Store Front Businesses struggling to compete with Web Based Businesses-The How & Why?
Asides from the obvious dilemma that store front businesses face in competing with web based businesses such as the high cost of maintaining a physical property lease, large number of employees and the challenges of on hand inventory issues to include shrink; what other challenges are thwarting the brick & mortar retailer in staying competitive with his virtual counterpart?
I think that the technology is entering our houses and private life so fast and so deeply that offline shops have to adapt to new realities. I specialize in e-Commerce consulting. Most of my clients are offline and want to be online.
Currently even B2B companies buy e-Commerce solutions for their business. The answer is simple - more people search web for product information than ask for catalogs or visit stores - nearly 90% of searches, even for business.
It means that FMOT is online now. Simply offline brick-and-mortar shops have to invest in online solutions, otherwise they will disappear, like some shops on my street in NY. The omnichannel communication is crucial to succeed and survive. The technology changed everything, especially the cost of entering some industries. Some e-Commerce giants have fully robotized huge warehouses with a few people employed as operators, to cut costs and time of delivery.
Smaller shops introduced a special service, loyalty programs with marketing automation.
I think that offline shops will survive but they have to have a different better offer, uniqueness and great design of products, good return policies, great service, as well as in some cases an online shop for booking or pickup at shop.
People are counting money more than ever. Everything is more expensive, especially houses and rent. It means they don't have money for shopping. Wages grew only 5% in average since 2002.
These factors simply boost cheaper solutions, like online shopping, drop-shipping or lending, like Airbn, Uber or Lyft.
Simply I don't use a regular taxi anymore. This is a reality.
I think this is a pretty large question - Online vs Offline retail.
And big stores like Walmart have both. While giants like Amazon are primarily in online. Growing online retail has various success factors behind them -
1. Easy shopping for customer and seller both. No queues, no discussions with salesperson etc.
2. Easy and quick payment (Online payments are pretty mature now and things like pay for delivery are game changer)
3. For shopper - home delivery is a huge advantage.
4. For store owner - operations cost is an advantage ( Though we can argue operation cost in offline vs online, for small online stores it's cheap). You do not have to pay rent for a store in a busy street, that can cost you fortunes.
Of course, there are few pitfalls of online stores as well. But, the way this industry is growing- the pitfalls are next to nothing ( or will become so).
I have completely different opinion on this topic based on my reading of study reports published on this topic
The major disadvantages of online stores are w.r.t.
- Customer needs to pay shipping and handling charges
- Have different exchange/refund policy for returns
- Fails to provide social or family buying experiences
- Unable to provide feeling about the helpfulness of salespeople,
- Providing adequate post-purchase service
- Have lots of uncertainty about getting the right item in right time
The only advantages of online shopping are w.r.t.
- Easy brand-selection from thousands of collections
- Availability of large numbers of variants
- Ease of browsing experience without any hindrance/shyness
The disadvantages of online shopping are so many that small advantages could not completely mitigate the disadvantages of online shopping. Practically speaking, online shopping had a complementary relationship with in-store shopping frequency and online shopping increase in-store shopping occasion. Major portions of store buyer used online shopping for information search and major portion of online buyers made trips to store for acquiring direct information and experience.
Therefore, online shopping in combination with in-store shopping (hybrid shopping) enables consumers to acquire product information and experience product, and easy transactions.
One possible solution to tackle the challenge is
- Provide the consumers online shopping experience in the store it-self
Difficult to say, both online and offline stores have advantages and disadvantages. They are now trying to adapt to challenges and take opportunities.
For examples online stores do not have to pay for a super expensive brick and mortar in the city center. On the other side the online competition is crazy, it is really tough to be visible to consumers in particular if you have big competitors such as Amazon.
Online shopping enables to easily check all the products for sale but for example you can't try anything before buying.
Online payments are easy but now you can pay with cards or mobile in brick and mortar stores as well.
To me a good solution is the combination of online and offline experiences to take the advantages of both channels and providing consumers with a great customized experience.
One of the leading differences between the online retailers and the trailing, struggling store front retailers is the basic philosophy of their prospective business models...lets look into in detail:
1 Web based, online retailers are appealing to a bigger, broader or select audience than the store front retailers.
A single online retailer can literally service an entire country in theory whereas the store front retailer has to contend with customer traffic within a few miles of his location. Just running the numbers alone in potential customers on this factor alone, puts the online retailer on top as far as sales potential.
1 Web based, online retailers are appealing to a bigger, broader or select audience than the store front retailers.
The online business can literally have a global presence while the store front is at the mercy of its 1 to 10 mile traffic zone.
2 Online retailers are more successful in targeting the demographics of their customer base.
Through its social pages such as facebook, twitter, instagram, ect, the online retailer is zeroing on its target audience.
3 An online business has the luxury to be located anywhere therefore taking advantage of lease/rent/property cost savings.
Goes without saying-no huge parking for customers or employees, no key real estate location, no huge overhead.
4 Online retailer avoid the unnecessary costs, liability and time spent on live customer service that store retailers incur.
By not having the live customer element onsite, things from accident slips & falls are avoided, customer theft, long lines, ect.
5 Online retailers are forward thinking pushing the bar on technological advances putting business literally in your fingertips.
Its the virtual world on the cutting edge, setting the trend on how to modernize business as store front business are copying.
6 Most importantly Online retailers are creating a whole new era of business philosophy and a mindset that is capturing not only the wallets of its customers but the very minds, hearts and souls...
... by sharing ideas, thoughts and feedback, by linking together and providing links to supporting business partners, by creating apps and modules that makes the shopping experience done easily from your smart phone, by providing shopping 24 hours a day-7 days a week, by being perceived as eco-friendly, green & sustainable, by challenging traditional, age-old practices of store front business and putting the customer/end user in control of the shopping experience with platforms such as review, 'likes', favoriting, following, mobile apps, text notifications and so on and ect. And leading the way with a whole new outlook on logistics, employee quality of life and the customer experience by rewarding their work staff, by having the product brought to your door step by allowing you to comment, post and share your experience directly with the online retailer. In large the online retailer has brought you-the customer-into the foreground of its business model.
Its has taken years for the brick and mortar retailers to finally see what the web based online retailers were doing was successful and only recently has the store front retailers starting implementing many of the tech tools and business model philosophies that are driving the success of the online communities. Just think about the very recent Amazon indoor city Rain Forest-incredible and compare that to nothing being done by its store front counterpart Walmart.
The future of 'brick' is in experience. 'Click' will be comparison and price oriented. And larger retailers will have to bridge the experience between brick and click.
For instance: only show limited amounts of sizes per item, but provide virtual fitting rooms and advice + 'click' type sending the items to your home, including good return conditions if you still don't like it.
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Frequently Asked Questions About Your
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- Apps cost upwards of $10,000. How can you charge so much less?
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- Yes! This is highly recommended in fact. For additional information about the specific pages that make up your app and mobile website, please refer to the PAGE CHART which defines the purpose, features, and functionalities of each individual page, as well as the specifications of images that go with each page.
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- Modify, delete and read storage: Gives the app permission to access the storage on your device in order to save and edit files. Most apps will require some kind of access, if only to keep temporary logs on your device.
- Find and use accounts on the device: Google, Facebook, Twitter. These accounts are often integral to the way we use our phones, letting us tweet from anywhere or access Gmail from multiple apps. This permission gives an app the ability to tap into these accounts without jumping through hoops to make life more convenient for you.
- Full network access: Just like the software on your laptop, most apps require some kind of Internet access, whether it's for software updates, syncing or retrieving data from online resources.
- Phone status and identity: Don't panic: this doesn't mean it can listen in on your phone calls. This permission enables apps to recognize when a call comes in and give you the opportunity to answer it, pausing the current app in the background in the meantime.
- Prevent phone from sleeping: When your phone or tablet goes into sleep mode, it can interrupt certain processes, such as data being written to the internal storage. This permission enables an app to keep your device 'awake' while important system tasks are being carried out; it can also be used by video players, for example, to keep the screen on.
- Read and send text messages: Plenty of apps want to replace your phone's SMS functionality, and this permission can also be used to automatically scan your incoming texts for authorization codes (used where two-step authentication is involved).
- Read your contacts: The ability to share content with your friends in some way is often the underlying purpose, though the permission might also be requested so that the app can quickly auto-complete the names of your contacts whenever required.
We are not here to alarm you or frighten you but you need to know...
It is predicted (you can verify this yourself online) that by the end of this year more than 50% of ALL internet traffic will originate from a mobile device!
If your website is not 'mobile-friendly' your traffic will LEAVE!
The Internet Is Fragmenting!
It's not falling apart, it's getting bigger by the day, but the fragmentation is all about how people access it.
Let's turn the clock back to 1997... A website was just becoming popular. Most businesses didn't even have one back in those days. But those that saw and recognized the coming revolution not only outsmarted, they clobbered their competition by being the first in their space to aggressively embrace the internet. By having a website, by selling their product or services via their internet, and by collecting the names and email addresses of their prospective customers, it was heyday heaven for those early pioneers.
Back in those days the only way to 'see' a website was to type in or click on a url (website address).
But ohhh, times are changing again!
Today you can access the internet from a pc, from a laptop, from a smart phone, from a tablet, and so on, you get the idea?.. Fragmentation!
And just like the technological climate of 15 years or so ago, things are changing again - only this time even faster.
It's this avalanche of changes that have been cascading down upon us that have led us to totally reinvent our business, our products and our services.
In fact, it is indeed exactly why we began selling custom phone apps for any business through our TheICANetworkApps.com site, and we quickly became a leader there.
It's also why we began offering guaranteed first page search results for local businesses through our SEO service site, TheICANetwork.com
It's all about the mobile marketplace
It's all about what's happening with the fragmentation of the internet and how people access it from their mobile devices. If you have a smart phone you know what I'm about to say is precisely accurate.. Most of the websites you type in or try to access are nearly impossible to read, see, or navigate on that small screen.
The simple fact of the matter is, the resolution of the graphics is designed for much larger screens and therefore load to slowly on a mobile device, if they indeed load at all. And, those sites designed for desktop viewing almost always have far too many words per line. It's okay for a desktop site to have 12, 13, 14 or even more words per line, but try and read that line on a 3-inch screen.. Next to impossible!
I could go on but I'm sure you get the idea. A website that is designed to be easily seen and navigated on a 14-inch or larger monitor is just not view able in any kind of friendly format on a three or four inch screen.
You must get mobile ready
It's imperative that you are mobile ready for what's happening. Just like 15 years ago, those early adapters crushed their competition, built their businesses ahead of the curve. The same thing is taking place exactly right now. Think it's safe to wait a year? It probably isn't. Here's why...
It's currently estimated that there are over 1,300,000 androids, not counting iPhones, being activated - every day - worldwide. And, it is estimated that by the end of this year over 50% of all internet traffic will originate from these smart mobile devices.
If your website is not formatted, if it is not mobile friendly, if it is not easy to navigate on that tiny 3-inch screen, your visitors will leave as fast as they got there.
Heed this warning please
I told you earlier, how we have been reinventing our business to be positioned for the new internet, the new Web 3.0. And I'm the first to admit there is always a learning curve involved in anything new, and I'm sure you've heard this before.. If you're not keeping up you are - therefore, logically, falling behind... Fortunately the learning curve for the new Web 3.0 is not that challenging.
We have simplified the process
We now own some very special software that we use to reformat and make just about any website mobile friendly. You know, so it can be seen on that tiny screen. Up until now if a website owner wanted to have a website that was 'mobile friendly' they had to just about strip out everything at their site and just go with some basic items, virtually making their mobile version a shadow, or more adeptly said an apparition of their primary desktop version.. Not so, not true, not with us.
Our unique software aided by a human eye can now very efficiently take a website and render it viewable on the small screen without changing the richness and fullness and objective of the desktop version.
For example, instead of showing graphics at say their original 680 dpi (dots per inch) our software reduces that down by about 90%. Still very rich, very viewable on that small screen.
Here's another example.. When we work on a website to render it 100% mobile friendly if there are more than a dozen words or so per line we merely shorten those lines. We do not remove the words, we just make the paragraph deeper.. You see the difference?
Go to our website to see the difference we can make..
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