Monthly Archives: March 2013

The Peril of Online Retail Success…

The peril of online retail success. The Welsh Assembly government will tell online shops to close on Sundays and Wednesday afternoons (NewsBiscuit).

The Welsh government is obscuring online shops and their customers

Why? The government said online shop’s “all ways available approach is making other shops look bad”. According to NewsBiscuit, the Welsh government feels that online shops are not upholding their country’s heritage of the “inconvenient opening hours” offered by Welsh shops.

What a ridiculous heritage the Welsh shops have!

If the opening shopping hours in Wales is inconvenient for retail customers, it is probably convenient for their traditional bricks-and-mortar retailers. This “convenience” for the shop owners is now called a heritage that the country values.

I think it has more to do with their inability to compete in the new economy. “If you can’t beat them, join them” – the Welsh government will do better to make it easy for traditional bricks-and-mortar retailer to also do business online.

The worldwide success of online shops has largely to with their 24/7 business, and customers enjoying the greater variety of products and services they can get online, at a much better price that bricks-and mortar shops can offer.

The peril of online retail success – Silly reactions from governments

It seems that governments do not know what to do with online shops. Taking it from the Welsh government, it seems that online shops are a threat. Online shops are a threat that they want to neutralist.

Why do governments make silly rules to control online shops? Why is it in their interest to do so at the expense of their own citizens? Are they slow to adapt to the digital age, or are there more sinister reasons? Who knows?

Image: flickr.com

Are online businesses disturbing the livelihood of countryside shops?

At what price does the convenience and efficacy of online trading really comes? Or does it render opportunities for countryside shops?

The degeneration of our countryside (again)…

As more people live and work in cities, brick and mortar businesses in the countryside battle to keep their doors open. Those customers that haven’t yet move to the city are old with limited resources.

Furthermore, it cost retail businesses a lot of money to get merchandise to the countryside and even more to carry the inventory. The customers of countryside shops are frequently disappointed when there is not much products to choose from, or the shops do not have products in stock that they need.

And then the Internet with its online shops arrived in the countryside.

The Internet has brought the countryside customers to city business. Not only did they find their products on the Internet, they could choose from a variety of brands.

Countryside customers quickly switched to online business. Because they find it cheaper and more convenient as their purchase is delivered at their doorstep.

The online shops caused the demise of Brick and Mortar shops in the countryside.

Vaughan Johnson said that online shops have contributed to the demise of the countryside of Queensland, Australia.  As result, shops have closed and people have lost their jobs. Subsequently, the local suppliers to the shops now have nowhere to go with their produce.

Are online shops really killing the countryside?

Outcomes for countryside shops.

Vaughan Johnson proposed that the government of Australia control (tax) the “unfair” advantage that online shops.

I think it will be better if countryside shops reinvent themselves:

• Tourism – target the city customers that “take a break” in the countryside. Offer to them the countryside experience;

• Start your own “countryside” online shop – see what artifacts and produce from your country town or district you can sell via the Internet.

For many countryside shops it may feel that the “end are near”. However, stand a yard back and maybe you will see opportunities rather than threats.

Image: eBizplan

 

 

Brick and Mortar Retailers got bad news – Lotto’s Moving Online

Michigan Lottery is considering the online marketing channel: Wkzo.com reports that Michigan Lottery plans to sell some tickets online. Surely they feel the same pinch as  Brick and Mortar retailers – fewer customers visiting the stores because of the convenience they get from shopping online.

Ditching the Brick and Mortar retailers

The small retailers are very dependent on the feet that lotto services bring to their shops. There is a good chance that customers buying a lotto ticket will also buy other merchandise while they are in the shop.

Other partners for Brick and Mortar retailers

This move by the lotto company may trigger other consignment suppliers to also migrate their business online. What about the big brands such as Coke and Pepsi? Coke has always been very loyal to the retail outlets that sell their cold drinks. Coke may downscale their merchandising if their traditional small retail partners get choked by the online migrations?

The effect that online shops have on Brick and Mortar retailers is causing a panic throughout the industry.

Read also:  Bricks and Mortar Retailer’s Reality Check – Adapt or Die!

 

Customers More Happy with Online Retail Shops

The Brick and Mortar shop owners may wonder what bad news is coming next. They battle to keep their shops open as their customers rather do their business with online retail shops.
They must be running out of plans if their well organised merchant displays and face-to-face service on the shop floor is not good enough.

Why is the service of online retail shops perceived to be better?

A study by ComCore (2012) revealed that online retail shops beat Brick and Mortar shops with service because:

  • The sale is faster;
  • It is easy to check out;
  • The variety of products/brands; and
  • Online tracking ability.

The only way that Brick and Mortar retail stores can compete here is to move their business online.

What service does Brick and Mortar retail shops provide better than online shops?

It is more difficult to return or exchange goods that were bought online than goods bought from a Brick and Mortar retail shop, results from the ComCor study suggested.

A possible solution for online shops to take care of return or exchange goods is to open product collection/exchange kiosks at strategic points for their customers to use.

Do I hear the bells toll for Brick and Mortar retail shops?