The (true) premonitions shared by everyone involved in commerce are that we are approaching the end of the reign of malls. More and more malls in the United States and Western Europe are shutting down and most business owners are channeling their energies and resources into online shopping.
Anyone who turns to e-commerce will find quite a few opportunities and potentials, yet also hurdles which should be considered.
In order for an e-commerce site to succeed, it should operate on two levels:
- Creating added value (compared to competitors and compared to offline shopping / traditional)
- A breakdown of barriers
As for added value, it is customary to focus on three elements:
- Value offers
Can be targeted at prices and / or offering products and services that are not available through traditional shopping or from the competitors.
- Social buying
Creating distinguishing social value between online and offline buying. This can be reflected in customers’ sharing their buying experience, buying together or making purchase lists before special events. Amazon, for example, allows discussions before buying books and invites users to choose the gift they want to receive from their friends for their birthday.
- Shopping experience
Using technology for shopping experience has become easy and simple. Today, digital stores provide a powerful, personalized, friendly shopping experience.
Each potential customer is offered a different design and presentation based on their preferences and purchasing profile. Customization / personalization are fundamental for the success of digital shops, which did not exist in the era of physical stores. Accessibility is also a major and most effective issue: arranging products by brand names? Organizing the shelf according to sales discount? Arranging products by price? We have all the options available if we have built the digital store correctly and smartly.
To dismantle barriers, three matters should be addressed:
· Payment – 40% of consumers are still concerned about the malicious
usage of their payment tool / credit cards. Sounds strange? Maybe, but if you are not part of the digital generation – the Z and Y generations, you are still not completely worry-free.
What can storeowners do? Make payment to Smart-Simple-Safe. In other words, you can embed tools such as PayPal and allow the user to complete a purchase with one click. One click away from the destination.
- Shipping
Many consumers are still worried about shipping: The product might arrive damaged? Might not arrive at all? Not arrive on time? Basic concerns that might suspend purchasing.
What can storeowners do? The solution is control – allow your customer to know where their package is at any given moment. A promise of free shipping can, of course, help… After all we all love this word – free.
- Return policy – perhaps the most significant impediment
What to do? Promise and back your promise. Market surveys show that the way to dismantle barriers and worries is to promise. Extreme promise may work.
Extreme case – Zapos was the first to guarantee a return policy of one year from the day of purchase!!!!
To conclude: If you launch an e-commerce / digital store, consider the three components of added value and the three basic barriers that need to be dismantled.
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