If you thought starting an online business was tough, you are in good company. Listen to Jack Ma’s message at Gateway ’17 in Toronto in September 2017:
Have you ever wondered how Walmart keeps selling some products below cost and still makes a profit? Well, customer loyalty is king at Walmart, and once you pick the cheap item you will keep adding other items to your basket.
More and more e-commerce experts are heading to Africa. This trend shows the potential of e-commerce companies in Africa and the potential ahead. Internet penetration and smart phone use is on the rise, and this can only lead to huge profits ahead for e-commerce companies in Africa.
Jack Ma from Alibaba has recently made the rounds in Africa.
Many of our followers and clients often ask about online learning and courses that they can take. Well, one good source is Google. They often have great courses online, everything from Google Analytics, Ecommerce, Adwords, SEO and everything in between. Here is an upcoming webinar that we recommend, on Digital Marketing for Ecommerce in Canada. It will be on July 11th.
Amazon has bought Whole Foods. Is it time for Walmart and the rest of humanity to give up and accept the inevitable; Amazon world domination?
Bad news for brick and mortar retail; Amazon is opening more stores
If you are in retail, we can help you build an effective Omnichannel strategy to compete with Amazon. Contact us.
- Mobile sales will account for 10% of total sales in 2020 in Canada
- Click and collect is booming
Watch the latest installment from Ecommerce News Network
Well folks, it has finally happened. Nearly every major department store in the USA and Canada, including Macy’s, Kohl’s, Walmart, and Sears, have closed or intend to close hundreds of stores.
This is due to more competition and lower profit margins and the continuing rise of ecommerce.
When an anchor store like Sears shuts down, it may also lead to a “downward spiral in performance” for shopping malls.
How Can Brick and Mortar Retailers React?
Many believe that there is no way to stop the retail decline, but there may be a few solutions for the big stores in the age of Omnichannel marketing:
- Diversify – the old retail model has failed to adjust to modern realities and the shopping habits of the modern consumer.
- Follow Amazon’s lead – they say if you can’t beat them join them. Most big retailers have great online stores but cannot compete with Amazon. It may be time for the big retailers to adopt the “Amazon model” in fulfillment, pricing and customer experience.
- Review what your customer’s needs and values are: Millennial and Gen Z consumers in general have vastly different needs to the older generation that viewed shopping in terms of visiting a store. They want products are ethically made, with fair salaries paid, environmentally friendly and authentic.
If you are looking to diversify, or need help with reviewing your business model, we have experts who can work with your company to help you survive the “Amazon onslaught.” Alternatively, we can also help you transform from a brick and motor business to an efficient and profitable pure play model.
Contact us to discuss.
Many ecommerce firms are setting up stores on Shopify, even if they already have a presence on Amazon. How far will the Shopify revolution go?
In 2016 the company’s e-commerce platform had purchases by more than 100 million individual shoppers. Here is an interesting video on the power of Shopify:
If you are wondering if Shopify is right for you, contact us.
Amazon Business has arrived in England. We have had a great experience with them, from placing an order right through to fulfillment. If you are in UK, try them.
I came across an article on Forbes today titled The Inconvenient Truth About E-Commerce: It’s Largely Unprofitable . The writer, Steven Dennis, states that despite the massive shift from brick and mortar stores and the digital revolution, most ecommerce businesses remains unprofitable and most investors will not reap an adequate ROI.
This is due to high start up costs for new brands, difficulties in getting customers and high fulfillment costs.
This is an interesting article but ignores various factors and approaches;
- The digital market continues to grow. In the USA online sales in 2015 had a global volume of $335 billion. Despite the doom and gloom experts believe that digital purchases will exceed $530 billion in 2020. That is an annual growth rate greater than 10%. Sales are growing, not stagnating.
- Long Term: Ecommerce needs a long term strategy. Most entrepreneurs expect high returns within 6 months to a year. However most ecommerce companies need time to develop their brand and earn customer loyalty.
- As modern consumers move from desktops to mobile ecommerce trends have shifted. Growth in ecommerce markets, especially China, South Korea and India, is now driven by mobile. Emarketer states that Analysys International Enfodesk reported that nearly two-thirds of retail and consumer-to-consumer (C2C) ecommerce sales in China in Q4 2015 occurred via mobile. That was up from 55.5% the previous quarter—the first time mobile accounted for a majority of ecommerce sales in the country. As mobile grows, the upward trend in sales will continue across the world.
How Can You Make Your Ecommerce Business Profitable?
A recurring question from ecommerce companies is how to increase net profits, not just revenue in a highly competitive market, especially for new companies. There are two main strategies that have become popular in 2017:
- Pushing up gross margins
- Reducing costs
However these two strategies by themselves are not sufficient. Whether your business is pursuing an omnicahnnel strategy or pureplay, you need experts with years of experience to help you increase profit and scale the business.
Contact us now and we can help you grow AND make a profit.