As the online retailing experience has evolved in the past decade, many consumers have come to prefer shopping online rather than shopping in a physical store location. Shopping online provides consumers with less of an experience than a visit to a physical location, but the unique ability to view and compare a store’s products much more effectively. Rather than having to circle around a store numerous times looking for different styles or sizes, consumers are able to filter a store’s offerings online based on their preference of style, color, size, price, etc. Simplifying the way consumers shop online has made a large impact on the growth of the online retailing industry. With nearly 2 billion people shopping online every year and contributing more than $3.5 trillion globally per year, it’s safe to say online retailing isn’t going anywhere.
The main driving force of this industry is Amazon. Amazon is responsible for a majority of the changes seen in the e-commerce space over the last decade. Currently, Amazon and its third-party merchants offer more than 12 million unique products on its platform. This may seem like a lot, but in comparison to the amount of people visiting Amazon’s marketplace to shop, it’s nothing. Nearly 200 million people visit Amazon’s site every month in search of products they need. Part of the reason for these such high numbers are the benefits associated with having an Amazon account. For example, one benefit that has made many other online retailers fall short in comparison to Amazon is their 2-day shipping offering. A majority of other online retailing businesses are unable to provide such prompt shipping and delivery options.
While the speed of delivery is often an important factor for online shoppers, what they value even more is the cost of shipping. Many think that the advantage Amazon has in its shipping capabilities is the ability to deliver packages much quicker than other retailers. However, what consumers truly value is the fact that the shipping is always free. For online retailers that lack the capabilities of Amazon, this can be a great leg up. If these businesses are able to provide free shipping while letting their customers know their packages may arrive at a slower pace, their customers would prefer it over having to pay a shipping fee and not being guaranteed an accelerated delivery.
As more and more people continue to shop with Amazon online, their expectations for other online retailers continue to increase. For many retailers, these expectations are impossible to meet, and thus need to provide alternative ways to garner some sort of competitive advantage. A common way this is done is through shipment tracking pages on a retailer’s website. While the orders made might not be delivered as quickly, customers feel comfortable in knowing their order has been processed and can check the status of their order in real time on your site. Small inclusions like this go a long way in increasing the overall customer experience.
If you’re still looking for ways to make your business stand out online, consider the ease of use and convenience of your website. Make sure the user interface is polished and is easily navigated. Ensure that first-time visitors to the site are able to create an account immediately and store their billing and shipping information immediately. Provide some form of benefit to being a user on the site, whether that be exclusive coupons via e-mail or specific promotions exclusive to members. Create opportunities to cross-sell or ensure repeat purchases from returning customers. For more information on how to create a competitive advantage in the online retailing industry, check out the featured infographic below.
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.
