In the digital world, the points of sale and the system of product presence on the market are significantly different from the non-digital world.
Sale of real goods
Online stores cannot be considered digital analogues of street retail and supermarkets. If in ordinary stores a purchase / sale transaction (exchange of goods for its cash equivalent) is carried out directly on the trading floor, then online trading offers only intermediary services to inform consumers about the offer of goods. In the best case, the online store only accepts payment for the goods, while the goods themselves will be delivered later from the warehouse of the seller or from the warehouse of the real manufacturer, and the transaction will be closed only at the time of delivery of the goods at the place of receipt and only after there are no objections from the consumer on quality and packaging. And this process will take place outside the online store. Thus, the intermediary function of Internet commerce is obvious. If you want to learn more about street directory, follow the link.
Beyond this, digital commerce is largely driven by:
- Simplicity and clarity of goods – the clearer the product is to the consumer, the more obvious its purchase in the digital environment.
- The magnitude of the risk that accompanies such a purchase – the more risky the transaction (the more expensive the product, the more inexperienced the buyer, the payment system is not reliable enough), the more obvious it is for the buyer to buy a real product in a digital environment;
- Availability of such products in brick-and-mortar stores – shoppers who have access to good offline stores and have in-store shopping habits are less likely to shop for these items online.
- Restrictions on the sale of a certain type of goods through online trading (alcohol, tobacco, medicines);
- Force majeure – COVED’19 has made a significant “contribution” to the development of electronic commerce of all types of goods.
Trade in digital goods
The trading service in this case is provided in digital form and involves the sequential passage of all stages of purchase / sale (informing, providing a choice, choosing, paying and receiving goods) directly on the website of the online store.
Ensuring the presence of goods in the digital world
Virtual trading shelves . This is not about analogues of offline retail shelves. A large number of digital stores do not have goods in stock, in fact they are only information intermediaries, and even the goods sold with their help, the real owner delivers these goods to the buyer on his own, and such stores do not participate in the completion of the transaction. distribution of goods and services, such as a website, an online store and consumer services.
Stores g global trade . Companies that connect buyers and sellers, even separated by borders and customs, and carry out their own logistics of these goods, have become an opportunity for the distribution of goods from abroad. Among the innovators of such trade are Amazon, Aliexpress, Wildberries, Ozon, etc. Digital tools are now able to help marketers not only ensure the presence of goods on the Internet, but also offer to use the formed distribution channels for goods.
A threat to traditional retail? The question asked in this formulation is not correct and betrays a misunderstanding of what is happening. Online shopping is not a threat to traditional physical stores, but is a logical extension of retail. And only those stores and marketers who do not understand how their retail business can be integrated into the digital world, do not understand the needs of consumers, will be threatened by online commerce. Interested in criminal background check online, follow the link to find out more.
The exit for offline retail, which is under pressure from digital technologies, is defined and understandable:
- Most system retailers have created websites that allow customers to both get information about their products and buy them online.
- A large offline retailer today sells goods on the marketplace.
- Many stores have launched a service that allows you to place an order online and then pick it up at the store or at the point of issue of goods.
Marketplace is a multi-marketplace for the online sale of digital goods and real goods (see Glossary )
Digitized Store . In addition to the fact that real stores go digital, sellers use CRM systems, IP telephony, online consultants, electronic sales scripts, and electronic commercial offers. Some are starting to experiment with the digitization of the trading service:
- To place an order for goods to a supplier without his presence in the store is a completely obvious opportunity provided by digital technologies;
- Digital price tags are unlikely to help the consumer, but they certainly can simplify the management of product price tags;
- The Sportmaster chain of stores allows you to place an order in an online store and try on selected sports goods in a physical store closest to the consumer;
- French beauty chain Sephora has installed augmented reality cameras and monitors in its stores that allow shoppers to experiment with makeup types without actually using actual products off the shelf;
- In addition, C&A clothing stores in Brazil use hangers with displays that show the number of likes the garments hanging on them have received from other customers.
- Smart grocery carts allow you to pre-aggregate the cost of a purchase, as well as send personalized announcements to customers about promotions on items in the cart and on other products.
Questions to be answered
When thinking about the presence of a digital product and its accessibility to consumers in a digital point of sale, it is important to answer a number of key questions:
How is your consumer buying?
When it comes to marketing your product, you need to imagine consumers and paint a clear picture of:
- how, where and with the help of what digital services and tools does a consumer buy similar goods?
- What products does the consumer buy or share your product with, and where are these products sold?
- the required sales volumes and marginality will require the participation of intermediaries (shops, marketplaces, sales agents) or it will be direct sales, directly to the buyer.
Availability (supply chain logistics)
If you are going to sell to retailers, they will want to know about your supply chain logistics. Be prepared to answer the following questions:
- when will your products be launched?
- what are the delivery times?
- what is the largest order you can fulfill?
- Can your warehouse handle maximum deliveries?
- What is the smallest order worth it?
- Have you created a distribution network for wholesale deliveries in different cities?
Sales support and information support for product presence on the market
- Do you offer consumers and trading partners a variety of communication channels (phone, email, Twitter, Facebook, etc.) that they can use to get in touch?
- Can you offer your digital retailers an extended support package:
- What is the system of remuneration and their bonuses for the success of sales?
- do you have a hotline they can call to speak with a product specialist?
- Is there a separate specialist, a website for retailers where they can place an order, reset a user’s order, view order statistics, find information about a specific product?
- what kind of marketing support can you provide to the product? First of all, does this apply to discounts and rebates paid to consumers when buying from intermediaries?
- do you have an online platform that allows retailers to become accredited partners and get access to the sales service and the personal account of the seller?
- Do you interact with the sales department?
- Do you have a program or platform that can increase employee knowledge about products, marketing support?
- Do you have a team of product consultants?
- Do you have customer support services?
- Service centers for warranty service;
- Sale of spare parts and consumables;
All these elements ensure the presence of the product in the market and the efficiency of the distribution system, making pillboxes available to consumers.