Convenience is king, and with Amazon overpowering the market, smaller e-commerce companies are being forced to come up with ways to compete. Amazon is bigger than the next 12 largest e-retailers combined, so it’s no wonder that companies are scrambling for ways to keep up and gain back customers who might have been won over by the vast selection and ease of purchase offered by the behemoth e-retailer. To achieve a similar level of convenience, companies have been increasingly introducing services that will increase expediency of purchases for customers, including improved shopping experience, free shipping offerings, and other essential provisions. There are numerous ways to compete with the e-commerce giant, and businesses that implement the following facets into their online selling strategy can definitely keep up with the Joneses.
Finding the Right Niche
Most companies can’t compete with the vast variety of products Amazon offers. Instead, it’s essential to find a niche and capitalize on what makes an individual company and their offerings unique. This means having a comprehensive understating of demographics, offering excellent customer service, and selling differentiated products. Businesses that offer soft line or unique items will find that they can gain a competitive edge over Amazon; while the giant e-retailer currently runs the hard line market, it’s not as dominant in the aforementioned arenas. Featuring products not easily accessed on Amazon is one way companies have been able to keep sales in their corner. It might mean investments in companies that don’t currently experience expansive national distribution, and offering those brands which may not yet built up a widespread reputation—exclusivity sells.
Building a Community
Don’t underestimate the power of community loyalty. Amazon customers frequent their site because of the low prices, but you can capitalize on another selling strategy—loyalty. Providing great products and impeccable customer service can create loyal customers that may prefer to shop from your wares because of great past experiences. These customers also provide a wonderful form of marketing through recommendation, which can bolster your business even further. To develop this sense of community, a powerful online presence is essential; this might mean a blog with interesting content that allows customers to remain informed and communicate.You might not be able to compete with Amazon prices, but you can most definitely build an audience that’s dedicated to your brand, and willing to spend the extra dollars to remain a part of that community.
Shipping and Distribution
When it comes to convenience, shipping is one of the ways Amazon has a step up on its competitors. With their Prime membership offering free two-day shipping, companies are scrambling to come up with ways to compete with this convenience. Walmart has been experimenting with free two-day shipping with the purchase of a $50 ShippingPass purchase—half of what a Prime account costs. They’re making this possible through the leverage of eight dedicated e-commerce warehouses, and are using regional carriers to ship orders instead of relying on FedEx. While still in its infancy, the forecast is promising for their efforts, but only time will tell. On the flip side, some companies offer total charge contingencies. For example, e-retailers like Baseball Monkey and Forever 21 require customers to spend at least $49 and $50, respectively, to qualify for free shipping within the contiguous United States. It’s all a matter of determining what works best for your business budget, and what appeals most to your demographic.
Businesses have also been experimenting with alternative distribution channels. Some companies offer flash sales, during which customers are beckoned to act or lose out on great prices, whilst other companies have made use of the subscription model that seems to be blossoming in popularity. Take BirchBox, for example. They curate a special selection of products and send them to customers each month, rain or shine. It’s continuous business made possible through specification, and business in all industries have found it to be a lucrative model.
Amazon is a formidable opponent, but that’s not to say there aren’t ways for strategic companies to compete with the e-commerce giant. Whether you’re an online retailer or running your own brick and mortar store, remaining competitive means innovating your processes and embracing technological offerings.
