Opinion: Learning from the ecommerce giants

For consumers signed up to Prime it means bargains, and will stretch Amazon’s logistics business to limits similar to peak trading.

For the retail sector, the event will be received with mixed reaction – some will dread it and others will leverage the occasion to sell more through Marketplace.

While there’s no doubt that Amazon is a force to be reckoned with, setting the standard with a strong delivery proposition and hassle-free returns processes, smaller retailers are increasingly using technology and smarter selling options to compete against this – and grow.

Indeed, nearly two-thirds of the 500 UK SME (with one to 249 employees) retailers we recently surveyed are feeling buoyant and believe their business will be in a stronger position by spring 2018.

“Strategies paying off include alternative add-ons to encourage customers to consider paying for premium delivery in order to receive their products when they want them, in line with the delivery timeframes of online giants”

Strategies paying off include alternative add-ons to encourage customers to consider paying for premium delivery in order to receive their products when they want them, in line with the delivery timeframes of online giants.

For example, access to a VIP customer service team, enhanced warranties and better processes for returns.

Carriers have also become increasingly savvy and in turn delivery costs have reduced and technology has contributed to an infrastructure that is both dynamic and cost-effective, making it easier to compete in the delivery market without the big investment made by others.

Stay positive

One of the areas that all retailers need to focus on, however, is maximising their retail estates – both on- and offline to gain advantage.

By being physically closer to customers it is easier to fulfil orders and returns, and one can provide a more personalised service and a better end-to-end brand experience.

Over the coming 12 to 18 months we will see more innovation in fulfilment and logistics, offering new services that help retailers drive a higher level of retail standards across their inventory.

Pulling resources together with other retailers such as through a marketplace can also further strengthen an organisation’s offering and help to give access to international markets.

In fact, 48% of those we surveyed felt marketplaces gave them an opportunity to establish new trading partnerships, and 47% believed that they gave them an advantage over other retailers.

There’s no denying that conditions are highly competitive, and the extension of events such as Prime Day present a concern to some retailers.

But there are and always will be event-based discounts and seasonal Sales going on.

Retailers of all sizes need to embrace the positivity in the air and continue to work hard and stay focused on the areas they can win, and compete with their peers on their own terms.