The other day I wrote about how easy it was for my son who's a little over 2 years old to purchase ebooks using Amazon Kindle Touch. On the way to work, NPR Morning Edition had a story about how publishers and booksellers are seeing Amazon's tactic "predatory". Then I read about Target putting up their own fight against Amazon to minimize 'showrooming' by shoppers (where shoppers come on to look at the product on the shelf and buy it from Amazon) on Wall Street Journal.
I have a mixed feeling about Amazon. I like their service. As mentioned, I have purchased many things over the years, and their focus on customer service shows through out the online purchasing experience. Because it worked so well so many times for me, I don't think about it being remote. I just get online, find the product I'm looking for, click to buy, and that's it.
But at the same time, I'm a bit troubled by their tactic. Starting with not collecting sales tax to their business culture, I have become a bit skeptical whether the customer-focusing facade is really playing by the rule that all the other stores are playing by. In 2011, in response to California's attempt to collect sales tax, they threatened to pull jobs out of the state, and lobbied to put a referendum for vote to stop the measure. In following month Amazon released an app designed for shoppers to do comparison shop when they walk into neighborhood store. Its pricing policy has been known to be really aggressive in undercutting other competitors even to a point where they are taking loss.
Even with my mixed feeling about Amazon, I don't think anyone can dispute with the clear trend: More and more shoppers are getting online to shop. That's the reality, and Amazon is the best positioned to become the Walmart of 1990's.
What's fueling Amazon's growth is the shoppers online shopping trend coupled with their customer-focus in making online shopping easier. At the end of the day, that's all that matters to shoppers. As my toddler was able to buy things using Kindle, people will continue to buy things from Amazon because it's so darn easy and price competitive.
So what does this mean to Target, Walmart, Barnes and Noble, and neighborhood retail stores? How can they survive in this upcoming online shopping age?
I think the answer is different depending on product or service sold. But where everything should start is customer experience. Everyone should focus on delivering the unique and best customer experience possible so that they can come back. Competing based on price is not going to work. When a person comes in through the door, it's an opportunity to impress her to remember and come back at later time. Having physical location in fact can be an enormous advantage because you have the potential buyer right in your store where you control the environment. Make your store memorable. Everything matters, from the doormat to how products are displayed and how they are greeted by sales people.
One aspect of this unique experience can be building a community. Although there are many options to brew your own Java, people go to cafes to hang out and work because they want to hang out where people come in and out, and it provides an opportunity for them to spontaneously interact with others. People are social by nature. And these communities don't have to stop in physical store. Community can be formed in social media where members can share experiences with others.
There are some worthwhile ideas on Quora forum as well.
If you are struggling brick-and-mortar store, time to start embracing these strategies is now. Online shoppers are not going away. They just walk out your door to go online and shop. Or as Target is experiencing, they might be shopping right from your aisle.
 |
| Jeff Bezos has used 'predatory' tactics, but got the big picture right: focus on customers |
But at the same time, I'm a bit troubled by their tactic. Starting with not collecting sales tax to their business culture, I have become a bit skeptical whether the customer-focusing facade is really playing by the rule that all the other stores are playing by. In 2011, in response to California's attempt to collect sales tax, they threatened to pull jobs out of the state, and lobbied to put a referendum for vote to stop the measure. In following month Amazon released an app designed for shoppers to do comparison shop when they walk into neighborhood store. Its pricing policy has been known to be really aggressive in undercutting other competitors even to a point where they are taking loss.
Even with my mixed feeling about Amazon, I don't think anyone can dispute with the clear trend: More and more shoppers are getting online to shop. That's the reality, and Amazon is the best positioned to become the Walmart of 1990's.
What's fueling Amazon's growth is the shoppers online shopping trend coupled with their customer-focus in making online shopping easier. At the end of the day, that's all that matters to shoppers. As my toddler was able to buy things using Kindle, people will continue to buy things from Amazon because it's so darn easy and price competitive.
So what does this mean to Target, Walmart, Barnes and Noble, and neighborhood retail stores? How can they survive in this upcoming online shopping age?
 |
| One thing that retailers can do is to make the shopping experience memorable; picture shows one heck of memorable cafe (whether you'd get dizzy in it is another question...) |
One aspect of this unique experience can be building a community. Although there are many options to brew your own Java, people go to cafes to hang out and work because they want to hang out where people come in and out, and it provides an opportunity for them to spontaneously interact with others. People are social by nature. And these communities don't have to stop in physical store. Community can be formed in social media where members can share experiences with others.
There are some worthwhile ideas on Quora forum as well.
If you are struggling brick-and-mortar store, time to start embracing these strategies is now. Online shoppers are not going away. They just walk out your door to go online and shop. Or as Target is experiencing, they might be shopping right from your aisle.
No comments:
Post a Comment