce platform.
A second option may be to offer shoppers a simple, self-service way to print a return label from your site. This self-service option does not require the customer to contact the shipper to get authorization or wait for an emailed label. According to the Endicia data, about 61 percent of shoppers will be happy with an easy way to print return or exchange labels.
State Return and Exchange Policies Clearly
Let customers know exactly what to expect from the return and exchange process. Post clear, simple-to-understand policies on a page of the site specifically designated for returns or shipping policies.
Posted in Best Practices for Merchants, Credit card Processing, e-commerce & m-commerce, Electronic Payments, Gift & Loyalty Card Processing, Internet Payment Gateway, Visa MasterCard American Express Tagged with: Amazon, ecommerce, gift recipients, marketplace, online merchant, online retailers, online sellers, online shoppers, return or exchange, returns and exchanges, self-service
