For small business owners well-versed in e-commerce, here’s a review of strategies to elevate your online retail game and stay ahead of the curve.
CREDIT: This is an edited version of an article that originally appeared on London Loves Business
In the dynamic landscape of UK e-commerce, where the likes of Amazon, Apple, and Currys dominate, small business owners face unique challenges and opportunities. Let’s delve into the realm of online retail and explore the strategies that can help you thrive in this digital arena.
The e-commerce landscape
In the United Kingdom, the e-commerce pie is dominated by a select few. Amazon claims a substantial 30-35% of the e-commerce revenue, while Apple and Currys account for an additional 15-25%. This means that approximately half of all UK e-commerce revenue flows into the coffers of these three giants. Even retail behemoth Tesco secures a mere 5% of the UK e-commerce market share.
The Amazon conundrum
Is Amazon pushing small businesses out of the e-commerce arena? It’s a complex question. While it’s undeniable that small businesses face increasing competition from the e-commerce giant, there remains space for entrepreneurial ventures to carve their niche and thrive.
Key strategies for success
Unique product offerings
It’s evident that an effective way to compete with Amazon is by offering products that Amazon doesn’t sell and is unlikely to offer. Identify niche markets, such as high-end stationary, office plants and foliage, or hand-crafted office products which aren’t readily available on Amazon. By catering to specialised needs, you can evade direct competition.
Emphasise local presence
Amazon’s dominance lies in its global reach, but it lacks a local presence. As a small business, you can champion your local roots and build connections with customers seeking community support. Highlight quick local delivery and consider offering same-day delivery during business days, providing instant gratification to your customers.
Streamline the buying process
Amazon excels in simplifying the buying process, offering one-click purchases and hassle-free transactions. While replicating one-click purchasing might be challenging, you can streamline your checkout process. Remove any unnecessary steps, offer free shipping where possible, and introduce PayPal checkout to enhance user experience.
Personalised order fulfilment
In the realm of order fulfilment, you have the upper hand. Amazon’s fulfilment experience can be lacklustre, with damaged products and repackaged returns. Elevate your customer experience by meticulously packaging products and adding a personal touch. Consider including free samples or handwritten thank-you notes, leaving a lasting impression on your customers.
Build a distinct brand identity
To flourish as a small online business, establish a unique brand identity. Sell products or services that are exclusive to your brand, making it a destination for customers seeking a specific experience. Much like luxury fashion brands, create an aura of exclusivity and ensure that people can only get your offerings from your platform.
Combine online and brick-and-mortar operations
Overcoming the initial financial hurdle of e-commerce can be challenging for small businesses. Consider starting with a physical brick-and-mortar store before expanding online. The revenue generated from your physical store can stabilise your operations as you build your digital presence.
In the ever-evolving e-commerce landscape, Amazon’s dominance may loom large, but it’s not insurmountable. By implementing these strategies, small business owners can navigate the digital marketplace and carve out their own success story.
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