Amazon and Walmart-owned Flipkart are renowned for using “deep discounting” to consolidate their hold over online marketplace, thereby making it uncompetitive for offline and other online traders. It is reported that over 650 million people in India will have a digital footprint, with a majority of them having access to high-speed internet. Competing with the big names is a daunting task for any new ecommerce entrant; however, a homegrown ecommerce retailer has some major advantages and can keep the ecommerce giants at bay by adopting a few good practices:
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1. Promoting a subscription revenue model
When residents subscribe to a retailer’s products on a monthly or yearly basis, the retailer is not only assured of fixed monthly revenue but can also pass on benefits to the residents/customers. In most metros today, delivery apps use the subscription model to deliver milk, water, and other rations. A neighbourhood retailer definitely has more advantages than even BigBasket, Amazon, Flipkart, etc.
2. Keep an ear on the ground
Reliance Industries has announced the partnership of JioMart-WhatsApp to enable transactions between small retailers and consumers. Other trading confederations in the country are planning on developing similar ecommerce platforms. All these efforts are focused on taking the battle to Amazon and Flipkart. It would make sense to follow how this opposition is taking shape and the advantages it would offer.
3. Partner with a hyperlocal service provider
Hyperlocal services give an edge to local businesses, especially a small retailer, to deliver essential goods to buyers within a short radius. To avail these services, the small retailer would have to tie-up with a hyperlocal service provider. This enables the retailer to provide the customer direct service without the hassle of scheduling pickups, expediting shipments, etc.
4. Engage the help of an ecommerce consulting agency
A small retailer may run the risk of falling technologically behind the established leaders. Engaging an ecommerce consulting agency will help in optimizing your ecommerce site, making it technologically advanced, and proactively positioning your small retail business to the consumers.
5. Remember that pricing is not always your best friend
When it comes to competing with the established players, pricing cannot be the only differentiating factor. The big players can have exclusive arrangements with sellers and can still undercut your gains. Focus on providing a better experience, instead.
6. Compete on experience
Many small retailers can leverage the opportunity in providing a great user experience for the consumer. Such experiences can be delivered both instore and online. For instance, when a child visits Hamley’s Store for toys. This is an experience that can never be provided by any of the best brands online.
7. Focus on lower shipping cost
This is one aspect that small retailers can expect to have a slight advantage over big retailers. Partnering with a hyperlocal service provider enables a small retailer to ship deliveries at the lowest price quickly and efficiently to the neighbourhood consumers. Another advantage of hyperlocal services is that packaging and following up is all professionally carried out, relieving the retailer of additional hassles.
8. Evolve the retail store as a community hub
With regular contact programs and local level campaigns—offline and online, a retailer can serve the needs of the community better. The best way to go about it lies in building a social audience in the neighbourhood—a weak link in most big retailers.
9. Get personal and provide incentives
A small retailer can engage with the consumer at a personal level, sponsoring or even joining them in their festivities, celebrations, occasions, etc. This is something that the big retailers are trying to finetune, but could never get the personal touch. A personal interaction followed by an incentive will go a long way in the interest of the small retailer.
Competing with large competitors with massive resources is always daunting, but success stories are emerging slowly. To give shape to your success story, get in touch with us.
