Creating an attractive online store is all very well but in the face of seismic online retail industry shifts, focusing on the front end and failing to develop a strong strategy for your ‘behind the scenes’ operations can hinder your company in the long run.
The Australian online shopping sector is booming, with a recent IBISWorld report revealing revenue is expected to grow by 18.9% annually over the five years through 2010-15 to reach $14 billion. Therefore, it’s more important than ever for SMEs in the products and services sectors to ensure their eCommerce operations are second to none, but many SMEs are still grappling with how to succeed in the online space.
These figures reflect the new world of retail – a customer-centric, technology-driven, increasingly global and borderless experience for consumers, says National Online Retailers Association (NORA) executive chairman Paul Greenberg.
In 2015, Greenberg predicts social media will continue to empower this new breed of ‘hyper-connected’ online shopper and their loud, influencing voice. As a result, we’ll see more proof that customers prefer to shop by engaging with a brand ethos, that cross-border trade is a good opportunity for expansion, and that the most successful retailers will use multiple touch points for meaningful customer interaction.
Online retail in China will continue to explode, says Greenberg, presenting opportunities for Australian SMEs, while we will also witness an increasing number of international retailers opening shops in Australia. Changes are even threatening to cut out the ‘middle-man’ retailer, with manufacturers increasingly going direct to consumer.
With these profound shifts, SMEs need to develop a clear strategy and offer niche services and products in order to be relevant. And while many companies spend considerable time and energy on building an attractive eCommerce site, it is the unseen operations that will make or break a business.
Good retailers are the ones focusing on supply chains and fulfilment as a priority, rather than spending a large portion of their energy on the front end aspects of their website, says Greenberg.
Online retailing should be handled with responsive warehouse management systems and customer relationship management (CRM) systems for access to data and insights, he argues. It should also include multiple and secure payment options, and platforms that are easy to search, navigate and pay.
Winning Group chief executive John Winning agrees, saying that while website design and functionality is important, there’s much more to online retail than simply setting up a site.
“Your website not only needs to offer a user-friendly experience. It needs to have the capability to efficiently tie into other parts of the business. You need to consider how to integrate technology, logistics and customer service together.”
For Winning’s core site – Appliances Online – it was vital to control the final stage of the customer journey in order to be successful, he explains.
“Many of our customers were in urgent need of a replacement fridge or washing machine, so getting them the new product as soon as possible was a number-one priority.”
Winning invested in his warehousing, transport logistics and inventory management to ensure it was spot on.
“Analyse the customer experience. Measure response times, customer sentiment and social media channels, and look for ways suggested by customers to improve your business,” he says.
He also advises SMEs to engage in purpose-built technologies that allow customers to know when and how the company will deliver their product.
While eCommerce might be a fairly new pursuit, the key systems and areas of focus are not unlike traditional business models, says Greenberg, which is why a behind-the-scenes strategy is key.
The good news is that there are always innovative solutions being launched in response to this new ecosystem and expert advice is available.
Australia Post and StarTrack are experts in supply chain management and end-to-end eCommerce solutions. For more information on how to build effective behind the scenes operations for your eCommerce service, visit startrack.com.au/advantage.
Written by: Thea Christie
Australia Post and StarTrack are experts in supply chain management and end-to-end eCommerce solutions. Visit the website for more information on how to build effective behind the scenes operations for your eCommerce service.
